Re­cent ini­tia­tives by the govern­ment will help ac­cel­er­ate growth, says CEO

New Straits Times - - Business - JOHN GIL­BERT HL eCom­merce, a di­vi­sion of lead­ing lo­gis­tics com­pany Deutsche Post’s DHL Group, ex­pects the e-com­merce mar­ket in Malaysia to ac­cel­er­ate with var­i­ous ini­tia­tives by the govern­ment. “We ex­pect the growth to ac­cel­er­ate even faster, es­pe­cially


Dibaba (China) Co Ltd, Malaysia Dig­i­tal Econ­omy Corp and Hangzhou Mu­nic­i­pal Govern­ment,” DHL eCom­merce chief ex­ec­u­tive of­fi­cer Charles Brewer told NST Busi­ness in a re­cent in­ter­view. He said aside from Malaysia, DHL eCom­merce sees fan­tas­tic op­por­tu­ni­ties in South­east Asia.

“Of the 150 mil­lion dig­i­tal con­sumers in South­east Asia, twothirds are al­ready shop­ping on­line,” Brewer added.

In April, DHL eCom­merce launched its do­mes­tic de­liv­ery op­er­a­tions in Malaysia with a range of cus­tomer-cen­tric ser­vices catered to Malaysia’s grow- ing e-com­merce mar­ket.

With the launch, Malaysian on­line re­tail­ers will also ben­e­fit from DHL’s range of cross-bor­der ship­ping so­lu­tions and net­work of ful­fil­ment cen­tres glob­ally to en­able their in­ter­na­tional ex­pan­sion.

On the im­pact of the fluc­tu­at­ing petrol and diesel prices, Brewer said changes in fuel costs have a dif­fer­ent im­pact on each of its four di­vi­sions but are au­to­mat­i­cally fac­tored into pric­ing if of ma­jor rel­e­vance.

“The over­all net im­pact on group re­sults was there­fore mi­nor. In the long term lower oil price could act as an im­pe­tus for trade, re­sult­ing in higher vol­umes for the lo­gis­tics in­dus­try,” he said.

To a ques­tion on com­pa­nies mak­ing the right de­ci­sion in choos­ing the cor­rect e-com­merce lo­gis­tics part­ner for their busi­ness, Brewer said based on re­search, 66 per cent of shop­pers at­tached im­por­tance to re­li­able de­liv­ery, while 57 per cent of con­sumers said cur­rent de­liv­ery op­tions are not sat­is­fac­tory.

Fur­ther­more, 33 per cent of on­line shop­pers have had bad ex­pe­ri­ences.

“Lo­gis­tics is a vi­tal com­po­nent of the e-com­merce eco-sys­tem. In fact, con­sumers to­day want greater choice, con­ve­nience and con­trol in their de­liv­ery ex­pe­ri­ence.

“Re­tail­ers, brands and mar­ket­places that want to in­crease their bas­ket size, in­crease the per­cent­age of re­turn­ing cus­tomers, im­prove con­ver­sion rates and in­crease cus­tomer loy­alty, need to en­sure that they part­ner with a provider who un­der­stands this and is able to build a win­ning ful­fil­ment prod­uct of­fer­ing,” he added.

DHL eCom­merce’s in­vest­ment in Malaysia in­cludes a 48,000 sq ft central dis­tri­bu­tion hub in Pu­chong as well as de­pots in Pe­nang, Jo­hor Baru, Cheras and Pu­chong and a fleet of two-wheel and four-wheel ve­hi­cles.

The fleet of ve­hi­cles will pro­vide next-day de­liv­er­ies to all ur­ban ar­eas in the Klang Val­ley, Pe­nang and Jo­hor Baru, and two to four-day de­liv­er­ies to all other lo­ca­tions in the coun­try.

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