The Mall Group to return to e-commerce
What: The move towards omnichannel is part of a three-year strategic plan.
Why is it important: The company had to put e-commerce on hold for over a decade due to consumer behaviour and infrastructure issues.
Supaluck Umpujh, the company's chairwoman, announces The Mall’s return to digital commerce after 15 years. The company will launch two shopping websites - M Online and Gourmet Market Thailand - and also approach customers on other platforms such as social medias and online marketplaces.
Despite being behind other players in digital commerce, there is still an opportunity for growth for the company as the ratio of e-commerce to retail businesses in Thailand is still small (3% comparing to 9% in Japan, 22% in South Korea, 25% in China).
"We are extremely confident that the launch of these two platforms will be a big step towards providing a complete omnichannel experience", Supaluck Umpujh said. The Mall Group's chief marketing officer, added that a budget of more than THB 100 million (USD 2,73 million) had been allocated to e-commerce development. The Mall Group will also engage in full-scale omnichannel marketing campaigns, targeting 20 million page views on M Online's website by the first year.
After the first year, The Mall Group expects sales from digital commerce to reach THB 2 billion (USD 64 million). This revenue will account for 15% and 25% of total physical stores in the next three years and five years, respectively.
Food and non-food items are the key categories as they account for 38% of business, followed by electronic products at 31%, general merchandise and beauty and fashion at 20% and 11%, respectively. Demand for food and non-food items rose by 161% in 2020, while demand for beauty and fashion grew 94% followed by general merchandise by 63% and electronic products by 35%, respectively.