Page 55 - 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
Thailand’s Postal Business Conditions and Trends
In the overall picture of the postal business, especially in the transport business, it mostly focuses on express delivery which has now become a basic service that all consumers are familiar with, due to its fast delivery of packages to the recipient as required by consumers. The transport sector in Thailand has maintained its growth trajectory, driven by the recovery of economic activities and key factors such as the expansion of the e-Commerce market, shifting consumer behaviors, and advancements in technology. The transport market remains highly competitive, compelling service providers to continuously adapt and develop new offerings to cater to a broader customer base. In the future, innovations such as artificial intelligence (AI) and big data may be integrated to enhance delivery efficiency. Additionally, the industry is expected to introduce more environmentally friendly services in response to the global sustainability movement. Given these dynamics, Thailand’s transport market remains an area of interest, playing a crucial role in driving the country’s economic development.
In 2024, Thailand’s postal and transport industries are vital to all sectors, serving as a key service industry that connects the economy and society. The country’s e-Commerce market is experiencing significant growth and is now the second largest in ASEAN, following Indonesia. This expansion is primarily driven by Thai consumers’ increasing preference for purchasing goods through e-Commerce platforms. Most businesses are focusing their market strategies on e-Commerce and digital platforms, benefiting from technological advancements that simplify online transactions, reduce processing steps, and save time. A key advantage of online shopping is the ability for consumers to compare prices from multiple vendors in real-time, leading to faster purchasing decisions. Consequently, the overall e-Commerce market in Thailand is projected to grow by 14% in 2024, reaching an estimated value of 1.1 trillion baht, compared to 980 billion baht in 2023. Moreover, projections indicate that by 2027, the total market value of e-Commerce in Thailand will reach 1.6 trillion baht (Source : DAAT DAY Advolution). This upward trend will directly contribute to the expansion of the country’s logistics and transport market.
For the future trend of such business, the competition from the intensifying price war to seize the market share remains the main factor affecting the profitability of each service provider. However, relying solely on price-based strategies is unsustainable in the long run. To remain competitive, service providers must develop unique value propositions and explore new opportunities to attract and retain customers as well as to meet the diverse and ever-changing consumer needs. Maintaining service quality standards by leveraging technology for operational efficiency with diverse service solutions, and converting competition to collaboration, increasing partnerships to expand comprehensive services are important factors in creating sustainable growth in the logistics transport market.
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