Cainiao Network, the logistics arm of Alibaba Group, announced that Japanese merchants have pre-stocked close to ten million goods in bonded warehouses in China.
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This is in anticipation of a surge in consumer demand during the upcoming 11.11 Global Shopping Festival. From September to October, Cainiao saw a 286 percent growth in the volume of products stocked in China, where 198 flights and 68 ships were deployed to facilitate pre-stocking of goods from various key cities in Japan through its first-mile logistics services. Popular categories from Japan include beauty and cosmetics, healthcare, food, parenting and baby products.
This year, Cainiao has pre-secured double the cargo space compared to the actual cargo volume shipped from Japan to China during 11.11 last year. These goods are shipped to and pre-stocked in bonded warehouses in China, specifically Shanghai, Ningbo, Hangzhou and Yiwu.
The establishment of a seamless logistics channel that facilitates B2C trade, in this case, cross-border e-Commerce, will be instrumental in supporting Japan’s export industry, where data from World Bank showed that China is Japan’s largest export country at US$144 billion (19.51 percent).
As more Chinese consumers opt for same day or next day delivery options, they will be able to receive their orders as fast as the same day for selected products, or an average of three days, where the Japanese goods are delivered directly from bonded warehouses in China. In contrast, the traditional mode of e-Commerce logistics i.e. direct shipping method, will take an average of six days for the Japanese merchants to ship out the items from Japan after the purchase is made online.
This is a significant improvement in delivery speed and customer experience, where Japanese merchants are able to provide the same delivery timeliness for Chinese consumers that is on par with Chinese merchants. Rising consumer expectations have also illuminated the need for smoother first-mile logistics which would lay the foundation for the growth of cross-border trade and e-Commerce.
“Cainiao has ramped up our support for the export, cross-border e-Commerce and internationalization needs of Japanese businesses since our official launch last year. The first-mile logistics services through pre-stocking will enable Japanese businesses to achieve faster delivery times during the 11.11 Global Shopping Festival and we believe this will be a huge competitive advantage that will allow them to tap on the growing demand from Chinese consumers,” said James Zhao, General Manager of Cainiao Global Supply Chain.
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This latest development comes after Cainiao’s official launch into Japan last November to provide diversified end-to-end logistics and supply chain services to local businesses, spanning first and last mile, warehouse management, international shipping, trucking and customs clearance. As a smart logistics company, Cainiao is able to digitalize the entire value chain of Japanese merchants to deliver greater visibility and transparency while aggregating industry leaders to provide a comprehensive service for businesses’ logistics needs.