Logistics is the backbone of the fast-growing e-commerce industry in China, improving the connectivity of businesses across the globe. The industry is also an important enabler for more complex supply chains and value-added services in China. For instance, air transportation, pick-up lockers and cold chain capabilities for temperature-sensitive packages are now part and parcel of the fast-growing logistics industry.
As online shopping penetration continues to rise in China, delivery services are critical to online businesses that require timely and cost-effective ways to deliver products. On average over 200 million express parcels are shipped every day across China, with around 70% derived from e-commerce transactions.1 The express delivery industry in China has expanded over the past decade, with a compound annual growth rate (CAGR) of 43% during 2010-2020.2 This is broadly consistent with China’s e-commerce gross merchandise value’s (GMV’s) compound annual growth rate (CAGR) of 37% during the same period.3