Express delivery in China could go ballistic according to a People’s Republic of China press release. The Chinese government plans to increase shipping volumes four times to take up slack in the slowing economy. In 2014, the average Chinese person had more than 10 shopping parcels delivered. This despite only half their vast country benefiting from delivery networks. This is 8.2 times greater than 6 years ago according to Xinhua News Agency relayed by Global Post.
The China Government’s Express Delivery Plan
Beijing plans to pump muscle into the delivery system. The State Council announced this would have annual revenue of 800 billion Yuan (126 billion U.S. Dollars) by 2020. China has a habit of getting mega-projects right. Hence it should have its ‘safe and efficient delivery system’ in place by the close of the second decade of the new millennium. It aims to replace the current, sometimes quirky service (that is the delight of tourists) with a driven business system supported by advanced digital technology it will install.
Shipping Set to Benefit 200,000 More Chinese Citizens Every Year
The China cabinet plans to grow online shopping turnover to the tune of 10 trillion Yuan (1.26 trillion US Dollars) annually and generate 200,000 new jobs every year. Chief problems identified are backward infrastructure, low efficiency, poor international competitiveness and safety loopholes.
China plans to take a semi-informal shipping industry closer the western business idiom. The mechanism will be encouraging providers to use big data, cloud mobile internet, and computing generally to upgrade services and enhance efficiency.
Other measures include more business-driven land use planning, subsidies for infrastructure construction, and simpler business licencing procedures.
This is great news for online shopping in China, particularly in more remote, rural areas where potential is huge. This is especially true for express delivery operators. They have been among unsung heroes in the drive to transform China into a consumer-driven, service economy.
The Shipping Industry in China
The shipping industry in China has become a huge market, as more businesses are reaching out to consumers via e-commerce options like Alibaba, JD.com and the like. Alibaba is the leading e-commerce option in China, with JD.com falling in at a close second. For shipping companies, this is the time to expand their operations in an attempt to ensure they are reaching consumers in a timely manner. Consumers want quick deliveries, which is why China has one of the best delivery systems in place and are quickly improving the way they deliver as the demand increases.
For more information on the e-commerce shopping in China, the online shopping environment in China or the brands that are comprising this online market, stay tuned to Social Brand Watch.