Cainiao Network, the logistics arm of Alibaba Group, has opened its first Cainiao Post network outside mainland China, in Hong Kong.
The newly launched network will comprise 10 Cainiao Post stations and 60 Cainiao-designated collection points to streamline last-mile logistics for consumers in Hong Kong.
E-commerce sales in Hong Kong are forecasted to grow more than 11% in 2021 as consumers increasingly opt for online purchases. In mainland China, the number of packages handled by Cainiao Post stations increased by over 100% year-on-year as of March 2020.
With its presence in Hong Kong, Cainiao plans to expand the network to cover a combined floorspace of over 4,000m2 , supporting approximately 1.8 million Hong Kong consumers.
Cainiao Post stations, both Cainiao-operated and partner-operated, will incorporate the latest logistics technologies into their operations to facilitate inventory management, parcel collection and real-time parcel tracking. The logistics operating procedure will also be standardized across stations to create a unified experience.
Rex Lin, head of Cainiao Post (Hong Kong), Cainiao Network, said, “The pandemic has brought to light many vulnerabilities and issues within the logistics value chain. The current extent of digitization is still in the early stages, with room for further transformation to enhance agility and efficiency. With a strong digital foundation, coupled with a robust partner and courier network, Cainiao can help the industry drive greater efficiency and seamless connectivity, alleviating pain points in last-mile delivery, a key component of logistics within Hong Kong’s Four Pillar Industries. Furthermore, our merchants will be able to benefit from Cainiao’s scale, standardization, hyper-localized operations and in-depth market knowledge.”
Last June, Cainiao Post announced its intention to add another 30,000 stations in 100 Chinese cities to encourage community job creation. The career-support program received over one million applications within a month, with over 50% from a younger generation of aspiring entrepreneurs. Successful applicants enjoyed a waiver of Cainiao Post’s partnership fee and received support for the deployment of digital systems.