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Thailand Post hails e-commerce
Thailand Post says revenue from its parcel delivery service including express mail service (EMS) will exceed half of its total revenue in 2019, reflecting the spectacular growth of e-commerce.
Revenue from its parcel delivery service accounted for 42% of the total in 2016. President Samorn Terdthampiboon said the e-commerce market in Thailand has grown by 20% annually.
To capitalise on the opportunity, Mrs Samorn said Thailand Post is modernising its postal and delivery processes, as well as upgrading its back office system in a drive to transform itself into a fully automated operation over the next few years. The modernisation is also particularly aimed at competing with the influx of no-frills messenger service apps and international courier and parcel delivery service providers that are aggressively expanding their market share in Thailand.
Thailand Post reported consolidated revenue of 25 billion baht last year, up from 22 billion in 2015. Of the total, 42% was derived from parcels and EMS delivery services, 37% from registered mail and retail business as well as communication services such as post cards. The rest came from delivery services for neighbouring countries.
Its net profit was 3.5 billion baht last year, a sharp increase from 2.7 billion in 2015, thanks to high-margin postcards from the Euro 2016 football final.
Mrs Samorn said Thailand Post projected consolidated revenue of 27 billion baht this year, with a net profit of 3.3 billion.
“2017 will be the year of our aggressive innovation transformation in five areas: products and services, operations, infrastructure, communications and staff mindset,” she said.
Thailand Post has plans to spend at least 3 billion baht each year during 2016-18 on upgrading its core automation systems and distribution centres including fleet vehicles.
“The modernisation is not only aimed at serving the booming e-commerce market. The development is also intended to create sustainable revenue streams for us, serve consumer needs and accommodate the government’s digital economy,” said Mrs Samorn.
She said Thailand Post is also on the verge of developing innovative applications to serve digital consumers by using technologies and digital devices to enhance the efficiency of its delivery processes and systems.
Thailand Post will expand its PromptPost service, a preregistration mobile app for high volume deliveries, across the country this year after launching the service in Bangkok and adjacent provinces last year.
PromptPost helps users reduce parcel processing time if they use its semi-automated processing counters.
Thailand Post will also introduce a new delivery process through a postal ID system on a trial basis in Bangkok, Nakhon Ratchasima and Chon Buri this year.
Although the postal ID is more complicated than the current postcode, the system will make it easier for Thailand Post to sort and send mail in a shorter time.
More than 7 million households have registered for postal ID through Thailand Post’s website since November last year.
Source: http://www.bangkokpost.com/business/news/1198189/thailand-post-hails-e-commerce