DHL Express unveiled a new $74 million, 215,278 square foot warehouse at Shin-Kiba in Tokyo, more than double its space in the city, to fill in the gap in the modern warehousing in Japan following the fast-growth of ecommerce industry in the country.
This is also to anticipate the increasing demand for international shipping, particularly from China and Southeast Asia.
There was also a pressing need to support [Japan] domestic companies focusing on international markets.
“Business expansion in overseas markets, especially in emerging countries, has now become the critical part of growth strategies for many Japanese companies,” Taketo Yamakawa, president and representative director of DHL Japan added.
This rising demand has led to strong sustained volume growth in DHL Express Japan over the last few years — the previous Tokyo Distribution Center facility had already reached full capacity. With the relocation, the DHL Express Tokyo distribution center will be converted into the DHL Express Tokyo central service center. This service center will subsequently become DHL’s largest in Japan.
Japan’s Footprint in Southeast Asia Ecommerce
Both Southeast Asia and Japan are experiencing fast-growth in their respective commerce industries, both favoring the marketplace model, but the similarities end there. The track record of Japanese companies in Southeast Asia is not a sterling one.
While Japanese electronic commerce and Internet company based ecommerce marketplace Rakuten successfully dominated its home market, the same could not be said to its presence in Southeast Asia as the company shut down its operation in three countries earlier this year. Sumitomo Corp, a Japanese trading company, also started the year by selling its ecommerce site soukai.my to Malaysian company Hermo.
A version of this appeared in Journal of Commerce on June 29. Read the full article here.