DHL eCommerce launches new services in Thailand
The Thai e-commerce market is expected to more than triple in size to EUR 3.6 billion between now and 2020.
January 28, 2016
By PLA Editor
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DHL eCommerce, a division of global logistics company, Deutsche Post DHL Group, has expanded its operations into Thailand and is offering end-to-end domestic delivery service for Thai e-commerce merchants. With its new service, DHL eCommerce is offering a range of unique service options that caters to Thailand’s burgeoning e-commerce market.
“Thailand, with its tremendous growth potential, fast e-commerce adoption and high smartphone penetration rates, has been identified as the first Southeast Asian country to launch DHL eCommerce’s domestic delivery service in line with our group’s Strategy 2020,” said Thomas Kipp , CEO, DHL eCommerce.
“The Thai e-commerce market is expected to more than triple in size to EUR 3.6 billion between now and 2020 and with this investment, we are well positioned to support the growth of e-commerce businesses in Thailand.”
Noting that a strong backbone for e-commerce growth lies in a good logistics system, DHL eCommerce said it aims to enable a better e-commerce experience for both consumers and merchants through efficient logistics and a seamless online shopping experience. Major additions will be made to DHL’s delivery infrastructure in the country, including a 3,000 sqm central distribution centre in Bangkok and a network of over 20 depots located throughout Thailand ensuring full coverage across the entire country.
To meet increasing business demand, DHL plans to more than double the number of depots in Thailand by 2017 and expand its fleet primarily in two-wheel vehicles that can operate more efficiently in the traffic situations in Thailand’s major cities.
“We see major strategic opportunities for e-commerce growth in Thailand , particularly with the Asean Economic Community which is expected to increase the movement of goods within the region,” said Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce.
Despite e-commerce already being a billion-dollar sector with extremely rapid adoption, Thailand’s e-commerce share of the retail market is still relatively low compared to other high-growth economies, Monteiro added. In fact only 1.7 per cent of total sales in Thailand are obtained from e-commerce, compared to more than 10 per cent in China.
“Thailand is ranked as one of our top priority markets in Southeast Asia : Its expected annual market growth of more than 20 per cent (from 2014 to 2020) is likely to be largely driven by significant numbers of SMEs beginning to extend their business models into online marketplaces.”
As part of its service offerings, DHL eCommerce’s fleet of two- and four-wheel vehicles will provide next-day delivery to all urban areas, and a 2-3 day delivery to all other locations. All merchants have access to Cash on Delivery (COD) with daily remittance and access to a multilingual call centre.
“In order to fulfill Thai consumers’ expectations of seamless and simple e-commerce, businesses need logistics services that keep up with extremely rapid changes in consumers’ expectations while providing high operational excellence,” said Kiattichai Pitpreecha, managing director, DHL eCommerce Thailand .
“This makes the need for a tailored e-commerce delivery service greater than ever before – so that merchants, especially SMEs, can focus on their core business and grow faster based on a high performing logistical backbone.”
“Our successful offerings in India and China have proven that exceptional customer service bolstered by robust and scalable end-to-end delivery networks are the two essential ingredients needed to win e-commerce market share. That applies to all players, from small businesses to multinational retail conglomerates,” added Monteiro.
“As Thai consumers continue to come online and join the region’s appetite for e-commerce, we are confident that our services will give customers both a first-mover advantage and a unique competitive edge.”