Cainiao reports 27% year-on-year growth in 2022

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Cainiao Network has released its financial results for the quarter that ended December 31, 2022, revealing that its revenue grew 27% year-on-year to RMB16.553bn (US$2.4bn) in 2022.

The growth was reportedly fueled by the revenue from the company’s international fulfillment services and upgraded domestic consumer logistics services. During this period, Cainiao developed its international fulfillment services by expanding its infrastructure to 15 overseas distribution centers, alongside additional overseas warehouses and self-operated distribution and pick-up facilities. In Latin America, Cainiao diversified its capabilities through resources such as e-hubs, line haul, sorting centers and last-mile networks. Currently, Cainiao operates eight China-Brazil chartered flights per week and runs a local delivery network that covers the majority of Brazil. In 2022, it also launched its distribution center in São Paolo in Brazil. In Europe, Cainiao launched its distribution center in Poland and embarked on logistics infrastructure development in northeast Europe. Alongside this, it has partnered with DHL to jointly invest in the establishment of the largest last-mile logistics network in Poland.

In this quarter, Cainiao integrated its warehousing and distribution to improve supply chain efficiencies for Alibaba’s e-commerce business and its broader merchant base. Cainiao also introduced and expanded doorstep deliveries with free assembly services, reducing delivery time for large, bulky goods by up to three days across 70 Chinese cities. To address the challenge of surging demand during sale season for beauty brands, Cainiao offered country-wide deliveries via multiple domestic warehouses to increase overall delivery timeliness by 10%. For fragile goods in industries such as food and beverage, Cainiao has reduced breakages and damages through self-operated deliveries to safeguard service quality.

To amplify its sustainability efforts, Cainiao entered into strategic partnerships with fast-moving consumer goods (FMCG) companies to develop smart green supply chains. In November 2022, Cainiao also entered a strategic partnership with Nestlé to boost the latter’s direct-to-consumer (DTC) business in China, and established an automated DTC fulfillment center in China to improve warehouse operation efficiency.

As part of its ESG initiatives, Cainiao expanded its recycling campaign across more than 130,000 Cainiao Post stations during the Double 11 Shopping Festival 2022. In the emergency logistics sector, Cainiao also invested in the development of specialized capabilities and sent millions of oximeters and tens of 1,000s of oxygen generators to rural areas across the country to improve rural medical and healthcare conditions.

To keep up with the latest parcel and postal technology developments from Cainiao, click here.

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