China's express delivery industry is a big hit at the 4th Beijing International Service Trade Fair. China now is the world's largest express delivery country in terms of work load. Is there more growth ahead for the industry?
China's express delivery is a hot topic at the Beijing Trade Fair. 26 deals worth more than 100 billion RMB or around 16 billion USD were signed Monday between Chinese express delivery companies and China Union Pay and a host of cross-border and domestic delivery and e-commerce companies. Major domestic express delivery companies are focusing on expanding the cross-border e-commerce to widen their business scope and increase revenues.
"China's cross-border e-commerce is growing rapidly. Traditional delivery services cannot give competitive prices and speed to Chinese customers. This is a huge opportunity for Chinese private express delivery companies. We will develop our business in 18 countries, cooperate with local warehouses, local delivery companies and small businesses," said Xiang Feng, CEO of YTO Express Co.
"Cross border e-commerce is expanding quickly - including the export of Chinese products and Chinese consumers buying things globally. Much quicker than domestic e-commerce and delivery services. So we are expanding overseas. We have warehouses in Europe, US, Australia, Japan and South Korea to store and deliver products to Chinese consumers," said Richard Chou, VP of Best Group.
The express delivery industry in China has been growing at at a rate of about 50 percent a year over the past five years. About 20.6 billion parcels were delivered in China in 2015.
"The industry will maintain the speed of growth in the coming years. E-commerce and express delivery are dependent on each other. As China's e-commerce continues to grow, express delivery will also expand quickly. In addition, supply chain logistics also depends on express delivery. And as we grow more, we will continue to improve technologies and service quality," said Gao Hongfeng, president of China Express Association.
