The Australia-based company broke the news of the closure of its Southeast Asia divisions in an abrupt statement this week, noting that staff had been informed and communications for customers were planned.
Ensogo is a coupon-based e-commerce platform, offering limited period cut-price offers and deals to consumers. Health and beauty was its leading product line, along with home and garden and electronics.
In the Southeast Asia region, the company has been particularly strong in Thailand: the Bangkok Post notes that the Thai market is one of the group’s top three for size.
As a result, the announcement of the closure of its operations there comes as a surprise: indeed, as recently as last month, Ensogo Thailand announced strategic plans for boosting sales, including strengthening its cross-border offering.
It had planned to increase its product offering from 2 million to 5 million by the end of this year, and the company has been doing well particularly on the back of the rise in mobile commerce.
Market commentators observe that flash sales e-commerce models are an increasingly uncertain business, as consumer interest in them is waning and they consistently fail to foster brand loyalty.
President of the Thai E-commerce Association, Pawoot Pongvitayapanu, told the Bangkok Times that the market demands a certain level of robustness from companies if they are to succeed.
“Only big players with a healthy financial status can survive in the hyper-competitive market,” he said. “The flash sales market eroded margins but earned no customer loyalty.”