Logistics firm 21Express to tap Indonesia’s e-commerce boom for higher growth
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Founder and CEO 21Express Tjia Anastasia told reporters on Wednesday that the company’s plan to enter the retail courier business is driven by the high demand from retail sector for domestic and international shipments.
“We have seen a fast growth in e-commerce since about 2010.This growth has really impacted the logistics business as companies have to send packages to Indonesia regularly,” Fany Wyadi, managing director of 21Express, said.
As online shopping becomes increasingly popular in smaller cities, the Jakarta-based company expects to see shipments growth double or even treble in the next year from the current 130,000 packages each month, said Fany. 21Express’ clientele is dominated by corporates who account for 70 per cent of the business while it has already signed up three of the country’s top e-commerce players as clients, Fany said, declining to divulge further.
According to independent research body IDC, e-commerce market in Indonesia grew by 42 per cent from 2012 to 2015.
The high growth is encouraging e-commerce businesses to find reliable partners so that the delivery of goods and documents can be done in time. For example, one of the leading retail optical networks of the country Optik Melawai, has partnered with 21Express to send stock glasses and sales tools to hundreds of outlets in Indonesia. Tjia explains that its first partner is serving the retail customers of a communication equipment distributor firm to distribute its high value products.
“We are the pioneer company behind the successful sales and distribution of mobile phones in Indonesia and one of the companies that is believed to transmit the tools and medical material to the corners of Indonesia,” Fany said.
Backed by more than 200 units in its fleet, the company currently has 30 official outlets in Indonesia with an additional 50 partners that franchise the service. The company said, it was in the process of adding 200 new outlets by the end of the year.
Questions & Answers
Q.Which market segment does 21Express currently rely on most for its business?
Which market segment does 21Express currently rely on most for its business?
Corporates currently dominate 21Express's clientele, accounting for 70 per cent of their business. The company is now planning to tap into the rapidly growing retail courier segment in Indonesia.
Q.What kind of growth does 21Express expect in package shipments in the next year?
What kind of growth does 21Express expect in package shipments in the next year?
The company expects shipments to double or even treble in the next year. This growth is anticipated from the current monthly volume of 130,000 packages, driven by increasing online shopping.
Q.What is 21Express's expansion plan for its outlet network within the current year?
What is 21Express's expansion plan for its outlet network within the current year?
21Express is in the process of adding 200 new outlets by the end of the year. This will significantly expand its current network of 30 official outlets and 50 partner franchises.
Q.How much growth did Indonesia's e-commerce market experience between 2012 and 2015?
How much growth did Indonesia's e-commerce market experience between 2012 and 2015?
According to independent research body IDC, Indonesia's e-commerce market grew by 42 per cent from 2012 to 2015. This high growth is encouraging businesses to find reliable delivery partners.
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