China Express Association recently announced that the number of logistic delivery packages reached 20.6 billion with an increase of 48% YoY in 2015. The peak daily processed packages reached 160 million.
China express market reached 276 billion yuan (US$42.1 billion) with an increase of 35% in 2015. 94% rural regions could be directly reached and village delivery service coverage rate increased to 70%.
China’s express delivery industry developed rapidly with an annual growth rate of 54.6% in 2015. Innovative delivery services have been broadly applied to this industry. 60,000 smart express collection boxes were installed in major cities in China in 2015 which helped deliver over 200 million packages.
22,000 delivery trucks were added to increase delivery capacity in 2015 and three companies were equipped with more than 78 cargo airplanes in China. Express service has been closely linked to the booming e-business market in China. Collaborations between e-business platforms and logistic and supply chain companies have been a win-win solution. The express industry transported over 3 trillion yuan (US$0.5 trillion) worth of goods for the e-commerce market in 2015.
Rural regions have been important for both e-commerce and express industry. Alibaba created “Taobao Village” and “Spring Festival Shopping Fair” to penetrate into the rural market. Village delivery service coverage rate reached to 70%.
China express delivery industry has been transforming from labor-oriented to capital and technology-oriented. The ability of cross-border delivery services has been improving. Many logistic companies in China have set up overseas branch offices, invested in joint ventures to promote cross-border delivery services. For example, packages of SF Express could be delivered with 30 kilograms instead of 2 kilograms and could be dispatched in 10 to 15 days.
Also read: China Retail V.S. Online Shopping 2015