UPS Thailand growth slows due to sluggish economy
After relishing double-digit growth for the past two years, UPS Thailand is likely to experience slower growth in deliveries this year due to political uncertainty, sluggish economy and stronger baht, according to assistant marketing manager Phongchayut Ladavalya.
Thailand’s delivery business has been stagnant during the year as the stronger baht and economic slowdown have hurt exporters, which are UPS’s major customers.
Although the electronics industry continued to grow, some small and medium-sized enterprises have closed. The outlook for garments and jewellery also remains unpredictable.
During 2005-06, UPS Thailand’s delivery volume rose by more than 15 pct after rising 20 pct in 2004-05. Among Asia-Pacific countries, Thailand ranked no higher than sixth behind China, India, Hong Kong, Japan and Singapore.
Thailand’s delivery market will not grow significantly this year, he said, as many players create stiff competition.
UPS believes its strengths include speed and the ability to handle sensitive cargoes.
UPS’s general niche market also include deliveries of hazardous goods such as chemicals that commercial airlines typically refuse to handle, and medical items including blood samples or cells that need special services like storage with temperature control.
Mr Phongchayut said competition in the courier business was focused on three areas: services, technology and networking. Services cover speed and guarantee a specific time instead of just a delivery date. UPS offers services known as time definite-express plus, or guaranteed delivery before 8:30-9 am, before noon and or before 5 pm.
Meanwhile, technology will help customers reduce costs and save time. These include a tracking system through call centres, short messaging services and a website that can be integrated into a customer’s back-end system.
UPS Thailand this year has not been aggressive in marketing as the company’s headquarters in Atlanta has shifted its marketing budget to focus on China. The group continues to invest in China, building a new large hub in the past two years that is scheduled to be completed next year.
