China's economic prosperity is largely due to its growing and very successful e-commerce business. It can be said that China is the world leader in logistics and single-day delivery, which supports the transportation of frozen food. Chinese e-commerce giants Alibaba and JD.com are two business models that have created their own high-performance shipping solutions comparable to leading couriers like Amazon in the United States. The reason why China is known as the world's leader in logistics is because
1. China has more internet users than any other country.
China has more internet users than any other country. In the world Over the past decade, more than a third of China's population has turned to online ordering services through apps or websites. Drive rapid growth in the transportation business Although economic growth has slowed down, it is counter to the growth of e-commerce in China, which is likely to continue expanding.
2. 5G COMMUNICATION TECHNOLOGY
5G COMMUNICATION TECHNOLOGY SUPPORTS FAST AND RELIABLE ORDERING AND DELIVERY PROCESSES. THIS IS A MAJOR IMPETUS FOR ONLINE RETAILERS TO START SELLING AND DELIVERING TO THEIR DESTINATION WITHIN 24 HOURS ONLY.
3. Electronic Payments
China was considered the leader of electronic payment systems before the global spread of cashless society. It is undeniable that the convenience of shopping via smartphones at your fingertips is a factor that supports online shopping from China. China's e-commerce business is easier to reach global target customers.
4. In China, about 70% is one-day delivery to
About 70% of parcel shipments in China are delivered on the same day. Meet the needs of customers who do not like to wait long or order fresh perishable food. The fast transportation of frozen food, frozen seafood shows that the logistics in China is of world-class standards.
5. Have a strategic logistics management plan
Comparing the success of Alibaba and JD.com, you can see that each company plans its logistics management strategy differently. as follows
- Alibaba invested in a logistics service provider called Cainiao, which has a partnership in the field of warehousing. The distribution and transportation of goods to the destination is called relying mainly on the infrastructure and employees of business partners.
- JD HAS A COMPLETELY DIFFERENT LOGISTICS STRATEGY, INVESTING ENTIRELY IN-HOUSE, WITH MORE THAN 515 WAREHOUSES AND A NATIONWIDE TRANSPORTATION NETWORK. OVER 90% OF PARCELS ARE DELIVERED THE SAME DAY OR THE NEXT DAY. IT ALSO INVESTS IN DELIVERY INNOVATIONS USING DRONES TO HELP TRANSPORT PARCELS IN RURAL AREAS FASTER. AS WELL AS INVESTING IN GROUND-DRIVEN ROBOTS DRIVING AUTOMATION, IT CAN DELIVER UP TO 30 PARCELS AT A TIME. THE HIGHLIGHT IS THAT FACIAL RECOGNITION TECHNOLOGY ALLOWS THE PACKAGE TO BE DELIVERED CORRECTLY. EASY AND SECURE
6. Develop transportation systems in rural areas
Logistics companies in China accelerate the development of transportation systems in remote rural areas The goal is to deliver the package the next day. Receive your order and have it delivered to your destination in 48 hours.
7. Automated management system
The automated management system reduces the cost of hiring staff and uses technology to facilitate more customers. Shipping companies in Western countries have turned to internet applications and status checks for customers to track their parcels. But shipping companies in China still call customers to arrange deliveries in advance. Despite seemingly outdated and contradicting high-tech logistics, China remains focused on customer-centric services, prioritizing first-place deliveries to build credibility. It is expected to start using more status check-up applications and early alerts as labor costs increase in the future.
Both Chinese e-commerce giants understand that speed is a top priority in shipping and are heavily focused on investing in this area. It is no surprise that China is the world leader in logistics, with more than 100 million parcels delivered per day to customers in a single day, which is more than three times the number of single-day deliveries in logistics businesses in the United States. Rates are also cheaper than in other countries. There are also luxury delivery options for those who order branded products to receive premium delivery services, such as the JD Luxury Express service, where drivers wearing suits and white gloves deliver luxury products to their homes.
Not only the general public. Restaurants, grocery businesses have benefited from frozen food delivery services. Frozen seafood is delivered on the same day, but overseas customers are also entitled to it. The Alibaba partner plans to increase the number of charter export flights by five times from 260 to 1,260 to reduce the delivery time across the border from 7-10 days to 3-5 days, with the goal of delivering packages across China within 24 hours and globally within 72 hours. JD.com showed its logistics efficiency during the COVID-19 crisis. Using advanced logistics technology to remotely control autonomous vehicles and robots, supplies can be delivered to hospitals in Wuhan province from a control point in Beijing, 120 kilometers away.
It is evident that the major investment of the Chinese e-commerce giant is the engine for driving China's progress in expedited transportation and global distribution is unparalleledly efficient. It has become the driving force for China's online retail business to grow by leaps and bounds. Of course, Chinese consumers benefit from fierce competition from one-day delivery. It is also the easiest to reach consumers around the world. Customers in Thailand simply click their mobile phone to access the online ordering application. It takes a few days to get the item, and it also saves money.
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