Category: News

Tourism rebound could generate 3 trillion baht in two years for Thailand

Tourism rebound could generate 3 trillion baht in two years for Thailand

The Ministry of Tourism recently detailed the performance of Thailand’s tourism sector during the epidemic, noting that its subsequent epidemic rebound could generate 3 trillion baht in two years.

The remarks were made as part of the government’s interpretation of the budget debate in parliament, when opponents blamed the proposed 2023 budget for inequality.

Tourism and Sports Minister Fifat Rachakitprakorn said the number of international tourists visiting Thailand before the epidemic was 39.8 million, contributing about 3 trillion baht to 18% of national GDP.

In 2021, Thailand recorded only 430,000 international visitors. This number has risen to 1.31 million from the beginning of this year to May, marking a positive start for 2022.

The tourism target for 2022 has been set at 7-10 million

The Ministry of Tourism and Sports now expects the number of international tourists to be around 2.7-3 million from June to September this year and more than 1 million between October and December 2022. The ministry has set a total international tourism target for this year for a population of 7-10 million and expects the nation to recover 1.15-1.5 trillion baht.

The ministry estimates that tourism revenue will reach 2.4 trillion baht next year and the pre-epidemic by 2024 will be 3 trillion baht.

The tourism minister said health and medical tourism remained a strong selling point, especially after the Prime Minister’s visit to Saudi Arabia, which attracted more medical tourists from the Middle East.

Information and sources

  • Reporter: Nataphone Complexit
  • Rewriter: Paul Rujopakorn
  • National News Bureau: http://thainews.prd.go.th

Improve facilities for HGV drivers or face new taxes, MPs tell freight sector

Improve facilities for HGV drivers or face new taxes, MPs tell freight sector

The road transport industry should be given a two-year deadline to upgrade facilities for lorry drivers, including clean showers, healthy food and space for female drivers, or face new taxes, the ministers said.

On Wednesday, a cross-party group of lawmakers called on the logistics industry to “decorate its house” by improving overnight facilities for drivers and providing new training routes for hiring more truckers from different backgrounds. This comes at a time when the sector is struggling with a shortage of HGV drivers, resulting in regular fuel shortages at petrol pumps and empty shelves in supermarkets.

Last year the Road Holes Association, an industry trade body, estimated that there was a shortage of 100,000 HGV drivers due to the coronavirus crisis and Brexit. The deficit is now estimated at around 65,000 drivers.

The Commons Transportation Selection Committee said that unless changes were made in two years, the most profitable segments of the sector would face new taxes.

Under the proposed supply chain levy, large supermarkets, oil companies and online service giants may be forced to pay new facility costs for HGV drivers.

“We urge the government to be bold and force the sector to decorate its house,” said Huu Merriman, the committee’s conservative chairman. “A supply chain levy has previously worked to encourage reform.

“If industry doesn’t change, then the government should do that and send bills to those who produce and sell and those who make the most profit through increased taxes.”

The committee’s report, Road Freight Supply Chain, found that “one of the main reasons drivers are not in the sector is the lack of quality rest facilities.”

The report calls for the introduction of minimum standards for amenities, including safety, clean showers and toilets, healthy food options and services for female drivers.

Drivers cited in the report expressed concern about “bad washing facilities” in the overnight stop area, including dirty and “vandalized” showers. The report states that some official stay-over services are so bad that drivers prefer to park overnight at the levy – a practice known as “fly-parking” that can lead to fines.

The committee said the industry needs to do more to encourage women and young people to drive HGV.

“Women make up only 1% of the workforce. The under-25 ratio is below 3%, “said Merriman.” For a long time, this lack of diversity has led to more drivers retiring than being hired.

“We have been here before. In 2016, the transport committee called for action in the welding sector but little has changed. Lack of diversity is holding back the expansion of the workforce. ”

The committee also called on road transport companies to pay for the special training required to drive an HGV. Currently costs are covered by drivers.

Merriman added: “The long-term solution lies in more freight shipping by rail and water. This will help the sector decarbonate and make it more attractive to those who want to work shorter distances; We want to see their family at the end of a difficult day.

The Road Holocaust Association, which represents commercial road transport companies and has more than 7,000 members, said it “welcomed the report” extensively and agreed with its own request for changes to many recommendations. It added: “We appreciate the principles behind supply chain tariffs, but we need to make sure that this does not lead to unnecessary cost pressures.

“We are concerned that the industry cannot make the changes necessary to avoid levies in just two years when many of these changes are beyond the control of the industry.”


SET, BOT and OVEC jointly promote financial and entrepreneurial knowledge

SET, BOT and OVEC jointly promote financial and entrepreneurial knowledge

The Office of the Vocational Education Commission (OVEC) has signed a Memorandum of Understanding (MoU) with the Stock Exchange (SET) of Thailand to promote knowledge about capital markets and social and environmental sustainability, and another Memorandum of Understanding with the Bank of Thailand (BOT). ) To promote financial literacy.

Collaborating with shared values ​​aims to create financial immunity for vocational students and staff, and to provide entrepreneurial practical knowledge for students to become quality workers who are ready to enter the job market and ultimately benefit the country’s economic development.

The project is expected to cover a target group of more than one million people.

OVEC Secretary-General Suthep Kayengsanthia said the signing of the MoU was aimed at continuing to expand cooperation in promoting financial literacy through Finn.

Dee we can !!! The Season 4 project is a financial knowledge competition designed to encourage teachers to develop “learning innovations”, and allows students to think and start projects that apply financial knowledge in their daily lives and expand into business development.

SET has also expanded its collaboration with SET for projects to enhance financial and business knowledge for vocational workers to enhance the basic entrepreneurial skills required by creating e-learning media to promote financial knowledge through e-learning. System in Finance and Entrepreneurship Courses.

Vocational students will benefit from this collaboration which will sharpen their financial skills and increase the potential of Thai youth to be a quality and important workforce for further development of the country.

Sorafool ​​Tulaysathien, Senior Executive Vice President of SET, said that SET is committed to the development of capital markets for the benefit of all sectors. One mission that SET has consistently prioritized for more than 20 years is to promote knowledge and skills in financial planning for life security.

“SET is confident that more than 20 e-learning courses include financial,
Investment and Entrepreneurship Course developed by SET for Vocational
Through SET e-learning, both Vocational Certificate and Higher Vocational Certificate will be a learning platform for new generation of students and staff related to business and entrepreneurial subject education, a means of imparting knowledge to students and teachers in a convenient and efficient manner. . This is a measure of partnership to create quality workers for the community, “said Sorafol.

BOT Deputy Governor Vachira Aromadi said that in addition to the Memorandum of Understanding, three institutions: OVEC, SET and BOT would launch “e-learning courses on financial knowledge for vocational students”.

BOT has launched “Finn”. What can we do !!! The Season 4 ”project, which has been working in partnership with OVEC since 2018, invites students to submit their project to demonstrate and promote financial knowledge.

Selected work segments will be awarded certificates and cash along with respectable banners for their organization. The application will be opened in mid-May.

Over the years, SET has continued to collaborate with education
Institutions across the country. Since 2004, more than 500,000 students have gained knowledge about finance and investment and entrepreneurship through various activities and projects, such as entrepreneurial classrooms, especially in the form of capital market content and practical entrepreneurial content for each institution’s curriculum.

SET News: SET, BOT and OVEC jointly promote financial and entrepreneurial knowledge of vocational students and staff.

Cautious consumers are dragging factory output to new heights

Cautious consumers are dragging factory output to new heights

Among the broader signs of the global economic downturn, declining productivity in the UK consumer goods industry pushed manufacturing output to a seven-month low in May.

Growth in Britain’s manufacturing sector slowed last month, according to a closely watched survey driven by disruptions in global supply chains, high inflation and falling new orders. According to S&P and CIPS, which conducted the survey, an index of purchasing managers fell to 54.6 in May from 55.8 in April, in line with economist forecasts, and above the 50-mark, which distinguishes growth from contraction.

Manufacturing companies, which account for just under one-fifth of the UK economy, are facing “headwinds”, said Rob Dobson, director of S&P Global Market Intelligence.

“Factories are reporting higher concerns about the slowdown in domestic demand, declining exports, input and labor shortages, rising spending pressures and a given view of geopolitical uncertainty. The consumer goods sector has been particularly hard hit, as household demand has declined in response to the ongoing cost-of-living crisis, ”Dobson said.

“Foresighted indicators from the survey indicate that further slowdown may occur. “Business optimism is down 17 months and weak demand growth has led to surplus production, which means warehouse stocks are rising.”

New Covid-19 lockdowns in China’s major cities have hit supply chains, and rising production has hurt global manufacturing due to rising energy prices since the war in Ukraine. Less than half of all businesses in the UK have reported that prices of goods, products or services have risen between April and March, according to the Office for National Statistics.

High inflation has forced consumers to shift their spending on services such as tourism or leisure to more expensive products after lifting lockdown restrictions, as reported in the UK and Europe.

According to the PMI survey, activity in the eurozone manufacturing sector fell to an 18-month low in May and registered a fourth consecutive decline in output. The index fell to 55.6 from 54.5 last month and new orders fell for the first time in two years. Germany’s manufacturing powerhouse was a rare exception after Ukraine was hit by the war, with output reaching a two-month high of 54.8.

Inflation in the eurozone hit a record high of 8.1 percent in May, and businesses are passing on their high-cost customers. A measure of factory gate prices is the second highest recorded in the Eurozone PMI in May.

New figures released yesterday show that retail sales in Germany fell by an expected 5.4 percent, leading to the worst fall in food sales since records began between March and April.

“The eurozone economy seems to be growing and uncomfortably dependent on the services sector to sustain growth in the coming months,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“The ability to spend has therefore been severely curtailed, and often consumers in particular have shown an interest in shifting costs from products to services with the benefit of loose epidemic travel restrictions.”

He said an undercurrent of uncertainty caused by the war in Ukraine and high inflation was making consumers more risk-averse, “pointing to the deep-rooted negative risks of the outlook”.


Strong ASEAN relations depend on careful cooperation

Strong ASEAN relations depend on careful cooperation

Much has changed since the first meeting between US and ASEAN officials in 1977. But after 45 years of engagement, relations between the Southeast Asian Nations (ASEAN) and the United States remain unstable. The war in Ukraine has provided a new impetus for the resumption of ASEAN-US relations in a pragmatic way.

Author: Kavi Chongkittavorn, Chulalongkorn University

Their leaders met in Washington for the ASEAN-US Special Summit in May 2022, and there was a sense of joy and panic. Since the Vietnam War, the United States’ position on Southeast Asia has been the subject of constant debate, particularly over US compatibility and reliability.

US presence in ASEAN is required.

A fact has emerged – the US needs a presence in the region, especially in terms of security and the economy. ASEAN leaders welcomed President Joe Biden’s invitation when it was first issued in October 2021.

ASEAN-US relations have been driven by their long-standing mutual security and economic interests. But the emergence of new powers, such as China, Russia and India, has made the high-level dialogue between ASEAN and the United States even more urgent. The confidence of ASEAN leaders in the role of the United States in the region has grown under Biden as he has promised to hold early meetings with his ASEAN counterparts.

… After six years of emptiness

At the Washington summit, Biden named a close ally, Johannes Abraham, as the new US ambassador to the ASEAN Secretariat after a six-year hiatus. ASEAN welcomes the appointment of a senior official who has Biden’s ears.

It is important to note that China has not missed the last two dozen ASEAN-related summits since Beijing became a dialogue partner with ASEAN in 1992. Regular summit meetings have strengthened the ASEAN-China relationship and transformed it into one of the group’s most dynamic dialogue partnerships.

In 2021, China was promoted to the status of a comprehensive partnership. In this context, the United States took the opportunity to develop ASEAN-US relations into a comprehensive strategic partnership at a special summit in Washington in May. Australia also established a comprehensive strategic partnership with ASEAN last year.

With the ongoing Russia-Ukraine war, the United States is seeking to increase support for sanctions from ASEAN, which has become problematic due to differences among ASEAN members. The ASEAN-US Joint Vision Statement has proved difficult to establish a general position on the situation in Ukraine as the situation is still evolving.

The joint statement reiterated ASEAN’s call for an “immediate end to hostilities”. But the Biden administration wants an additional guarantee from ASEAN that it will not go against the ongoing sanctions regime as the war in Ukraine continues.

ASEAN also has other priorities in regional issues, including the Myanmar crisis, the South China Sea conflict, the development of cross-border resources in the Korean Peninsula and the Mekong sub-region. Excessive U.S. pressure on ASEAN to lean west could be reciprocated. The lessons learned from India’s response to joint US and European pressure should be effective. No ASEAN member would want to damage their long-standing relations with Russia and China. Singapore may be different – it may be different, but it may stand alone.

By early 2021, the Biden administration realized that in order to receive support and cooperation from ASEAN, it needed to be more realistic and flexible. The newly announced Indo-Pacific Economic Framework (IPEF), part of the US Indo-Pacific Strategy, is designed to accommodate both the United States and regional interests. Seven of the ten ASEAN members are among the 13 signatories who have expressed a desire to build closer economic cooperation with the United States and its allies. IPEF is still a work in progress and due to various existing perspectives and economic practices it will take time to discuss and debate on IPEF material.

In order to strengthen the new comprehensive strategic partnership, the United States should focus on ways to strengthen economic and security cooperation with ASEAN, which would enhance the centrality of ASEAN. It took almost a decade for the non-military bloc to take a leading role in US regional affairs under the Obama administration. From now on, Washington must demonstrate its willingness to cooperate with the ASEAN-initiated guidelines under its Indo-Pacific strategy.

ASEAN prioritizes four areas of cooperation under the Indo-Pacific ASEAN Outlook – maritime cooperation, connectivity, sustainable development and economic cooperation. The United States must be open when collaborating with ASEAN, as other Indo-Pacific frameworks have already promised to do the same. Any sign of a revival would damage US creditworthiness. Japan has already signed a joint statement with Outlook to coordinate its Indo-Pacific strategy.

This will allay ASEAN’s concerns about the informal grouping known as the Quad, comprising the United States, Australia, Japan and India. Joint cooperation between the United States and ASEAN on the Indo-Pacific Framework will strengthen ASEAN’s centrality and address regional challenges. One area that could be a pilot project is the Quad Vaccine Partnership, which plans to deliver one billion doses of the COVID-19 vaccine. Over time, both sides could expand cooperation in the areas of climate, sustainable infrastructure, maritime issues, education, people-to-people contacts and economic engagement in Covid-19 and global health protection.

The Biden administration was wise not to use the summit to pit ASEAN against China and Russia, otherwise the United States would further undermine ASEAN-US relations and the balance of power in Southeast Asia. To advance the new comprehensive strategic partnership, both sides must now move forward with their bilateral agenda and focus on harnessing their combined strengths within the Indo-Pacific region.

Cavi Chunkitavorn is a senior fellow at the Institute of Security and International Studies, Chulalankorn University, and a veteran journalist for regional affairs at the Bangkok Post.

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BritishVault will invest more than মিল 200 million in the Midlands test facility

BritishVault will invest more than মিল 200 million in the Midlands test facility

UK-based battery startup BritishVault has said it will invest more than 200 million in a new facility in the West Midlands to test manufacturing methods used in factories in Northumberland.

The company will lease a site at Hams Hall in Warwickshire from warehouse developer Prologis, with the equipment expected to be installed by the end of autumn 2023.

The move would give BritishVault access to a significant number of engineers working in the West Midlands, which had long been at the center of the British automotive industry. Jaguar Land Rover (JLR) is planning a battery assembly center at Hams Hall, where German carmaker BMW builds a petrol engine.

BritishVault has pursued partnerships and investment shocks following its ambition to build electric car batteries from scratch. It secured £ 100m in government funding in January, with support from investment firm Abrdn and fund manager Tritax, which is expected to eventually reach £ 1.7bn. BritishVault recently secured an investment from Monaco-based shipping company Scorpio Group, with an indication that it would also look beyond the automotive industry for customers. However, it has signed a memorandum of understanding with UK carmakers Aston Martin and Lagonda.

BritishVault has chosen to build its “gigafactory” – the industrial term is typically used for a battery plant with an annual capacity of more than 10 gigawatt-hours – at Cambyses near Blythe in Northumberland. That site was selected partly because of access to renewable energy from offshore windfarms.

Paul Franklin, property director at BritishVault, said he wanted the company to “lead the UK’s re-industrialization journey through the first full-scale battery gigaplant” and added that the Hams Hall facility would help the UK build its home country. Flatten. “

The only other planned battery plant of a similar scale is an investment by China Envision at a Sunderland site that was previously owned to make batteries for Nissan’s electric models. Another attempt to build a “gigafactory” at Coventry Airport has yet to find a large investor.

The project hopes to attract investment from a major automotive company, with the West Midlands-based JLR being seen as the most suitable. However, JLR did not deny a Bloomberg report last week that it was considering overseas battery sourcing from Sweden’s Northvolt or China’s SVOLT Energy Technology for a range of electric vehicles that could be integrated into Slovakia.


Possibilities and opportunities for investors in Vietnam’s blue economy

Possibilities and opportunities for investors in Vietnam’s blue economy

Vietnam’s Blue Economy is a relatively new concept that incorporates sea and ocean-related economic activities while improving livelihoods and protecting the health of marine ecosystems.

Vietnam’s sea and coastal regions account for about 47-48 percent of the country’s GDP. The Vietnam briefing highlights some of the unique features of the blue economy as well as opportunities for investors.

The development of Vietnam’s blue economy is a relatively new concept but it is necessary to address environmental issues, its carbon footprint and the exploitation of natural resources along its coastline.

Blue economy is a relatively new term. This means the development of marine ecosystems while ensuring economic growth and ensuring reasonable exploitation of natural resources with minimal environmental impact. It refers to the construction and development of infrastructure that can adapt to climate change and extreme weather.

The World Bank describes the Blue Economy as a sustainable use of marine resources for economic growth while improving livelihoods and protecting the health of marine ecosystems.

For example, the Blue Economy is central to enabling Vietnam to achieve its Sustainable Development Goals (SDGs) between 2030 and 2045, with the environment being one of the pillars of this development.

The blue economy will also help meet Vietnam’s climate change goals. Recent studies show that a 1-meter rise in sea level will affect 11 percent of Vietnam’s population and 7 percent of its agricultural land. Depending on the intensity of sea level rise, climate change could eventually lead to floods for 38-46 percent of Vietnam’s population.

The development of the blue economy must be based on the balanced growth of six industries: fisheries and aquaculture; Oil and gas; Marine renewable energy; Coastal and maritime tourism; Maritime sector; And the environment and ecology.

Vietnam’s long coastline is convenient because it is close to international and regional maritime routes. The coastal regions of Vietnam are located in areas with high economic growth rates and serve as a bridge between several regional trade partners and shipping routes.

These are favorable conditions for the development of Vietnam’s maritime, shipbuilding and logistics industries, with 114 estuaries along the central coast and 52 deep-sea bays (bay, bay and more than 60 percent of the coastline). More than 100 locations for construction of large seaports.

Vietnam is home to a variety of natural resources and contains about 35 minerals of different groups: fuel, metals, building materials, precious and semi-precious stones and liquid minerals. The seabed at Kwang Ninh Province and Hai Fong City have deposits of 100 billion tons and about 9 billion tons, respectively.

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This article was first produced by VietnamBriefing which is produced by Dejan Veins & Associates. The company supports foreign investors across Asia from the office Around the worldIncluding China, Hong Kong, Vietnam, Singapore, IndiaAnd Russia. Readers can write [email protected]

Enterprise Nation expands SME Finance Hub to offer R&D tax credit access and

Enterprise Nation expands SME Finance Hub to offer R&D tax credit access and

Enterprise Nation, a small business support platform, has expanded its SME Finance Hub to include access to and apply for R&D tax credits and assistance in applying for it. Mortgage, security, pension and investment, a pioneer one-stop-shop for small business financing.

The new look hub is based on the existing features offered by Capitalized, Business Finance Platform, which gives small companies Free access to their business credit profiles, the ability to manage their clients’ risky profiles, and access to affordable business loans in one place.

Hub is now providing additional funding services through R&D tax Credit Specialist Claim capital; And CMME Which can be accessed with the help of business founders and contractors with special skillsMortgages and securities, pensions and investments through a network of experienced advisors and their sister company contractor assets.

Emma Jones, founder of Enterprise Nation, says: “The founders of small businesses are busy people. They are often busy shopping for the best financial support or running a business to ask different suppliers. This hub gives them equal access to one of the best experts in their field. ”

Max Rainer, Managing Director Claim Capitale said: “The government’s goal is to increase UK research and development spending from 1.7% to 2.4% of current levels by 2027. Raising awareness and improving the access of the small business community is going to be the key to achieving that goal and unlock innovation.“Our partnership with Finance Hub Enterprise Nation will help us do just that.”

Mike Coshott at CMME says: “Applying for and securing the right mortgage can be very difficult and complicated for small business founders and self-employed people. Often in the mainstream brokerage system they are penalized for not having the money they deserve, more complex income or conventional PAYE employment. The same is true of personal security and asset management.

“There are better deals And grateful for the solution. And this finance hub will give small business owners access to very competitive options that work with running a business. “

SME Finance Hub provides lending options and relevant advice and distribution Specially-targeted insights seek support directly from businesses, as well as one-stop-shop access to SME finance needs.


Vietnam electricity reform has created opportunities for foreign investment

Vietnam electricity reform has created opportunities for foreign investment

Vietnam’s amended law on electricity allows foreign investment in the country’s electricity grid to improve energy quality and capacity. By 2030, the country’s electricity consumption is projected to grow at an annual rate of 10-12 percent, representing the fastest growth rate in Asia.

For example, early entrants to the construction, operation and operation of Vietnam’s electric grid will have the advantage of being a trusted partner as opportunities in Vietnam’s energy sector increase.

Private investors can now build, operate and operate the power grid in Vietnam following recent legal amendments, as the state of Vietnam gradually loses its control over the sector.

On January 11, 2022, the National Assembly of Vietnam passed Act No. 03/2022 / QH15, which contains amendments to the 2004 Electricity Act. The law is the main law in Vietnam that governs the power sector and includes regulations governing investment, markets, and pricing. , And licensing, among other terms.

The amendments, which went into effect on March 1, 2022, increased the capacity of private investors to participate in Vietnam’s electricity grid, reducing the role of the state. The reform comes under pressure to improve the quality and capacity of Vietnam’s electrical grid, including the adoption of renewable technology.

The amendments to Section 4 of the Act raise concerns about where private investors can and cannot invest. With the change, private investors will be able to:

Accordingly, private investors can now create new sections of the electrical grid and operate those sections without the direct involvement of the state.

Further, in accordance with the amended paragraph 4, the State of Vietnam retains its exclusive rights:

The amendments maintain the exclusive dominance of the state of Vietnam over the construction, operation and operation of the national power grid system and certain large power plants. However, the new paragraph 4 explicitly restricts the State from operating parts of grids built and operated by private investors.

In light of the amendments, there are more opportunities for foreign companies to invest in Vietnam’s electricity grid and contribute to improving the sector’s infrastructure. Currently, Vietnam Electricity (EVN), a state-owned company, is the largest buyer of electricity in Vietnam. Until the amendment, EVNs were exclusive in the transmission and distribution of electricity.

Rapid economic growth, growing investment in manufacturing and industry, and growing middle class have given rise to unprecedented demand for electricity. The Vietnamese government plans to increase electricity consumption by 10-12 percent per year until 2030, which represents the fastest growth rate in Asia.

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This article was first published by AseanBriefing which is produced by Dejan Veins & Associates. The company supports foreign investors across Asia from the office Around the worldIncluding China, Hong Kong, Vietnam, Singapore, IndiaAnd Russia. Readers can write [email protected]

A bad return policy can cost retailers over 19BN

A bad return policy can cost retailers over 19BN

Zigzag Global, the global platform that enables retailers to turn their return policy into a business game-changer, today announced new insights that show that UK retailers could lose ্যের 19 billion worth of business if they do not have their return policy. Scratch

Online fashion is still the most valuable sector in the UK retail industry, with Forrester predicting more than bn 28bn in 2022. To help retailers understand the impact of their return policy on sales and retention of clients, ZigZag conducted a thorough study of consumer attitudes toward returns. Policy matters when they will purchase.

Returns – free, fast and easy

More than three-quarters (76%) of UK shoppers now examine the return policy before making a purchase. Moreover, 8 out of 10 retailers (78%) say that it should be easier for you to get your product back – this has increased to 85% among 18-25 year olds. Easy returns can also be the key to customer loyalty, with 82% agreeing that an easy return experience will encourage them to shop with the retailer again.

A bad return can be just as damaging, with 62% of UK buyers claiming they will never shop with a retailer again after experiencing a bad return.

According to UK buyers, a good return policy should:
Free (75%)
Quick return (63%)
Provide multiple options for return (45%)
Paperless and trackable everywhere (43%)

Currently, a quarter (26%) of UK buyers say they find the experience of returns disappointing to most retailers, and 36% agree that it must be a problem.

“Returns have been a contentious issue for retailers for many years. Just offering a free return is not enough. It’s just as important to overcome the barriers to retail returns as a simple and efficient return process can make all the difference when it comes to sales, “said Al Gerry, founder and CEO of Zigzag Global.

Emergence of regular returns

According to GlobalData, retail returns will grow 27.3% in five years by 2023, hitting a total of £ 5.6 billion. This is mainly due to the trend of returns across clothing and footwear and the rise of ‘regular returners’.

Zigzag found that almost half (47%) of UK shoppers now consider themselves ‘regular returnees’ – a significant increase of 67% among 18-25 year olds. Interestingly, about one in five buyers (18%) consider the cost of higher returns to retailers, but it does not affect how much they return. One-third (33%) of respondents said they did not rely on cost at all.

Retailers also find themselves in a frustrating catch-22. 38% of UK buyers say that if a retailer charges for a return, they will pay less. Yet, as Zigzag has found, charging for returns will discourage them from making an initial purchase.

Al adds: “Although the frequency and price of returns are increasing, it does not require the retailer to sell. Retailers now have plenty of options to make up for lost sales and to encourage customer loyalty and repeat purchases. “Whether it’s retailers returning digital gift cards, live exchanges or re-trading opportunities, retailers can turn small losses into big gains in the long run.”