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SingPost combines e-commerce businesses to form new unit
SINGAPORE Post (SingPost) is combining its e-commerce division with two recent acquisitions to form a new business unit called SP Commerce.
SP Commerce includes US e-commerce provider TradeGlobal, which focuses on high-end apparel and beauty products, and US e-commerce logistics firm Jagged Peak, which serves the fast-moving consumer goods industry.
Marcelo Wesseler, CEO of SingPost's current e-commerce arm, will be the CEO of SP Commerce.
He told The Business Times on Monday evening: "The most significant aspect of the combination is that we have e-commerce leaders coming together into one completed unit. Customers can now work in the US and seamlessly expand to Asia-Pacific and China."
"There are also an increasing number of Asian brands looking at the US market. We can offer to help them enter the US," he said.
Last year, SingPost acquired 96.4 per cent of TradeGlobal for US$168.5 million and a 71.1 per cent stake in Jagged Peak for US$15.8 million.
SP Commerce will offer services spanning webstore development, operations, order picking and packaging, cross-border commerce, marketing and customer care, Mr Wesseler said.
SingPost's current e-commerce business focuses on South-east Asia, Australia and New Zealand, with last mile logistics and customer care being significant components. Meanwhile, TradeGlobal's business focuses on the United States and China, and Jagged Peak's business focuses on the US. The three units are thus complementary to each other, Mr Wesseler said. "We didn't have a single bit of overlap."
The gross merchandise value of SP Commerce is US$3 billion a year, he said.
SingPost closed Monday trading at S$1.495, down seven cents or 4.5 per cent amid a broad market selldown.