Asian postal services adapt to post-mail era

With the pre-Christmas rush at its peak, a serpentine network of conveyor belts at Singapore Post’s new logistics centre moves parcels destined for addresses across the world in time for the festive season.

It is a scene repeated in sorting offices around the globe in December, the busiest time of the year for postal firms with armies of workers toiling to get presents delivered on time.

But times are changing and the explosion of online shopping is forcing traditional delivery companies such as SingPost to adapt or be damned.

The growth of websites such as Amazon and Alibaba means customers can avoid crowded high streets and buy anything from mobile phones to sports equipment online and send them straight to loved ones.

US-based research firm eMarketer said online sales are expected to reach $1.9 trillion this year and top $4.0 trillion by 2020.

And traditional firms are making moves to keep up.

The nearly 200-year-old SingPost, which is partly owned by China’s Alibaba, last month inaugurated its ecommerce sorting office capable of handling up to 100,000 parcels a day.

It also now provides a service setting up retail websites for clients and allows for online payments while it has teamed up with brands including Adidas, Timberland and Xiaomi to help expand their online retail sales in the region. (AFP)