Localization characteristics of cross-border logistics

Localization characteristics of cross-border logistics

Cross-border logistics industry with the characteristics of localization, postal parcels still dominate

Regional or single industry competition is fierce, cross-regional, cross-industry competition is less

Although the cross-border logistics industry has many market competitors, it is limited by its own financial strength, management and technical capabilities, and because of the fragmentation of the national logistics market, its competition is manifested in the competition between enterprises in a certain regional market, such as the competition between cross-border logistics enterprises in the Yangtze River Delta region. Or the competition for customer resources in a certain industry, such as the competition for customer resources in the electronics manufacturing industry, and cross-regional and cross-industry competition is less.

Because the southeast coastal areas such as the Bohai Sea Rim, the Yangtze River Delta and the Pearl River Delta are economically developed, the demand for cross-border transportation is strong, and the infrastructure of sea transportation and air transportation in this region is relatively perfect, so the competition for cargo sources and transportation capacity resources is the most intense. Due to the relatively inactive economy in the central and western regions, the cross-border transportation demand is less, and the transportation cost is higher, so the international freight forwarding service resources in the region are less invested.

Relying on the rapid development of cross-border e-commerce industry

The overall development of cross-border export e-commerce logistics industry has benefited from the rapid development of cross-border export e-commerce industry. With the development of China's cross-border export products to greater export magnitude, more export categories and higher customer unit prices. In 2020, the size of China's cross-border e-commerce export market will reach 4647.92 billion yuan, with a year-on-year growth rate of 26.9%.

Postal parcels are the preferred delivery mode for cross-border e-commerce

China's cross-border e-commerce logistics mainly includes seven links: front-end collection, transportation sorting, foreign customs declaration, trunk transportation, overseas customs clearance, overseas warehousing, and end-process delivery. The mode of cross-border e-commerce logistics in China is mainly divided into direct mail mode and overseas warehouse mode. The direct mail mode needs to integrate the resources of the whole chain and has higher requirements for enterprises, but it can operate in a relatively asset-light mode. Among them, postal parcels have become the preferred way for cross-border e-commerce due to their low price and wide coverage. Overseas warehouse delivery time is short, can provide return and exchange services, customer experience is good, but there is inventory pressure, suitable for high value, fast turnover of goods.