Deutsche Post DHL Group is growing its established China operations to further sharpen capabilities as multi-national companies, small and medium-sized merchants and end-consumers alike demand more from logistics providers in the fast growing e-commerce sector. DHL shared insights at a press conference in Shanghai coinciding with FC Bayern Munich’s Summer Tour. As the official logistics and e-commerce partner, DHL launched FC Bayern Munich’s online store on Tmall Global in 2015 and continues to deliver official merchandise to fans in China.
Figures show that the Asia-Pacific e-commerce market is led by China, accounting for two thirds of sales generated in 2016. With US$469 billion market size, China is by far the world’s biggest and fastest growing e-commerce market. The country’s cross border e-commerce is estimated to be worth US$839 billion by 2021 and expected to grow at 20.1% from 2015 to 20201, with huge opportunities both in the segment of low value items and high value items.
“Our strategic aspiration is to become the leader in e-commerce-related logistics, with the Asia-Pacific region and especially China playing a crucial role in our strategy. Offering our customers worldwide flexible, innovative and eco-friendly delivery solutions is necessary to consolidate this development. By means of the innovations and green logistics solutions we brought to market, we are set to help Asian retailers grow and exploit the opportunities e-commerce offers,” said Juergen Gerdes, Board Member Post – eCommerce – Parcel at Deutsche Post DHL Group.
Combining strengths
Each of DPDHL Group’s well-established divisions in China offer unrivalled networks. The company helps e-commerce merchants with a full suite of logistics and value-added services ensuring goods are delivered in a manner that is compliant with local laws, avoiding unforeseen penalties and delays.
DHL-Sinotrans, the Group’s international express joint-venture established in 1986 has developed the largest international express services network in China covering 80% of China’s major population and business centres. To cater to business-to-consumer (B2C) deliveries, the company rolled out On Demand Delivery to allow deliveries to be made at pre-arranged times and locations. In the e-commerce sector, the international express service is primarily used by customers for the delivery of high end, higher value goods where speed and guaranteed transit times are of paramount consideration.
DHL Global Forwarding operates 37 branches, five Air freight Gateways and six Ocean freight Gateways in China2. The world’s leading air, ocean freight service provider, has also pioneered an extensive network of rail solutions through China to Europe. Extended by ferry to Japan, Korea, Taiwan, and by road to Vietnam, Thailand, Malaysia, Singapore, DHL Global Forwarding China’s multimodal network leverages China’s rail network to allow a two-way flow of goods between Asia and Europe through a viable alternative solution which is cheaper than traditional air and faster than ocean freight.