NewKerry Logistics sets its sights on riding China’s e-commerce boom
Kerry Logistics Network has set its sights on riding China’s e-commerce boom to boost growth this year, as the company reported a 9 per cent increase in net profit to HK$1.8 billion in 2015.
The logistics and freight forwarding company, after its successful launch of their first cross-border e-commerce fulfilment centre in Ningbo, in the eastern Zhejiang province last April, said it would open up similar models in Shanghai and Chongqing this year.
“E-commerce is still growing in China and the Asean [region]...It’s an area with good potential to us, and also creates a lot of cross border traffic to us,” said William Ma Wing-kai, the group’s managing director.
At the Ningbo warehouse centre, Kerry Logistics is one of three companies that handled e-commerce giant Alibaba’s operations, which include the process of receiving, packaging and shipping orders across the country and worldwide.
We’ve changed our focus from an export-oriented to an import-oriented business
Ma added that the company has chartered planes delivering goods ordered from China’s eBay equivalent, Taobao, from China to Malaysia, Vietnam and Thailand on a daily basis. E-commerce orders make up for over half of the courier deliveries in Vietnam and Thailand alone.
Revenue from China’s e-commerce businesses accounts for 11 per cent of its total revenue, and with the addition of the Shanghai and Chongqing operations, would help boost revenue to account for 15 per cent of the total in the coming three years.