SM’s Logistics 2Go mulling e-commerce expansion in Philippines
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Logistics 2Go Group, which has just been taken over by Chelsea Logistics Corporation and the SM Group, is studying a possible expansion into e-commerce.
President Dennis Uy says there is nothing definite yet, especially with the cost being “quite high”.
He says e-commerce would be the final link to its logistics business chain as 2Go is already fully integrated from warehousing to shipping to courier and door-to-door package-delivery services. It could either venture into the front-end of the e-commerce business in partnership with the SM group or just service companies already engaged in e-commerce.
However, Uy says it is not easy, and “it is not necessary that we should be there”. But it could happen in the next two years.
“As the country industrializes, we’ll have more options to shop. We won’t want to go to the mall. We’re very product-specific, and more people will be banked, using debit/credit cards.”
He says the challenge is to make the expansion profitable.
“In terms of e-commerce, we plan on partnering with SM because it is really strong in that field. It is already an established brand,” says Uy.
The SM Group’s non-food retail unit The SM Store launched into e-commerce in 2014.
Questions & Answers
Q.What is 2Go's current focus within the logistics sector?
What is 2Go's current focus within the logistics sector?
2Go is already fully integrated in logistics, offering services from warehousing to shipping, courier services, and door-to-door package delivery. E-commerce would be the final link in its existing business chain.
Q.What are the potential approaches 2Go might take if it expands into e-commerce?
What are the potential approaches 2Go might take if it expands into e-commerce?
2Go could either enter the front-end of the e-commerce business by partnering with the SM Group, or it could solely provide services to companies already operating in e-commerce. A partnership with SM is preferred.
Q.Why does President Dennis Uy suggest e-commerce expansion might be necessary in the future?
Why does President Dennis Uy suggest e-commerce expansion might be necessary in the future?
As the country industrializes, people will have more shopping options and may prefer not to go to malls. More consumers will be banked and using debit/credit cards, increasing demand for online shopping.
Q.What makes a partnership with the SM Group attractive for e-commerce expansion?
What makes a partnership with the SM Group attractive for e-commerce expansion?
The SM Group is considered very strong in the e-commerce field and is an established brand. Its non-food retail unit, The SM Store, launched into e-commerce back in 2014.
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