The third-party logistics market in China to grow at a CAGR of 10.16% during the period 2017-2021.
Third Party Logistics Market in China 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
One trend in the market is increase in overseas shopping. The preference for overseas shopping is increasing in China owing to the increased internet penetration. Consumers have access to various communication devices and payment methods and have become familiar with the mechanics and benefits of shopping online. In addition, the Internet has raised awareness of new online shopping destinations across the globe. Online shopping user base and the total amount of online shopping are showing strong growth momentum in China.
The cross-border e-commerce transactions are expected to have more than 20% share in the total import and export trading volume of China by the end of 2016. E-commerce companies like Alibaba Group, JD.com, and NetEase have also entered the cross-border e-commerce business. To adapt to the changing demands, the logistics service providers need to be efficient in the supply chain process.
According to the report, one driver in the market is growing demand from e-commerce sector. China is a leader in the global online retail market. In 2015, the share of online sales in the total retail sales in China was 11% while the online sales constituted only 8% of the total retail sales in the US. Online retail sales are growing at a YoY rate of 53%. Thus, in order to stay competitive in the e-commerce industry, the vendors need to find an effective approach to delivering their goods on time and meet the customer expectation of on-time delivery of goods. Thus, many e-commerce industries are demanding highly efficient logistics services like 3PL. 3PL also allows vendors to focus on other activities to promote their business while the logistics are handled by 3PL service providers.