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Cainiao-Led Group to Build HK Logistics Hub

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In line with Alibaba’s vision of a 24 hr local delivery and 72 hr global delivery, Cainiao Network will invest $1.5 billion on a new logistics hub at Hong Kong International Airport.

Hong Kong is not the only location that is part of that vision. Cainiao Network’s RMB 100 billion logistic hubs investment will extend over several cities, Dubai, Hanzhou, Kuala Lumpur, Liege and Moscow.

The new Hong Kong logistic hub will feature smart technology warehousing as unveiled during last month Global Smart Logistics Summit in Hangzhou. This includes, Internet of Things applications, big data, edge computing, artificial intelligence, auto-temperature and humidity, real time monitoring on storage capacities, automated guided vehicles(AGV).

The hub is expected to process over 10 million packages and an additional 1.7 million tons of cargo per year from Hong Kong airport. It would be operational by 2023.

Commentary by Maverick Chung

 

Thailand Post: Acing the logistics of e-commerce

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Thailand eCommerce is in the news this week they are covered in a story in the, Bangkok Post. The great news for APP and APP ePacket Members is the story is covering Thailand Post, expected growth in Cross border eCommerce using the APP ePacket Service. Thailand Post forecast that the ePacket service will generate a revenue of 100 mill baht, in 2019

In the previous year, Thailand Post has achieved revenue of around 27 billion baht. 13 % of the revenue or 3.5 billion is generated from Cross Border ecommerce

Comparing the e-commerce market share in Thailand, Thailand Post have around 30% while Deutsche Post DHL, lead the market with 45%.

Significant growth in C to C and B to C activities, arrival of e-commerce giants like Alibaba and JD.com are attributed to the growth.

For further reading please go to the below links. You may need to sign up, for free, with Bangkok Post.

https://www.bangkokpost.com/business/news/1476017/thailand-post-aims-to-grab-bigger-slice-of-overseas-pie

https://www.bangkokpost.com/business/news/1478345/acing-the-logistics-of-e-commerce

Commentary by Maverick Chung
Image source: Thailand Post

 

Singapore: Common parcel locker system to be piloted in October

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Singapore will be piloting common parcel locker system in October. Lockers will be conveniently located within 250m of residential apartments. Pilot lockers will be located west and north-east of Singapore. Punggol will have 39 locker sites, run by Singapore Post. Bukit Panjang will have 23 locker sites, which will be run by logistics provider Blu Logistics.

This approach is interesting as whilst it will provide low cost entry into parcel lockers for all the small partners, it will remove some of the advantages the larger delivery networks have enjoyed as they would have had exclusivity of use before.

Its also interesting to see retailers in the initial group of interested parties, as this would enable them to bypass traditional delivery companies and distribute more of their sales themselves.

Fifteen major logistics industry players, online merchants and marketplaces have signed a Memorandum of Intent with IMDA to use the common parcel system. These include NTUC Fairprice, Ninja Logistics and Lazada Express (Singapore).

While industry players are interested in using the common parcel system, details on costing revenue collection, or maintenance by parcel locker providers (Blu and SingPost) is not mentioned in the article.

Commentary by Maverick Chung

 

Ecommerce Giants Battling for India Market

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Competition is heating up in India ecommerce sector as foreign ecommerce giants are battling for its market share.

According to India Brand Equity Foundation, Ecommerce industry is projected to expand in 2026 to US $200 billion. In 2016, India consumer are spending 47% of the Ecommerce retail value on electronics, and 31% on apparels.

Walmart FlipkartChart1

Based on Alphastreet.com, the current industry leader in India ecommerce is Flipkart 39.2% of the market share, closely followed by Amazon at 31% and various competitors at 21%.

Walmart FlipkartChart2

Walmart is coming in aggressive with a US $16 billion investment proposition in Flipkart. This will result in a 77% ownership in Flipkart that will position Walmart a strong competitor with Amazon. Other notable giants like Alibaba owns 50% in Paytm Mall.

However, Walmart deal is getting headwinds as SoftBank, a major shareholder in Flipkart, may face double taxation once its 21% stake is sold to Walmart. SoftBank is weighing its options and the deal may hold for 6 to 12 months.

Commentary by Maverick Chung

Source:
https://www.ibef.org/download/Ecommerce-Report-Apr-2018.pdf
https://news.alphastreet.com/walmart-buys-flipkart/
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/pecking-order-at-flipkart-after-last-funding-round/articleshow/62784438.cms
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/paytm-mall-raises-rs-2900-crore-from-softbank-alibaba/articleshow/63584679.cms
https://techcrunch.com/2018/05/09/walmart-confirms-16b-flipkart-investment-giving-it-77-in-indias-e-commerce-leader/
https://economictimes.indiatimes.com/news/economy/policy/softbank-chief-masayoshi-son-undecided-on-selling-flipkart-stake/articleshow/64117207.cms
https://tamebay.com/2018/05/marketplace-will-win-in-india.html?utm_source=bm23&utm_medium=email&utm_term=Which+marketplace+will+win+in+India?&utm_content=Posts+from+Tamebay+for+15/05/2018&utm_campaign=TB+-+Newsletter+-+2017&_bta_tid=19535207125476388982569550031653202048584423868157003831095933037501132080473127683051727222063756800008

Image Source: https://stories.flipkart.com/walmart-flipkart-investment/

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