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Perspective on Thailand Digital Ecosystem
Dr. Kid Parchariyanon
A serial entrepreneur who, at the age of 19, developed and sold the first mobile stock trading application for the Stock Exchange of Thailand in 2005.
Dr. Kid is now a CEO and Co-founder of RISE, a leading Corporate Innovation Powerhouse headquartered inBangkok working with 400+ corporates across the region with the bold mission to lift up 1 percent of GDP for Southeast Asia. With a creative and entrepreneurial mind, he's one of the most well-known tech ecosystem builders in Thailand and Southeast Asia.
He was also the former President of Digital Advertising Association Thailand, Stanford Graduate School of Business Alumni and Fellow of Professional Associations in the US and Asia
Source: World Bank
e-Conomy SEA covers 6 countries in Southeast Asia
Philippines
Malaysia
Indonesia
Thailand
Singapore
Vietnam
105M
32M
264M
69M
6M
96M
people across the 6 countriescovered by e-Conomy SEA
Indonesia, Malaysia, Philippines, Singapore,
Thailand, Vietnam
570 million
Source: Hootsuite “Digital in 2019”
4 Southeast Asian countries rank in the Top 10 globallyby mobile Internet usage
(Indonesia, Malaysia, Philippines, Thailand)
Thailand
Philippines
Indonesia
Malaysia
IndiaWorldwide
Vietnam
Singapore
US
5:134:58
4:35
4:023:43
3:13 3:12 2:58
2:24
Time per day on mobile Internet (2019)Hours
(#)
2
3
4
5
6
China
3:19
The most engaged mobile Internet region in the world
e-Commerce
Marketplaces (SMB2C)
Malls (B2C)“Brand.Com”
Media
AdvertisingGaming
Video on DemandMusic on Demand
Ride Hailing
TransportFood Delivery
Financial ServicesTravel
FlightsHotels
Vacation Rentals
PaymentsRemittance
LendingInvestingInsurance
5 sectors of the Internet economy coveredFinancial Services included amidst increasing adoption
E-COMMERCE
E-COMMERCE
THAI E-COMMERCE LANDSCAPE
E-COMMERCE
E-COMMERCE RATIO TO RETAIL
DIGITAL MEDIA
2019 VS 2020, 35% YOY GROWTH
US$5.2B
US$7.1B
DIGITAL MEDIA
2019 VS 2020, 35% YOY GROWTH
US$5.2B
US$7.1B
ECOMMERCE MARKET SHARE
DIGITAL MEDIA
2019 VS 2020, 35% YOY GROWTH
US$5.2B
US$7.1B
ECOMMERCE MARKET SHARESOCIAL COMMERCE MARKET SHARE
DIGITAL MEDIA
2019 VS 2020, 35% YOY GROWTH
US$5.2B
US$7.1B
ECOMMERCE MARKET SHARESOCIAL COMMERCE MARKET SHAREE-MARKETPLACE SHARE
IMPLICATIONS
! E-Commerce Market continues to grow 35% YOYfueled by the crisis during Q1-Q2, 2020
! E-Market Place has the highest market share, grew from 35% in 2018 to 47% in 2019, yet still not profitable
! The data is aligned with the projection from Google/Temasek that E-Commerce is the largest and fastest growing sector compare to Digital Media, Ride Hailing, Travel and Finance
DIGITAL MEDIA
!"#$%&'()*+,*-Digital spending in 2019 was expected to exceed 20 Billion but the actual number is 19,555 Million.
Thailand digital advertising spending is stabilizing at a +16% rate of growth from 2018 to & forecasted at +13% by end of 2020.
+53%
+44%
+32%+17%
+31%
+36%
+16%
2012 2013 2014 2015 2016 2017 2018 2019 FC 2020
2,783
4,248
6,115
8,084
9,479
12,402
16,928
FC 20,163
22,186
Unit in Million Baht
+13%
19,555
AC 19,555
US$630M
US$715M
Shrinking Lifespan of Asian Corporates
Average Company Longevity (Years) since 1960 in Key Stock Exchanges in Asia
!"#$%&'(%)*+,-./0%1(2*+3*4
!"#$%#"%&#''#("%)*+$!"#$%#"%&#''#("%)*+$
The top 3 biggest Industry spenders are Motor Vehicles, Skin-care Preparations and Communications.
US$89M
US$58M
US$48M
Cheaper and Easier to Launch a Startup
Source: EDB, KPMG
Cloud services and coworking spaces driving cost of setting up a startup down to
as low as US$100,000 p.a.
More and more VC funding are pouring into Asian startups
2020
!"#$%$&'("#)*$+,#-.#/)Motor Vehicles has remains the highest spender from 2018. From previous year, the absolute spending of the category has increased by +300 Million THB annually. Skin-care Preparations beats other categories to be the second highest spenders two years in a roll.
Unit in Million Baht
2,787
1,786
1,489
Motor Vehicles
Communications
1,273
1,212
Non Alcoholic Beverages
Banks
Skin-care Preparations
2,361
1,925
1,454
Motor Vehicles
Communications
Skin-care Preparations
1,148
1,080 Banks
Non Alcoholic Beverages
FC
201920183,031
Motor Vehicles
Communications
Skin-care Preparations 2,028
1,959
1,398
1,335
Banks
Non Alcoholic Beverages
1,289
1,195
847
Motor Vehicles
Communications
Banks
723Skin-care
Preparations
644Non Alcoholic Beverages
2017
Emergence of Asian Tech Unicorns
Source: IMF: WTO; McKinsey Global Institute Analysis
Asia is the second largest home of tech unicorns,
creating over 119 unicorns or 1/3 of
world’s total.
2019Discipline SpendingOf all the disciplines, Facebookreceives the highest spending, followed by YouTube, Creative, & Display
Top five ranking remains the same
Social grows in rank from #7 →#6 while LINE declined in rank from #6 → #7
Asian Corporates Are Not Ready for Technological Disruption
Source: RISE’s Proprietary Survey
83% of the corporates think they will be impacted by technological disruption
Of those who are aware, only 31% have devised clear innovation plan
!"#"$%&'()*+,$"-".#'/01+2$"*+-
Fig in %
!"
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&' $ $#
What proportions of the budget are applied to each purpose?
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AC 2019 FC 2020
Awareness continues to be the objective of highest priority, being the first rank in 2019 and 2020.
While Engagement and Lead Generation are ranked at #2 and #3 in 2019, Lead Generation is predicted to take #2 in 2020.
IMPLICATIONS
! Thailand’s digital advertising spend was forecasted to grow to US$650M at a growth of +19% by the end of 2019 but the actual number revealed the spending increased to US$630M at a growth rate of +16%
! Facebook, and Youtube dominate the proportion of digital advertising spending with a slower growth rate
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RISE IS CORPORATE INNOVATION POWERHOUSE
GAP.RISEACCEL.COM
TRULY OUTCOME-DRIVEN INNOVATION PLATFORM IN SE ASIA
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GLOBAL REACH – 18 GOV AGENCIES
FINDINGS
! Early Stage Startup Funding will be harder for 2020, many startups in this stage will not thrive. However, Growth Stage Startups who can survive during the crisis will be able to grow
! Most of the early stage startups runway expected to be 3-6 months and will be 7-12 months for Series A and above if they can not generate cash
! B2B Startups will be more interesting especially if they are related to Remote Work and Productivity, Healthcare and Telemedicine
TAKE HOME MESSAGES
! COVID-19 is a wake-up call, transform your business using digital technology and ecosystem or you will not have a chance to do one! With or Without COVID-19, Right Partner is
still one of the most important success factor in doing business in Thailand and Southeast Asia
RISE is a leading Corporate Innovation Powerhouse based out of Southeast Asia.With the mission to lift up 1-percent of GDP of this region, we work closely withFortune 500 companies, large family businesses, and government agenciesacross the region to help set-up and scale innovation initiatives quickly. We areknown for our Global Accelerator Program, Intrapreneur University, VentureBuilding Services, and Corporate Innovation Summit - Asia’s Largest ExperientialConference. RISE has been developing a global innovation ecosystem with anetwork of more than 400 corporations, 2,000 startups, and over 20,000corporate innovators and partners in 40 countries around the world, contributingto a combined impact of over US$1 billion.
Visit https://riseaccel.com for more information about RISE