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E-commerce market, more than 77% of the products in the markets are from China!
Date Oct 03, 2020 at 2:24 PM
Priceza Reveals Ideas Popular Products From Online Platforms Thais Order Most Of The Time Almost 80% Are From China, And Practical Advice For Thai Entrepreneurs?
According to Priceza (Priceza.com) online product search and price comparison platform Insights revealed that in 2018, the number of products in 3 leading markets such as Lazada, Shopee and JD Central, had more than 74 million products and, in one year, the number of products increased 2.4 times or more than 174 million by the end of the year. In 2019, 174 million units were imported, 77% or 135 million were imported.
Reflecting that the products that people find in most of the 3 platforms are All come from abroad, almost 80%
Top 3 products from China
Fashion products n. 1
No. 2 mobile phone products, gadgets
No. 3 Sporting goods
Many low-priced products Strike the hearts of Thai consumers
While the market, all 3 are very competitive. One of the things you have to compete with is the variety of products. Anyone who has a greater variety of products will do it differently from the others. The more products you bring United at a price that is not very expensive Make consumers like it
The inequality of Thai merchants with the Chinese
For Thai traders Besides being undermined by Chinese suppliers One of the things that made the inequality more evident was the tax regime.
Look at the inequality of the tax structure “Thai seller”
Part 1 Value added tax
Thai consumers When ordering products from abroad If the product is worth less than 1500 baht, the consumer is not subject to 7% VAT and no import customs duties are required.
That means Nowadays, Chinese goods priced below 1,500 baht are cheaper than Thai sellers. As for not having to pay VAT and not having to pay import customs.
For example, selling clothes at 100 baht a piece, that company must charge 7 baht of VAT from consumers. To send to the Department of Revenue
But at the same time, if the clothes cost 100 baht a piece shipped directly by Chinese merchants They don’t need to charge 7% VAT.
Therefore, Thai and Chinese merchants There will be different costs. This is the reason why foreign products are cheap because their costs are cheaper than those of Thai merchants.
Section 2. Import Customs Tax
Thailand’s import tariffs have an import duty rate in the range of 5 to 30 percent, which means that Thai companies import products from China and sell them to Thai consumers. You must pay the import customs
But Chinese merchants shipping goods to Thai consumers do not have to pay this import customs duty.
Section 3. Income Tax for Chinese Companies Not Registered in Thailand
By operating the business until you can make a profit You don’t have to pay taxes to Thailand. Different from the business of Thais.When making a profit, they have to pay taxes on the profits generated.
What should Thai entrepreneurs do?
Are there still chances to compete? Products from China are very affordable. If you can’t fight the price, you may need to switch to after-sales service because some consumers don’t care how cheap the product will be. But more interested in service
For example, if you want to buy a plug Sellers should pay attention to after-sales service. The product has a safety certificate. In which country is the product produced? Is there an industrial product standard (TIS) or not, although the price is more expensive? But it gives you peace of mind that it is definitely safe to use
In the service, impressing consumers is one of the things that can make you beat your competitors, for example: 1. The transport has free delivery How many hours of fasting? 2. Does the service area cover the needs or not? 3. Guarantee We have after-sales service, chat and answer customer questions in a timely manner 4. Various forms of payment Be an option for consumers
If today we have to compete with hundreds of millions of Chinese products Thai entrepreneurs do not consider themselves a handicap or a handicap at all. It is only necessary to take into account the uniqueness of the product. What is different from other products After-sales service How to make a good impression Is there a comprehensive sales channel option?
These are the ways to get “Thai sellers” to fight Chinese merchants.
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