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Tag: Ascend Group

  • Bangkok commerce group launches WeMall

    Bangkok commerce group launches WeMall

    Bangkok company Ascend Commerce has spent more than Bt300 million (US$8.555 million) branching into eCommerce by developing WeMall, which it hopes will feature more than 1000 brands next year.

    Ascend Group CEO Punnamas Vichitkulwongsa says the ASEAN eCommerce industry has outpaced the global growth rate. Thailand’s share of the $15 billion online retail market in the region is around $2 billion, with the country ranking fourth behind Singapore, Indonesia and Malaysia.

    appwemall

    Ascend GM Seubsakol Sakolsatayadorn says online shopping now accounts for 2.3 per cent of the total retail-market value in Thailand, with the growth rate for developed nations ranging between 10 and 12 per cent.

    He says WeMall will focus on end-to-end services and promote itself as the branded marketplace with trusted mechanics for online shoppers. The outlet offers two forms of partnerships, full-scale services and self-formulated services.

    “Brands can run their own online outlets via ready-to-use features. When the business climate turns increasingly competitive, they will be able to adjust their strategy in a timely manner.”

    WeMall has been running trial services for a month, during which it attracted more than 2 million visitors, and more than 60,000 products were sold and delivered.

    “In its pivotal phase,” says Seubsakol, “WeMall features more than 15,000 items from more than 1100 brands in nine main product categories: beauty and healthcare, home appliances, electronic devices, computers and laptops, lifestyle, mums/kids/babies, cellphones and tablets, and cameras and gadgets.”

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  • Alibaba entry stirs up Thai e-commerce

    The recent acquisition of Lazada Group by Chinese e-commerce giant Alibaba Group poses a challenge to local online product manufacturers and retailers who anticipate a potential flood of Chinese-made products.

    The move by Alibaba is expected to shake up Thailand’s e-commerce market. It’s also putting more pressure on other e-commerce companies.

    “The number of business-to-consumer e-commerce companies is likely to fall to only two to three over the next three years, down from five, because of fierce competition,” said Punnamas Vichitkulwongsa, chief executive of Ascend Group, a subsidiary of CP Group that operates the iTruemart and weloveshopping websites.

    “But the entry of Alibaba will spur competition in the local e-commerce market, which is likely to benefit Thai consumers and the industry,” he said.

    There are usually two dominant e-commerce players in a country, said Ms Punnamas.

    Pawoot Pongvitayapanu, president of the Thai E-Commerce Association and founder of Tarad.com, said if Alibaba continued using Lazada’s subsidised promotion strategy, the Chinese firm could become a dominant player in Thailand’s e-commerce ecosystem as it has its own payment and logistics systems for websites.

    However, local online product manufacturers, especially those that make IT accessories, consumer electronics and fashion items, will face a greater challenge from cheap Chinese products.

    Paul Srivorakul, group chief executive of aCommerce, believes Alibaba’s entry will create an innovative e-commerce market in Thailand, attracting more foreign investors.

    He expects more mergers and acquisitions in the local e-commerce industry next year as a result.

    Santit Jirawongkraisorn, co-founder of Lalamove Thailand, a Hong Kong-based on-demand delivery app provider, said existing e-commerce companies in Thailand would face intense competition from Alibaba’s presence. But the increased competition can drive consumer gains and promote the overall e-commerce market, he said.

    Alessandro Piscini, chief executive of Lazada Thailand, said Alibaba’s investment reflected the huge potential it saw in e-commerce for the region and the role it expected Lazada to play in the local markets.

    The partnership will bring significant synergies that enhance the online experience for both buyers and sellers in Thailand, he said.

    In a related development, PwC Thailand released its latest report on Global Total Retail 2016: They say they want a revolution which polled some 23,000 online shoppers in 25 countries to track retail consumer trends, including mobile shopping and social media influence.

    The report revealed that 51% of online shoppers in Thailand said they purchase goods directly via a social media channel, outpacing India (32%), Malaysia (31%), and China (27%).

    Fifty-three percent of Thai online shoppers said that customer reviews influenced their buying behaviour.

    The survey also showed that social media influenced 78% of shoppers globally, up from 68% in a similar study last year, with 92% of emerging market shoppers buying products based on social media recommendations.

  • Orders soar for iTrueMart parent

    Orders soar for iTrueMart parent

    “Exceptional” growth has been reported by eCommerce provider Ascend Commerce in its latest fourth-quarter, as it seeks to draw on its winning strategy in Thailand to expand into new markets.

    Part of the Ascend Group, it comprises online stores iTrueMart and WeLoveShopping, which reported 65 per cent more orders for the final quarter of last year.

    While seeking to attract new customers through brand partnerships, Ascend Commerce reported an average of 14,000 orders a day, with a peak of 30,000 orders in a single day. There were also repeat sales among as much as 50 per cent of its customer base.

    “With our category-by-category approach proven in Thailand, we are now expanding throughout Southeast Asia,” says Ascend Group CEO Punnamas Vichitkulwongsa. “Based on the strength of the customer response so far, we are confident we will be able to provide access to the same shopping experience that people in urban areas enjoy to improve the standard of living for the millions who live in rural areas.”

    While iTrueMart is a business-to-consumer retailer, WeLoveShopping is an online marketplace for small business, entrepreneurs and consumers. Both businesses originally launched in Thailand.

    Ascend Commerce invested in its own fulfillment centres last year as a way to retain control over the whole process, from purchase to delivery. Punnamas cites this investment as key to giving customers an excellent experience, resulting in repeat purchases.

    At the same time, iTrueMart has been successful in terms of speedy delivery, with 98 per cent of orders being delivered the next day in Bangkok, or within two days for rural addresses.

    During the year, iTrueMart also launched in The Philippines.

    WeLoveShopping’s orders grew nearly 300 per cent in Q4, with the number of new sellers rising by 1300. The outlet also signed agreements with new brands, helping drive new business.

    “In the first days of 2015, we launched with just a few hundred orders per day and we have grown 700 per cent to achieve great results by the end of the year,” says Ascend Commerce GM Seubsakol Sakolsatayadorn.

    “We will continue with our strategy of winning on a category-by-category basis. We will introduce a new category only when we are sure of the strength of the product offering.”

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