Jieyang city in Guangdong gains momentum in express delivery industry

The express delivery industry in Jieyang city, south China’s Guangdong Province, handled 847 million parcels in the first quarter of this year, ranking fourth nationwide.

(Photo/Jieyang Daily)

The city’s express parcel volume exceeded 3.5 billion in 2021, ranking sixth out of all Chinese cities, the country’s State Post Bureau said earlier this year. Last year marked the third year in a row that Jieyang was ranked among the top ten cities nationwide in terms of express parcel volume.

This prosperity in Jieyang’s courier industry can be attributed to young people’s enthusiasm for having their own start-ups, a convenient transport and logistics network, a well-developed manufacturing industry, fully-fledged supporting industries, and the local government’s policies, which have helped to boost the development of the e-commerce sector.

Junpu village in Jieyang is home to over 10,000 online shops, with their combined transaction volume exceeding 10 billion yuan (about $1.5 billion) annually, according to an executive of the city’s e-commerce association.

Xu Bingfeng, a villager from Junpu village, who engaged in e-commerce in the provincial capital Guangzhou, returned to his village to conduct e-commerce business there in 2012 because living costs and warehouse rent are much lower than that in Guangzhou. One year later, Xu received hundreds of orders each day.

Like Xu, many young people have started e-commerce businesses in Jieyang, leading to a thriving e-commerce sector in the city. In addition, major Chinese express delivery companies have established 10 regional parcel distribution centers and 475 outlets in Jieyang.

Jieyang has improved its transport infrastructure. The maximum annual passenger throughput capacity of Jieyang Chaoshan International Airport hits 7.35 million; and the annual cargo throughput in Jieyang Port exceeds 30 million tons. The city has five high-speed train stations, allowing residents to travel between cities in the Guangdong-Hong Kong-Macao Greater Bay Area in one hour and a half. In addition, eight expressways pass through the city.

By leveraging on the traditional manufacturing industry, Puning, a county-level city administered by Jieyang, has witnessed a flourishing e-commerce business.

“Supporting industries of the manufacturing sector are indispensable for the rapid development of the e-commerce industry in Jieyang,” said Chen Hongyu, a professor with the Party School of the Guangdong Provincial Committee of Communist Party of China.

For example, the total output value of Puning’s textile and apparel industry surpassed 120 billion yuan last year. “It takes just about one week to turn a piece of cloth into a garment that is made available for sales here,” said Huang Zhenbiao, an online store owner in an e-commerce industrial park in Puning.

The local government has also taken proactive measures to facilitate the development of the e-commerce industry.

“Jieyang has made use of favorable policies to ensure sound interaction among market forces, industry associations, and market entities,” Chen explained.

In 2020, Jieyang launched policies to promote the development of its e-commerce sector by providing support through financial and land policies, rewards and subsidies and has stepped up efforts to train e-commerce talents.

Jieyang is also making efforts to continue building up its strength in the express delivery and e-commerce industries.

By taking the opportunities provided by China’s efforts in promoting the development of new business models such as cross-border e-commerce, Jieyang has accelerated the deep integration of foreign trade and e-commerce. The State Council approved on Feb. 8 the establishment of a cross-border e-commerce pilot zone in Jieyang, which is expected to boost the development of cross-border e-commerce in the city.