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Why Thailand is a Great Place to Build and Launch Your Startup

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Why Thailand Is a great Place To Build And Launch Your Startup By Paul Srivorakul | Ardent Capital


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DKSH Thailand had 40% of the group's $9.3 billion in sales last year.


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Thailand - Online Retail Sales Forecasts 2010-2015: Compound Annual Growth Rate of 22.78% Thailand- Online Retailers Segmentation, Sales Forecast by Category (US$ Million), 2005- 15. Source: ICD Research 6000.0 5.6B Sports & Leisure Equipment 4.8B 5000.0 Home & Garden Products 3.9B US $ Million 4000.0 3.1B 3000.0 Books, News & Stationery 2.5B Apparel, Accesories & Luxury Goods 2.0B 2000.0 1.4B 1.5B Music, Video & Entertainment Software Food & Grocery 1.3B 0.8B 1000.0 0.6B 0.0 2005 Furniture & Floor Coverings Electrical & Electronics 2006 2007 2008 2009 2010 Year 2011 2012 2013 2014 2015


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Digital ad spending is growing very fast Thailand’s Digital Spending (mil. USD) 126 93 67 2011 % of digital in total advertising spend Source: Digital Advertising Association Thailand 34% 39% 2012 2013F 2.34% >3%


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E-commerce in SEA still has so much room to grow % reach of e-commerce category in Southeast Asia is still below the world’s average of 72% of total internet users. % Reach of E-commerce Category % Reach of E-commerce Category Malaysia 50.2% North America Philippines 50.7% Europe Indonesia 66.8% Asia Pacific Singapore 67.2% Middle East & Africa Source: Southeast Asia Digital Future in Focus 2013, ComScore 78.1% Latin America 54.9% Thailand Vietnam 88.6% 79.2% Worldwide 70.6% 67.0% 51.2% 72.0%


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• We do not start in Singapore, because the exits are too small and the market is too small. • We do not start in Indonesia, because it is too difficult as a first market, with too many challenges. • We start in Thailand, because it is difficult, but not too difficult.


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Language use to be a big barrier, but more Thais Strong middle class with an appetite space) speak English today (especially in Tech to spend


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Strong middle class with an appetite to spend (big shopping culture)


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Good quality of life and a culture that knows how to have fun and relax


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Good public transportation


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A very trendy culture willing to experiment and try new things


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The “open” culture and freedom of expression attracts people (both good and bad)


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It’s cheap to live here and start a company


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Competition is relatively low, but that is changing rapidly (rocket refugees)


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It is possible to succeed in Thailand, and learn very valuable lessons for expanding into emerging markets. • • • • • Closed language issues Banking issues such as cash on delivery, logistics Working with global and regional brands Proof of concept applicable to other markets Market dynamics similar to other markets (ie Internet/mobile penetration, ad spend, ecommerce After Thailand and Indonesia, we tackle Philippines, Malaysia, Singapore, and Vietnam


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Regional Expansion: Thai e-publishing firm Ookbee continues regional expansion with Singapore Press Holdings


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I’ve always loved Thailand ever since I visited as a backpacker in 1991… It is really a unique culture, known for its food, considerate people, and comfortable lifestyle.”


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Our first ensogo office in Bangkok Rent = 50,000 Baht / month


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Second office and warehouse in Bangkok Central Office Entrance Office Storage & Warehouse Production Team Customer Service Offsite Picking & Packing Office Offsite Warehouse


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Our first office in Philippines


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Our first office in Indonesia Our ensogo office in Philippines


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In June, we launched aCommerce with an office and warehouse Central Bangkok Office, Thailand Marketing Team Events & Publicity Secure, AC Warehouse in Bangkok Order Fulfillment Next Day Delivery


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aCommerce launches at Echelon Singapore


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Ecommerce End-to-End Solutions Marketing Design & Production Channel Management ERP & CRM eCommerce Development Warehousing & Fulfillment Call Center Delivery Payment Gateways Collection on Delivery


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Our first clients No. 1 Japanese TV Shopping Network


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NEW! PopShop is an eCommerce platform for publishers to launch and manage an eStore on their own media site Our eCommerce platform and services include: • Warehousing • Shipping & Delivery • Creative & Production • IT Development • Call Center Services • Payment & Accounting • Merchandising & Buying


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PopUp Shops - A smart sales & retailing strategy Experiment Execute Online and offline Pop-Up shops are a great way for retailers to test the sales and marketing potential of their products before heavily investing ecommerce.


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Why Thailand? • Reasonable legal setup (BOI is a great structure) • Reasonable payments infrastructure • Good credit card and banking penetration in the population • Reasonable logistics (transport and traffic are OK) • High mobile phone penetration including very • High smartphone penetration, • High quality mobile broadband, large market, closed language market, price premium on exit.


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The ASEAN Economic Community (AEC) represents a tremendous opportunity to do business in Southeast Asia In 2015, Southeast Asia will transform into an integrated market, making it easier for businesses in Southeast Asia to expand. What it comprised of… What it means… Free flow of goods Cheaper and easier to sell goods across borders Free flow of services Easier to provide services and establish companies in the region Free flow of investment More attractive to foreign direct investment Free flow of capital Easier to obtain/move capital across the region. Free flow of skilled labor Easier to recruit talent from countries in Southeast Asia


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Thank you


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