How do Hong Kong businesses embrace changes and flourish in the new normal?
For Pakpobox, throughout our journey, we constantly pause to see how many people we have empowered and how many new leaders we have created.
CHRISTIAN SECCI | CO-FOUNDER AND CEO, PAKPOBOX
Chapter 1: A story of empowering e-commerce
Pakpobox began its Hong Kong operations in 2014, at a time when e-commerce was on the rise, but logistics networks had yet to be optimised for large scale parcel delivery. “When I came to Hong Kong eight years ago, automated lockers were unheard of. Couriers were still delivering to single locations and therefore limited in the number of parcels they could deliver per stop,” Christian Secci, Co-Founder and CEO at Pakpobox remembers the landscape that would eventually give rise to the tech-logistics solutions provider that is now operating one of the largest smart lockers network in Asia.
Chapter 2: Solving a big problem with a small locker
The company now has close to 5,000 smart lockers installed in over 80 locations in Hong Kong. Christian continued, “Our goal was to solve the big problem of parcel e-commerce. We wanted to empower couriers to increase the number of parcels they could deliver daily.”
To achieve this, Pakpobox adopted a two-pronged approach. The first element is to help courier companies build out their own network of smart lockers; the second is to provide the couriers access to an established network of retail and locker locations to facilitate deliveries, as well as 24/7 access for recipients to pick-up their parcels. In 2019, the company launched a one stop, everyday app for different delivery services – parcels, laundry, groceries and food. Through this platform, Pakpobox is currently servicing upwards of 120,000 deliveries per month.
Chapter 3: New challenges, new opportunities
The COVID-19 pandemic has prompted an offline-to-online trend and an uptick in e-commerce activity, heightening the need for delivery networks capable of handling both scale and diversity of parcels. Integral to Pakpobox’s navigation of the new normal and preparation for the future has been its focus on flexibility, resilience and innovation.
“We are communicating with clients and suppliers 10 times more frequently than before. We are open and flexible so our lockers can be adjusted to what the customers want. A locker is just steel, but what makes the difference is what you can do in terms of applications, integrations and APIs.” For example, the widespread work-from-home arrangements have boosted customer preference for ordering meals through local food delivery companies. Pakpobox’s refrigerated lockers provided a much-needed solution.
Chapter 4: Choosing a trusted partner
During spikes of uncertainty HSBC played a critical role in providing cashflow support to Pakpobox. For example, although the company’s services experienced an increase in demand due to their ability to reduce personal contact, the lockdowns in mainland China that left the country’s factories temporarily offline made it harder to complete projects and get paid. This created a liquidity crunch that HSBC helped Pakpobox overcome through credit lines.
“HSBC has been our banking partner since Pakpobox’s establishment and has played a key role in our growth and innovation by providing flexible financing solutions. During the pandemic, HSBC also maintained close communication with us to check on our updated operational needs,” Christian said of the banking relationship.
Chapter 5: Toward a brighter future
Looking to the future, Christian underscored the importance for the company being a force for good in the logistics industry and moving it forward through innovation and sustainability. One initiative is the development of a “green delivery fleet” of zero-emission electric vans, which would help move the broader industry in a more environmentally responsible direction. Another is the empowering of night-time deliveries, which has the dual effect of traffic reduction during the day and increasing the efficiency of those deliveries that normally take place at night. All of these actions contribute to the lowering of average CO2 emissions per delivery.
“For Pakpobox, at the end of the journey, we will look to see how many people we empowered and how many new leaders we created. We look forward to working with HSBC and embracing the next chapter of our growth story.” Christian concluded.
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