Chinese logistics firm Best expanding parcel delivery networks in Thailand
BANGKOK, NNA – Chinese logistics service Best Inc. will allocate a 5 billion baht ($158 million) investment budget in Thailand through 2024 to shore up its parcel delivery capability to meet growing shipment demand amid the novel coronavirus outbreak.
Best Logistics Technology (Thailand), its local unit, said Monday it plans to spend 300 million baht for the rest of this year to increase franchise delivery service points from the current 500 to more than 800.
The company aims to quadruple such bases to over 2,000 in 2022 to cater to surging transport needs on growth in the e-commerce market in Southeast Asia’s second-largest economy, it said in a statement.
It also plans to increase its three warehouses to 10 across the country, according to a report by local media Manager Online.
The local arm earmarks 10 percent of the total revenue each year for marketing in its efforts to expand franchised networks across the country, the statement said.
“What we learned from COVID-19 in China and Thailand is that we faced an immense increase in parcels,” Jason Qian, president and CEO of the local unit, said in a report by the Krungthep Turakit newspaper.
Currently, the local unit handles 250,000 parcels per day. The number is expected to surge 10-fold by the end of this year compared to 2019 and double next year, according to the newspaper report.
The domestic parcel delivery market had grown at a compound average growth rate of 40 percent from 2017 through 2019, partly driven by a rise in online shopping, Qian said in the statement, citing data by Euromonitor International, a market research firm.