Total number of China’s annual delivery packages might rank the number one in the world in 2013, according to China Post official data. By the end of November, China packages delivery reached 8.12 billion in 2013.
In November 2013, the number of Express Delivery packages hit 1.09 billion, up 61.9% compared to 2012. China Post estimated that the total number of Express Delivery packages was about to reach 9 billion in 2013.
During Double 11 promotion period this year, packages increased to 346 million, 73% higher than that of 2012. On November 13, the number of packages processed in the day hit the highest 65.17 million, with 85% YoY increase. Express Delivery industry had experienced over 50% growth rate for 33 months consecutively. Analysts predicted that national packages number was very likely to hit 9 billion, as December is a traditional shopping month. On average, each Chinese received 6-7 packages in 2013.
The boom of e-commerce drove the rapid growth of Express Delivery industry, in returns, it also helped e-commerce develop. In November, retail sales of social consumer goods increased 13.7% annually, retail sales YoY increase rose faster to 14.3%. A large part of the newly increased retail sales came from online shopping. Chinese online shoppers was estimated to hit 310 million, 70% online shopping transactions required Express Delivery service.
Though Express Delivery is growing at a fast pace, competition within the industry became extremely intense. In 2013, many Express Delivery companies involved in price war, profit rate fell to 5% and kept falling. A lot of companies gave up profits to gain market share during Double 11 promotion period, making the logistics peak period unprofitable.