A Lazada warehouse (Photo: Lazada) Hanoi (VNS/VNA) - The reliance and need for logistics space was atan all-time high, driven by advancements in the e-commerce sector, according toreal estate and investment management services firm Jones Lang Lasalle (JLL).
JLL said that logistics were a crucial component of theVietnamese e-commerce market to succeed and reach its full potential, addingthat many foreign logistics providers and e-commerce operators were makingefforts to offer e-logistics and meet the rapidly growing demand.
With considerable growth in smartphone penetration in majorcities, the e-commerce market would growth significantly as the mobile shoppingtrend kept increasing every year, resulting in more pressure on the logisticsindustry and increasing demand for logistics space, according to Stephen Wyatt,country head of JLL Vietnam.
“There is no doubt that major e-commerce players will improvetheir offerings and further develop and expand their logistics and supply chainnetwork in global. This, along with the projected growth in the e-commercesector, will ultimately mean an increasing volume of physical goods circulating– and industrial space is at the forefront in capturing the positive spilloversfrom this expansion,” he said.
Vietnam’s e-commerce market was forecast to grow at 32 percentper year from 2018-22, according to market research firm Euromonitor. It wasalso anticipated that around 30 percent of Vietnam’s population would shoponline by 2020.
The growth of e-commerce meant that an enormous amount of goods in thewarehouse must be circulated and transported in the shortest possible time.
According to JLL, the relentless rise of same-day deliveryhad merchants on the hunt for warehouse space close to their urban customerbase.
"Because customers today demand such fast delivery whenthey order online, companies need more smaller locations rather than fewerlarger locations," said Rich Thompson, who leads the global Supply Chain& Logistics Solutions team at JLL. "At the moment, this isn’t reallythe way things work."
"The Airbnb model for industrial warehousing spaceallows companies to be nimble enough to respond to seasonal changes and competein the age of e-commerce," Thompson said.
"The on-demand warehousing market for industrialwarehousing is relatively new and most companies are just beginning tounderstand how it works," Thompson says.
According to Wyatt, with the strong demand from thee-commerce sector, there was a rising requirement for smaller/flexiblewarehouse facilities for the fastest "last mile" delivery.
JLL said that logistics were a crucial component of theVietnamese e-commerce market to succeed and reach its full potential, addingthat many foreign logistics providers and e-commerce operators were makingefforts to offer e-logistics and meet the rapidly growing demand.
With considerable growth in smartphone penetration in majorcities, the e-commerce market would growth significantly as the mobile shoppingtrend kept increasing every year, resulting in more pressure on the logisticsindustry and increasing demand for logistics space, according to Stephen Wyatt,country head of JLL Vietnam.
“There is no doubt that major e-commerce players will improvetheir offerings and further develop and expand their logistics and supply chainnetwork in global. This, along with the projected growth in the e-commercesector, will ultimately mean an increasing volume of physical goods circulating– and industrial space is at the forefront in capturing the positive spilloversfrom this expansion,” he said.
Vietnam’s e-commerce market was forecast to grow at 32 percentper year from 2018-22, according to market research firm Euromonitor. It wasalso anticipated that around 30 percent of Vietnam’s population would shoponline by 2020.
The growth of e-commerce meant that an enormous amount of goods in thewarehouse must be circulated and transported in the shortest possible time.
According to JLL, the relentless rise of same-day deliveryhad merchants on the hunt for warehouse space close to their urban customerbase.
"Because customers today demand such fast delivery whenthey order online, companies need more smaller locations rather than fewerlarger locations," said Rich Thompson, who leads the global Supply Chain& Logistics Solutions team at JLL. "At the moment, this isn’t reallythe way things work."
"The Airbnb model for industrial warehousing spaceallows companies to be nimble enough to respond to seasonal changes and competein the age of e-commerce," Thompson said.
"The on-demand warehousing market for industrialwarehousing is relatively new and most companies are just beginning tounderstand how it works," Thompson says.
According to Wyatt, with the strong demand from thee-commerce sector, there was a rising requirement for smaller/flexiblewarehouse facilities for the fastest "last mile" delivery.
“We believe the flexible approach to warehousing could bevery successful in the Vietnamese market,” he said, adding that a flexiblewarehouse space solution could be the answer to a number of existing problemsin the industrial sector.
“Industrial space in the country has high occupancy rates andrents, if a flexible approach enter the market, I’m sure there will be strongdemand from many businesses,” he said.-VNS/VNA
“Industrial space in the country has high occupancy rates andrents, if a flexible approach enter the market, I’m sure there will be strongdemand from many businesses,” he said.-VNS/VNA
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