Some good insights and stats on China' e-commerce growth in this piece about how logistics have become the bottleneck in China's prosperous e-commerce industry in the last year.
Chinese Logistics Cannot Keep Up with Online Shopping
Zeng Ming, chief strategy officer at Alibaba Group, pretty much sums the essence of the article "E-commerce in China is growing too fast and exceeds the current logistics capacity."
Chinese e-Commerce Growth Data
Some take-aways for companies targeting China's fast-growing e-commerce market:
- The number of online shoppers increased by almost 50 percent to 160 million in 2010, the China Internet Network Information Center said last month.
- The Chinese online-shopping market grew by more than 370 percent year-on-year in terms of sales, reaching 520 billion yuan (79 billion U.S. dollars) last year, according to research company Analysys International.
- Amid the growth in online shopping, 2.4 billion packages were delivered in 2010, an increase of 30 percent year-on-year, according to statistics from the Chinese Logistics Association
- Logistics sales revenue in 2010 reached 60 billion yuan, a 20 percent year-on-year increase
- Delivery logjams are constraining merchants' ability to run promotions
Investment Opportunity of the Decade?
Some different ways to look at the growth of e-commerce in China, but the 20% growth in logistics sales is obviously lagging all these numbers.
So what is being done about the lack of capacity to deliver the goods?
- Joyo Amazon, the Chinese subsidiary of US-based online retailer Amazon.com Inc, has started to build their own logistics network
- Last month, Alibaba announced that it plans to invest 20 to 30 billion yuan to build a network of warehouses nationwide to improve logistics for its online trading business.
- Chinese VC investment company Legend Capital Ltd recently confirmed that it will invest in China's third-largest courier company Yunda Ltd.
Same-Day Delivery No Matter Where You Live? Its Virtual Urbanization ...
How will this investment change the way that the Chinese shop online?
"Hopefully, within 10 years, anyone placing an order online from anywhere in China will receive their goods within eight hours, allowing for the virtual urbanization of every village in the nation," said Jack Ma, chairman and chief executive officer of Alibaba Group.
Until then,
Cheers
Comments