Singapore Post, which counts Alibaba Group Holding as its second-biggest shareholder, plans to expand freight services and warehouses in the US and Europe as Asia’s emerging middle class drives online purchases from overseas.
Singpost expects online transactions to jump in coming years, as the typical household in Southeast Asia currently receives just two to three parcels a year on average, compared with about 30 in developed markets, Chief Executive Officer Wolfgang Baier said in an interview Oct 8.
“We need to double down” on the push into e-commerce, Baier said. “E-commerce is going to grow, and we want to make sure we’re there.”
The move comes as other postal companies in Asia also are looking to reinvent themselves. Japan Post Group, a US$2.5 trillion ($3.4 trillion) behemoth that also function as a bank and insurer, is preparing an initial public offering and looking to expand internationally after buying Australian logistics company Toll Holdings earlier this year.
Singpost holds a monopoly on mail delivery in its home base, which accounts for about 80 percent of its operating profit, but is looking for new areas of growth as more people use mobile phones and access the Internet. Worldwide business-to-consumer sales could grow 34% to US$675 billion in 2016 from last year as the global middle class grows, Singpost said, citing data from researcher eMarketer.
Online Stores
The company is building its e-commerce business by managing online stores for about 15 clients such as Adidas AG and Canon Inc., providing warehousing, handling customs and making deliveries, Baier said. Singpost, whose biggest shareholder is Singapore Telecommunications, provides these services in Hong Kong, Australia and a number of economies in the Asia-Pacific region, in addition to its home market.
Singpost said Friday it’s buying 71% of Jagged Peak Inc., a Tampa, Florida-based e-commerce company, for US$15.8 million. The agreement marked its first purchase in the US, adding to $181 million of acquisitions in the past year, according to data provided by the Singapore company.
Online purchases account for about 0.2% of total retail sales in Southeast Asia, compared with 10% to 15% in developed markets, he said.
Alibaba, China’s biggest e-commerce company, agreed in July to boost its stake in Singpost to 14.51% from 10.23%. It also bought 34% of a Singpost e-commerce logistics subsidiary that provides warehousing across the Asia-Pacific region, and the two companies have said they’ll continue seeking other business opportunities together.
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Singpost expects online transactions to jump in coming years, as the typical household in Southeast Asia currently receives just two to three parcels a year on average, compared with about 30 in developed markets, Chief Executive Officer Wolfgang Baier said in an interview Oct 8.
“We need to double down” on the push into e-commerce, Baier said. “E-commerce is going to grow, and we want to make sure we’re there.”
The move comes as other postal companies in Asia also are looking to reinvent themselves. Japan Post Group, a US$2.5 trillion ($3.4 trillion) behemoth that also function as a bank and insurer, is preparing an initial public offering and looking to expand internationally after buying Australian logistics company Toll Holdings earlier this year.
Singpost holds a monopoly on mail delivery in its home base, which accounts for about 80 percent of its operating profit, but is looking for new areas of growth as more people use mobile phones and access the Internet. Worldwide business-to-consumer sales could grow 34% to US$675 billion in 2016 from last year as the global middle class grows, Singpost said, citing data from researcher eMarketer.
Online Stores
The company is building its e-commerce business by managing online stores for about 15 clients such as Adidas AG and Canon Inc., providing warehousing, handling customs and making deliveries, Baier said. Singpost, whose biggest shareholder is Singapore Telecommunications, provides these services in Hong Kong, Australia and a number of economies in the Asia-Pacific region, in addition to its home market.
Singpost said Friday it’s buying 71% of Jagged Peak Inc., a Tampa, Florida-based e-commerce company, for US$15.8 million. The agreement marked its first purchase in the US, adding to $181 million of acquisitions in the past year, according to data provided by the Singapore company.
Online purchases account for about 0.2% of total retail sales in Southeast Asia, compared with 10% to 15% in developed markets, he said.
Alibaba, China’s biggest e-commerce company, agreed in July to boost its stake in Singpost to 14.51% from 10.23%. It also bought 34% of a Singpost e-commerce logistics subsidiary that provides warehousing across the Asia-Pacific region, and the two companies have said they’ll continue seeking other business opportunities together.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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