PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1431041
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1431041
The China Same Day Delivery Market size is estimated at USD 3.05 billion in 2024, and is expected to reach USD 4.36 billion by 2029, growing at a CAGR of 7.37% during the forecast period (2024-2029).
The Chinese government is focusing on the development of a modern, high-quality, comprehensive, three-dimensional transport network coordinating the planning and construction of infrastructure such as railways, highways, waterways, civil aviation, pipelines, and postal services, and adopting multi-center and network-based forms to improve the multi-level network system. The country is building an integrated urban transport network, focusing on the integration of trunk railways, intercity railways, urban and suburban railways, and urban rail transit and the improvement of the urban expressway network, and the connection between highways and urban roads and strengthening the connection between urban rail transit and other modes of transportation in China.
The country is also building a certain number of national and regional transport hubs to promote the planning and construction of integrated multimodal transport hubs, improving the service level of transfer or transshipment, and improving the hinterland transportation system. The government is also working on strengthening the Western region, promoting the upgrade of the Northeast region, promoting the construction of the large-scale transport corridors and hubs in the central region, and fast-tracking the optimization and advancement of the Eastern region, forming a new pattern of synchronized regional development.
The construction of major projects is in full swing, promoting the investment to achieve a good start. Data from the National Bureau of Statistics shows that from January to February (2022), investment in fixed assets increased by 12.2% year-on-year, 7.3 percentage points higher than that of the previous year. Among them, infrastructure investment increased by 8.1% year-on-year, and the growth rate was 7.7 percentage points faster than that in 2021.
Such holistic development of the logistics infrastructure is expected to fuel the development of the same-day delivery market with the ease of transportation throughout various regions of the country.
E-commerce in China already makes up more than 50 percent of worldwide retail sales on the internet. Online shopping guide websites were the hardest hit, with 32 of these platforms shut down to account for about 36% of overall casualties last year in the world's largest e-commerce market.
In 2022, about 27.2% of the total retail sales in China were made online, increasing from 24.5% in 2021.
Artificial intelligence and big data are commonly used to respond to customers' queries, provide personalized product suggestions, automate warehouse operations, forecast shopping demand, and optimize the distribution of goods and delivery to customers across warehouses.
A nearly limitless supply of low-cost delivery services, provided by China's millions of migrant laborers, enabled companies like Alibaba and JD.com to provide same-day delivery anywhere in the country for just pennies-a very attractive benefit for uncertain first-time buyers.
The same-day delivery market in China is fragmented, with companies like China Post, Yunda Express, YTO Express, STO Express, and DHL (a global logistics and supply chain company) as some of the major players in the market. Last-mile is undergoing huge transformations in the country, with increasing demand for shorter delivery times from a growing population of online shoppers pushing the industry in an entirely new direction.
The Chinese economy and its acceptance of the new developing technologies make the country well-placed to become a world leader in last-mile solutions. Fragmentation within the industry is perhaps one of the most China-specific challenges, further complicated by the cross-industry rivalry.