Strategies for Adapting Thai Retail Businesses to the Transition to a Digital Economy

Abstract

Thailand is inevitably entering the digital economy era. Under government policies aimed at upgrading the economic structure and enhancing the competitiveness of the business sector, the retail sector, a key driver of the economy, faces pressure to adapt to digital business operations. Changes in technology and consumer behavior have created new dynamics in the retail industry, affecting competitive landscapes, marketing strategies, and management structures. Studies indicate that the competitive landscape in Thai retail is shifting from physical advantages to a “digital ecosystem” where data, platforms, and cross-channel integration capabilities determine competitive advantage. This is particularly true for omnichannel customer experience management, data-driven decision-making, and optimization through artificial intelligence and automation. Simultaneously, this transformation is characterized by disparities in organizational size and resources. Larger businesses have greater capacity to invest in data infrastructure and technology, while small and medium-sized enterprises (SMEs) often rely on off-the-shelf platforms, which offer short-term market expansion but increase the risk of platform dependence and limitations in owning customer data. The synthesized strategic proposals focus on four strategies: (1) enterprise-level digital strategy, (2) market and customer strategy, (3) data and technology strategy, and (4) specific guidelines for small and medium-sized enterprises. The study suggests that strengthening government support measures coupled with data and competition regulation will be a key condition for enhancing the competitiveness of Thai retail to grow fairly and sustainably in the digital economy.