Temu, a rapidly expanding e-commerce platform from China, has recently entered the Thai market, its third in Southeast Asia after Malaysia and the Philippines. This move intensifies competition in Thailand’s already crowded e-commerce sector, which is currently dominated by players like Shopee, Lazada, and TikTok Shop. Despite its aggressive discounts of up to 90%, Temu faces significant challenges due to the market’s saturation with low-cost options and logistical hurdles that complicate last-mile deliveries.

The growth of Thailand’s e-commerce market is expected to continue, with projections suggesting it will reach nearly 700 billion baht in 2024, up from 634 billion baht in 2023. However, Temu’s entry could trigger a price war, pressuring local retailers as demand shifts toward cheaper imports. This situation presents a dual challenge for local businesses: they must innovate to stay competitive while navigating the impact of new, aggressive players like Temu.

For brands looking to enter Thailand’s e-commerce market, the key to success lies in differentiation. Leveraging unique products, enhancing after-sales services, and localising to fit with Thai consumer preferences can help brands gain success.