DHL eCommerce boosts its China footprint with new investments and expanded capabilities
- Opens new DHL eCommerce Shenzhen Distribution Center with capacity to handle up to 18 million shipments annually
- Reveals plans to grow its overall presence in China by over 50 percent by the end of 2016
- Introduces an enhanced Customer Web Portal to allow online retailers to easily integrate online orders directly into the DHL network
From left to right: Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce, Charles Brewer, CEO, DHL eCommerce, Thomas Kipp, EVP, Strategy & Business Development, Post - eCommerce - Parcel, Zhi Zheng, Managing Director, DHL eCommerce China.
DHL eCommerce has announced plans to grow its overall presence in China by over 50 percent as online retail and the corresponding demand for quality logistics solutions continues to soar. As part of this, the company has opened its new DHL eCommerce Shenzhen Distribution Center, and will also expand its existing distribution centers in Shanghai and Hong Kong to support the growth of online retailers.
The DHL eCommerce Shenzhen Distribution Center supports the booming manufacturing sector in Shenzhen and the growing base of Chinese online retailers. With the capacity to handle up to 18 million shipments a year, the distribution center will allow for faster, more streamlined shipment and clearance of e-commerce exports to the rest of the world. This enables local online retailers to reach a global customer base through DHL's network of over 220 countries and territories worldwide.
Serving as the consolidation point for all South China international outbound shipments, the distribution center in Shenzhen bolsters DHL eCommerce's footprint in China, along with dedicated customer service support for online retailers in the city.
"We see significant potential in China's e-commerce sector, particularly between China and the U.S., where we've seen triple digit growth since 2015," said Charles Brewer, CEO, DHL eCommerce. "With China accounting for more than 40 percent of global retail e-commerce sales in 20151, our investments in China demonstrate our focus on developing efficient and reliable logistics services, to bring high quality e-commerce services to Chinese retailers and meet changing consumer expectations."
A tailored approach for China
"Cross-border e-commerce already accounts for almost 20 percent of China's foreign trade2, and the country's B2C e-commerce market is expected to grow at a CAGR of over 30 percent from now till 20203," said Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce. "With the ability to scale up its size by 150 percent, the DHL eCommerce Shenzhen Distribution Center is fully capable to support this growing demand over the coming years."
The launch of the Shenzhen Distribution Center comes at the back of the highly successful DHL eCommerce Shanghai Distribution Center in Jiuting, which acts as a central consolidation point for outbound e-commerce goods particularly in the eastern and northern parts of China. To cater to the growing demand across the Greater China region, DHL eCommerce is expanding both its Shanghai and Hong Kong distribution centers, which will be able to handle 48 million and 71 million shipments respectively, on an annual basis, upon completion.
"Since its launch last July, the DHL eCommerce Shanghai Distribution Center has seen a 700 percent increase in the volume of e-commerce goods being shipped out of China. With our plans to expand our existing capabilities in Shanghai and Hong Kong, we are confident that this will provide our customers with the fullest support they need, in order to reach their global customer base," Monteiro added.
Building a seamless experience for online retailers in China
To streamline the logistics process for online retailers, DHL eCommerce has also enhanced its Customer Web Portal with a new online pick-up request. The Customer Web Portal is a self-service application available 24/7 where online retailers with regular shipping needs can easily prepare their shipments online, track their shipments and now activate an online pick-up service request from their preferred location.
This online pick-up service is available to customers in over 10 cities with major outbound cross-border e-commerce business, including Shenzhen, Guangzhou, Beijing, Shanghai, Hangzhou and Yiwu. Shipments picked up by DHL eCommerce will include an actual pick-up time stamp on the DHL eCommerce Tracking Website to provide consumers with greater visibility of their shipments.
Further enhancing the ease of doing business online in China, the Customer Web Portal also boasts integration features with online marketplaces such as Amazon and eBay, allowing retailers to seamlessly pull orders from their sales channels into the portal for shipment preparation as well as push tracking details back to these sales channels for better visibility.
"China already has the largest e-commerce turnover of any country in the world, and its e-commerce market share is expected to grow nine times of its closest regional competitor by 20204," said Zhi Zheng, Managing Director, DHL eCommerce China. "Through our developments rolled out in China, DHL eCommerce provides online retailers cost-effective solutions with high quality customer service and invaluable expertise in cross-border e-commerce - along with options for differentiation."
- eMarketer, 2015. China E-Commerce: 2015 Market Update.
- Research and Markets. Business-to-Consumer E-Commerce Market in China 2016-2020.
- Forrester 2015. Asia Pacific Online Retail Forecast: 2015-2020.