Shopee is an e-commerce platform operating in South East Asia and Taiwan.
The Singapore-headquartered company recorded approximately 191% increase in orders from Korean sellers in Thailand from January to July this year.
According to Shopee, this figure is over three-times higher than other markets in the region.
During the same period, the category with the highest number of orders was beauty and personal care.
The firm is confident that the demand for Korean products will continue to rise in Thailand.
“Shopee Korea is also aiming for a 300% sales growth rate in the Thai market by next year, so we will support various services related to the Thai market, including logistics services, to lead the growth of Korean sellers,” said Shopee Korea CEO Kwon Yoon-ah.
The firm highlighted the importance of its local fulfilment service, which enables Korean sellers to reach Thai consumers in two to three days.
This year so far, 46% of orders in Thailand were fulfilled locally, allowing local consumers to get Korean products as quickly as domestic products.
Market trends
Shopee highlighted that while beauty is a large category across SEA, skin care tends to dominate sales.
However, in Thailand, the distribution of skin care and makeup was relatively even, accounting for 55% and 45% respectively.
According to Shopee Korea, several makeup brands from Korea have debuted in its top 10 rankings, which was previously dominated by skin care.
This includes brands such as Inga, Fwee, and TIRTIR. All of these brands have produced viral products, such as TIRTIR’s Mask Fit Red Cushion Compact.
Top K-beauty skin care brands that have consistently maintained growth include brands such as Torriden, COSRX, and VT Cosmetics.
Shopee Korea data recorded that from January to July this year, skin care and makeup in Thailand grew by 278% and 356% respectively compared to the same period last year.
With Thailand, Shopee Korea has observed the effectiveness of live commerce, seeing 30% more sales through Shopee livestreams.
As such, K-beauty brands are actively collaborating with local influencers to draw in consumers, especially younger ones.
Growth drivers
Shopee Korea attributed the significant growth of orders to the country's high disposable income.
It noted that Thailand has the highest income levels among its regional markets, with per capita income about twice that of Vietnam.
With this spending power comes a tendency to prefer branded and premium products.
According to Shopee Korea, average unit price of Korean products sold in Thailand is typically higher than Malaysia despite the latter’s higher income levels. In fact, the price point is more similar to Singapore.
Furthermore, K-beauty products have shown to be popular with Thai consumers for their emphasis on natural ingredients, which are perceived as gentle and effective.
Additionally, the products tend to be lightweight and hydrating products, which fit in well with the warm and humid SEA climate.
The company also attributed the popularity of Korean products to Korean pop culture, such as drama shows like The Glory.
