Cainiao Group, the logistics subsidiary of Alibaba Group, made a bold commitment on Wednesday to revolutionize cross-border parcel delivery by ensuring that packages reach their destinations within five working days, a staggering 30% faster than the prevailing industry standard. This ambitious endeavor is being launched in collaboration with AliExpress, an online marketplace that facilitates direct purchases from Chinese manufacturers.
In a bid to enhance its service offerings, Cainiao also introduced its self-operated premium express service in China, aptly named Cainiao Express. Wan Lin, the CEO of Cainiao, expressed the company’s objective of delivering high-quality and competitive logistics services to a diverse range of stakeholders, including consumers, merchants, platforms, and logistics partners. These announcements were made during Cainiao’s annual global smart logistics summit held in Hangzhou, China.
Alibaba, the e-commerce behemoth, previously stated in May that Cainiao could potentially embark on an initial public offering within the next 12 to 18 months. Currently, Alibaba holds a significant 67% equity interest in Cainiao, with additional shareholders comprising strategic investors from the logistics industry and global institutional investors. Joseph Tsai, the Executive Vice Chairman of Alibaba and Chairman of Cainiao, expressed unequivocal support for the long-term growth and development of Cainiao, affirming Alibaba Group’s unwavering commitment.
Over the past decade, Cainiao has emerged as a frontrunner in the Chinese logistics landscape, initially navigating uncharted territory when smart logistics were in their infancy. Wan highlighted the maturation of China’s logistics network, attributing it to fierce competition and the scale of the country, which were further accentuated by the challenges posed by the pandemic. Tsai echoed Wan’s sentiments, proclaiming that China’s logistics industry is now poised to serve as a global benchmark.
Looking ahead to the next decade, Wan outlined several opportunities that lie on the horizon for Cainiao. These include capitalizing on the burgeoning demand for content e-commerce, facilitating the global expansion of Chinese enterprises, and harnessing the potential of cutting-edge technologies, particularly artificial intelligence.
In terms of immediate priorities for the upcoming year, Wan emphasized the acceleration of global express services, the strengthening of logistics capabilities in key overseas markets, the optimization of domestic express services, and the development of tiered domestic supply-chain products.
Cainiao Express, the latest offering from Cainiao, boasts remarkable features such as half-day delivery and doorstep delivery. Prominent companies, including Tsingtao Brewery, China’s second-largest brewer, high-tech supermarket Freshippo, and department store operator Intime Department, have already committed to utilizing this service.
To fortify its logistics capabilities beyond the borders of China, Cainiao will concentrate its efforts on Europe, North America, and Southeast Asia. The strategic objective is to establish one to two local warehousing and distribution centers annually in these regions.
In pursuit of its expansion plans, Cainiao acquired a local express company in September last year, allowing it to currently provide delivery services to 60% of the country. The company continues to forge ahead with its expansion efforts.
Tsai emphasized that the globalization of logistics serves as a fundamental prerequisite for business globalization. He expressed great enthusiasm and inspiration for the prospects that lie ahead in this regard during the summit.
With Cainiao’s ambitious commitments, partnerships, and expansion plans, the future of cross-border parcel delivery and the logistics industry as a whole appears to be headed towards unprecedented efficiency and seamless global connectivity.
