SM’s Logistics 2Go mulling e-commerce expansion
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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 specifically is 2Go considering regarding e-commerce expansion?
What specifically is 2Go considering regarding e-commerce expansion?
2Go is looking at two options for e-commerce expansion: either venturing into the front-end of the business, possibly in partnership with SM, or solely providing services to existing e-commerce companies.
Q.What is the primary challenge Logistics 2Go faces in expanding into e-commerce?
What is the primary challenge Logistics 2Go faces in expanding into e-commerce?
The main challenge for Logistics 2Go is ensuring that any expansion into the e-commerce sector will be profitable. President Dennis Uy noted that the cost of such a venture is 'quite high'.
Q.When might 2Go's potential e-commerce expansion happen?
When might 2Go's potential e-commerce expansion happen?
President Dennis Uy stated that while there is nothing definite yet, the e-commerce expansion 'could happen in the next two years'. This suggests a medium-term outlook for the initiative.
Q.Why does Logistics 2Go consider partnering with SM for e-commerce?
Why does Logistics 2Go consider partnering with SM for e-commerce?
Logistics 2Go plans on partnering with SM because the SM Group is strong in e-commerce and is an established brand in that field. The SM Store, SM Group's non-food retail unit, launched e-commerce in 2014.
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