Tarad.com deal marks TCC’s biggest step in digital realm

The acquisition marks the biggest step by TCC Group in its strategic shift towards the digital era, both in Big Data analysis and e-commerce platforms, as well as gaining a new business with a promising growth outlook.
Under the acquisition, TSpace Digital holds a 51 per cent stake in Tarad.com, with the company’s founder and managing director Pawoot Pongvitayapanu owning the rest. 
The company declined to disclose the acquisition price.
TSpace Digital was set up this month with Bt1 million in registered capital, and is 100 per cent owned by Adelfos Co Ltd, an investment arm of TCC Group.
Pawoot said that Tarad.com had transformed itself from an e-marketplace company into a one-stop e-commerce service provider.
“We have created a new business model, called U-Commerce, which will consist of many electronic platforms, comprising e-commerce, e-marketplace, e-marketing (advertising), e-payment, e-logistic and warehouse, and e-knowledge,” said Pawoot, noting that Tarad.com would cover full e-commerce models, including consumer-to-consumer (C2C) and business to business to consumer (B2B2C) and a full ecosystem. 
He said that Tarad.com would invest at least Bt100 million this year in exploring e-commerce platforms, which will allow the company to become a provider of turnkey e-commerce solutions. The company expected to post revenue growth of between 200 per cent and 300 per cent that would see the company achieve profitability this year.

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“With the business transformation, we (Tarad.com) will no longer focus solely on the e-marketplace, which requires a huge investment budget to stay competitive. The e-marketplace business has become a ‘red ocean’ and is dominated by big foreign players, such as Lazada, Shopee, 11Street, and JD Central,” said Pawoot.
He said that by being a provider of total e-commerce services, Tarad.com will be a partner with those e-marketplace operators and a hub for Thai manufacturers that want to explore entry for their products into foreign markets.
Thailand’s total e-commerce market was estimated Bt2.8 trillion for last year. 
The three most popular channels are brand site, e-market place, and social media.
Marut Buranasetkul, president and CEO of TSpace Digital, said that the company has realised a dramatic change in business trends with the critical role of online and other digital elements in the business operations.
“TSpace Digital has been set up to support and develop the new businesses in order to connect seamlessly with the digital-based consumers, who are lifestyle-driven,” Marut said. “The demand for consumer understanding with digital solutions is high and will be the major element for all business operations and we must find the way to access to them in all channels, both online and offline, with in-depth data analysis.
“In addition to that, we recognise the potential of our local SMEs and local community products, including those are under the Pracha Rath scheme, that are determined to expand their businesses to meet with the needs of the digital era, especially e-commerce and other online businesses. 
“We believe that many of our SMEs are competent with a capability to compete in the international arena if proper support is provided. TSpace Digital is determined to play such a role to drive the growth of these businesses.”