SingPost targets China’s e-commerce market with 4PX investment
Singapore Post has signalled its intent to exploit China’s booming e-commerce market by acquiring a 20% stake in Shenzhen 4PX Express, a cross-border online delivery firm. The deal – announced today (July 5) – sees SingPost invest in the firm through its wholly-owned subsidiary Quantium Solutions International (QSI) for RMB 60m ($12m).
SingPost’s CEO for postal and corporate services, Ng Hin Lee, said the acquisition will give the company a “platform for entry into the outbound logistics and the high-growth e-commerce market in China, and globally, especially into USA, UK and Australia where 4PX has set up operations.”
Shenzhen 4PX Express (4PX) provides international express delivery and international freight forwarding services, as well as import and export solutions.
The company offers a “full suite of services relating to e-procurement, warehouse management, inventory management, order fulfillment and processing, and express delivery to support cross-border e-commerce transactions from China to the rest of the world (mainly USA, Europe and Japan)”.
4PX is also a global distribution partner for eBay and PayPal in China.
Li Yue, managing director of 4PX, is excited about the investment after fostering a good relationship with SingPost since 2009 as their customer.
Outlining future ambitions, Yue added: “4PX will continue to focus on the cross-border e-commerce market and we aim to be a leading global e-commerce logistics player in China with a global distribution network, providing customers with a wide option of reliable, cost effective and secured express delivery and logistics services.”
Ng is overseeing the Group’s strategic acquisition portfolio. He continued: “We are pursuing growth in regional logistics and e-commerce, both of which offer tremendous potential in the new globally connected marketplace.
“The investment will allow us to further enhance and broaden our presence and network in the Asia Pacific region. It certainly helps us in our drive to develop a more balanced revenue and earnings portfolio, both from the standpoints of growing non-mail revenue and increasing overseas contribution.”
SingPost’s regional business activity currently spans 10 countries in AsPac, namely through Quantium Solutions, and its hybrid mail business DataPost.
Dr Wolfgang Baier, SingPost’s CEO for international, said: “Our core competency and existing infrastructure provides us a good vantage point to further develop these businesses.
“We have been strengthening our regional logistics network by investing in logistics companies which provide the right fit for SingPost’s expansion including GD
Express Carrier Berhad in Malaysia and Indo Trans Logistics Corporation in Vietnam. This investment in 4PX will further boost our ambition in e-commerce and regional logistics, leveraging our e-fulfillment capability.”