Rookie Soaring to Future: Accelerated Global Expansion in Open Market
Against the backdrop of the domestic e-commerce industry entering a stage of stock competition, the booming cross-border e-commerce and the rise of overseas local e-commerce have sparked new demands and new imaginations for the logistics industry, which is a supportive sector.
As Wan Lin, CEO of Cainiao Group, said at the 2024 Global Smart Logistics Summit, "The market is not without opportunities; the progress of the industry is ongoing at all times." When shelf e-commerce has been refined to the extreme, the "forefront" of content e-commerce emerges; when domestic e-commerce growth slows down, new models such as cross-border e-commerce and overseas local models "grow" out.
In the view of Joseph Tsai, co-founder and chairman of Alibaba Group and chairman of Cainiao Group, e-commerce and logistics are the best application scenarios for AI technology. As a leader in digital logistics, Cainiao aims to build a global logistics network that serves the future industrial chain and supply chain, and also faces the open market to gain a competitive advantage— "While serving Alibaba's e-commerce well, it also serves the diverse needs of customers and becomes the common infrastructure for global business partners."
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Aiming at core competitiveness: more extreme service
As cross-border e-commerce competition becomes more intense, the service capability of cross-border logistics chosen by cross-border merchants and platforms has become one of the key factors in their winning. As a very early cross-border e-commerce enterprise in China, Anker Innovation's products now cover multiple categories such as charging, audio and video, and home, and have already had many "hit products" and loyal followers. In the view of Wu Zhuohui, vice president of Anker Innovation, the field of consumer electronics is either advancing or retreating. In addition to the expansion and renewal of technology and products, cross-border logistics also greatly affects the user experience of overseas consumers. Consumer feedback collected by Anker Innovation shows that delivery timeliness and the last-mile fulfillment experience have become important factors affecting consumer experience. A study by HSBC on Chinese e-commerce going overseas points out that the global logistics network provided by Cainiao, especially the cross-border express "five-day delivery" service launched in conjunction with AliExpress, is one of the most important differentiated advantages of Alibaba's international digital business. Since the launch of Cainiao's "Global 5-Day Delivery" in September 2023, it has expanded to 14 countries, covering Europe, the United States, Japan, Korea, the Middle East, and other regions. Due to its fast speed and high timeliness certainty, the satisfaction and product repurchase rate of logistics-sensitive consumers in countries such as Spain, France, the United Kingdom, Mexico, and South Korea have significantly increased.
In the view of Ding Hongwei, vice president of Cainiao Group and general manager of the international express division, the service and competitiveness provided by cross-border e-commerce are just the beginning. In addition to price, there are still areas in consumer expectations for e-commerce that need to be improved, including the timeliness of service and the cost of service. "In the future, the logistics service experience similar to local e-commerce is the next place that cross-border e-commerce needs to break through, and it is also a huge opportunity for growth and development," said Ding Hongwei. Yi Yun, general manager of AliExpress logistics supply chain, also believes that the cross-border supply chain has reached a stage of acceleration, quality improvement, and efficiency enhancement, and the dual drive of commercial flow and logistics will accelerate going overseas.
Adapting to future business: from "cross-border" to "global" network layout
In the context of deepening globalization, e-commerce is also expanding from a single direction to a global layout, and the demand for logistics has also extended from cross-border transportation to localized in-depth operations. This means that while improving timeliness, logistics companies also need to pay more attention to increasing overseas local logistics investment and creating a logistics fulfillment experience that is more suitable for the local area. This is the current important direction of Cainiao's globalization. At present, Cainiao is building a global express network covering China, cross-border, and overseas local markets. Overseas local express has started operations in 10 countries and regions, including Spain, France, Mexico, etc. "Customer needs are changing, and they are also deeply reshaping the logistics industry. In the future, logistics companies that have local networks, are agile in response, have more competitive experiences and costs, and can provide green solutions will maintain a leading position in the fierce market competition and lead the development of the industry." Xiong Wei, vice president of Cainiao Group and general manager of the Eurasia region and business development department, shared his observations on the development path of overseas logistics. He revealed that in recent years, Cainiao has continuously accelerated the construction of overseas logistics capabilities, and in Europe and Southeast Asia, it has accelerated local logistics construction through acquisitions, local network startups, and strategic cooperation, creating high-quality local express services for customers. At present, relying on the overseas local logistics network, Cainiao can provide a local express product of 2 euros for next-day delivery in European countries, and in other pan-European countries, it can provide a 3-5 euro 3-day delivery logistics service.
At the summit, Cainiao also announced a major move - the construction of the second batch of global e-Hub logistics hubs. This will greatly strengthen Cainiao's control over the global logistics network, especially strengthening the connection with key markets, especially emerging markets and new manufacturing centers, and further enhancing Cainiao's ability to provide cost and experience competitive products and services in the future. As we all know, e-Hub is a comprehensive digital e-commerce logistics hub, integrating functions such as air cargo terminals, distribution centers, and order fulfillment centers, which can greatly improve the connectivity efficiency of global e-commerce packages and enhance Cainiao's control over end-to-end cross-border logistics fulfillment and delivery speed. "Through integrated park operations, strong integration of e-Hub and air trunk lines, and efficient overseas local distribution networks, Cainiao is bringing e-commerce express timeliness to a new level, and global 72-hour delivery is imminent," said Ding Hongwei. In terms of global supply chains, Cainiao has operated more than 800,000 square meters of overseas warehouses and provides professional services in 18 countries and regions. "If the express network is more standardized, then the supply chain network is more flexible, more customized, and more capable of reflecting economies of scale," said Wan Lin. In addition, technology will be the underlying driving force to enhance Cainiao's global layout. Wan Lin said that Cainiao will continue to invest in digitalization and AI applications, and better integrate the latest technology with the entire production process and all links of the entire chain. Based on this, Cainiao is expected to be able to upgrade the logistics network and services driven by technology for global customers, take a big step forward, reach a higher level, and fly to a broader world.
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