BEST Inc. Expands into Indonesia with Cross-Border and SaaS Services to Strengthen Global Strategy

Rhea-AI Summary

BEST Inc., a leading provider of smart supply chain and logistics services, has officially launched cross-border supply chain services and SaaS solutions in Indonesia. This expansion marks a significant step in BEST's strategic layout in Southeast Asia, following investments in Thailand, Vietnam, Malaysia, Singapore, and the Philippines. BEST's global service revenue in 2023 reached RMB 947 million (USD 133 million), with parcel volume in Southeast Asia increasing by 14.6% to about 140 million pieces.

Indonesia, as the largest economy in Southeast Asia, is expected to grow by 5% in 2024 and 5.1% in 2025 and 2026, according to the World Bank. BEST Inc. aims to leverage its technological advantages and expand its service network to meet customer needs in this promising market.

Positive

• Expansion into Indonesia, a key market in Southeast Asia
• Global service revenue reached RMB 947 million (USD 133 million) in 2023
• 14.6% year-on-year increase in parcel volume in Southeast Asia
• Continuous growth in global service revenue

Negative

• None.

Insights

International Business Strategist

BEST Inc.'s expansion into Indonesia marks a significant strategic move in the Southeast Asian market. This development is potentially positive for the company's growth trajectory, given Indonesia's position as the largest economy in the region. The company's focus on cross-border supply chain services and SaaS solutions aligns well with the country's projected economic growth of 5% in 2024.

However, investors should note that while the expansion presents opportunities, it also comes with challenges. The Indonesian market is diverse and complex, requiring substantial investment in localization and infrastructure. BEST's success will depend on its ability to adapt its technology and services to local needs, navigate regulatory landscapes and compete effectively with established local players.

The continuous growth in global service revenue and the 14.6% year-on-year increase in Southeast Asian parcel volume are encouraging signs. Yet, it's important to monitor how quickly the Indonesian operations can achieve profitability and contribute meaningfully to overall revenues. The company's long-term vision of creating a B2B2C network across China, Southeast Asia and North America is ambitious but could provide significant value if executed successfully.

Logistics Industry Analyst

BEST Inc.'s entry into Indonesia with cross-border and SaaS services is a strategic move to capitalize on the e-commerce boom in Southeast Asia. The company's experience in managing over 3 million square meters of warehouse space in China could be a significant advantage in addressing Indonesia's logistical challenges, particularly in last-mile delivery across the archipelago.

The focus on SaaS solutions is particularly noteworthy, as it could provide BEST with a high-margin revenue stream and help local businesses optimize their supply chains. This tech-driven approach might give BEST an edge over traditional logistics players in the market.

However, the logistics sector in Indonesia is highly competitive and fragmented. BEST will need to navigate complex regulations, infrastructure limitations and local competition. The company's success in other Southeast Asian markets is promising, but Indonesia's unique geography and diverse consumer base will require tailored strategies. Investors should closely monitor BEST's ability to scale operations and achieve profitability in this new market, as it will be important for justifying the expansion and supporting long-term growth.

JAKARTA, Indonesia, Aug. 29, 2024 /PRNewswire/ -- On August 29, BEST Inc. held an opening ceremony in North Jakarta, Indonesia, announcing the official launch of cross-border supply chain services and full-scenario, full-link SaaS solution services in Indonesia. This is another heavyweight market of BEST following investments in Thailand, Vietnam, Malaysia, Singapore, and the Philippines, marking another important step in BEST's strategic layout in Southeast Asia.

With over ten years of innovation in technology and business models, BEST Inc., a leading provider of smart supply chain and logistics services in China and Southeast Asia, operates over 20,000 service outlets, over 400 cloud warehouses, and manage over 3 million square meters of warehouse space in China, providing high-quality comprehensive supply chain services for more than 3,000 well-known companies and millions of small and medium-sized enterprises.

In 2015, BEST Inc. established a branch in the United States, officially starting its international business journey. Since 2019, BEST regards Southeast Asia as its most important overseas market, and has established a logistics network covering the entire territory in Thailand, Vietnam, Malaysia, Singapore and other countries, including last-mile express delivery, express transportation services, as well as cloud warehouses and software services. According to the annual report data, BEST's global service revenue in 2023 reached RMB 947 million (USD 133 million), and the parcel volume in Southeast Asia was about 140 million pieces, a year-on-year increase of 14.6%. Thanks to the long-term development of overseas localized operations, BEST has achieved continuous growth in global service revenue, won unanimous recognition and high recognition from customers, and provided solid logistics support for the rapid development of the local economy in Southeast Asia.

Indonesia is an indispensable part of BEST's strategic market in Southeast Asia. As the largest economy in Southeast Asia, this "country of a thousand islands" has a large young population and a highly potential consumer market. According to the latest World Bank report on Indonesia, Indonesia's economy will maintain steady growth in the next two years. In 2024, Indonesia's economy is expected to grow by 5%, and in 2025 and 2026, Indonesia's economy is expected to grow by 5.1% respectively. With the steady growth of the economy, Indonesia is becoming an important part of the development of the world economy.

Johnny Chou, Founder, Chairman and CEO of BEST Inc., stated in his speech, "The opening of BEST Indonesia is a milestone and has strongly promoted the implementation of the group's internationalization strategy. We will continue to increase investment in the Indonesian market, adhere to technological innovation, expand and improve the service network, and improve service quality and capabilities to meet customer needs and win their trust."

BEST Inc. will rely on its technological advantages, invest in technology and automation equipment construction, and equip localized sales and service teams to provide customers with comprehensive cross-border supply chain services and full-scenario and full-link SaaS solution services. "We look forward to working with Indonesian companies and Chinese overseas brands to create a more brilliant future together." In her speech, Karen He, General Manager of Cross-border Business at BEST, clarified BEST's long-term goal of building a B2B2C and cross-border business network between China, Southeast Asia and North America, demonstrating the group's firm determination to deepen its presence in the Indonesian market and serve global customers.

 

View original content:https://www.prnewswire.com/news-releases/best-inc-expands-into-indonesia-with-cross-border-and-saas-services-to-strengthen-global-strategy-302233877.html

SOURCE BEST Inc.

FAQ

What new services has BEST Inc. (BEST) launched in Indonesia?

BEST Inc. has officially launched cross-border supply chain services and full-scenario, full-link SaaS solution services in Indonesia on August 29, 2024.

What was BEST Inc.'s (BEST) global service revenue in 2023?

BEST Inc.'s global service revenue in 2023 reached RMB 947 million (USD 133 million).

How much did BEST Inc.'s (BEST) parcel volume grow in Southeast Asia?

BEST Inc.'s parcel volume in Southeast Asia grew by 14.6% year-on-year, reaching about 140 million pieces in 2023.

What is Indonesia's expected economic growth rate for 2024 according to the World Bank?

According to the World Bank report, Indonesia's economy is expected to grow by 5% in 2024.