The entry of Chinese e-commerce behemoth Temu is affecting Thailand Post's logistics service for other e-commerce platforms as its volume declined by 20-50% per day from July, said the company.
Thailand Post's logistics activities for TikTok fell by 50% from July to this month, said president Dhanant Subhadrabandhu.
Temu's entry is a critical challenge to the local e-commerce landscape that affects all related parties, especially online and offline retailers, because of its highly competitive product prices and unique business model, he said.
Mr Dhanant said the company is monitoring Temu's moves in the local market.
The state agency is eager to seek cooperation or a channel to connect with Temu through a logistics partnership model, similar to the collaboration Thailand Post has with several e-commerce and social platforms, such as Shopee, Lazada and TikTok.
Mr Dhanant said he plans to meet a representative from Temu next month for talks regarding a potential logistics collaboration.
He added that waning consumer spending power and the challenging economic situation has resulted in lower growth of overall e-commerce activities.
Temu is expected to gain popularity among local shoppers, which means several rival platforms would be affected, experiencing declining market shares, he added.
Mr Dhanant said that as a logistics service provider, Thailand Post has to collaborate with all platforms to ensure a sustainable revenue stream.
In the case of TikTok, Thailand Post had tried for almost two years to connect with it via a logistics collaboration. Thailand Post's logistics business began serving part of domestic e-commerce via TikTok from June.
Thailand Post's logistics business generates around 45% of total revenue, followed by the postal group (33%), the international service group (13%), the retail business group (5%), with the remainder coming from others.
Its logistics service commands 32% of the market share, while the rest is dominated by foreign service providers, especially those from China.
Thailand Post is set to establish a joint venture with a giant logistics company in China in early 2025 to boost its volume of two-way logistics transactions with China.
In a separate matter, Thailand Post on Wednesday announced its sustainability mission in the postal service with a goal to have electric vehicles account for 85% of its fleet by 2030 and 100% by 2040.