DHL to add 1,000 delivery locations

DHL to add 1,000 delivery locations

DHL makes 50,000 deliveries a day in Thailand.
DHL makes 50,000 deliveries a day in Thailand.

DHL eCommerce Thailand, a division of the logistics firm Deutsche Post DHL Group, will expand its local delivery network to 1,000 locations nationwide by 2018, fuelled by online shopping growth in the country.

DHL ServicePoints now cover 200 spots in Bangkok and vicinity. Another 500 locations will be added in the first quarter next year.

Kiattichai Pitpreecha, managing director of DHL eCommerce, said the company, which entered the local market in 2015, makes 50,000 deliveries per day.

"We decided to expand our domestic delivery network in Thailand to reach 100% nationwide coverage through DHL ServicePoints," he said.

DHL will announce its service points partner in January.

Mr Kiattichai said e-commerce in Thailand has increased by an average of 22% annually the past few years.

Euromonitor projects Thailand's e-commerce market to triple to €3.64 billion (140 billion baht) by 2020, making it the second-largest in the region after Indonesia at €5.13 billion.

Vietnam is expected to take the third spot with €2.11 billion, followed by Singapore at €1.61 billion.

"We have 60-70 million people in Thailand and 90.9 million mobile devices," he said. "Moreover, 67% of Thais have access to the internet, which will increase to 80% by 2020."

Mr Kiattichai said Asia-Pacific is becoming more important for e-commerce operators. The region represents 35% of the US$4 trillion (130 trillion baht) worldwide e-commerce market.

China, Japan and India are driving the growth of e-commerce business in Asia-Pacific. In Southeast Asia, one-third of the 650 million people now prefer online shopping.

E-commerce accounts for 2% of sales in Thailand, compared with 12% globally. There is plenty of room to grow over the long run, he said.

DHL eCommerce aims to reach 50,000 operators via marketplaces, 15,000 of which are small and medium-sized enterprises.

Parcel delivery fee starts from 25 baht per piece, depending on weight and volume. DHL also provides cash-on-delivery services to e-commerce operators.

"Moving forward, DHL plans to offer parcel deposits at its service points and provide e-payments next year," said Mr Kiattichai.

DHL has operated in Thailand since 1973 and now runs four business divisions -- DHL Express, DHL Global Forwarding, DHL Supply Chain and DHL eCommerce.

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