Chinese private couriers hike prices ahead of 'Singles' Day_Business_Asia Pacific Daily

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Chinese private couriers hike prices ahead of 'Singles' Day

Business2017-10-12

Two major Chinese courier companies announced price hikes on Tuesday and Wednesday, nearly a month ahead of what is expected to be China's largest online shopping day in history. An insufficient delivery force, unable to handle the deluge of packages expected to travel across the nation after the e-commerce shopping peak on November 11, is believed to be the cause of the price hike, analysts said. Wang Chao, a deliveryman with ZTO Express, said he usually works 11 or 12 hours a day. "I hear that it is just a slight rise and won't make a big difference, but we will earn a little more," he said. Better services, according to ZTO Express and Yunda Express, mean rising costs in labor, materials and transportation, but neither company was prepared to say by how much prices would rise. Other domestic couriers are expected to follow suit. China Express Association predicts that the industry will handle more than 1 billion packages between Nov. 11 and Nov. 16. Nov. 11 is "Singles' Day," allegedly started by some college students in the 1990s to celebrate – or poke fun at – their unattached status. Nov. 11 was chosen for the four solitary digits: 11-11. It has grown into a Chinese version of Cyber Monday, the Monday after Thanksgiving in the US, and promoted as an online shopping day. Alibaba began Singles' Day campaigning in 2009. TMall, Alibaba's online marketplace, made only 50 million yuan (7.6 million U.S. dollars) back then. Last year, the figure reached 120 billion yuan. On the back of the e-commerce boom, China's courier sector has been the world's largest in terms of delivery volume for three years but continual expansion has put heavy pressure on services, leading to problems in delivery delays and driver safety. (ASIA PACIFIC DAILY)

Two major Chinese courier companies announced price hikes on Tuesday and Wednesday, nearly a month ahead of what is expected to be China's largest online shopping day in history.

An insufficient delivery force, unable to handle the deluge of packages expected to travel across the nation after the e-commerce shopping peak on November 11, is believed to be the cause of the price hike, analysts said.

Wang Chao, a deliveryman with ZTO Express, said he usually works 11 or 12 hours a day. "I hear that it is just a slight rise and won't make a big difference, but we will earn a little more," he said.

Better services, according to ZTO Express and Yunda Express, mean rising costs in labor, materials and transportation, but neither company was prepared to say by how much prices would rise. Other domestic couriers are expected to follow suit.

China Express Association predicts that the industry will handle more than 1 billion packages between Nov. 11 and Nov. 16.

Nov. 11 is "Singles' Day," allegedly started by some college students in the 1990s to celebrate – or poke fun at – their unattached status. Nov. 11 was chosen for the four solitary digits: 11-11.

It has grown into a Chinese version of Cyber Monday, the Monday after Thanksgiving in the US, and promoted as an online shopping day.

Alibaba began Singles' Day campaigning in 2009. TMall, Alibaba's online marketplace, made only 50 million yuan (7.6 million U.S. dollars) back then. Last year, the figure reached 120 billion yuan.

On the back of the e-commerce boom, China's courier sector has been the world's largest in terms of delivery volume for three years but continual expansion has put heavy pressure on services, leading to problems in delivery delays and driver safety.

(ASIA PACIFIC DAILY)

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