Latest news with #FlashExpress
Tatler Asia
7 days ago
- Business
- Tatler Asia
From mountains to millions: Komsan Lee of Flash Express didn't build Thailand's first unicorn in a flash
Above Komsan Lee (Photo: Worapon Teerawatvijit) From Thailand to the rest of Southeast Asia in seven years When Komsan Lee launched Flash Express in 2018 (he incorporated it the year before), it had fewer than 10 employees. It has since grown exponentially, becoming a leading logistics player in Southeast Asia. In 2021, it became Thailand's first unicorn—a startup valued at more than US$1 billion—with over 10,000 employees in the country alone. The company has also expanded to Malaysia, Laos and the Philippines. 'I still can't figure out how we made it through these seven years,' Lee says with a smile. 'Seven years is a short period for a business, but in a person's life, it feels very long. 'For a business or a CEO, the first one to five years are about survival. In the next five to ten years, the CEO plays an important role in pushing the organisation to another level. And when the organisation is more than ten years old, the most important thing may not be the CEO, but the board or the culture of the organisation. At that point, we have to ask ourselves, 'Why do we need to be here? And what are we going to continue to do?'' Read more: This scientist warns that civilisation could collapse—unless we change how we train AI I believe that a person's destiny is not predetermined. Believe me—it can be changed - Komsan Lee - When asked which period over the past seven years was the most difficult for him, Lee answers without hesitation, 'Every period was hard.' 'The problems are never the same,' he says. 'We have recurring problems, but the solutions will be different according to the changing situations of the organisation. 'I think the hardest part for me was surviving the various challenges, whether it's fundraising, keeping our teams motivated or understanding consumers.' Above Lee with his co-founder Di Weijie (left) and their first investor Dina (Photo: Komsan Lee) A volatile economy is a time for reflection Flash Express currently has over 27,000 branches across Thailand and an intelligent parcel-sorting system that can handle up to 100,000 parcels per hour. The company delivers small and large parcels, even fruits, providing continuous service without holidays. It's estimated to handle about 700 million parcels across Southeast Asia annually. Although business is growing steadily in this challenging economic climate, Lee sees it as a time not for aggressive expansion but for internal consolidation. 'This is the time for everyone to clean their house and restructure their internal framework to be more appropriate for the size of the business,' he says. 'Flash itself has changed quite a bit. We have come back to look at the core of how we support consumers, the core of the service and do those things more deeply.' Read more: From unicorn dreams to zombie realities: navigating the entrepreneurial reckoning Above When Lee first started his venture, he says he would brag about it whenever he got the chance to the point that his colleagues could memorise every word he said (Photo: Komsan Lee) Above A young Lee (Photo: Komsan Lee) On its seventh anniversary this year, the company launched a new campaign: 'Delivering happiness every mile', signalling its readiness to provide delivery services everywhere. It also expanded its services through a joint venture with Thailand Post and JWD InfoLogistics in 2021, to express transport cold-chain goods under the brand Fuze Post. It later also launched Flash Bulky to deliver large items weighing 5 to 100 kilogrammes nationwide, as well as an e-commerce business that helps online sellers build their brands, increase sales channels and manage live broadcasts. 'When you don't have your own DNA, it's important to create a clear identity,' Lee says. 'After that, you will start to know what you can do and are good at, and more importantly, what you can't do and are not good at. 'The secret to doing business is to take what you are good at and add it to what others are good at to fix what you are not good at. This will help you achieve success more easily.' Read more: Where's the Money: why Singapore's early-stage startups are facing a VC funding shortage Photo 1 of 5 Flash Express's parcel sorting system (Photo: Flash Group) Photo 2 of 5 AI robots help manage Flash Fulfillment's warehouses (Photo: Flash Group) Photo 3 of 5 AI robots help manage Flash Fulfillment's warehouses (Photo: Flash Group) Photo 4 of 5 AI robots help manage Flash Fulfillment's warehouses (Photo: Flash Group) Photo 5 of 5 AI robots help manage Flash Fulfillment's warehouses (Photo: Flash Group) The precursor to success It begins to rain during the interview, a common occurrence this time of the year. Lee reveals that he likes the rainy season the most because it is when nature is at its greenest. It's unsurprising, then, that his hobbies include forest trekking, mountain climbing, and simply being close to nature. Being able to smell the soil, trees and flowers helps him let go of problems and stress that may have accumulated, giving him time to ponder his decisions. The rainy season, however, is also the most difficult season for the transportation industry. 'Apart from the increase in road accidents, our parcels may get wet,' says Lee. 'We cannot change nature, so we can only try to adjust and be better every day.' Read more: Plastic roads? This startup's mission is to make plastic waste into sustainable bricks for roads Above An artwork from Lee's collection (Photo: Komsan Lee) Although changing nature is beyond human capability, Lee believes that the path to success lies in not giving up on one's dreams and destiny. 'For a child from the countryside, the greatest dream is the word 'rich', because it is the thing he lacks the most,' says Lee. 'Back then, I thought I wanted to be a rich person and that pushed me to do business. But I didn't have a higher education and didn't have the opportunity to meet businesspeople or leaders who could teach me the 'right way'. So, a part of today's results may have come from my ignorance, which has led us to act this way. But another, more important part is that we had no choice. 'I wanted to walk a professional path, but at the time, I didn't know professionalism. What I knew for sure was that I had to make it happen. To make it happen, it no longer mattered whether the method was professional or not, because what was more important was that I had to succeed.' Read more: Why Validus co-founder Nikhilesh Goel hears everyone, but listens to no one The secret to doing business is to take what you are good at and add it to what others are good at to fix what you are not good at. This will help you achieve success more easily - Komsan Lee - Above Komsan Lee (Photo: Worapon Teerawatvijit) More than a unicorn, it's about creating value For Lee, the title of 'unicorn' is like a gold medal—a dream prize for startup entrepreneurs that he and his team are proud of. But it also brings great responsibility. 'When we were a startup, our job was to do whatever it takes to survive and succeed,' he says. 'Today, we wear the hat of 'Thailand's first unicorn'. People's expectations are higher—you have to be a good person, help society, educate and help drive change in the industry. I would like to say that with determination, we will do it. But our strength may not be as great as people expect. It is what we have always tried to do, and we hope that society will understand and be more encouraging.' Read more: The 'tough guy' myth is affecting men's health—and how this Filipino entrepreneur wants it gone Above Lee and Di celebrate the new year (Photo: Komsan Lee) An initiative that Lee rarely talks about is the 'Komsongfan' scholarship programme he started some three years ago. Its name translates to 'Komsan Sends Dreams', and it offers scholarships for higher education to underprivileged youths. 'One thing that has brought me to this point is education,' says Lee. 'Education has given me access to opportunities and has changed my life for the better. So I would like to support Thai children to receive a good education from abroad and then come back to help push this country to be even better.' The scholarships are 'no-strings-attached' grants, which means recipients are not required to pay them back. Explains Lee: 'Our conditions are simple. You don't have to pay back the scholarship and you don't have to come back to work for Flash. There are no binding contracts. It's a free scholarship.' There is only one condition: 'After graduating, you have to come back to develop Thailand or work in Thailand for at least three years,' says Lee. 'I hope that these young people who have received a better education and have seen the bigger world will be able to come back to create change for Thailand.' The project awarded 22 scholarships totalling over THB 2.2 million (US$68,000) in its first year. It has also given out scholarships for studying in China, amounting to over THB 10 million (US$308,000). Read more: 20,000 users in 48 hours: YouTrip CEO Caecilia Chu on nailing product-market fit Above Lee with scholars from the 'Komsongfan' project (Photo: Komsan Lee) Throughout the interview, Lee's humility and determination are palpable in his answers. A 2021 Tatler Gen.T Leader of Tomorrow , he leaves a few final thoughts for other entrepreneurs. 'Do not look down on yourself. But in not looking down on yourself, also be humble and open to others' opinions. Listening to others' perspectives helps fill in the blind spots that we may not have thought of or fully understand. In the end, whether you decide to do something or not is up to you. But how you do it depends not only on yourself, but also on the advice of others. ' I believe that a person's destiny is not predetermined. Believe me—it can be changed. ' Credits This article was created with the assistance of AI tools
Bangkok Post
06-07-2025
- Business
- Bangkok Post
Express delivery pivots to new markets
Some express delivery operators in Thailand are charting new growth paths to avoid reliance on e-commerce platforms. To escape the saturated "red ocean" of price wars in the delivery market, the service providers are pivoting towards premium, value-added services, ranging from fresh fruit to pet and medical logistics. These operators are also investing in artificial intelligence (AI) and automated systems to cut costs and enhance operational efficiency. Regulators are drafting new rules to supervise the postal service and the e-commerce sector, aiming to ensure consumers gain a greater benefit. The estimated value of the express delivery market in Thailand is 117 billion baht, based on the revenue of six major players in 2024. Fresh fruit war KEX Express (Thailand) was acquired by S.F. Holding, a leading logistics provider in China, enabling KEX to integrate advanced technologies and expand its operations, with a strategic focus on cross-border e-commerce between China and Southeast Asia, said chief operating officer Stephen Bao. In November 2024, KEX discontinued all its agreements with Lazada and Shopee for product delivery. E-marketplace operators have reduced the fees paid to logistics delivery firms to just 12-14 baht per parcel, down from 18-19 baht, in a bid to increase their profits. Mr Bao said SF plays a vital role in supporting Thai agricultural exports by streamlining logistics from farms to consumers, particularly for the Chinese market, improving profits for local farmers. "Looking ahead, SF aims to enhance its services by leveraging big data and AI to optimise delivery networks and improve customer experience," he said. In January, KEX announced a revised pricing structure for its parcel delivery services to better align with market dynamics. Under the new model, service fees are calculated based on the actual weight and dimensions of each parcel. In response to escalating demand for seamless fresh produce and plant delivery, Mr Bao said KEX customers can now send fresh fruit or plants in plastic baskets with secure lids. With a weight capacity of up to 30 kilogrammes, this service caters to the needs of orchard owners, fruit shop proprietors, and customers, according to KEX. Customers can ship 3kg of fruit for a starting price of 40 baht. Flash Express offers fruit delivery services with free farm pick-up and no minimum quantity required. Customers can schedule pick-ups via the Flash Express application or a drop-off at Flash shops or its partners. Delivery fees start at 50 baht for the first 2kg. Flash Express rebounded in 2024 by posting a profit of 940 million baht, following losses for two consecutive years. The company attributed the strong performance to developing technology systems and essential infrastructure to meet customer needs. AI and automation SPX Express (Thailand) said it continues to strengthen its delivery capabilities through the use of automation and AI in areas such as demand forecasting, route planning, and parcel sorting. These enhancements support greater consistency in service levels and enable more responsive operations during periods of high volume, noted SPX Express. "We remain focused on providing fast, reliable delivery services that elevate the customer experience across Thailand, ensuring convenience, speed and dependability in every delivery," said the company. Kiattichai Pitpreecha, chief executive of DHL eCommerce for Southeast Asia, said technology is one of the largest investments for the company in recent years. "Our technology spending not only focuses on modernisation, but also builds features and capabilities that improve customers' experience, enhances efficiency, and sharpens our competitive edge," he said. DHL's customer portal provides a comprehensive shipment dashboard including their shipment record, performance and key trends. Apart from applying AI to various back-end processes, the technology is also being used to improve its operational efficiency and quicken complex last- mile and customer doorstep processes, while reducing human error, said Mr Kiattichai. Meanwhile, state logistics enterprise Thailand Post is investing 1 billion baht this year to install automatic systems at its 19 distribution centres nationwide. New market Thailand Post adjusted its business strategy to focus on offering specialised logistics services, addressing risks stemming from uncertain parcel volumes from e-commerce platforms that are switching to cheaper delivery operators. E-commerce business growth is also slowing, said Thailand Post president Dhanant Subhadrabandhu. To lessen its reliance on e-commerce platforms, the state enterprise wants to nurture a new customer base with low volatility, offering specialised logistics services. One new service is the delivery of medical supplies for both humans and pets. Although the number of parcels from this new segment is paltry compared with the volume from e-commerce platforms, it has a strong growth rate and low risk because customers come from many sources, not a few platforms, said Mr Dhanant. Thailand Post recently established a new business unit called Healthcare Logistics to offer the specialised service. In addition, the company partnered with Chulalongkorn University's Faculty of Veterinary Science and the Bangkok Animal Hospital to launch a pet healthcare logistics service through its EMS delivery, capitalising on the growing pet market ecosystem. The partnership dispatches veterinary medicines and medical supplies to pet owners via two service channels: home delivery for in-person visitors at Bangkok Animal Hospital, and home delivery for those using an online televet service. Data-driven operations Sutthikead Chantarachairoj, president of the Logistech Association Thailand and chief executive of shipping aggregator Shippop, said parcel delivery providers are expected to ease off of aggressive price wars as the number of players in the market declines and some operators improve their business performance. At the height of the competition, KEX, Flash, and J&T were offering delivery rates as low as 7-9 baht, he said. Mr Sutthikead said these companies are shifting their focus towards data-driven operations to optimise expenses and profitability. For example, Flash introduced key performance indicators to encourage employees to enhance their capabilities and adopt technology that reduces time-related costs. He said this reflects a performance-driven work culture where staff are expected to manage pressure to help the business remain competitive. "Unlike offline channels, we haven't seen a significant drop in parcel volumes on the online channel, despite the subdued economy," said Mr Sutthikead. "E-commerce has become the norm -- some sellers continue to perform well, depending on product quality, brand strength, and customer retention strategies." Thailand's e-commerce market is projected to reach 1.07 trillion baht this year, up 7% year-on-year, according to Priceza. Regulatory change A regulatory shift is expected to reshape the logistics playing field. The Digital Economy and Society (DES) Ministry directed Thailand Post to revise the arcane Postal Act of 1934, aiming to improve postal and logistics service regulations as well as service quality. The draft of the amendment extends oversight to all postal service providers, not just Thailand Post, aiming to ensure fair competition and consistent service standards across the board. The amendments are intended to ensure healthy competition and proper supervision, DES permanent secretary Wisit Wisitsora-at said earlier. "The draft addresses service providers of all sizes, without creating a cost burden for small operators," he said. Meanwhile, the Trade Competition Commission of Thailand is drafting new guidelines under the 2017 Trade Competition Act. The guidelines address unfair trade practices, monopolistic behaviour, anti-competitive conduct, and restrictions on competition by multi-sided e-commerce platforms. The new guidelines, which are expected to take effect in September 2025, require digital platforms to provide consumers with multiple delivery options.
