6 hours Ago
KEX Express (Thailand) Plc, formerly known as Kerry Express, is reorganising its business and plans to shutter some branches and reduce its headcount. The company wants to focus on the business-to-business (B2B) and customer-to-customer (C2C) segments, according to a KEX source who requested anonymity. "We're reorganising by shifting away from e-commerce, focusing on corporate accounts and C2C," said the source.
Due to the change in direction, the company will need to close some locations and reduce staff, according to the source. E-marketplace operators have reduced the fees paid to logistics delivery firms to just 12-14 baht per parcel from 18-19 baht previously in a bid to increase their profit. Logistics providers do not support the move, the source said.
Another source in the e-commerce sector who also requested anonymity said KEX has discontinued all its agreements with Lazada and Shopee for the delivery of products. According to KEX's performance report for this year's third quarter, Kerry Express commenced its rebranding by changing its name and trademark to "KEX" as part of a long-term strategy to drive business transformation. Sales and services income was recorded at 2.
5 billion baht, reflecting a decrease of 6% quarter-on-quarter and 13% year-on-year. This decline was primarily driven by an anticipated volume drop across the e-commerce platforms, or what it terms strategic key accounts which record the highest volume. This decrease aligns with the company's strategy shift to reduce reliance on e-commerce platforms and focus more on high-yield customers.
The revenue contribution from the C2C segment increased from 42% in the third quarter last year to 49% in the corresponding period this year, driven by its strategy focusing on high-yield customers and acquiring new customers in this segment. These high-yield segments will continue to be cultivated to contribute a higher share of KEX's business compared to the strategically managed volume of the e-commerce platform. According to Creden Data, in 2023 Thailand Post recorded revenue of 20.
9 billion baht, Flash Express recorded 20 billion baht, Global Jet Express (Thailand) or J&T recorded 18.5 billion baht, Lazada Express recorded 14.3 billion baht, and Kex Express recorded 11.
4 billion baht. Shopee's delivery arm SPX Express (Thailand) last reported in 2022, registering revenue of 16.6 billion baht.
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