Characteristics of Thailand’s distribution system
Retail distribution channels in Thailand are diverse, ranging from traditional markets to modern retail channels such as hypermarkets, supermarkets, shopping malls, department stores, and convenience stores. 7-Eleven, Makro, Big C, FamilyMart, and Tops are among the largest retail chains dominating the Thai market.
Besides modern retail systems, local grocery stores, also known as Cho-Huay shops, remain popular because they offer low prices and convenience, while shopping there is also viewed as a way of supporting local communities.
After the COVID-19 pandemic, online retail channels continued to grow strongly in Thailand. Initially, the increase in online shopping was driven by restrictions on traditional retail during the pandemic. However, because of convenience, product variety, and competitive prices made possible through discounts and vouchers, online shopping has become increasingly popular in Thailand.
Cross-border online shopping from foreign retailers has expanded rapidly, largely because of attractive pricing even after international shipping costs and import duties are taken into account. According to the U.S. International Trade Administration’s Thailand E-commerce Report, cross-border e-commerce accounts for 30% of the country’s e-commerce market, and nearly half of Thai online shoppers purchase from overseas, mainly from China and the United States.
As consumer behavior changes, many retailers have launched their own online platforms to meet rising demand for digital shopping. Omni-channel strategies that combine offline and online sales help retailers increase revenue by tapping demand more effectively.
Source: Center for WTO and International Trade - VCCI
