It is reported that after half a year’s planning, Taotian Group recently formally established its own logistics department. There are many sub-departments such as logistics planning, resource management, warehousing network planning, logistics experience, logistics operation, logistics products, etc., and Chen Ming, who is in charge of box horse logistics business and vegetable scouring supply chain, reports to Dai Shan, CEO of the group.
However, what is puzzling is why Taotian Group should set up its own logistics department when there is a rookie group in Ali.
Judging from the official recruitment positions of Taotian Group, their logistics department seems to be more like a “fourth party logistics” providing integrated supply chain solutions, rather than directly participating in specific logistics operations. These first-line operations are still undertaken by external service providers.
This means that as Taotian Group builds its own logistics department, its relationship with Cainiao Group has changed: for Cainiao, Taotian is just one of their many customers; For Taotian, rookie is no longer the only choice.
Chien Sun, vice president of Cainiao Group and general manager of domestic distribution division, said in an interview before that the question of whether Taobao Tmall Group platform is more inclined to choose Cainiao Express mainly depends on the choice of merchants. After all, the modes of express delivery services are really different, and their target customer groups are also different.
For example, even Taotian’s own business, such as Tmall Supermarket, is no longer limited to cooperation with rookie, but can find a logistics service provider that is more suitable for them in the market. It is worth mentioning that it was previously reported that from the perspective of Tmall Supermarket, the door-to-door service of rookie seems to be the default and essential option, but it has no obvious advantages in terms of cost and service.
The rookie not only expands his business in the domestic market, but also actively enters overseas markets. At the Global Smart Logistics Summit in 2023, Wanlin, CEO of Cainiao, said that Cainiao will further accelerate the development of international express delivery services for overseas markets, and plans to carry out brand-new international express delivery services and product upgrades this year.
Domestic express delivery enterprises are still in the initial stage of market expansion in the international market, so the quantity of orders and goods supply is very important for the competitiveness of a express delivery enterprise. Although the rookie has operated independently, it is still supported by Alibaba. Cai Chongxin, one of the founders of Alibaba, expressed his support for the rookie’s long-term development through video at the logistics summit.
Ali’s overseas business has also achieved great success, especially the introduction of AliExpress’s full custody model, which has promoted the rapid growth of AliExpress in the international market. Cainiao International Express’s service of “Promise to Pay Late” has covered 22 important national markets in Europe, America and Asia of AliExpress. This makes the rookie’s position in overseas markets obviously different from that of competitors such as SF, JD.COM and Polar Rabbit.
It is understood that the current growth of rookie mainly comes from overseas markets, and the revenue proportion of international business has exceeded 50%.
In terms of products, Cainiao plans to cooperate with AliExpress to officially launch the “Global Five-Day Express” international express express product within this year, first in key national markets, and gradually realize the delivery of cross-border parcels within five working days.
In terms of service, Cainiao International Express has established a logistics network covering more than 100 countries and regions around the world. Among them, the logistics product named “5 dollars for 10 days” has covered 20 countries, and the delivery service at the end of the week has also been launched in core cities such as Madrid, Barcelona and Valencia in Spain, and the express delivery can be delivered within 1-2 days at the earliest.
For novices, it is an imaginative and feasible way to develop overseas cross-border logistics business by taking advantage of Alibaba’s international talent advantage and the expansion momentum of overseas markets.
Post time: Sep-06-2023