Page 266 - 2019 White Paper on the Business Environment in China
P. 266
9 White Paper on the Business Environment in China
to online shopping via platforms such as Alibaba and partnerships. There are a large number of other privately
JD.com. The surge in deliveries has raised concerns about owned carriers in China such as SF Express, ZTO, YTO,
pollution. The 20 billion orders made to courier firms in Yunda and Best Express. The market will continue to
2015 were estimated to have required 8.27 billion plastic grow. China is expected to overtake the US to become
bags, 9.92 billion packing boxes and enough sticky tape the largest market by value by 2019 (van Fenema).
to go around the globe more than 400 times. During an
annual online discount sales event in November 2017,
postal and courier businesses had to deal with 331
million packages, creating an estimated 160,000 tons of
packaging waste (Stanway).
Ma Junsheng, ead of the State Post Bureau, claims the
number of express packages delivered in 2017 in China
surpassed the combined number of the US, EU, and
Japan, and the industry grew by more than 30 percent in
2018. The number of parcels delivered to other countries
has reached a daily total of more than 6 million, he added.
While the overall prospects for the sector are excellent,
Ma pointed out the industry is still facing problems,
including inadequate services in rural areas and delivery
channel safety (Zou).
China is coming from behind in parcel and express,
and a lot of the investment is in network infrastructure:
warehouses, trucks, planes, vans, and depots. In many
instances, the new Chinese logistic and express delivery
companies are leapfrogging Western companies, notably
in their response to changing customer expectations about
speed of delivery. In 2013, two-day delivery was standard in
China for online purchases made from domestic e-tailers.
Now, Chinese consumers increasingly expect same-day
deliveries. In fact, deliveries in an hour or less are becoming
more and more routine in dense areas. While this trend
toward same-day delivery exists in several big Western
cities including New York and London, it is more common
in China. In the fall of 2017, Best Logistics—one of several
logistics startups funded by Chinese e-commerce giant
Alibaba—completed an initial public offering in the US
to expand its supply chain network. And Cainiao, another
Alibaba-funded startup, is expanding in ways that will
eventually allow it to compete in virtually every country in
the world (Wolleswinkel et al.).
Reflecting the strategic importance of delivery to
their business models, leading online retailers, led by
Amazon and Alibaba, are increasingly getting involved in
this vital segment of their overall operations, but China
Post is hitting back. China Post has developed significant
parcels operations. This helps to offset the decline in its
mail volumes. It remains strong in domestic services,
but also offers international services via alliances and
266
to online shopping via platforms such as Alibaba and partnerships. There are a large number of other privately
JD.com. The surge in deliveries has raised concerns about owned carriers in China such as SF Express, ZTO, YTO,
pollution. The 20 billion orders made to courier firms in Yunda and Best Express. The market will continue to
2015 were estimated to have required 8.27 billion plastic grow. China is expected to overtake the US to become
bags, 9.92 billion packing boxes and enough sticky tape the largest market by value by 2019 (van Fenema).
to go around the globe more than 400 times. During an
annual online discount sales event in November 2017,
postal and courier businesses had to deal with 331
million packages, creating an estimated 160,000 tons of
packaging waste (Stanway).
Ma Junsheng, ead of the State Post Bureau, claims the
number of express packages delivered in 2017 in China
surpassed the combined number of the US, EU, and
Japan, and the industry grew by more than 30 percent in
2018. The number of parcels delivered to other countries
has reached a daily total of more than 6 million, he added.
While the overall prospects for the sector are excellent,
Ma pointed out the industry is still facing problems,
including inadequate services in rural areas and delivery
channel safety (Zou).
China is coming from behind in parcel and express,
and a lot of the investment is in network infrastructure:
warehouses, trucks, planes, vans, and depots. In many
instances, the new Chinese logistic and express delivery
companies are leapfrogging Western companies, notably
in their response to changing customer expectations about
speed of delivery. In 2013, two-day delivery was standard in
China for online purchases made from domestic e-tailers.
Now, Chinese consumers increasingly expect same-day
deliveries. In fact, deliveries in an hour or less are becoming
more and more routine in dense areas. While this trend
toward same-day delivery exists in several big Western
cities including New York and London, it is more common
in China. In the fall of 2017, Best Logistics—one of several
logistics startups funded by Chinese e-commerce giant
Alibaba—completed an initial public offering in the US
to expand its supply chain network. And Cainiao, another
Alibaba-funded startup, is expanding in ways that will
eventually allow it to compete in virtually every country in
the world (Wolleswinkel et al.).
Reflecting the strategic importance of delivery to
their business models, leading online retailers, led by
Amazon and Alibaba, are increasingly getting involved in
this vital segment of their overall operations, but China
Post is hitting back. China Post has developed significant
parcels operations. This helps to offset the decline in its
mail volumes. It remains strong in domestic services,
but also offers international services via alliances and
266
