SM’s Logistics 2Go mulling e-commerce expansion
Logistics 2Go Group, which has just been taken over by Chelsea Logistics Corporation and the SM Group, is studying a possible expansion into e-commerce.
President Dennis Uy says there is nothing definite yet, especially with the cost being “quite high”.
He says e-commerce would be the final link to its logistics business chain as 2Go is already fully integrated from warehousing to shipping to courier and door-to-door package-delivery services. It could either venture into the front-end of the e-commerce business in partnership with the SM group or just service companies already engaged in e-commerce.
However, Uy says it is not easy, and “it is not necessary that we should be there”. But it could happen in the next two years.
“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.”
He says the challenge is to make the expansion profitable.
“In terms of e-commerce, we plan on partnering with SM because it is really strong in that field. It is already an established brand,” says Uy.
The SM Group’s non-food retail unit The SM Store launched into e-commerce in 2014.