By James A. Loyola
Logistics 2Go Group, Inc., which has recently been taken over by Chelsea Logistics Corporation and the SM Group, is studying its possible entry into the e-commerce business on top of servicing the needs of its clients in the same industry.
“We are studying. We’re reviewing to come up with a platform for that type of segment. Nothing definite yet. The cost is quite high,” said 2Go President Dennis A. Uy in an interview.
He noted that e-commerce will be the final link to its logistics business chain since 2Go is already fully integrated from warehousing to shipping to courier and door-to-door package delivery services.
Uy said 2Go can either venture into the front-end of the e-commerce business in partnership with the SM group or just service companies already engaged in the e-commerce business.
“If it (front-end) adds value to our overall chain, we’ll consider it. There are certain things within the system that we are studying,” he said.
However, Uy noted that “it is not easy to do. It is not necessary that we should be there. If not now, then maybe in the next two years. It will be the normal thing in the future for consumers with the less time we have.”
He explained that, “as the country industrializes, we’ll have more options to shop. We won’t want to go to the mall. We’re very product specific and more people will be banked, using debit/credit cards. Better Internet penetration, faster speed. That will be it (for e-commerce).”
“For sure, we’ll go into that direction. It’s not a question of when… It’s just how to make it profitable which is the challenge; in what scale and in what level,” Uy said.
Part of what the company is studying is whether to buy its own e-commerce platform or to develop its own from scratch. But this will definitely in partnership with the SM Group which is one of the country’s biggest retailers.
“In terms of e-commerce, we plan on partnering with SM because they are really strong in that field. They are already an established brand,” said Uy.
In 2014, the SM Group’s non-food retail unit The SM Store launched its e-commerce website to mark its entry into the online shopping space.
The new online shopping site showcases the following items: Men’s, Women’s and Children’s’ Accessories, Apparel, Bags and Shoes as well as Luggage and Gift Ideas.
The SM Store offers door-to-door deliveries to most parts of the Philippines through its logistics partners.
Another option shoppers have is to pick-up their purchases after 24 hours once they have placed their orders online.