How Thailand Express Logistics Market
Positioned?
Before
coming up of express delivery services, Thailand
Logistics Market had normal delivery system for transporting products
to final consumers. With the growing commercialization and busier lifestyles of
people, the customers felt a requirement of faster delivery. This gave the
logistics industry an opportunity to launch a new service vertical named
express logistics which was a faster way of delivery compared to the normal
delivery. The express logistics market in Thailand was evaluated at THB ~
billion in 2012 which witnessed an increase to THB ~billion in 2013, thus
displaying a growth rate of ~% in the market.
Despite
the high cost of express logistics services than standard ones, the express
delivery has gained significant share in the overall logistics market in
Thailand owing to the better packaging and superior delivery
Process
as the Thai prefers fast delivery options. Increase in the number of players
operating in the market over the years coupled with rising consumer preference
of fast delivery by the consumers has made a positive impact on the market. The
trend of shopping online for perishable items such as food products including
fruits and vegetables, meat, fish and others has been rising. Changing consumer
shopping habits coupled with rising usage of E-commerce has given a rise to
express delivery services. The rising prominence of online shopping will also
contribute towards a long term growth especially by B2C segments in future.
Thailand
express logistics market was observed to generate revenues worth THB ~ billion
in the year 2017, thus growing at a five year CAGR of ~% in the review period
2012-2017.
Thailand Express Logistics Market
Segmentation
By International and Domestic Express
The
international express segment contributed Thailand express logistics market
with a massive revenue share of ~% in the year 2017. International express
delivery companies operating in Thailand were the first to start investing in
modern technology in order to meet the increasing demand in the delivery of goods
through E-commerce. On the other hand, domestic express services in Thailand
express logistics market captured ~% revenue share in the year 2017 majorly
owing to the growing internal demand in the country backed by rising e-commerce
and express delivery services.
By Air and Ground Express
Aviation
is one of the top priority sectors for development by the government of
Thailand as it is critical to the country’s economic growth. Air express
logistics services dominated Thailand express logistics market with a revenue
share of ~% in the year 2017. On the other hand, ground express logistics in
Thailand express logistics market captured the remaining revenue share worth ~%
in the year 2017. Thus just as in the normal delivery segment, the air freight
takes a back seat when it comes to the revenue share of the Thailand express
logistics segment.
Comparative landscape in Thailand
Express Logistics Market
The
express logistics industry in Thailand was witnessed to be highly concentrated
with the presence of major players in both domestic as well as internal express
segments. Express logistics has gained popularity in Thailand majorly due to
shift in consumer preferences; rise in E-commerce owing to increasing internet
and smart phone penetration in the country; and companies offering faster
options of delivery. The key parameters in the Thailand express logistics
markets include on-time delivery, pricing and value added services. In
international express, Kerry Express has established itself as market leader
within Thailand, followed by CJ Express, DHL Express and Others. On the other
hand the domestic express was dominated by Thailand Post. Additionally, foreign
tie-ups with Thai companies were also witnessed to increase in the country.
Companies in the country are also offering value added services such as online
tracking, door-to-door pickup, same day delivery, special delivery location and
personalized delivery services to the customers. The rising popularity of
express deliveries is impacting retailers’ ability to meet customer
expectations.
Thailand Express Logistics Market
Future Outlook and Projections
Over
the forecasted period, Thailand express logistics market is expected to drive
demand for express mail services majorly from leading growth sectors such as
IT, pharmaceuticals, electronics and financial & business services in the
country. The market is estimated to generate revenues worth THB ~ billion by
the year ending 2018. With same-day delivery, orders are delivered within a few
hours after purchasing them, or in a chosen time window on the same day, thus
driving the demand for express delivery services in Thailand. The primary
growth drivers for the express industry in Thailand includes increasing
penetration within existing and new customer segments, growing reach and
network of the express industry and introduction of newer products under
express delivery services. Thailand express logistics market is estimated to
reach revenues worth THB ~ billion by the year ending 2022, thus growing at a
CAGR of ~% in the forecast period 2018-2022.
How Thailand E-Commerce Logistics
Market is positioned?
Thailand
E-commerce logistics market generated revenues worth THB ~billion in the year
2012 owing to the country’s increasing access to internet and smart phones coupled
with the emerging trend of online shopping. The market is primarily dominated
by third party logistics providers such as Kerry Logistics, DHL, CJ Logistics
and SK Logistics followed by E-commerce merchants such as Lazada Thailand,
Shopee, 11Street and JIB and others. There are also pure-play ecommerce
logistics providers like Shippop, aCommerce Co, Giztix, SME Shipping Co. which
provide on-demand delivery services for small ecommerce players who do not have
their own shipping infrastructure. The gradual shift in the preference of
customers from physical shopping (store based) to online shopping has
exponentially increased the number of online orders.
Social
commerce in Thailand is driven by social networks in Thailand like Face book,
Instagram and LINE. This is a business model unique to Thailand and hence
merchants here set up ‘shops’ on the social network sites and they post videos
or images of their product along with specifications. Average ecommerce order
size in Thailand is pegged at THB ~ to THB ~. Share of logistics cost in the
ecommerce order is estimated at ~% of the average order size. Non-cash payment
technologies coupled with increasing trend of cross-border sales have created a
positive impact the Thailand’s E-commerce industry.
The
revenue generation increased to THB ~billion in 2017, thus displaying massive
growth with CAGR of ~% in the review period 2012-2017
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