DHL EXPECTS E-COMMERCE MART TO BOOM
Recent initiatives by the government will help accelerate growth, says CEO
john.gilbert@mediaprima.com.my
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.