November 2023
The Thailand SUPERAPP Opportunity for Growth
The Rise of the SUPERAPP Economy in Thailand
In recent years, Thailand has witnessed the rapid rise of the SUPERAPP economy. SUPERAPPs are mobile applications that provide a wide range of services and solutions to users, all within a single platform. These apps have gained immense popularity among Thai consumers. The country boasts high internet penetration of 90% and a strong position in digitization, with the rise of gaming, live streaming, and digital banks. Thailand is at a strategic advantage to capitalize on the SUPERAPP opportunity, supported by the tech-first mindset of conglomerates such as CP Group, PTT Global, True Corp, and Central Group.
SUPERAPPs can create connected journeys and orchestrate experiences that drive convenience, efficiency, and the ability to meet multiple needs. They force companies to expand their distribution channels beyond their core business offering. By embracing this shift and adapting to the changing landscape, companies can embed themselves in their customers’ entire life journey and foster continuous growth.
Key Facts:
- 2 out of 10 of the largest Southeast Asian digital platforms (GRAB and LINE) are in Thailand.
- TrueMoney and SCB Easy are among the most downloaded apps in Thailand.
- Over USD 516 million in e-commerce transactions were done via digital wallets in 2022.
- The Thai population spends over 5 hours per day using the internet on mobile phones.
SUPERAPPs: The New Face of Embedded Ecosystems
The success of SUPERAPPs is derived from their role as platforms allowing multiple unrelated services—often also provided by third parties—to live within a single ecosystem. Deep-pocketed mega companies such as conglomerates or mass-adopted digital platforms can launch their own SUPERAPP; small- to medium-sized firms usually aim to integrate into third-party apps.
SUPERAPPs thrive when they become embedded in a customer’s daily life. For example, GRAB successfully transformed from its humble beginnings as an online taxi booking service to a powerful ecosystem that includes ride hailing, food delivery, loans, insurance, payments, and investments.
SUPERAPPs offer enterprises in Thailand the opportunity to create simple, linear customer journeys that can be completed without multiple apps, browser sites, or repeatedly inputting personal details. Seamless journeys like these will immensely enhance customer experience and drive efficiency value. They increase the propensity to purchase, deliver higher basket values, and reduce drop-out rates. Enterprises can achieve greater customer lifetime value through sustained loyalty and engagement.
Examples of SUPERAPPs:
- Grab
- Shopee
- WeChat
- TikTok
- KBank
- LINE
- gojek
- Kasikornbank
Top 3 Companies Acing the SUPERAPP Model in Asia:
- Grab
- Services: Social/messaging, e-commerce, food delivery, ride-sharing, other O2O services, delivery & logistics, Grab Fin. Group, digital bank joint venture
- In-app messaging: Yes
- Number of customers: 185 million
- Valuation: USD 15.5 billion
- TikTok
- Services: Social/messaging, e-commerce, gaming, entertainment, content creation, delivery & logistics, payments, digital bank
- In-app messaging: Yes
- Number of customers: 1.6 billion
- Valuation: USD 66 billion
- Shopee
- Services: Social/messaging, e-commerce, food delivery, ride-sharing, gaming, delivery & logistics, payments, consumer lending/banking
- In-app messaging: Yes
- Number of customers: 200 million
- Valuation: USD 16 billion
Key Drivers for Enterprises to Build a SUPERAPP:
- Reduce the cost-to-serve for the end customer by integrating multiple services into one platform through third-party partnerships, reducing the cost of customer acquisition and new product creation.
- Introduce new revenue streams to increase wallet share by expanding the product portfolio beyond core services to drive fee-based income models.
- Enable data-driven hyper-personalized experiences by generating valuable insights into user behavior, preferences, and trends to build product offerings that serve everyday customer needs.
- Create a synergistic partner ecosystem by onboarding new partners to produce adjacent growth opportunities and expand customer reach.
Drivers of SUPERAPP Success:
- Strong partnership ecosystem
- Convenience
- Cost saving
- Product innovation
- Personalization
- High consumption of services
Unlocking the SUPERAPP Opportunity in Thailand
Thailand owns nearly 1/5th of the Southeast Asia (SEA) digital economy.
Overall Digital Economy, 2022-2025, GMV (US$ bn):
- 2022: Thailand USD 35.0 bn, Southeast Asia USD 194 bn
- 2025: Thailand USD 53.0 bn, Southeast Asia USD 330 bn
- CAGR (2022-25): Thailand +15%, Southeast Asia +19%
- Thailand’s digital economy is poised for continued growth, with a projected value of USD 53 billion by 2025, growing at a CAGR of 15%.
- Consumer-facing industries such as e-commerce, consumer goods, payments, e-travel, e-media, transport, and food delivery are experiencing significant digital disruption.
- Nearly 90% of users now transact through mobile applications, indicating a high level of digital adoption and a growing demand for mobile-first services.
- Thailand has entered the growth stage marked by internet connectivity and its expansion to smaller cities, increased social media advocacy, rising middle incomes, and high reliance on online purchasing.
Digital Services Consumer Penetration Spurs Economic Growth
- Singapore: Pre-pandemic 87%, new digital consumers (2020-21) 10%, non-users 3%
- Thailand: Pre-pandemic 74%, new digital consumers (2020-21) 16%, non-users 10%
- Malaysia: Pre-pandemic 69%, new digital consumers (2020-21) 12%, non-users 19%
- Indonesia: Pre-pandemic 70%, new digital consumers (2020-21) 10%, non-users 20%
- Vietnam: Pre-pandemic 61%, new digital consumers (2020-21) 10%, non-users 29%
- Philippines: Pre-pandemic 54%, new digital consumers (2020-21) 13%, non-users 32%
- SEA added 67 million new digital consumers, highlighting the growing importance of digital services.
- Thailand ranks 2nd in digital services consumer penetration with 10.8 million new digital consumers, accounting for 16% of the total consumers in Thailand.
- Thailand’s digital service market is highly competitive, with both local and international players vying for a share of the market.
- In 2022, Thailand observed a significant rise in capital invested, amounting to USD 530.1 million across 38 deals.
The Rise of Integrated Services Through Digital Platforms
- E-commerce: 95%
- Transport/Mobility: 53%
- Food Delivery: 78%
- Travel and Tourism: 55%
- Gaming: 56%
- Streaming: 62%
- The ASEAN SUPERAPP market in Thailand is expected to reach USD 23 billion by 2025.
- E-commerce, transport/mobility, and food delivery sectors are the three industries poised for continued growth.
- Of the surveyed population, 23% intend to use e-commerce services more, while 13% and 16% expressed intent to use transport and food delivery services more, respectively.
- The e-commerce market is expected to grow at a CAGR of 18.6% from 2021 to 2028.
- Conglomerates, banks, and fintech leaders have prioritized the SUPERAPP strategy as a top priority for growth and sustainability.
Benchmarking Top SUPERAPPs in Thailand
Opportunities of SUPERAPPs in Thailand (2023):
- Payments: Opportunity Size USD 35 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
- Mobility: Opportunity Size USD 2.4 Bn, Profitability Low, Ability for New Entrant High, Potential for Disruption Medium
- E-commerce: Opportunity Size USD 25 Bn, Profitability Low, Ability for New Entrant High, Potential for Disruption Medium
- Gaming: Opportunity Size USD 1.4 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption Medium
- Insurance: Opportunity Size USD 15 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
- Delivery: Opportunity Size USD 3.9 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
- Telecom: Opportunity Size USD 12 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption Medium
- Banking: Opportunity Size USD 45 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
- Travel & Hospitality: Opportunity Size USD 3.1 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
- Wellness: Opportunity Size USD 29 Bn, Profitability High, Ability for New Entrant High, Potential for Disruption High
Benchmarking Top SUPERAPPs in Thailand:
- true: All segments. Dominant in telecom with a strong customer base and well-developed ecosystem
- Shopee: All except telecom and wellness. Satisfying shopping experience with offers, interactive games, quizzes, and rewards
- Lazada: All except telecom. Immersive shopping via Lazlive, swift shipping, and tracking
- AirAsia: All except telecom and wellness. Affordable flights and hotels, strong focus on travel and financial services
- CENTRAL Group: All except travel. Convenient online shopping via lifestyle app, access to trends and products
- Robinhood: All except telecom and wellness. Localized approach connecting small business merchants with Thai consumers
- SCB: All except travel. Focus on digitalization and modernizing traditional banking channels
- LINE: All except travel. Integrated offerings across 7 growth segments in Thailand
- Grab: All except telecom and wellness. Strong localization, Thai cuisine food delivery, Grab TukTuk ride-hailing
Reimagining the Future SUPERAPP Growth Opportunity:
- true: Leverage DTAC merger to broaden financial services, introduce micro-insurance and merchant payments
- Shopee: Partner with top travel companies and wellness centers to enable use of rewards and loyalty credits
- Lazada: Elevate app with virtual shopping-led games, new games from Thai partners, exclusive TikTok live streams
- AirAsia: Launch Air Asia wellness with exclusive benefits for frequent travelers, services at airports and wellness centers
- CENTRAL Group: Introduce ‘Pay with Central’ all-inclusive payment service, including buy now pay later, QR payments, and merchant payment ecosystem
- Robinhood: Partner with brands across lifestyle, groceries, and deliveries; enable restaurant bookings, hotel reservations, and recreational activities
- SCB: Introduce SCB gaming to improve financial literacy, saving, and investment behavior
- LINE: Explore partnerships with Lazada and SCB for gaming services; expand Line health to include wellness centers
- Grab: Expand market reach by localizing efforts, integrating travel, penetrating tier 2 cities, and introducing Grab insurance starting with micro-insurance for rides
Growth Imperatives to Run Successful SUPERAPPs
The Publicis Sapient Approach to Establish a Successful SUPERAPP
- Identifying a Winning Proposition with Strong Product-Market Fit and a Viable Business Model
- Establish commercial objectives (growth, market share protection, diversification), target client segments, partner landscape and approach, economic model, and regulatory approach.
- Understand the priorities of potential partners and the value extracted by each partner in the transaction process, as it impacts the economic model.
- Create a product development model that recognizes and accommodates the needs of customers, partners, and the company itself.
- Identify platform capability and architecture to define key components and decide what to build, buy, or reuse to shape underlying technology.
- Define the Path to Create an MVP Through Internal Expertise and Collaborative Partnerships, and Swiftly Test in the Market
- Adopt a holistic, customer-centric approach that connects different touchpoints across the customer journey, creating a seamless and integrated experience.
- Embrace an iterative approach to MVP development, rapidly prototyping and testing ideas to gather feedback and make improvements.
- Incorporate partner and customer feedback early in the process to ensure the proposition remains relevant during development and testing.
- Optimize the customer journey by proactively identifying pain points and friction through data-driven insights while delivering maximum value.
- Craft an AI and ML-Driven Experience Tailored to User Preferences
- Understand customer behavior and preferences to create better personalized recommendations and services, increasing engagement and loyalty.
- Analyze data and track customer purchase history, browsing behavior, search queries, and other metrics to gain valuable information about customer needs and preferences.
- Build hyper-personalized recommendation systems by predicting customer consumption patterns and analyzing customer activity.
Let’s Connect
- Tyler Muñoz
Senior Client Partner, ASEAN
tyler.munoz@publicissapient.com
- Andrew Male
Client Partner, ASEAN
andrew.male@publicissapient.com
- Aman Sud
Chief Growth Officer, ASEAN
aman.sud@publicissapient.com
- Onmanee Dilokvanichkul
Group Creative Director Experience, ASEAN
onmanee.dilokvanichkul@publicissapient.com
About Publicis Sapient
Publicis Sapient is a digital business transformation company. We partner with global organizations to help them create and sustain competitive advantage in a world that is increasingly digital.
We operate through our expert SPEED capabilities: Strategy and Consulting, Product, Experience, Engineering, and Data. Combined with our culture of curiosity and deep industry knowledge, this enables us to deliver meaningful impact to our clients’ businesses by reimagining the products and experiences their customers truly value.
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