Logistics and warehouse capacity would be the keys to determining the success of e-commerce retailers, the Market Intelligence & Consulting Institute (MIC, 產業情報研究所) said yesterday.
Although the COVID-19 pandemic has cast a shadow over the retail sector, it has allowed the e-commerce industry to shine.
E-commerce sales in Taiwan surged 16.5 percent year-on-year in the first quarter, while sales across the wider retail sector contracted by 0.6 percent.
Photo courtesy of PChome Online Inc
Pointing to the nation’s two largest e-retailers — PChome Online Inc (網路家庭) and Momo.com Inc (富邦媒體) — the institute said that the race to build bigger warehouses and to improve logistics management is on.
“Taking a look at their [PChome and Momo] performances last quarter, we can clearly see that the nature of the competition has changed from a focus on boosting merchandise quantity to lowering logistics costs and expanding warehouse capacity,” MIC e-commerce industry consultant and director Wang Yi-chih (王義智) told an online forum.
The company that “has a strong logistics and warehouse system will have the highest chance of winning,” Wang said.
PChome reported that sales grew 16.05 percent year-on-year to NT$10.68 billion (US$357.13 million) in the first quarter, while Momo posted a 28.72 percent growth in sales to NT$15.11 billion.
“Logistics is one of the most important pillars supporting the e-commerce industry,” and major players have been setting up their own fleets, Wang said.
Seeking to ensure fast deliveries, Momo last month set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), which has a fleet of 200 couriers and more than 100 vehicles.
PChome is one step ahead, having established PChome Express Co (網家速配) in 2018, which has 250 couriers and 200 vehicles.
The importance of logistics in the development of e-commerce has been further highlighted by the recent surge in demand for food deliveries, Wang said.
As an increasing number of customers choose to eat at home, more e-commerce operators are offering fresh produce and frozen food on their platforms, which require fast delivery, he said.
Alibaba Group Holding Ltd (阿里巴巴) founder Jack Ma (馬雲) has been living in Tokyo for almost six months after disappearing from public view following China’s crackdown on the tech sector, the Financial Times reported yesterday, citing multiple unnamed sources. The billionaire has kept a low profile since the crackdown, which has included Chinese regulators scrapping the initial public offering of Ma’s Ant Group Co (螞蟻集團) and issuing Alibaba with record fines. However, the Times said he has spent much of the past six months with his family in Tokyo and other parts of Japan, along with visits to the US and Israel. The
‘REVOLUTION’: Elon Musk complained over a 30 percent fee Apple collects on Apple Store transactions and said the technology company has stopped advertising on Twitter Twitter Inc owner Elon Musk on Monday opened fire against Apple Inc over its tight control of what is allowed on the App Store, saying the iPhone maker has threatened to oust his recently acquired social media platform. Musk also joined the chorus crying foul over a 30 percent fee Apple collects on transactions via its App Store — the sole gateway for applications to get onto its billion-plus mobile devices. A series of Twitter posts fired off by Musk included a meme of a car with his first name on it veering onto a highway off-ramp labeled “Go to War,” instead
GLOBAL EXPANSION: The manufacturer said it increased its stake in the Chinese unit to 1.5 billion yuan and started rolling out electric Lordstown trucks at its Ohio plant Hon Hai Precision Industry Co (鴻海精密) has increased its investments in the Czech Republic and China by more than NT$6 billion (US$196 million) as part of its global expansion. The company, known as Foxconn Technology Group (富士康科技集團) internationally, has also begun shipping electric pickup trucks produced for US brand Lordstown Motors Corp. In a Taiwan Stock Exchange filing on Friday, Hon Hai said it has raised investments in its Czech subsidiary Foxteq CZ by US$58.98 million through its PCE Paragon Solutions Kft unit. In the Czech Republic, Hon Hai has a research-and-development center and a product design center, and it assembles monitors, cellphones,
‘COMPETITIVE EDGE’: The local semiconductor sector would continue to outstrip the global industry, whose revenue is expected to contract 3.6 percent, ITRI said The production value of Taiwan’s semiconductor industry would expand 6.1 percent annually to about NT$5 trillion (US$161.5 billion) next year, as demand for advanced chips used in high-performance-computing and artificial intelligence devices are less prone to mounting inflation and external uncertainties, the Industrial Technology Research Institute (ITRI, 工研院) said yesterday. That means the local semiconductor sector would continue to outstrip the global semiconductor industry, whose output is expected to contract 3.6 percent annually to US$596 billion next year, Gartner Inc has said. However, ITRI’s latest forecast represents a downgrade from its previous projection of 10 percent growth, as demand for PCs,