International players dominate the e-commerce logistics market in APAC

The leading vendors identified by Technavio are expected to impact the market in the next five years.

The e-commerce logistics market in the region is expected to grow at a rate of 28% during the coming years, according to Technavio’s new report titled E-commerce Logistics Market in APAC 2017-2021.

In emerging markets such as India, China and Indonesia, the trend of crossborder e-commerce market is increasing. The market research company said that Asia-Pacific is expected to generate around 40% of the global cross-border revenue. These countries have also recorded an increase in foreign goods consumption and are driving demand in the market. Additionally, China is expected to be the largest market for online shopping as the growing middleclass population is increasingly spending on foreign products.

Aramex, one of the top five logistics vendors in Asia-Pacific, delivers small packages to retail and wholesale customers worldwide.

While the e-commerce logistics market in Asia-Pacific is highly fragmented with the presence of several small and medium-sized players, there are also many domestic players providing logistics services at lower prices as an inexpensive alternative to the big players. This is an attempt to use sales volumes to gain market shares, said Technavio. The increasing demand for e-commerce logistics player services due to the increase in e-retailing in the region has attracted many new players who have large capital to invest.

Sharan Raj, an industry expert at Technavio for research on logistics, said: “Companies with better technical and financial resources can develop innovative logistics services that render their competitors’ services obsolete and non-competitive even before they are launched, or costs are recovered.

“Therefore, vendors must develop modern technologies and stay abreast of the emerging technologies that could affect the continuing competitiveness of logistics services in the market.”

According to Technavio, the top five vendors in Asia-Pacific’s e-commerce logistics market are:

  • Aramex — Providing comprehensive logistics and transportation solutions to domestic and international customers, Aramex delivers small packages to retail and wholesale customers worldwide.

Its international shipping solutions are categorised as export express and import express, and its service offerings include door-to-door shipping solutions for large and small packages around the world. It provides real-time tracking updates on-site with delivery proof and notification through emails and messages. Its import express is categorised into two types — the priority import express and value import express.

  • CEVA Logistics — CEVA Logistics is a non-asset-based leading supply chain solutions and logistics service company offering supply chain solutions in freight management, contract logistics, and distribution and transportation management to large and medium-sized companies. It operates through a global network in 1,000 locations spread across 170 countries and is supported by more than 44,000 employees.
  • Deutsche Post DHL Group (DPDHL Group) — Global logistics service provider DPDHL Group provides diversified solutions
    from industrial supply chains to parcel delivery services. According to Technavio, the group’s revenue generated in FY2016 was US$63.06 billion. The company operates in the four segments: mail, supply chain, freight and express.
  • FedEx — FedEx offers a broad portfolio of services pertaining to transportation, e-commerce and business delivery. It has four segments such as FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers supply chain solutions, international trade services, and ocean and air freight forwarding services through its subsidiaries FedEx Trade Networks and FedEx Supply Chain Systems.
  • SF Express — SF Express provides information collection, market development, logistics distribution and express delivery services to customers worldwide. Special services for delivering high-value items such as monitoring, car delivery and specialty claims services are also available. These secure type of delivery services feature tracking control and accurate delivery, as well as provide payment collection.
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