DHL has been successful within the highly competitive Southeast Asian ground parcel market, largely by adopting a so-called micro-delivery model using motorcycles.
In the 2 years because it entered Thailand’s door-to-door delivery sector, DHL has built a network of 200 service points and can increase that number to no less than 1,000 this yr. It has also amassed a fleet of motorbike couriers, recognizable by the yellow shipping containers on their motorbikes.
“I feel at ease whenever I see the DHL logo,” said the 43-year-old man, who often buys clothes and electronics online.
Retailers have a similarly warm attitude. “Delivery satisfaction is directly linked to online store ratings,” said a women’s clothing retailer that works with DHL.
DHL is already well-established in Thailand with international air freight and company logistics for purchasers. Its regular local staff numbers over 500.
DHL’s e-commerce parcel volume has grown to fifteen million units per yr. DHL can pick up and pack an item for a retailer when needed and deliver the item to the recipient inside one or two days. Customers pays money upon receipt of the item.
This form of home delivery service has yet to totally take root across Southeast Asia. DHL has sought to achieve a head start by opening branches in Malaysia and Vietnam last yr. It now has greater than 1,000 service points within the three countries, with plans to expand to hundreds of locations within the short term.
Online shopping is on the verge of igniting Southeast Asia’s home delivery business. The home delivery market in six key countries within the region is anticipated to grow to $7.5 billion in 2020, greater than double its size in 2015, based on Nomura International (Hong Kong). Online retail’s share is anticipated to grow from 15% to 38%.
“There is currently no global player in the e-commerce logistics market that can offer a complete end-to-end solution from order fulfillment to cross-border delivery to last-mile delivery” aside from DHL, said Charles Brewer, CEO of DHL eCommerce.
DHL Group also has a market in China, where it has established itself before moving into Southeast Asia. “China has huge growth potential for cross-border outbound e-commerce,” Brewer said. Southeast Asia, with a population of 600 million, is vital to fulfilling that promise.
The Asia-Pacific region accounts for 17% of DHL’s sales. The company will increase Asia’s share to 30% by 2020, said Frank Appel, CEO of DHL parent Deutsche Post DHL.
American compatriot FedEx can be expanding its micro-delivery business, with a specific concentrate on online retail. But FedEx is specializing in Europe first, a technique underscored in 2016 by its 4.4 billion euro ($5.42 billion at current rates) purchase of TNT Express, a Dutch company strong in micro-delivery.
FedEx and U.S. rival UPS are each ramping up operations in China. But in the general landscape, which incorporates micro-deliveries in Southeast Asia, DHL seems to have the upper hand.
Also large-scale deliveries
Southeast Asian economies are moving towards the free flow of individuals, goods and money, which is creating latest opportunities for business-to-business and plant-to-plant logistics.
DHL seized the moment last August when it accomplished a big distribution center in Chachoengsao, Thailand. The Eastern Gateway Service Center, because it known as, is a hub for the encompassing regions and neighboring countries.
The facility is strategically positioned in the guts of Thailand’s Eastern Economic Corridor, an industrial zone under development. It not only processes e-commerce deliveries, but additionally supplies parts to small and medium-sized manufacturers.
Eastern Gateway is positioned about 20 minutes drive from Fujilloy (Thailand), a carbide tool manufacturer owned by a Japanese company Fuji Die“This location allows us to easily make same-day deliveries,” said Nobuhisa Watake, managing director.
