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Alibaba still in talks to set up logistics hub for South East Asia in Thailand

According to eMarketer’s report, e-commerce revenues in six largest markets in Southeast Asia would reach $14 billion in 2016, around 40 per cent up from $10.5 billion in 2015.

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Chinese e-commerce giant Alibaba Group is said to be in talks with the Thai and the Malaysian governments, seeking the best location and conditions to set up a regional distribution and logistics hub for South East Asia.

In response to last week’s media reports saying that the group would set up the centre in Malaysia, Thailand’s Industry Minister Uttama Savanayana insisted that Alibaba is still interested in establishing its regional logistics hub in Thailand and it will finalise its investment plan by the end of this year.

“Thailand is the best location for developing the regional distribution and logistics system as it connects to Cambodia, Laos, Myanmar, Vietnam and Malaysia,”

he said, adding that “Thailand’s consumer market is larger than Malaysia’s, and we are forming a free-trade zone for product distribution to our neighbouring countries.”

The Chinese conglomerate has expanded its business empire outside China aggressively. It acquired the significant stakes in SingPost’s unit Quantium Solutions International, an end-to-end e-commerce warehouses and logistics services provider in Asia Pacific, in July 2015.

Nine months after the acquisition, Alibaba took a $1-billion control stake in Singapore-based e-commerce platform Lazada, underlining its determination to be a significant player in the Southeast Asia.

Alibaba’s entry makes the competition in e-commerce business fiercer especially for  existing e-commerce service providers like Ninja Van, aCommerce and the logistic giant DHL.

Southeast Asia’s appetite for online shopping has increased continuously in line with a smartphone penetration and is forecasted to surge from 175 million units in 2015 to 230 million units this year.

According to eMarketer’s report, e-commerce revenues in six largest markets in Southeast Asia would reach $14 billion in 2016, around 40 per cent up from $10.5 billion in 2015.

The post Alibaba in talks to form logistics hub to strenghten its e-commerce biz in SEA appeared first on DealStreetAsia.

DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.

DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.

Ecommerce

How will oil prices shape the Covid-19 recovery in emerging markets?

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How will oil prices shape the Covid-19 recovery in emerging markets?

– After falling significantly in 2020, oil prices have returned to pre-pandemic levels
– The rise has been driven by OPEC+ production cuts and an improving economic climate
– Higher prices are likely to support a rebound in oil-producing emerging markets
– Further virus outbreaks or increased production would pose challenges to price stability

A combination of continued production cuts and an increase in economic activity has prompted oil prices to return to pre-pandemic levels – a factor that will be crucial to the recovery of major oil-producing countries in the Middle East and Africa.

Brent crude prices rose above $60 a barrel in early February, the first time they had exceeded pre-Covid-19 values. They have since continued to rise, going above $66 a barrel on February 24.

The ongoing increase in oil prices, which have soared by 75% since November and around 26% since the beginning of the year, marks a dramatic change from last year.

Following the closure of many national borders and the implementation of travel-related restrictions to stop the spread of the virus, demand for oil slumped globally.

In the wake of the Saudi-Russia price war in early 2020, Brent crude prices fell from around $60 a barrel in February that year to two-decade lows of $20 a barrel in late April, as supply increased and demand plummeted. The value of WTI crude – the main benchmark for oil in the US – fell to record lows of around $40 a barrel last year on the back of a lack of storage space.

While global demand for oil remains low, one factor credited with reversing the trend is the decision to make significant cuts to oil production, which subsequently tightened global supplies.

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Tech

How the Rural-Urban Divide Plays Out on Digital Platforms

It is one thing for entrepreneurs, whether urban or rural, to create and operate an online store, as some digital platforms have made it relatively easy to manage an e-store – even by using just a smartphone.

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In the West, villages are emptying out due to the lack of economic opportunities. Consider Italy where, in a bid to attract newcomers, a handful of municipalities have turned to selling houses for €1.

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