The rise of e-commerce during the COVID-19 pandemic due to homeworking and lockdowns has been significant, with global consumers shifting towards online shopping as physical stores remain closed. In China, e-commerce was already thriving before the pandemic, but research shows that 52.1% of retail sales in the country will come from e-commerce in 2021, up from 44.8% the year before.
Alibaba has played a key role in driving China’s e-commerce growth, particularly through its subsidiary Cainiao Smart Logistics Network. This logistics network aims to provide quick delivery services, with a mission for 24-hour delivery within China and 72-hour delivery globally. Cainiao has achieved significant milestones, including partnerships with over 3,000 logistics partners, handling an immense amount of logistics data daily, and shipping essential items like PPE during the pandemic to 159 countries.
James Zhao, the general manager of Cainiao global supply chain, highlights the importance of collaboration in the company’s success. They work closely with airline partners to ensure efficient air cargo services. Recent partnerships with Hong Kong Air Cargo and Saudia Cargo have enabled Cainiao to establish cargo flights to Southeast Asia and Europe, respectively.
Additionally, Cainiao is expanding its network of eHubs at airports to facilitate quick consolidation and transhipment of cargo. The company’s strategic approach involves partnering with airlines and other logistics providers to enhance distribution capabilities and meet the growing demands of e-commerce globally.
Zhao emphasizes Cainiao’s commitment to innovation and technology, with plans to leverage smart technology like AI and automation for digital transformation. The company aims to strengthen relationships with freight forwarders and third-party logistics providers by offering collaborative solutions and empowering partners with efficient data platforms.
Looking back at the success of Cainiao during the 11.11 online shopping festival in 2020, the company chartered over 700 flights to deliver parcels outside China, reducing delivery time significantly. As e-commerce continues to grow, Cainiao is focused on expanding its logistics capabilities across various modes of transportation to meet the evolving demands of the industry.
