Deutsche Post DHL searching for mainland partner to expand package delivery scale

Deutsche Post DHL, Europe’s biggest mail and express company, is looking to partner with a mainland delivery counterpart to help cope with the surging volume of European goods shipped into China as part of the fulfilment of online shopping.

Zheng Zhi, managing director of DHL’s e-commerce operations in greater China, said that the company will need to ensure prompt and safe deliveries of imported goods to the doors of mainland purchasers.

“We are studying the possibility of forming a tie with a local partner,” he said. “We believe it is conducive to work with strong local delivery companies to explore the potential arising from the cross-border e-commerce.”

DHL’s interest in a local tie-up follows the creation of a joint venture in May between United Parcel Services and SF Holdings, parent of Shanghai-listed SF Express.

The growth of China’s e-commerce sector has bolstered the expansion of the country’s five largest express delivery companies including SF, YTO Express, STO Express and Yunda Express.

Cross-border online shopping is becoming a new growth engine for the mainland’s e-commerce sector as Chinese consumers splash out on foreign-made goods, especially in the categories of cosmetics and personal care; baby food, health care and consumer electronics.

According to AliResearch, the think tank affiliated with Alibaba Group, the mainland’s cross-border e-commerce market is expected to hit 12 trillion yuan (US$1.76 trillion) by 2020.