Despite China’s fluctuating economy, DHL finds e-commerce there hot. DHL eCommerce Asia Pacific CEO Malcolm Monteiro contends that cross-border, direct-to-consumers deliveries continue to gain popularity and grow in China.
To capture the business, the company launched a new DHL eCommerce Shanghai Terminal in Jiuting, just west of Shanghai, in July. Its purpose: to reduce transit time by up to three days for manufacturers, particularly in those in eastern and northern China.
“As a global logistics company, we are looking to quickly develop products that embrace the changes required to meet market demands, and facilitate global trade flows,” Monteiro says.
The new Shanghai Terminal is a dedicated facility for DHL eCommerce designed to tap into China’s burgeoning e-commerce sector. The facility functions as the central point of consolidation of e-commerce goods from China for global distribution.
Market analysts are optimistic about the Asian market, especially China. According to EMarketer Inc, e-commerce in China is projected to reach US$1.01 trillion in 2018, more than double the US$426.3 billion in 2014. China’s National Bureau of Statistics indicates that online shopping accounted for 10.7% of total 2014 retail sales in China.
DHL eCommerce reports that the trade volume in China’s e-commerce sector in the first five months of 2015 was already equal to the whole of 2014. The company expects about 95% of outbound logistics volume to come from nine provinces.
“Internet connectivity and logistics infrastructure in remote regions of China have been improving rapidly,” Monteiro said. “With our partners’ network within China, we are able to efficiently deliver cross-border shipments to all consumers.”
Plans call to launch additional drop-off centres in northern and southern China by year’s end.
These centres will help provide regional consolidation of the large volumes, aggregating the shipments before they move to the Shanghai Terminal for final distribution around the world.
The company already operates terminals in Shenzhen and Hong Kong.
“We invested significantly in our e-commerce terminal in Hong Kong to ensure that we are ready to support the ever-growing demand for cross-border deliveries,” Monteiro said. “Shipments from our customers in Hong Kong and southern China destined for worldwide destinations are processed in our terminal located in Hong Kong.”
DHL eCommerce works in conjunction with e-commerce companies such as Alibaba or Amazon in China.
Looking beyond China, Monteiro said that Deutsche Post DHL Group’s long-term goal is to define the logistics industry worldwide. This includes further expansion in emerging markets, including Southeast Asia, as well as international expansion of DHL’s parcel business.
One of the group’s divisions was renamed as Post – eCommerce – Parcel. DHL eCommerce was created to focus globally on e-commerce services, both cross-border and domestic outside Europe.
“The division will build on its leading position in e-commerce logistics in Germany, Europe and beyond and use its knowledge and experience to develop products and services that will make DHL a leader in e-commerce in Asia Pacific and the world,” Monteiro said.
By Karen E. Thuermer
Correspondent | Washington