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GDEx to grow C2C business


Product upgrade: Teong says GDEx’s goal is to improve and expand its product range, by coming up with products that will appeal to retailers.

Product upgrade: Teong says GDEx’s goal is to improve and expand its product range, by coming up with products that will appeal to retailers.

PETALING JAYA: GD Express Carrier Bhd (GDEx) intends to grow the company’s customer-to-customer (C2C) segment with a two-pronged approach, through its own GDEx outlets and retail postal firm Mail Box Etc Malaysia (MBE Malaysia).

GDEx announced the acquisition of MBE Malaysia earlier in the month for RM5.5mil.

MBE Malaysia’s principal business involves mailbox services, packaging, shipping, photocopying, and printing services, typically catering to local entrepreneurs and small and medium enterprise (SME) operations.

GDEx managing director and group chief executive officer Teong Teck Lean told StarBiz that MBE’s business model, which also sells the services of other local and global logistics players, will be maintained after the proposed acquisition has been completed.

“With both MBE and GDEx’s networks and resources in hand, our goal is to improve and expand our product range, by coming up with products that will appeal to retailers.

“We would also like to expand the MBE Malaysia network and achieve a faster growth rate.

“Additionally, given MBE’s position, this will give us an opportunity to build better relations with global retailers,” he said.

MBE Malaysia forms part of the global postal service centre franchise network of MBE Worldwide SPA, which has over 4,500 centres across more than 30 countries.

Teong elaborated that plans earmarked for MBE Malaysia will revolve around increasing efficiencies of the company, which include forming a digitised platform, improving accessibilities, and potentially become package drop points for GDEx.

“Following the completion of MBE’s acquisition, which is expected to be by the end of this quarter or early next quarter, we intend to roll out one new MBE outlet per month.

“As for GDEx, we have targeted to open 20 new branches this year, and are considering to market our products through re-sellers,” said Teong.

To date, there are 79 GDEx branches, while MBE Malaysia has 92 outlets located in business districts and shopping malls.

MIDF Research, in a recent research report, said GDEx will gain greater insights of the retail delivery space from the acquisition of MBE Malaysia, which could translate into tailoring better services, especially to the C2C customers.

Recall that in January this year, GDEx launched its signature outlet in Avenue K shopping mall, known as GDEx Signature, which serves as a platform to launch or showcase GDEx’s new products and an information centre.

The retail delivery services or C2C segment remians a relatively untapped segment in the local logistics industry.

For illustration purposes, the C2C segment in Japan, considered a mature market, makes up an estimated 15% of the nation’s logistics market.

Pos Malaysia remains the dominant player in Malaysia’s C2C market, with its wide network of 1,000 outlets.

Currently, the retail delivery operations in GDEx contribute less than 2% of total turnover.

   

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