Flash Express is amping up its investments to bolster cross-border delivery services amid flourishing e-commerce growth in Asean, while also jumping into bulky goods shipment services with a low-cost offering to compete with rivals.
"This year we will continue new investment and expansion. We will focus on overseas expansion in Asean and services directly related to e-commerce," Komsan Lee, chief executive of Flash Express, said in a virtual news conference.
Flash Express, a parcel delivery service operator, already has a business foothold in Laos and the Philippines, and is gearing up to expand its reach to Malaysia, starting full operations in the first quarter of this year.
"We will provide delivery services in target countries in the first phase and then focus on cross-border delivery services in the second phase," Mr Komsan said. Flash Express already provides a cross-border delivery service between Thailand and Laos.
The delivery company is also looking for e-commerce-related services, while lending and e-payment services are on the cards.
According to Mr Komsan, e-commerce will continue to thrive this year but growth will not be as much as in the past two years due to a decline in purchasing power. Demand for consumer goods will continue to grow but in a slow fashion.
From 2020-2021, three product categories saw crucial growth in delivery demand -- home furniture with growth of 55%, electric appliances with a surge of 63%, and fitness equipment with a rise of 71%, driven by more people spending time at home.
To capture demand for large item delivery, Flash Express launched its new service Flash Bulky.
"Despite several couriers offering large item delivery, their services are neither nationwide nor door-to-door, unlike our services," said Mr Komsan.
Flash Bulky centres on items weighing 5-100 kilogrammes, with the cost starting at 50 baht, the lowest price in the market, he said.
The items must not exceed 400 centimetres in height or 160cm in length.
Flash Express has 10,000 staff, 20 warehouses and 40 distribution centres that can ensure service quality, Mr Komsan said.
The company also launched "Speed Guarantee" extra services, in which customers pay another five baht in addition to delivery fees for a quick shipment service within two days.
Delivery costs are returned to customers if the deadline is missed.
Last year, Flash Express booked 17 billion baht in total revenue and handled 600 million parcels.
The logistics business in Thailand, Mr Komsan said, is expected to face tough challenges this year, driven by a price war, changes in shareholder structures at couriers, and efforts to boost revenue.
Flash Express aims to enter into a new round of fundraising in the middle of this year.
Meanwhile, Flash Express has vowed not to increase delivery fees amid a surge in oil prices, while encouraging its drivers to use alternative fuels or adopt electric vehicles.