Cainiao Smart Logistics Network, the logistics arm of Alibaba Group, announced the launch of its first Singapore-China air freight route.
The new route will operate four weekly chartered flights between Singapore and Hangzhou, China to help achieve Cainiao’s commitment to delivering globally within 72 hours.
The direct Singapore-China route will help to support the increased cross-border shipment due to the rise in e-commerce activities, as well as during massive shopping festivals such as the upcoming Double 11.
Cainiao said in the near future, this will pave the way for the development of value-added services to improve customer experience, such as the provision of delivery time slots for greater predictability, goods assembly and returns, and the delivery of specialized goods such as medical supplies.
E-commerce growth in Southeast Asia
It can also open doors for e-commerce merchants in the region to reach a wider market, bringing local produce and products to consumers in China.
In Southeast Asia, the growth of e-commerce was clearly demonstrated by Alibaba Group’s June 2020 quarter results where Lazada achieved over 100% quarterly order growth, reflecting strong consumer demand in general merchandise, FMCG and electronic categories1, it added.
“With the e-commerce boom in Southeast Asia, we are ramping up our infrastructure in the region to better serve as the key logistics platform to fuel its continued growth,” said James Zhao, General Manager, Global Supply Chain, Cainiao Network.
“The introduction of chartered flights between China and the region, overseas warehouses and other infrastructure will help to create a more seamless and cost-effective logistics solution for eCommerce merchants, which in turn delivers more cost savings, greater convenience and a better experience for consumers,” he added.
Strong growth in e-commerce
Citing a 2019 report from Google, Cainiao said Temasek and Bain, Southeast Asia’s e-commerce sector was already demonstrating strong growth momentum prior to the pandemic, growing 600% in four years, from US$5.5 billion in 2015 to US$38 billion in 2019, with a forecast to exceed US$150 billion by 2025.
The pandemic outbreak this year has only further accelerated online consumption and altered consumer behaviour, Cainiao said.
A recent study by Bain on the growth of digital consumer behaviour in six Southeast Asian countries in the first six months of 2020 revealed that while 47% of consumers decreased offline purchases, 30% increased their online spending.
