Page 53 - Thailand Post Annual Report 2024

Part 1
Overview of the Organization
Part 2
Business Trends
Part 3
Business Model
Part 4
Strategies and Resource Allocation
Part 5
Risk
Part 6
Corporate Governance
Part 7
Operating Results
Part 8
Other Information
Predictions were available through both offline (paper) and online channels via the Prompt Post application. Paper postcards remain popular, as evidenced by previous events, showing that for certain activities or transactions, traditional channels are still preferred.
In the transport business, particularly in express delivery, competition over service rates remains ongoing. Marketplace providers have started offering their own shipping services, limiting the choice of carriers for buyers and sellers, which has had a significant impact on operators in this sector. However, despite intense competition, the Transport and Logistics services group has seen a 10% increase in performance compared to the same period last year. This is partly due to the continued popularity of online shopping and the focus on improving service quality to meet customer demands, resulting in THP performing better than in previous periods.
International services over the past years have been affected by the COVID-19 pandemic, which hindered international shipping. After the relaxation of measures by different countries, transportation operations resumed to normal. However, in recent periods, THP has faced increased competition from other operators offering similar services. As customers have more options, international service volumes decreased by 14% compared to the same period last year. On the other hand, the ePacket service, a more affordable option for sending small items, has seen a 4% increase in volume, as it now covers a wider range of destination countries.
Sales of postal products have increased by 6% compared to the same period last year. This growth is a result of efforts to enhance distribution channels, both through post offices and the website www.thailandpostmart.com. The selection of attractive product types, along with appropriate marketing activities and continuous promotion, has contributed to improved performance in the Retail Business group.
Over the past few years, the volume of work in the Financial services sector has decreased significantly. As a result, this year’s workload has seen a slight decrease of 2%. The financial services sector continues to be affected by the increasing development of digital financial services in Thailand. The development of the country’s payment infrastructure, such as PromptPay and QR Code payments, along with government policies, such as the digital wallet project launched this year that transfers money to citizens via PromptPay, requiring recipients to link their PromptPay accounts to receive funds, has led to a greater need for people to learn and use these digital services. Therefore, the development of the digital financial system is a turning point that makes electronic financial transactions more popular and widespread than doing financial business through postal channels.
In the next step, THP will continue to encounter the advancement of technology which plays a significant role in changing the way people live, particularly in communication, financial transactions, and trade of goods in the format of electronic services. This is coupled with the growth of e-Commerce businesses, which continues to impact the competitive landscape in the express delivery sector. The competition will persist, particularly in terms of pricing and speed of delivery, with the demand for same-day or even within-hours delivery expected to increase. These factors are all impacting THP’s operations, so the organization is strengthening its position by aligning its services with current lifestyles. This includes offering post office services every day without holidays, providing coverage in both economic and remote areas, and offering comprehensive pre - and post-sale services that realize customer needs. Moreover, THP generates income from its traditional services by leveraging its strong network, connects communities with Thailand Post by providing sale of agricultural products and local community products through post offices and the website www.thailandpostmart.com, fostering growth for both communities and THP. Additionally, transforming traditional services into digital formats will provide future customers with more options and could lead to a significant increase in the proportion of digital services in the future. With the commitment to developing new service models and generating revenue from traditional services, along with the attention to deliver quality service consistently at every stage of its operations, these are the key factors that enable THP to continue operating business sustainably.
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