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Thailand gains DHL eCommerce

Thailand has been identified as a key market in Southeast Asia for the launch of the DHL eCommerce domestic delivery service.

The end-to-end service for Thai eCommerce merchants offers next-day delivery to key urban centres with an easy-to-use portal for preparing shipments and full tracking visibility for consumers. It has been introduced as Thailand’s eCommerce market gathers strength.

DHL eCommerce, a division of global logistics company Deutsche Post DHL Group, says it aims to enable a better eCommerce 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 3000 sqm central distribution centre in Bangkok and a network of more than 20 depots throughout the nation to ensure full coverage.

DHL plans to more than double the number of depots in Thailand by next year, and expand its fleet, primarily using two-wheel vehicles to deal with the traffic in major cities.

DHL eCommerce’s fleet of vehicles will provide next-day delivery to all urban areas, and a two- to three-day delivery to other locations. All merchants have access to cash on delivery (COD) with daily remittance and access to a multilingual call centre.

Launching in Thailand is seen by the company as a showcase for Strategy 2020, the corporate strategy of Deutsche Post DHL Group, which has renamed its mail division as “Post – eCommerce – Parcel”. DHL has been in Thailand since 1973 with its other business units – DHL Express, DHL Global Forwarding and DHL Supply Chain.

“The Thai eCommerce market is expected to more than triple in size to EUR 3.6 billion ($3.94 billion) between now and 2020, and with this investment we are well positioned to support the growth of eCommerce businesses in Thailand,” says DHL eCommerce CEO Thomas Kipp.

“We see major strategic opportunities for eCommerce growth in Thailand, particularly with the ASEAN Economic Community, which is expected to increase the movement of goods within the region.

“Despite eCommerce already being a billion-dollar sector with extremely rapid adoption, Thailand’s share of the market is still relatively low compared to other high-growth economies,” says DHL eCommerce Asia Pacific CEO Malcolm Monteiro. “Only 1.7 per cent of total sales in Thailand are from eCommerce, compared to more than 10 per cent in China.

“Thailand is ranked as one of our top-priority markets in South-east 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.”

DHL eCommerce Thailand MD Kiattichai Pitpreecha says businesses need logistics services that keep up with extremely rapid changes in consumer expectations.

“This makes the need for a tailored eCommerce delivery service greater than ever before so merchants, especially SMEs, can focus on their core business and grow faster.”

Monteiro says the company’s success in India and China have proven that customer service bolstered by robust and scalable end-to-end delivery networks are essential for winning eCommerce market share.

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