Cainiao Network (Cainiao), the logistics arm of Alibaba Group, announced its first Cainiao Post network outside Mainland China, in Hong Kong.

It said the newly launched network will comprise 10 Cainiao Post stations and 60 Cainiao-designated collection points to streamline last-mile logistics for consumers in Hong Kong.

E-commerce growth cited

"E-commerce sales in Hong Kong is forecasted to register a strong growth of 11.1% in 2021 as consumers increasingly opt for online purchases. To keep pace with e-commerce demand while ensuring efficient delivery to consumers, there is a growing need for optimized last-mile logistics and seamless integration throughout the logistics chain," Cainiao said in a statement.

Established in Mainland China in 2013, Cainiao Post said it aims to be the logistics platform that integrates resources and alleviate last-mile logistics pain points, including increased complexity and demand on courier services.

It added that in Mainland China, the number of packages handled by Cainiao Post stations has increased by over 100% year-on-year as of March 2020.

With its presence in Hong Kong, Cainiao said it plans to expand the network multifold to cover a combined floorspace of over 4000 square meters, supporting approximately 1.8 million Hong Kong consumers.

Digitization push

"This launch is in line with Cainiao’s plans to speed up the digitization of China’s logistics industry and establish greater standardization and digitalization protocols to help logistics firms deploy IoT (Internet of Things) solutions at scale," Cainiao said.

To enhance productivity, Cainiao Post stations, both Cainiao-operated and partner-operated, will incorporate the latest logistics technologies into their operations to facilitate inventory management, parcel collection and real-time parcel tracking, it added.

"The pandemic has brought to light many vulnerabilities and issues within the logistics value chain. The current extent of digitization is still in the early stages, with room for further transformation to enhance agility and efficiency," said Rex Lin, Head of Cainiao Post (Hong Kong), Cainiao Network.

Last June, Cainiao Post announced its expansion plans to add another 30,000 stations in 100 Chinese cities.