RELEX reveals plans to expand business in APAC and Thailand - the biggest market in SEA
RELEX Solutions, a leading provider of unified supply chain and retail planning solutions, has announced plans to develop their global footprint in the Asia-Pacific region (APAC) as well as the kingdom of Thailand after the company secured €500 million in funding from Blackstone Growth (BXG) in 2022. At the global level, RELEX is investing in research and development (R&D), geographical expansion in Europe, Africa, Latam and increased involvement in APAC including Thailand.
“In Southeast Asia, Thailand is one of the biggest retail markets, which not only serves customers within Thailand but also internationally,” said Stefano Scandelli, Senior Vice President EMEA and APAC, RELEX Solutions. “With the rapid growth of the Thai retail industry, retailers in Thailand are looking into technology and ways to better improve their funding to provide the greatest benefits to their customers. It is imperative they remain as competitive as possible in a market that is expected to surpass US$127 billion in 2023.”
According to Statista in 2018, the total retail sales value in Thailand amounted to around US$113.5 billion. This was forecasted to reach US$127.2 billion in 2023, indicating a gradual increase from the past years.
With regards to investment in Thailand, RELEX is planning to open a Bangkok office by the end of 2023 as well as increasing the number of staff. This significant investment will serve multiple purposes such as increased support for the local market, enhanced customer support, localization for Thailand and wider support in Southeast Asia market.
RELEX Solutions has identified the key retail and consumer goods trends in Thailand, highlighting omnichannel, profitability, and sustainability as the top priorities. The RELEX solution is uniquely positioned to assist companies in the region, addressing these trends and enabling them to thrive in the evolving market.
Even though e-commerce was gaining popularity before Covid-19, the local omnichannel retail sector has seen retailers investing heavily in multiple sales channels, especially e-commerce. In today’s post-pandemic era, customer behavior has changed. Customers want to shop different channels on different days, which means retailers face increased demand and the need for more flexibility. Therefore, retailers need to be accessible to their customers 24x7, while also ensuring goods are delivered in the fastest and most efficient way.
Additionally, a large slice of retail revenue is driven through promotions. However, research by RELEX Solutions has identified one out of three promotions are not profitable. Commonly, retailers do not have a system to help them understand how effective a previous promotion has been. RELEX, with an AI solution platform, has the ability to help their customers by forecasting a promotion, identifying which promotions have been effective and profitable, and ensuring that the retailers have the right product available for their customers at the right price.
Sustainability has also become a significant issue, especially for the retail industry. Retailers are focusing on reducing their environmental impact in areas such as CO2 emission and spoilage. This is particularly relevant for grocery retail as fresh foods must be efficiently monitored to ensure appropriate shelf life.
One key solution to this issue is striking the right balance by stocking a wide range of fresh foods for customers. At the same time, retailers need to ensure they have sufficient products available at the right price, including any promotions. RELEX Solutions' commitment to environmental preservation, climate change mitigation, and social equality positions their technology as a crucial contributor to achieving optimal freshness while promoting sustainability in the retail industry.
With this in mind, Scandelli said: “We see the omnichannel evolution in Thailand and our 2023-2024 priority will be to help retailers to improve profitability. Moreover, we also foresee sustainability as one of the main strategic goals for retailers in Thailand.”
