Thai brands turn to influencers to create buzz, boost profit

Local businesses are under pressure to compete with Temu, Shein, and TikTok Shop.

More Thai retailers are shying away from paid search and ads in favour of influencers, content creators and affiliate networks to promote their products and drive traffic and conversions, whilst cutting costs and improving profit margins.

The so-called affiliate commerce offers an alternative growth channel for brands and retailers, complementing traditional marketplaces like Shopee and Lazada, Thanawat Malabuppha, CEO at shopping search engine Priceza, told Retail Asia.

“As global players like Temu, Shein, and TikTok Shop aggressively enter the Thai market with deep discounts and subsidised shipping, local businesses are under pressure to compete,” said Malabuppha, who is also president of the Thai E-commerce Association.

Thailand's e-commerce market is expected to hit $29.7b (฿1t) this year, accounting for a quarter of total retail sales, he said. The nation’s gross merchandise value is projected to hit $57b by 2030 from $6.3b in 2019.

“Thai brands have an advantage over international players because local brand owners can establish authentic relationships with key opinion leaders more easily than global companies,” Malabuppha said. “Entrepreneurial stories resonate strongly and help forge meaningful connections with key opinion leaders.”

In response, Thai retailers are launching their own performance-based marketing strategies to control customer relationships and reduce acquisition costs.

For instance, 7-Eleven Thailand introduced the 7-Eleven All Online affiliate program, powered by Priceza’s Shopfluence platform that lets local influencers promote products and earn commissions. Similarly, Lotus Online is expanding its affiliate marketing strategy by focusing on mobile app sales rather than third-party marketplaces.

Other brands such as Banana (Com7) and Coway also use affiliate marketing to boost brand visibility and their customer base.
However, many Thai brands struggle to find quality affiliates, measure performance, and control prices. “The solution is to build strong relationships with niche influencers, micro-creators, and content platforms that align with the brand’s target audience,” Malabuppha said.

Tracking conversions and managing commission payouts also remain challenges. “A robust affiliate management platform like Shopfluence is essential for tracking conversions, commissions, and optimising performance in real-time,” Malabuppha said.

Slow adoption of affiliate marketing is another challenge. “Many Thai brands are new to affiliate marketing and often take too long to launch their programs. Start with pilot campaigns, test different strategies, and scale based on data-driven insights,” he added.

The CEO said Thailand’s affiliate commerce landscape would undergo significant changes in the next three years amidst wider adoption of artificial intelligence (AI), social commerce, and data-driven marketing.

“As third-party cookies phase out, brands will leverage first-party consumer data to improve affiliate marketing effectiveness,” Malabuppha said. “More businesses will build direct affiliate programs to reduce dependency on large marketplaces.”

Blockchain technology is also expected to increase transparency and automate commission payments. “Smart contracts could automate commission payments, reducing fraud and disputes,” he pointed out.

“Affiliate commerce in Thailand is still in its early stages, but the next three years will see exponential growth, driven by technological innovation, increased influencer engagement, and brands taking greater control of their affiliate programs,” Malabuppha said.