Marbridge Daily

Best Inc. Expands into Indonesia with Cross-Border and SaaS Services

Best Inc., 8/29/24

Chinese smart supply chain and logistics services company Best Inc (NYSE: BEST) today 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 newest expansion, which follows previous investments in Thailand, Vietnam, Malaysia, Singapore, and the Philippines, further strengthens Best's strategic position in Southeast Asia.

With over ten years of innovation in technology and business models, Best operates over 20,000 service outlets, over 400 cloud warehouses, and manages over 3 mln 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 kicked off its international expansion strategy with the establishment of a branch in the United States. Since 2019, Best has focused on Southeast Asia as its most important overseas market, and has established a logistics network covering Thailand, Vietnam, Malaysia, Singapore and other countries in the region, including last-mile express delivery, express transportation services, as well as cloud warehouses and software services. In 2023, Best's global service revenue reached RMB 947 mln (USD 133 mln), and its parcel volume in Southeast Asia was about 140 mln pieces, a year-on-year increase of 14.6%.

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 strong potential consumer market. According to the latest World Bank report on Indonesia, the country's economy will maintain steady growth over the next several years, with expected GDP growth of 5%, 5.1%, and 5.1% in 2024, 2025, and 2026, respectively.

Johnny Chou, Founder, Chairman and CEO of Best, stated in his speech, "The opening of Best Indonesia is a milestone in 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 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.

Editor's Note: Best Inc.'s largest shareholder is Chinese e-commerce giant Alibaba Group (NYSE: BABA; 9988.HK), which has also been working aggressively to expand it's overseas footprint.

Keywords: Karen He Internet overseas Indonesia Southeast Asia logistics Johnny Chou Best Inc.