Southeast Asia logistics market erupted, benefit from the rise of electric business

hunting cloud network May 4

note: limited by the geographical situation of broken, no matter how you can’t imagine the Indonesia was a nightmare of logistics market should become the logistics companies competing for land. Because the rise of electricity to the local people never leave home shopping has brought great convenience, terrain and bad also to resist the chance to surge.

if you want to send a parcel in Indonesia, naturally you first think of the developed express company. The Courier company service outlets throughout the country, just is to find a at home.

but the Courier really is unhappy, sometimes very insecure, network updates are not timely, so the sender can’t almost in real time from the online tracking the parcel delivery. Even so, developed the leading logistics market is Indonesia. Developed has 3500 shops in the Indonesian islands, 7000 motorcycles, 2000 cars, vans, and rent between delivery trucks and cargo ships in a remote island. From the point of view of logistics, more than 17000 islands of Indonesia is express industry’s nightmare.

in the patchy, the islands country, however, developed into indirect beneficiaries. Contributory to the success of developed another three Indonesia’s social and economic development factors: the rise of the middle class, digital development and electricity. Rapid growth of national GDP has created a new demand and strong spending power. In addition, use the Internet in Indonesia has a population of 85 million, most of them live in remote areas far from the main urban centers. For this part, online shopping is more than just a convenient, but there’s no way to solution.

it is these people promote the vigorous development of the electricity industry in Indonesia. According to Reuters news, now developed a monthly delivery of e-commerce order average around 4 million pieces. Because online shopping is obviously rising trend, the average monthly delivery orders and have increased significantly.

Opportunities in the development of

all these developments in Indonesia is in a state of step by step, because of the economic development of the whole country have remained stable. With sharp business savvy entrepreneurs have to sniff out the potential development, firmly staring at this market.

one of them is Peter ke pitts (Peter Kopitz), a German middle settled in Thailand in 2005. In 2012, he became the rockets net (Rocket Internet) a member of the entrepreneurial team, began southeast Asia business trip. Then, secco pitts partnership with others founded Zalora branch in Thailand, namely rocket Internet online fashion store, and as a general manager position.

with the rich experience in electrical contractor and the abundant capital, the rockets net is determined to e-commerce industry in southeast Asia opened up a belongs to own road – in the region at the same time set up several startups, including Indonesia. Stanford graduates of Indonesian hardy WeiNa (Hadi Wenas) by pitts phase, become Zalora Indonesia branch co-founder and chief executive.

before the rockets net log on to the market, southeast Asia has made very great achievement in the field of digital. Especially in Indonesia, the blog and the development of online BBS abnormal prosperity. Of course, the Internet also is often used to business transactions. Tokobagus is a founded in 2005, the classified ads website (hunting cloud network note: now renamed OLX). Tokopedia is a beginning of e-commerce market in 2009. And Berrybenka, similar to Zalora online fashion store, founded in 2011.

but in that time, the domestic company funds shortage is a bit serious. They have user groups, for the difficult environment and no complaints. They are already on the low efficiency of logistics and complicated pay for granted, no rich resources, they can do nothing more.

but the rockets net entered the market in 2012, they will face a new environment very headache, even they also reshape market idea. If you want to in the market set up large-scale B2C (business to consumer e-commerce mode) website, namely Zalora, only on the local existing logistics suppliers is not enough.

so, pitts, explains Zalora in Bangkok and Chiang mai, Thailand branch group set up their own distribution center, respectively, to send the parcel from across the city fast and efficient. In addition, the company will also have to accept terms of payment are used to: southeast Asia people to pay in cash. In short, the relationship between the company and logistics partners so well, in the process of actual distribution process with Zalora information system also obtained the further consolidation.

a new generation of e-commerce enabler

a start-up Zalora in Thailand after the painful experience of secco pitts seemed to find some new opportunities. In February 2013, he joined the Thai capital, Ardent, advisers to the company and investors, but also brought his new plan.

Ardent Capital consists of Paul, Tom and John Srivorakul founded three brothers investment company.

pitts and Ardent realize common professional “electricity push” may become a independent business model. So had aCommerce, dedicated to provide end-to-end services, especially for electricity customers to provide such services. These services include inventory and distribution, technology, market and customer support.

started in Thailand, aCommerce in major southeast Asian cities have set up many branches, such as Jakarta. WeiNa, originally just Zalora the co-founder of a branch in Indonesia, and as the new venture joint chief executive of the company.

so novel concept, let aCommerce shortly after listed among the kiehls (Kiehl ‘s) and nestle etc. Big brands, more it is worth noting that the aCommerce completed southeast Asia so far the largest in the history of A round of funding.

Zalora and other rockets are aCommerce customer’s company. In Indonesia, Berrybenka this kind of company is now without aCommerce provide end-to-end service. According to section pitts, after the company was founded a year and a half, aCommerce on the number of employees has extended to 500.

the development of postal service

warehouse and send is not the only advantage of aCommerce, in most cases, the company has 50 to 60 truck and motorcycle completely inadequate. If you want to cover all the area, obviously aCommerce needs and local third-party logistics (3 pl) company cooperation. In Indonesia, the last mile of distribution is especially complex, but such as developed 3 pl has the largest logistics network.

other mature logistics company also captured the opportunity to come. In Singapore, the national postal service SingPost denounce is gigantic endowment investment aCommerce logistics distribution center. Through ezycommerce, SingPost also established a lot of electricity customers, to offer them similar to aCommerce service. In addition, the SingPost also runs a eCommerce, another online retailer enabler of southeast Asia.

the traditional third-party logistics companies, such as the RPX, fedex subsidiary in Indonesia, are in transition.

in the past has been in the service of the RPX enterprise to enterprise’s electrical business model as well as the international express delivery. “We have always felt that can bring us a single retailer’s profit is limited,” company President Andry Adiwinarso said. Realized that the company has missed opportunities, Adiwinarso decided to lead the RPX strategic transformation.

the company decided to raise demand for electricity customers and individual online merchants. He proposed to the international standards and high reliability to the customer provide logistics services. Plus the RPX internal integration of the information system, this means that the user can real time on the Internet to track their packages, because every one the hubs, will input information system. Delivery and payment are all of the digital updates. Each the RPX delivery personnel are equipped with a hand-held devices, can immediately after the complete distribution in the customer update the order details in the system. And other local third-party logistics companies to provide such mature technology services.

the RPX forecast every month this year will be the average distribution of more than 100000 packages for electricity customers. This figure is still a far cry from what distance developed 4 million. “Zalora, Lazada, Blibli, these companies have cooperation with us.” Adiwinarso emphasis.

Specialization of

like aCommerce service has gradually into the maze of logistics market in Indonesia. It for Indonesia’s electricity business startup provides instant cooperation system, but the system still rely on third party logistics company to help. Pitts calm said that no company can only single-handedly solve all problems. The size of the parcel delivery area, terms of payment, as well as the speed and price and so on, will affect the final effect.

moreover, cod is a very thorny problem. From the point of view of consumers, of course, they are more welcome the arrival of the goods payment, because only see the real satisfaction after they pay. But for business, the risk is too big.

“imagine a motorcycle delivery man received a few pen delivery order for the iPhone. If is cod, at this point, he is sending is not a mobile phone but millions of rupees in cash, “the RPX Adiwinarso said,” not only the delivery man to take risks, merchants and we all are afraid.”

because of this, the RPX pick their own a dispatcher is responsible for payment in cash on delivery orders. This kind of great responsibility 90% in men who are the company’s internal staff. This also explains why the RPX in Indonesia only 28 cities provide cash on delivery service.

meanwhile, aCommerce also figured out a response to the path of the risk of cash payments. Their men who use smartphones filmed the entire transaction process, including house buyers, then upload photos as evidence of completion, pitts explained.

so to speak, the attempt of the specialization of cod and security is hope to establish a canonical form of cod. “As the payment of the goods is more and more formal, people will accept this terms of payment, more and more” pitts says, “in Indonesia, where 70% of the transaction are cod, and rising trend in the future.” Is not only a pitts, Adiwinarao also think in the next five years, cod will become the mainstream of payment.

From online to offline

in August 2014, the RPX and chain convenience stores all over the Indonesia Indomaret reached a strategic cooperation agreement. “Users can now leave package at a nearby Indomaret chain, even if you are in Jakarta, your package can also through the RPX sent to any place.” Adiwinarao said. He hopes to carry out this service across the country. Established in Indomaret chains in the future, he plans to take and pay point. “There is a shop, should be more secure than cash on delivery,” Adiwinarao continue explains, “Indomaret chain operating time is long, also not rest over the weekend, is very convenient for the users.”

in Thailand, Zalora cooperate with 7-eleven, as their designated pick-up point, proved the feasibility of this method is effective and convenient. In Singapore, Zalora in 7-11 convenience store on a trial basis “pick-up payment services”, in May 2013, PRX also managed to local Indomaret cooperation in Indonesia and launched a similar service. ACommerce also tried to establish cooperative relations with the local convenience store, but secco pitts says, “the overall effect is not so good.” But pitts said again, “aCommerce are looking for the cooperation with gas station, hoping to achieve ‘amazon type storage in Bangkok. These self-help pick-up service can allow customers to their home more convenient package.”

most of Indonesia’s emerging electrical manufacturers take a through the entity shop, payment and send it as a trump card. Matahari Mall, Indonesia’s largest financial holding Group Lippo Group investment e-commerce sites, to use its powerful network Matahari retail store is convenient and fast delivery service.

consolidate

in Indonesia, aCommerce and Matahari Mall development two big companies started almost at the same time. ACommerce recently announced that it would take over MatahariMall end-to-end electrical business operations, once took formal, aCommerce will become Indonesia’s largest electricity account owner.

“we have to take over MatahariMall built a large warehouse, we have a test run of our system, all can be put into good use. We also made an agreement with MatahariMall, a year later they can take back this part of the electricity business.” Pitts said.

in addition, WeiNa, former aCommerce Indonesia branch joint chief executive, last week officially joined MatahariMall as chief executive. Secco pitts will leave Thailand headquarters of the group’s chief operating officer, temporarily to fill the gaps in WeiNa, leaving Indonesia. nullnullnullnull