Global logistics companies continue to pile into the Asia e-commerce market, with Damco launching a China solution and DHL expanding its growing presence in the region deeper into Thailand.
DHL is building a 32,000 square foot, central distribution center in Bangkok and a network of over 20 depots located throughout Thailand to provide full coverage across the country. To meet increasing business demands, the integrator 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.
“The Thai e-commerce market is expected to more than triple in size to $3.93 billion between now and 2020 and with this investment, we are well positioned to support the growth of e-commerce businesses in Thailand,” said Thomas Kipp, CEO, DHL eCommerce.
Only 1.7 percent of total sales in Thailand were obtained from e-commerce, compared to more than 10 percent in China, said Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce.
“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,” Monteiro said.
“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.”
Damco has focused its latest service offering in China where it is launching an end-to-end e-commerce solution, from inbound goods management and consumer order receipt to final delivery.
Damon Gu, Damco’s head of supply chain management for Asia, said the large and rapidly growing Chinese market for online shopping was a magnet for both importers and domestic producers.
“Online shopping events such as China Singles Day are already creating world-beating levels of activity for e-retailers locally in China, as well as globally,” he said. “Discerning Chinese consumers in this highly competitive marketplace expect the highest standards of fulfilment. This new program helps companies to guarantee that level of service.”
Using its 1,500 local staff and 26 locations in China, Damco will arrange delivery to end-consumers in more than 1,600 Chinese cities.