The market for Courier, Express, and Parcel business in Indonesia is expected to cross USD 5 billion by 2024, witnessing a CAGR of 14-16%, during the forecast period (2019-2024).
With the world’s fourth largest population and an excellent potential for growth, Indonesia is a key market in the global scenario. The Indonesian CEP market is at infant stage and there exists a lot of opportunities for the industry. With rapid regional as well as global economic integration, the local businesses are continually seeking logistics and courier services that can provide direct access to local and international markets.
Request a sample of this report @ https://www.orbisresearch.com/contacts/request-sample/3616985
– The Courier, Express, and Parcel (CEP) Market in Indonesia is growing rapidly in line with the e-commerce sector of the country. E-Commerce is the major growth driver of the CEP market, generating significant revenues for the industry.
– The rise in e-commerce business in recent years is increasing the business opportunities for shipping goods. The explosive growth of country’s e-commerce is presenting opportunities, as well as challenges for online retailers and logistics players.
– While the growth of the e-commerce is the major driver of the CEP business, the rising demand of perishables and the growth of the life sciences sector of the country also support the growth of the express delivery in future.
– The high logistics cost remains to be one of the challenges for the logistics sector as well as for the CEP market. Lack of proper infrastructure makes it difficult for delivering the parcels, especially for the remote areas outside the Java.
– Additionally, Indonesia being an archipelago makes it difficult for companies to deliver the packages throughout the country.
Scope of the Report
A complete background analysis of Indonesia CEP Market, market overview, market size estimation for key segments and emerging trends by segments, and market dynamics are covered in the report.
Key Market Trends
CEP Market is Growing In-line with Growing E-commerce
The growth of e-commerce has opened up opportunities for many logistics companies for providing delivery services. E-commerce is rapidly growing in the country driven by growth of information and communication technology, rising middle-class population and smartphone pentration. For instance, JNE express, one of the leading courier companies in the country has captured the big opportunity in e-commerce business which accounts for almost 60-70% of its shipments.
Digitization is also enabling the consumers to reach the global markets promoting cross-border e-commerce and driving international CEP market. Some brands are looking at cross-border e-commerce operating model instead of setting a local business owing to the hassle involved in importing and customs clearance which makes it costly, time consuming, and effort intensive.
Presence of large number of SMEs and their Digitization presents an Opportunity for CEP Market
Indonesia has a large number of small and medium-sized enterprises (SMEs). SMEs play an important role for economic growth and they account for nearly 97% of domestic employment and for 56% of total business investment in Indonesia. The macroeconomic conditions of the country are supportive for the development of SMEs. Also, the young and increasing population, large domestic market, and abundant natural resources also support their growth. The growth in SMEs coupled with rise in trade activities help the courier and express industry to grow.
Make an enquiry of this report @ https://www.orbisresearch.com/contacts/enquiry-before-buying/3616985
Many micro small and medium enterprises are also expanding in the form of e-commerce trading. According to industrial sources, only 18% of Indonesian SMEs are currently engaged in e-commerce through the use of a website or social media, and only 9% adopt more sophisticated e-commerce strategies. This represents the potential for SMEs to expand their businesses in future and significant opportunity present for the courier companies. The turnover of SMEs can be doubled if they go digital by adopting software to increase operational efficiency and applying different marketing techniques for selling goods.
In 2018, PT Citra Van Titipan Kilat (TIKI) expanded its business in the market of Micro, Small, and Medium Enterprises (MSMEs) by participating as the only official shipping partner of International Handicraft Trade Fair (Inacraft). Also, in 2017, the e-commerce platform Bukalapak and TIKI teamed up to facilitate SMEs in delivering their products.
The Indonesian CEP market is dominated by long established players such as JNE Express, Pos Indonesia, and DHL. Other significant players in the market include TIKI, Pandu Logistics, Pahala Express, SAP Express, etc. Technology has become key for companies to increase their efficiency and to attract customers in this era of Industrial Revolution 4.0. For example, Pos Indonesia is conducting trials with robots to chat, but has no voice. J&T Express is another example which has expanded rapidly in the past three years. A lot of delivery companies that are online based or employing high technology are entering the market offering faster delivery services and presenting strong competition to conventional players as well.
DHL Express, one of the leading global companies has invested EUR 16 million in Indonesia to build the Jakarta Distribution Center (JDC) which is expected to be opened in April 2019. JDC is one of the biggest investments of the company in Asia Pacific and is also one of the largest shipping centers. The service center is equipped with advanced equipment such as motorized conveyor systems and weighing and re-measuring systems
Place a purchase order @ https://www.orbisresearch.com/contact/purchase-single-user/3616985
Orbis Research (orbisresearch.com) is a single point aid for all your market research requirements. We have vast database of reports from the leading publishers and authors across the globe. We specialize in delivering customized reports as per the requirements of our clients. We have complete information about our publishers and hence are sure about the accuracy of the industries and verticals of their specialization. This helps our clients to map their needs and we produce the perfect required market research study for our clients.
This post was originally published on The Picayune Current