Sale online in Thailand of cosmetics, food supplements and other products subject to licenses in Thai FDA
Sale online in Thailand is one of the most developed and profitable channels for each type of product.
So far, the online sale of licensed products in Thailand has had a major obstacle: the manufacturer was not able to register the product on his behalf and therefore had to depend on the usual importer free to act on the market at will and (above all) the recipient of most of the profit.
Thanks to the One Stop Shop service offered by Kha Group it is now possible for an Italian manufacturer of dietary supplements / food supplements, medical devices, cosmetics, to sell online directly on the major online sales platforms such as Lazada, Shopee, Amazon.
How? Let’s see it below.
A foreign manufacturer can sell on ecommerce platforms in Thailand
Thanks to our “One Stop Shop” project, Kha Group takes on the responsibility of representing the manufacturer in Thailand.
Take for example the case of a cosmetic. Kha Group then provides for:
- Registration in Thai FDA of the cosmetic as License holder
- Import and storage of cosmetics
- Opening of the pages dedicated to cosmetics on the desired platforms (Lazada, Shopee, Amazon)
- Promotion of pages dedicated to cosmetics via social networks
- Order processing and collection on a dedicated bank account
- Billing to end customers and payment of the product sold monthly or fortnightly
- Post-sales and returns management
This One Stop Shop system allows the manufacturer to enter the market directly and brand their cosmetic (or any other product sold to the final consumer) in a very short time and with a lower investment than traditional channels.
As can be seen from the figures below (source: Web marketing for internationalization), the advantages in terms of time and money are important and can be applied without problems to online sales in Thailand.
The advantages of online sales in Thailand
In terms of time and break even, online sales in Thailand represent a huge advantage for the manufacturer. (see our article on this topic HERE)
The times are reduced to the minimum, since the activity of certification, preparation of the sales channel (Lazada platform, Shopee, Amazon or others), and promotion can be contextual and does not depend on distributors on which one cannot exercise any control.
The online sales activity starts immediately (within 6 months), against the 18 normally required to “open a new country”.
The manufacturer knows its final customers (who have in the meantime already purchased the product), and can exercise targeted promotional actions once they understand the ideal segment of its audience. Generally this action in the traditional channel (distributor) presupposes a focus test or an on-field test, for consideration and that usually takes 3 months to reach a conclusion.
The profit margin of sale online is very high!
A very important factor that allows the producer to return the investment in times usually equal to one third compared to those of the traditional distribution channel: the commercial margin.
With the online sale, the commercial margin, less the percentage reserved for Kha Group for the One Stop Shop service, and all of the producer. In practice it turns out to be 65% higher than an EXW sale.
Is an investment required for online sales in Thailand?
Yes, as in any market opening an initial investment is required, the relevance of which depends on the number of products, the expectations and the sales targets that the manufacturer places on the market. In general it is equivalent to that needed to find a reliable distributor (fair, business match, trade mission, due diligence, free samples, marketing support initiatives). The difference is that the control of the product is maintained, the licenses are registered to the producer (through Kha Group as license holder), and the investment is returned in less time. Nothing excludes the fact that the Brand, once recognized on the market (Lazada is one of the best channels for the branding of foreign brands), can be entrusted to a distributor, who will have a strong and consolidated brand to deal with .
For more information, contact our marketing department: firstname.lastname@example.org