Page 60 - 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
2. Competitive Situations
toward direct sales to consumers. Meanwhile, social commerce customers have changed their sales channels from selling through Facebook or various pages to using more marketplace platforms (TikTok, Lazada, Shopee). Customers can no longer select their own shipping provider, as Marketplaces now handle order distribution to logistics companies. Nevertheless, Thailand’s express parcel delivery market continues to experience steady growth. Nearly all platforms have introduced short video with a “shopping cart” features, allowing viewers to make immediate purchases while watching. As a result, in 2024, the express parcel delivery market value continues to expand. Currently, Thailand’s express parcel delivery market is highly competitive. According to available data, the top five service providers hold the following market shares : 1) THP (26.7%), 2) Flash Express (25.6%), 3) J&T Express (23.6%), 4) KEX Express (14.6%), and 5) Other logistics providers (9.5%) (Source : https://blog.shippop.com/ thailand-logistic-landscape-2024/). THP has adjusted its operational strategy on two levels : organizational and regional. This is complemented by proactive marketing, promotional efforts, and public relations/ communications that reach the target audience (Source : Market Value Report 2022). A comparison of the “parcel delivery services” offered by eight major providers-THP, Kerry, Flash Express, DHL, SCG Express, J&T Express, Ninja Van, and Best Express-was conducted across multiple dimensions, including starting service fees, delivery time, and service area coverage. Details can be found in the image. (Source : https://www.moneybuffalo. in.th/ saving-tips/ compare-parcel-shipping-costs).
Mail Business : As consumer behaviors demand for superior, faster, more efficient, friendly, diverse and more personalized services, coupled with digital familiarity driving the shift towards technology-driven operations and faster service delivery, this leads to digital transformation. Currently, 95% of competitors are seeking new methods to serve major customers, particularly in the banking and financial institution group as well as the retail group. There has been a strong push for customers to receive invoices and other documents electronically, resulting in a continuous decline in delivery of documents by post. This shift has fostered competition based on innovation, forming a new dimension of the innovation economy. The availability of accurate, comprehensive, and diverse data is now crucial for analyzing investment feasibility and developing new business models. Additionally, businesses must quickly assess the performance of existing services to define strategies or plans and align them with customer needs while generating revenue from data monetization. In response to these changes, THP is actively driving its New S-Curve service model, integrating innovative solutions to enhance service offerings. These include Prompt Post, an electronic document delivery service, and Postman Cloud, a customer identity verification service conducted at customers' residence. These services leverage THP’s strengths in workforce capability and extensive network expertise to maintain a competitive edge in the evolving market.
Transport and Logistics Business :
In 2024, many entrepreneurs have adopted new online sales channels, such as live commerce via online media. Additionally, there is potential for an increased customer base through business-to-consumer (B2C) sales, which now account for more than 50% of total sales, as entrepreneurs who conduct business-to-business (B2B) trade have increasingly shifted
58 Thailand Post Company Limited