China’s express delivery companies try to evolve in economy

Global Business

China's express delivery companies try to evolve in economy

The slowing growth of China’s express deliveries is affecting the country’s courier companies. But the business model that brought them success may not survive.

CCTV’s Xu Xinchen takes a closer look.

China\'s express delivery companies try to evolve in economy

China\'s express delivery companies try to evolve in economy

The slowing growth of China's express deliveries is affecting the country's courier companies. But the business model that brought them success may not survive.

Jiang Xunhua has just started his job as an express delivery rider. He arrives at this courier station in downtown Shanghai at 8:30 a.m. every morning and start delivering at around 10 a.m.

With over 60 percent of their deliveries coming from e-commerce orders. 70 percent of products sold on JD.com and Yihaodian are now being delivered by their own couriers.

Customers often find they get better service than from a third party courier.

JD.com is now ranked number one among China’s e-commerce platforms, and handles all tracking and return for products they sell and deliver, much like Amazon in the U.S.

JD is also beginning delivery services for third party sellers, yet another assault on the territory of the traditional delivery companies. The other new player in the delivery business is Yihaodian, purchased by the U.S. chain Walmart earlier this year.

Yihaodian has over 230 delivery outlets across China and promises deliveries within 48 hours. JD started building its own delivery facilities in 2007 and the service started to attract more attention from customers in 2010.


Rebecca Fannin on express delivery service in China

For more on express delivery service in China, CCTV America’s Michelle Makori spoke to Rebecca Fannin. She is the founder and editor of Silicon Dragon News.