DHL sharpens capabilities in China amid rising demand from e-commerce
July 21, 2017: Deutsche Post DHL Group is growing its China operations to further sharpen capabilities as multi-national companies, small and medium-sized merchants and end-consumers alike demand more from logistics providers in the fast growing e-commerce sector. DHL has shared insights at a press conference in Shanghai coinciding with FC Bayern Munich's Summer Tour. As the official logistics and e-commerce partner, DHL launched FC Bayern Munich's online store on Tmall Global in 2015 and continued to deliver official merchandise to fans in China.
"Our strategic aspiration is to become the leader in e-commerce-related logistics, with the Asia-Pacific region and especially China playing a crucial role in our strategy. Offering our customers worldwide flexible, innovative and eco-friendly delivery solutions is necessary to consolidate this development. Using the innovations and green logistics solutions we brought to market, we are set to help Asian retailers grow and exploit the opportunities e-commerce offers," said Juergen Gerdes, board member, Post - eCommerce – Parcel, Deutsche Post DHL Group.
Figures show that the Asia-Pacific e-commerce market is led by China, accounting for two-thirds of sales generated in 2016. With $469 billion market size, China is by far the world's biggest and fastest growing e-commerce market. The country's cross border e-commerce is estimated to be worth $839 billion by 2021 and expected to grow at 20.1 percent from 2015 to 2020, with tremendous opportunities both in the segment of low-value items and high-value items.
DHL eCommerce provides cross-border and domestic delivery services. The company offers two main cross-border products tailored for e-commerce; DHL GM Packet products, an affordable option to ship small, lightweight e-commerce orders utilising the postal network for worldwide deliveries. And DHL Parcel International Direct which uses the DHL eCommerce network for commercial clearance for delivery services from China to key e-commerce export lanes such as Australia, US, UK, and Israel. DHL Parcel International Direct service is also expected to be expanded into Malaysia and Thailand, as demand for Chinese products from Southeast Asia continues to grow.
DHL eCommerce also offers a global fulfilment network for Chinese e-commerce sellers, allowing merchants to position their inventory closer to their customers, improving their delivery time while reducing shipping costs. The facilities are engineered as shared-use fulfilment centres, enabling customers to share space and assets within the warehouse. Given the volatile and seasonal nature of e-commerce, removing the fixed cost burden is a huge relief for retailers.