Quick and convenient Korean type of delivery service is expected to bring a change to the public’s lifestyle in Thailand. The Global SCM Innovator CJ GLS (headed by CEO Son Gwan-su, www.cjgls.co.kr) announced that it will become the first domestic logistic company to launch the delivery business in Thailand.
For a start, the business will focus on meeting delivery orders placed by CJO Shopping that started to air the home shopping program in Thailand from June 18th. Following India and Vietnam, CJ GLS advanced into Thailand to launch the quick delivery service in overseas market.
In particular, Thailand sees growing demand for Korean brands and cultural products thanks to the Korean wave or Hallyu that swept through the country.
Specifically, CJ GLS is exercising the strategy to export the local quick delivery service model that is already put in place in Korea and promote the advantages of the delivery model that brought change to Korean lifestyle by enabling customers to place purchase order online and receive the ordered products at home.
In order for the Korean type of delivery service to be successful in Thailand, the company has not just built four sub terminals and warehouses but also has secured about 20 trucks and 30 motorcycles to facilitate the delivery network. By providing Korean type of total delivery service ranging from transportation to warehousing, distribution and collecting returned products, the company will help CJO Shopping to achieve successful result in Thailand. As the first step, the company will provide delivery services to about 4 million households in nine metropolitan areas, including Bangkok, and will extend the service nationwide by 2016.
For the success of delivery business in Thailand, CJ GLS will make the most of infrastructure and business know-how accumulated by Thailand branch founded in 1998.
Specifically, the company will mainly use motorcycles for the delivery service considering Bangkok and its neighboring areas’ congested traffic conditions. The Thailand branch of CJ GLS already exercised successful localization strategy to transport ordered products by motorcycles in four hours after the order placement. Given that the online payment method is not common in the country, the company plans to adopt COD (cash on delivery) method that requires delivery men to collect paid cash after the ordered delivery. In addition, the company plans to increase customer satisfaction by providing quick delivery service even on weekends and during holidays. .
CJ GLS Director Heo Wook said, “In 2010, the Thailand branch reported USD 100 million in sales. I’m sure that the branch’s successful business knowhow and abundant sales experiences will serve as important asset for the success of delivery business in Thailand. We will promote the Korean lifestyle in Thailand by allowing the consumers to place order online and receive ordered goods at home through the quick delivery service. In doing so, we will create another type of Korean wave or Hallyu.”
Meanwhile, Thailand’s retail distribution market steadily grows five percent per year, among which electronic commerce accounts for mere five percent. Given that Thailand’s e-commerce is still in inchoate stage, the country still holds great growth potential. In addition, metropolitan areas, including Bangkok, report about USD 13,000 GDP as well as growing internet penetration rate. These factors are combined to increase the chance for the success of home shopping or online shopping mall business in the country.