The arrival of Chinese e-commerce giant Temu is significantly impacting Thailand Post’s logistics services for other e-commerce platforms, leading to a reported daily volume decline of 20-50% since July, according to the company.
Thailand Post’s logistics operations for TikTok have seen a sharp drop, with a 50% decrease from July to the present, mentioned president Dhanant Subhadrabandhu.
Dhanant noted that Temu’s entry presents a major challenge to the local e-commerce market, affecting all stakeholders, especially both online and offline retailers, due to its highly competitive pricing and distinctive business model.
He stated that Thailand Post is closely monitoring Temu’s activities in the local market.
The state agency is keen to explore a logistics partnership with Temu, similar to its existing collaborations with various e-commerce and social media platforms like Shopee, Lazada, and TikTok.
Next month, Mr. Dhanant plans to meet with a Temu representative to discuss potential logistics collaboration.
He also pointed out that decreased consumer spending and a tough economic climate have led to slower growth in overall e-commerce activities.
Temu is anticipated to become increasingly popular with local consumers, potentially impacting the market shares of several competing platforms, he added.
As a logistics service provider, Thailand Post aims to work with all platforms to maintain a sustainable revenue stream.
In relation to TikTok, Thailand Post has been attempting to forge a logistics collaboration for nearly two years and began providing logistic services for domestic e-commerce via TikTok starting in June.
Thailand Post’s logistics sector contributes approximately 45% to its total revenue, with the postal division accounting for 33%, international services 13%, retail operations 5%, and the remainder from other sources.
The company holds 32% of the logistics market share, while foreign service providers, particularly those from China, dominate the rest.
To enhance its two-way logistics transactions with China, Thailand Post plans to establish a joint venture with a major Chinese logistics firm in early 2025.
Additionally, Thailand Post announced a sustainability initiative aimed at transforming its fleet to electric vehicles, with a goal of achieving 85% electric vehicles by 2030 and 100% by 2040.
