Expert warns of disruption as Temu enters Thai e-commerce market

An e-commerce expert is warning Thai online retailers of a greater influx of cheap Chinese products following the entry of online sales platform Temu into the Thai e-commerce market on Monday.

In an interview with Krungthep Turakij’s Deep Talk on Wednesday: Pawoot Pongvitayapanufounder and CEO of Creden.co and PaySolutions, noticed that Chinese products were flooding the Thai online market through apps like Shopee, Lazada and TikTok Shop, which serve both Thai and Chinese retailers. However, this is set to change with the arrival of Temu.

“The Temu app brings Chinese products to Thai consumers without intermediaries,” he said. “It is also available in Thai, accepts Thai currency and offers free shipping and a money-back guarantee, in addition to promotions and discounts of up to 90%. The app will be a new disruptive force and will have a significant impact on Thai online retailers.”

Online retailers already face a highly competitive market with a multitude of domestic and foreign rivals, leading to intense price wars.

“Furthermore, platform operators have increased the fees and profit shares charged to retailers, which is not regulated by the government,” he said.

Pawoot predicts that Temu could spell the end for small retailers who will not be able to compete in the price war, while large retailers that own manufacturing plants will see their sales fall because their costs are higher than those of Chinese manufacturers.