The retail industry in Thailand covers various segments, ranging from food and beverage to electronics and appliances. Because of its wide scope and opportunities, many entrepreneurs delve into this sector to set up their businesses.
However, they first need to familiarise themselves with the current economic landscape before proceeding with Thailand company registration. Only then can they better understand what to expect in the retail sector in 2022.
Trends in the Retail Industry
The expected trends to emerge in the retail industry this year will heavily reflect the impact of everything that happened in the past two years. Since the pandemic started, the sector has seen a significant shift in consumer lifestyle in behaviour, embracing a completely digital culture. That said, connectivity through digitisation will be the theme of the retail trends in 2022.
- Continuous Influence of E-commerceAccelerated by the COVID-19 pandemic, Thai residents of all ages and income brackets are becoming increasingly comfortable with shopping online, especially because various e-commerce channels are widely available. From social media marketplaces to delivery apps and retailer e-commerce platforms, consumers have unlimited access to diverse goods and services. As such, establishing an online presence across different channels is a trend that many business owners need to consider if they want to drive growth moving forward.
Based on the statistics conducted by Thailand’s Ministry of Digital Economy and Society, online marketplaces are the preferred platform for Thai consumers, with social media being the top sales channel. By 2025, the e-commerce segment is expected to be valued at 1.2 billion baht.
- The Emergence of the MetaverseMetaverse remains one of the biggest buzzwords in the retail industry in Thailand today. With so much potential for enhancing shopping experiences, entrepreneurs can use this tool to offer services traditional retail stores cannot.Metaverse is a unique online world that encompasses certain aspects of online gaming, social media, virtual reality, augmented reality, and cryptocurrency to enable consumers to interact and transact virtually.
The rise of the Metaverse will provide retailers with an avenue to develop hybrid shopping experiences between the offline and online worlds. Because of its vast potential, experts believe that Metaverse will be one of the hottest retail trends in 2022.
- The Important Role of AutomationAs consumers continue to optimise digitisation to enhance their experiences, so too will retailers utilise technology to improve their operations. Hence, the dominating role of automation.In recent years, automation in Thailand gathered momentum—especially in retail sectors like food processing, electronics, and automotive—as companies recognised its transformative powers to improve productivity and efficiency. Local businesses use this tool to perform extensive processes like welding, assembling, cleaning, and dispensing. In some cases, organisations use technological innovations like robots to provide customer service.
These trends as a response to the challenges brought about by the pandemic to help retailers provide better services to their customers. As such, marketers believe that they will remain prevalent in the foreseeable future.
Challenges and Solutions in the Retail Industry
However, other than opening new doors to opportunities in the retail industry, the impact of the pandemic also gave rise to a certain set of challenges, such as:
- Supply Chain DisruptionsExporters have been concerned about the high cost of transporting goods and supply chain disruptions since 2021, and it seems that it will still remain a cause for worry in 2022. This year, the export growth rate is expected to decline to around 5% to 8% from last year’s 15% to 16% as corporate leaders anticipate the deceleration of global economic growth.So, to protect businesses from the impact of these disruptions, experts recommend that they continue to invest in technology, diversify their manufacturing partners and suppliers, and develop a solid risk management plan.
- Fragile Labour MarketThe changes brought about by the pandemic has an influence on the behaviour of the labour market. Nowadays, employees have higher demands and expectations that some businesses cannot accommodate. As a result, hiring employees has become more challenging for the retail industry.There are two ways to address the issue. One is for companies to re-evaluate their hiring criteria to fit the demands and expectations of interested applicants. Another is to minimise the human workforce and maximise technological investments. Companies now need to undergo major adjustments to overcome the fragile labour market.
How Businesses can Benefit from this Information
If you want to venture into the retail industry to seize opportunities, knowing the trends and challenges shaping the landscape in Thailand this 2022 will help you develop a business plan that will ensure a higher success rate. Likewise, you can leverage your products and services on what the consumers want and need to effectively grow your business and aid in the country’s economic recovery.
For company registration in Thailand for foreign investors, engage with our experts at Reliance Consulting. We provide services to help you incorporate your business with ease and convenience.
