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Survival and thriving of China's express delivery industry

(Xinhua)

08:24, October 24, 2011

Cyber-shop owners (back) wait in queue to send packages outside Sijixingzuo building in Hangzhou City, capital of east China's Zhejiang Province, Oct. 17, 2011. Sijixingzuo is an office building where many cyber-shop owners run their business. (Xinhua/Han Chuanhao)

In recent years, electronic commerce in China embraced the spring of prosperity, which gave rise to the express delivery companies' business spurt.

According to the statistics released by the State Post Bureau of China, the average daily business volume of express delivery reached 10 million in 2010, which is 1,000 times compared with 1990.

And in the first nine month of 2011, the express delivery companies above designated scale finished 2.52 billion deliveries, with a total income of 53.14 billion yuan (8.33 billion U.S. dollars), growing by 53.3 percent year on year and 28.9 percent year on year respectively. By the time the seven major express delivery providers, including state owned Express Mail Service (EMS) and private enterprise Shunfeng (SF), Shentong (STO), Zhongtong (ZTO), Yuantong (YTO) and Yunda, making good fortunes, the whole industry, with a total of some 6,800 companies, are facing a series of challenges.

The fast-growing industry attracted large numbers of people to participate in, however, under the pressure of rising costs and fierce competition, the quality of their services has become a target of public criticism. The complaints of the whole industry of delayed, damaged and missing mails frequently pop up on the online forum and microblogs.


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