Oman Post plans revamping business, focuses more on ecommerce
Oman Post plans to revamp its entire business operations in the country to cash in on the new opportunities that are being made available advent of ecommerce and modern technology.
Speaking to media persons on the sidelines of the World Road Transport Organization (IRU) World Congress at the Oman Convention & Exhibition Centre, Oman Post’s CEO Abdul Malik al Balushi said, “Changing dynamics of business and newer entrants are forcing us to innovate in the way, we do business, innovate in transportation. We are trying to reduce cost and improve customer experience.”
He explained that with ecommerce getting prominence, the bargaining power of consumers have increased significantly and now they have many options available.
“All these dynamics are putting pressure on our business. There is lots of money in the last mile delivery. Hence you see many companies interested to come into this business. Middle East, Latin America and parts of Asia are probably the last emerging region in ecommerce,” he said.
Balushi said that due to changes in technology, postal services across the world have seen their businesses getting disrupted. In some countries postal services ventured into financial services whereas in others they have moved towards becoming full-fledge logistic firms.
“We believe our role is to focus on ecommerce, and that is where, we are putting all our efforts,” he said indicating that external agencies could also be roped in for this. Balushi added that besides ecommerce they are also looking at revamping their retail business also by roping in private players to expand and diversify their operations in all of their 83 branches spread across the country.
He said they have already submitted the proposal to the Cabinet, and are now waiting for their approval to move ahead in the project.
“There is a high power committee, which is looking at all the issues. They prepared the strategy, a final draft has submitted to the Cabinet and we are waiting for their approval. So there is a national ecommerce strategy which is currently in the pipeline for the approval,” said Balushi.
On queries about finances, he explained that all ventures that will be taken by Oman Post would be made on return on investment basis by the private sector. “For funding there are a number of models in front of us, it could be through a logistics fund being created in the country or will probably go to the private sector looking for different types of funding partners.”