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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