Rising Thai discontent over Chinese e-platform

Rising Thai discontent over Chinese e-platform
Thank you for shopping with us sign / Unsplash - visuals
By bno - Bangkok Office August 21, 2024

Concerns are mounting among Thai consumers and businesses over the rapid rise of Chinese e-commerce platform Temu, which has quickly gained traction in Thailand by offering steep discounts of up to 90%. The platform's direct-to-consumer model, which bypasses intermediaries and leverages group buying, is perceived as a significant threat to local retailers, according to a report by Thailand Business News.

Since its entry into the Thai market in July 2023, Temu has sparked fears of unfair competition, supply chain disruptions, and potential job losses.

The platform's aggressive pricing strategy has prompted a backlash, with a growing social media movement using hashtags like #แบนTemu (Ban Temu) to voice opposition. In response to the rising discontent, Thai authorities are closely monitoring Temu's operations and exploring strategies to mitigate the platform's impact on the local economy.

Government agencies, including the Revenue Department and the Ministry of Commerce, are assessing the situation amid concerns that Temu does not currently contribute to local tax revenues.

Meanwhile, the influx of low-cost Chinese products continues to put pressure on Thailand's manufacturing sector, leading to factory closures and layoffs. The situation underscores the broader challenges faced by local businesses as they struggle to compete with the scale and affordability of Chinese imports.

Tech

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