SingPost looks to e-commerce as mail volumes drop

SingPost looks to e-commerce as mail volumes drop

Singapore Post (SingPost) believes e-commerce - helping businesses sell goods online - is the way to go as it grapples with continually declining mail volumes.

SingPost group chief executive Wolfgang Baier told a conference yesterday the company faces many challenges in its traditional mail business.

Fewer people send letters nowadays, but costs have also risen, service expectations are higher, and the market is liberalised so SingPost must watch out for competition.

But that does not mean that the end is nigh for the $2.4 billion company.

Dr Baier said that SingPost will "protect the core" of the mail business and the digital mail platform.

The majority of the company's revenue and operating profit still comes from its mail business.

But the company will also "grow the wings" which include its logistics and e-commerce units, and the retail and financial services operations at outlets such as its post offices.

Dr Baier said Singapore is the "ideal hub for e-commerce", a fast-growing industry especially in Asia.

The company's e-commerce services include helping other firms to transport their goods between countries, storing goods in warehouses and delivering them to customers.

SingPost also helps firms with digital marketing, and managing their online stores and payments.

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