E-commerce fuelling China express demand

As China moves further up the ladder to improve the quality of its manufactured products through greater value-added services and enhancing the reliability of delivery, the increase in the need for express delivery providers in the country, both domestically and internationally, is growing day-by-day. Wong Joon San reports.

E-commerce fuelling China express demand

As most of China’s trade flows are focused on the US, Europe and the Asia Pacific region, global integrators are well-positioned to capture growing express demand in their worldwide networks. With China’s growth as part of the worldwide manufacturing process showing no signs of abating, express delivery services are growing in importance to meet the demand by global supply chains.

“China is likely to become the world’s largest market for express services this year, lifted by the e-commerce boom and fast rural infrastructure development,” a State Post Bureau of China spokesman said.

Today, China is the second-largest market for express services, behind the US. Last year, more than 7,500 express companies were operating in China, compared with 5,327 in 2010. Also last year, 9.2 billion packages and letters were delivered in and from China to global destinations by Chinese and international carriers, according to the China Federation of Logistics and Purchasing, which is approved by the State Council.

“The soaring economy and application of information technology, and the changing population structure between urban and rural areas, will push China’s express sector to a further division among more sophisticated and segmented markets,” the State Post spokesman said. In order to attract more customers and to expand their limited market share, domestic and foreign companies have launched more personalised and segmented delivery services. These include the businesses of delivering medical products, online booking and courier services, as well as buying and leasing more aircraft to support their operations.