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Five years for cainiao, and perhaps 50 years for Russia´s cross-border logistics

Reader:274
2019-04-02

The low logistics efficiency of cross-border online shopping used to be the biggest pain point for Russian users who love online shopping on Chinese e-commerce platforms.

A seemingly exaggerated but once real situation is that because the summer in Russia is only three months, if Russian consumers want to buy a winter cotton-padded clothing in China's e-commerce platform, they have to pay for it in the summer.Because cross-border packages from China to Russia take an average of 70 days to arrive.

That has changed with the entry of Chinese logistics companies such as cainiao, and the time it takes to send cross-border packages from China to Russia is getting shorter.Currently, the average cross-border parcel logistics delivery time from China to Russia is 10 to 15 days.More quickly, because cainiao already rents space locally in Moscow, cross-border parcels from China to Moscow can reach Russian consumers in as little as an hour.

Far more than Russia, cainiao has achieved the global delivery efficiency of cross-border parcel logistics within 5 days and 48 hours in key regions and countries.

Reconstructing Russia post and integrating DPD can solve the efficiency problem to the greatest extent

In the past five years in Russia, cainiao has participated in the cross-border and domestic logistics business in Russia mainly by providing basic services of cross-border logistics, upgrading local logistics infrastructure, and exporting domestic advanced logistics technology, management experience and talents.

In the past five years, cainiao reconstructed Russia post (hereinafter referred to as "Russia post"), integrated DPD (i.e., deptex), and continuously improved the logistics and distribution efficiency of local Russian companies.

There are three major logistics companies in Russia's local market, including Russia post, DPD and SPSR.Among them, Russia post is a local monopoly state-owned logistics enterprise, occupying nearly 70% of the express delivery market in Russia (including cross-border e-commerce and domestic e-commerce market in Russia).

In order to carry this 70% market share, Russia post invested a lot of manpower in logistics and distribution.Alex, a Russian who has worked with jd.com, Letv and other companies, is now the general manager of alibaba Russia region. He told 36kr and other media that Russia post has 450,000 employees, 42,000 branches across the country and a logistics network covering the whole country of Russia.However, despite the huge logistics system and sufficient human resources, the basic logistics services of Russia post at that time were backward and low in digitization, so the efficiency was low and the logistics carrying capacity was poor.

The low bearing capacity caused by this kind of low efficiency is highly concerned by the government level.In March 2013, aliexpress, an e-commerce platform owned by alibaba, held a grand promotion in Russia for the first time. On that day, 170,000 packages were produced, while at that time, Russia post could only handle 30,000 packages per day.A month later, the 500-ton package arrived at Russian customs, leading to the collapse of the customs and postal system.

"Dismissal incident" lets alibaba and cainiao discover overseas business opportunity.Later, jack ma, chairman of alibaba group, met with Russian President vladimir putin to finalize the cooperation intention between China and Russia in logistics.


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