China Same Day Delivery Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
|CAGR||> 5.00 %|
*Disclaimer: Major Players sorted in no particular order
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China Same Day Delivery Market Analysis
The China Same Day Delivery Market is expected to grow at a CAGR of more than 5% during the forecast period (2022 -2027). The pandemic cannot be ignored as a factor in 2020's numbers. Although China suppressed the coronavirus threat far more quickly than did any other country-and has been operating with a mostly normalized economy for almost three consecutive quarters-it's nonetheless true that consumer behaviour was altered last year. Online grocery shopping surged thanks to lockdowns, and this preference may prove to be sticky over the long term. Additionally, households remained skittish for many months after the virus ceased to be a widespread danger, and this hesitancy toward social activities helped sustain the ecommerce boost.
The competition between JD.com (a Chinese e-commerce company headquartered in Beijing) and Alibaba (a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology) has created an environment where delivery has become a crucial part of the e-commerce experience. 70% of packages in China are delivered same-day. This speed of delivery contributes to the success of e-commerce in China. Speed of delivery and customer experience are key, and China has both. JD has a completely different logistics strategy - it does it all itself. There are over 515 warehouses in its nationwide transportation network. Over 90% of orders from JD.com are delivered same-day or next-day by JD's own fleet, which now comprises 65,000 drivers. More recently, it has opened up its logistics facilities to other companies - regardless of whether or not they're sellers on the platform. This puts JD in competition with companies like SF Express and creates a 'Fulfilled by JD' capability similar to that offered by Amazon.
JD is probably one of the first operators to use drones at any reasonable scale, using the airborne robots as a consolidator in rural areas. The drone carries a number of packages to the rural town, where the local JD driver takes the consignment, separates the parcels, and then delivers the parcels locally. The drone isn't actually doing the last mile, but it's enabling faster delivery to the local node. Alibaba is pushing warehouse automation in an effort to reduce costs. Labor costs are growing in China, albeit from a low base. This, combined with low birth rates, means that, as in the West, there is growing pressure to automate.
In the delivery sector, take-up of electric vehicles has been mixed. Delivery scooters, while typically utilitarian, are increasingly electric powered. But delivery trucks and vans are still powered by internal combustion engines. Having said that, the sheer number of cheap, versatile and simple-to-drive last-mile electric scooters on the streets is mind-boggling.
China Same Day Delivery Market Trends
This section covers the major market trends shaping the China Same Day Delivery Market according to our research experts:
Development of a Well-Connected Network Infrastructure in China:
The Chinese government is focusing on the development of a modern high-quality comprehensive three-dimensional transport network coordinating the planning and construction of infrastructure such as railways, highways, waterways, civil aviation, pipelines, and postal services, and adopting multi-center and network-based forms to improve the multi-level network system. The country is building an integrated urban transport network, focusing on the integration of trunk railways, intercity railways, urban and suburban railways, and urban rail transit and the improvement of the urban expressway network, and the connection between highways and urban roads and strengthening the connection between urban rail transit and other modes of transportation in China.
The country is also building a certain amount of national and regional transport hubs to promote the planning and construction of integrated multimodal transport hubs, improving the service level of transfer or transhipment and improving the hinterland transportation system. The government is also working on the strengthening the Western region, promoting the upgrade of the Northeast region, promoting the construction of the large-scale transport corridors and hubs in the central region and fast-tracking the optimization and advancement of the Eastern region, forming a new pattern of synchronized regional development.
The construction of major projects is in full swing, promoting the investment to achieve a good start. Data from the National Bureau of Statistics shows that from January to February this year (2022), investment in fixed assets increased by 12.2% year-on-year, 7.3 percentage points higher than that of the previous year (2021). Among them, infrastructure investment increased by 8.1% year-on-year, and the growth rate was 7.7 percentage points faster than that in 2021.
Such holistic development of the logistics infrastructure is expected to fuel the development of same day delivery market with the ease of transportation throughout various regions of the country.
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Surge in E-commerce Market of China:
E-commerce in China already makes up more than 50 percent of worldwide retail sales on the internet. In 2020, its sales stood at USD 2.3 trillion, representing just over half of the world's e-commerce market total of USD 4.3 trillion. China has the most online buyers and sellers aided by being the world's most populous nation. At the end of 2020, it had 782 million online consumers. Its largest e-commerce platform, Alibaba's Taobao, has 4.5 million active sellers in the country.
Artificial intelligence and big data are commonly used to respond to customers' queries, provide personalized product suggestions, automate warehouse operations, forecast shopping demand, and optimize the distribution of goods across warehouses and delivery to customers. In the year 2020 'Double-11', Alibaba's recommendation engine helped 40 million new products find customers and increased products browsed by 40 percent. Its AI customer service system, AliMe, responded to 2.1 billion queries.
A nearly limitless supply of low-cost delivery services, provided by China's millions of migrant laborers, enabled companies like Alibaba and JD.com to provide same-day delivery anywhere in the country for just pennies-a very attractive benefit for uncertain first-time buyers.
China Same Day Delivery Industry Overview
The same-day delivery market in China is fragmented with companies like China Post, Yunda Express, YTO Express, STO Express and DHL (a global logistics and supply chain company) as some of the major players in the market. Last-mile is undergoing huge transformations in the country with increasing demand for shorter delivery times from a growing population of online shoppers is pushing the industry in an entirely new direction. The Chinese economy and its acceptance towards the new developing technologies make the country well-placed to become a world-leader in last-mile solutions. Fragmentation within the industry is perhaps one of the most China-specific challenges, further complicated by the cross-industry rivalry.
China Same Day Delivery Market Leaders
*Disclaimer: Major Players sorted in no particular order
China Same Day Delivery Market News
May 2021: At the JD 618 Grand Promotion kickoff event held in Beijing on May 20, 2021, JD.com awarded UPS as one of the best service partners, for its contribution to JD.com's international business development.
June 2022: Japanese logistics group Nippon Express is turning to coastal barging in south China, particularly the Greater Bay Area, which generates substantial cargo volumes, to overcome trucking shortages. Nippon Express has developed barge routes covering the Greater Bay Area by detouring by land to the east (Huizhou Port) and west (Zhuhai Port) to connect the South China area (Shenzhen, Dongguan and Guangzhou) and Hong Kong by sea.
China Same Day Delivery Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.3 Value Chain/Supply Chain Analysis
4.4 Government Initiatives and Regulations
4.5 Insights into Cold Chain Deliveries
4.6 Technological Developments in the Logistics Sector
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 Spotlight on Last-mile Delivery Market
4.9 Insights into Type of Services (Regular, Priority, and Express) in the Market
4.10 Insights into Warehousing and Distribution Centers
4.11 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 B2B (Business to Business)
5.1.2 B2C (Business to Consumers)
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China Post
6.2.2 Yunda Express
6.2.3 YTO Express
6.2.4 STO Express
6.2.6 SF Express
6.2.7 Nippon Express
6.2.8 TNT Direct
6.2.9 Best Logistics
6.2.10 United Parcel Service of America (UPS)*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Same Day Delivery Market Research FAQs
What is the current China Same Day Delivery Market size?
The China Same Day Delivery Market is projected to register a CAGR of greater than 5% during the forecast period (2023-2028).
Who are the key players in China Same Day Delivery Market?
China Post, Yunda Express, YTO Express, STO Express and DHL are the major companies operating in the China Same Day Delivery Market.
China Same Day Delivery Industry Report
Statistics for the 2023 China Same Day Delivery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Same Day Delivery analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.