imagesColumn

[Thailand] Food delivery, where competition among operators is intensifying. Possibilities for New Strategies

images

Food delivery in the first half of 2020 will be 150% increase in the number of orders YoY

According to the Kasikorn Bank Research Center of Thailand, due to the closure of restaurants due to COVID-19, the number of orders for food delivery services in the first half of 2020 is expected to increase by about 150% compared to the same period last year, and by around 80% for the entire year 2020. In Thailand, food delivery services began to take root in 2015 or so, with LINEMAN and Grab Food now being the main operators.
As the use of these services increased rapidly due to the lockdown caused by COVID-19, the competition among operators also intensified. In many cases, food delivery is cheaper and easier than eating out, as there are many campaigns where if you order one set of a product that is subject to promotion, another set is included as an extra, or products are discounted by 50% or more or shipping is free. Some food delivery service providers are now opening "cloud kitchens" for more efficient delivery. Multiple food vendors are brought together in one place to use a central kitchen for cooking. From the user's point of view, even if they order from multiple stores, they only have to pay shipping costs for one location, which is a great deal.

images

Food delivery is a good match for Thailand's culture of eating out and eating in.

Thailand has traditionally been a culture of eating out and eating in. Many couples are dual income earners and drive to work or school early in the morning or late in the evening to avoid traffic jams, so most city dwellers eat out or eat in for breakfast and dinner. Food delivery services match the lifestyle of the Thai people and have been gradually penetrating their lives. Competition among businesses has widened the range of choices, and users can compare the services of different companies and choose more economical products. In addition, even younger generations such as high school students are now casually ordering tapioca milk tea and fast food delivery.
According to the above survey by Kasikorn Bank, the trend of increase in delivery services is expected to calm down after the second half of 2020 as eating out becomes possible. In the future, more efficient service delivery methods will be explored using new tactics like cloud kitchens.

This article is co-authored by TNC Lifestyle Researcher (http://lifestyle.tenace.co.jp/) and Intage's Global Researcher.

Translated with AI Translator

  • TNCアジアトレンドラボ

    Author profile
    TNC ASIA Trend Lab

    TNC ASIA Trend Lab is an information organization run by TNC Inc. that researches and shares trends in Asia. It supports corporate marketing activities by finding insights from trends rooted in the lifestyles and habits of local consumers.
    http://tnc-trend.jp/

  • Intage Inc

    Editor profile
    Intage Inc.
  • Mar 03, 2021
  • 1235 Views

Reproducing and quotation
  • The copyright of this report/column is held by Intage Inc. or the company to which the author belongs. Please confirm the following prohibitions and cautions, and specify the source when reproducing or quoting.
    Example:
    "Source: Intage's Research Report "(Report title) (issued on DD/MM/YYYY)"
    "Source: Global Market Surfer, article published on DD/MM/YYYY"
  • Prohibiton:
    • Modification of part or all of the contents
    • Sale or publication of part or all of the contents
    • Use that is offensive to public order and morals or that leads to illegal activities
    • Reprpducing or quotation for the purpose of advertising or sales promotion of companies, products, or services.
  • Other cautions:
    • We are not responsible for any trouble, loss or damage caused by the use of this report.
    • These terms of use do not restrict the use of quotations, etc., which are permitted under the Copyright Act.
  • If you have any questions about reprinting or quotation, please contact us from here