Thailand Post is restructuring its operational costs to manage a challenging market this year, as diminishing consumer purchasing power may impact the volume of local logistics.
This strategy is designed to maintain Thailand Post’s profitability and support its future expansion, as stated by President Dhanant Subhadrabandhu.
Mr. Dhanant mentioned that Thailand Post is keeping an eye on the economic landscape to match its growth potential and strategize accordingly.
According to Mr. Dhanant, the market fluctuates significantly each year, and Thailand Post could face difficulties in 2025.
Thailand Post achieved revenue of 15.8 billion baht in the first nine months of 2024, witnessing significant growth in its domestic transport volume.
The year-on-year increase of 8.07% in the Express Mail Service was propelled by customer trust and a strategy focused on boosting revenue through digital and physical services.
The transport and logistics sector was the largest contributor, making up 46.5% of the total revenue, with a growth of 3.34% year-on-year, aligning with the expansion in retail and e-commerce sectors.
Efforts to improve customer service led to an 18.5% increase in domestic parcel service in the first nine months of 2024, Mr. Dhanant noted.
Mr. Dhanant observed that the average market fee for express parcel delivery service was around 60 baht per piece over the past seven years but has recently dropped to 20 baht, leading to reduced profit margins in Thailand Post’s primary revenue-generating logistics business.
He also pointed out that the local e-commerce market is predominantly filled with Chinese products, resulting in a surge in traffic from China to Thailand.
Despite partnerships with major e-commerce platforms like TikTok, Lazada, and Shopee, these platforms still control which stores can use Thailand Post’s services and which should use other couriers.
These platforms also dictate the logistics routes for Thailand Post’s parcel delivery.
An industry insider, who preferred to remain anonymous, stated that all China-based e-commerce platforms primarily use J&T Express Thailand for product deliveries from China to Thai consumers.
Mr. Dhanant announced that Thailand Post is planning to broaden its parcel delivery services to encompass more e-commerce platforms and stores by directly addressing the needs of merchants requiring reliable logistics services.
Thailand Post aims to establish a joint venture with a Chinese logistics firm in the second quarter of 2025 to boost cross-border logistics transactions between the two countries.
He revealed that negotiations between the two companies are about 60% complete, with Thailand Post intending to hold a 25% stake in the venture.
The logistics division accounts for 46% of Thailand Post’s total revenue. The postal group represents 33%, the international service group 13%, the retail business 5%, and the remaining 3% comes from other business activities.
