Thailand Post looks beyond its border

Thailand Post plans to form alliances with postal authorities in a number of countries in an effort to broaden its focus from mail and parcels to include more international services.
Hong Kong and China are the company’s top priorities, as the two markets produce goods that are in demand in Thailand.
Anusara Chittmittrapap, senior executive vice president for marketing and business development, said Thailand has reached an agreement with Hong Kong Post to purchase and export prestigious “Thai Amulet” products. Customers in Hong Kong will be able to order amulets via post office counters.
The marketing strategy will be launched to coincide with the Chinese New Year celebrations late this month. Other potential Thai products to be offered include spa goods.
The alliance strategy is designed to provide more services, such as goods purchasing and delivery, via postal counters in Thailand and allied countries.
Thailand Post believes China has many potential goods, such as dried foods, that Thai people could order via postal counters.
“The company is focusing on expanding intra-Asian services and trade, as we [Asian countries] share similar cultures, goods and demand,” said Anusara, adding that Thailand has strong potential to become a logistics hub in the region.
Different countries’ postal authorities already cooperate on deliveries of mail and parcels. However, Thailand Post believes there is demand for more services.
In addition, the company hopes the campaign will increase its logistics revenue, which currently generates only 7 per cent to 9 per cent of total sales. Previously, the company launched “Aroy Tau Thai with Thailand Post” (“Delicious Menus With Thailand Post”), a service designed to allow consumers to order their favourite foods in any part of Thailand via post office counters.
The service’s menus are still limited, featuring such items as Deang Nam Nuang from Nong Khai and Thai custard with bread from Uthai Thani. The company plans to expand the delivery service into southern provinces such as Pattani.
The company recently teamed up with Chia Tai, the country’s leading seed producer, to deliver its Japanese House Melons to consumers, who can order the melons at postal counters nationwide. Customers ordering before 2 pm receive their goods the following day. The service fee for melons is Bt180 per fruit.
The service, which offers a quality guarantee, has been well received, averaging 3,000 to 4,000 orders per month.
Anusara said the company has increased the number of its menu items from eight to 18 and will remove any items that do not receive many orders. “We want to create cross-country trading via our logistics service,” she said.
In another development, customers are now able to send large goods or parcels with a maximum weight of 200 kg, such as motorcycles, cabinets and refrigerators.
The postal service makes use of 800 vans and 14 distribution centres countrywide. Revenue jumped from Bt60m in 2007 to Bt150m last year.