As the festivities of singles' day sales come to a close, consumers have shifted their focus from their shopping carts to logistics tracking, eagerly awaiting the swift and safe arrival of their packages.

The logistics industry has become one of the most focused areas following this shopping extravaganza.

In the past, the logistics industry often had to be on high alert during such large-scale shopping festivals, sometimes seeming a bit overwhelmed. However, with advancements in technology and improvements in the logistics network, today's logistics industry has become more mature and composed, placing greater emphasis on providing high-quality services and experiences.

Among this, Cainiao's continued efforts in quality competition and active layout in overseas markets provide a good window for observing and understanding the development of the logistics industry.

1. Logistics services have become "interconnected", focusing on quality to spark differentiated competition.

Compared to previous years’ singles' day sales, this year, the logistics industry has generally achieved a speed increase. A key reason behind this is the interconnection of interfaces between logistics companies.

As early as when singles' day sales started, Cainiao announced its integration with jd.com's non-self-operated platform. This also means that third-party merchants and users on jd.com's non-self-operated platform can use the delivery services provided by Cainiao, including door-to-door delivery, same-day delivery, next-day delivery, and two-hour on-site pick-up services.

Despite positive policy support behind it, from the perspective of Cainiao, this new trend has also naturally dispelled the misconception that it only serves Alibaba's self-operated business.

In the past, Cainiao's logistics network mainly relied on warehouses with a focus on last-mile delivery, but now it has developed into a complete express delivery network covering the entire country, handling large-scale, high-frequency, and cross-regional physical goods transfer.

It is worth mentioning that the 100 billionth express order of the year was delivered by Cainiao Express to local rural recipients through its self-operated Xinjiang Changji station. This not only powerfully proves Cainiao Express's network coverage capability but also serves as an important demonstration of its service capacity.

Currently, Cainiao Express's ability to serve the e-commerce retail sector is continuously being recognized.

According to informed sources, after fully integrating with jd.com, the volume of orders has shown a significant increase, and inquiries from top merchants have significantly risen, reflecting the high level of attention the e-commerce industry pays to Cainiao Express's service capabilities.

Especially in high unit price commodity categories, such as beverages and sports shoes, Cainiao Express has won the favor of merchants thanks to its advantages in service quality.

Fundamentally, this is not only because it can provide high-standard services, such as door-to-door delivery and clean packaging, but also because Cainiao Express has accumulated considerable experience in these areas, demonstrating good professional capability in the delivery of high-value commodities.

Taking beverages as an example, due to the high unit price and the ease of damage, many express companies are unwilling to accept these deliveries, and many customers are hesitant to ship them. However, Cainiao Express has been responsible for the delivery of high-end beverages such as Moutai for Tmall Supermarket. In this process, it has not only developed a mature logistics distribution system but has also accumulated rich experience in service quality, risk control, and customer experience. This accumulation of experience has led to continuous upgrades and optimization of Cainiao Express's logistics solutions in the beverage industry.

It is worth mentioning that last year, Cainiao announced a deepened cooperation with leading brands in the baijiu(chinese liquor) industry, such as Moutai, Wuliangye Yibin, JianNan Chun, and Luzhou Laojiao, further upgrading logistics solutions for the beverage industry. In response to the online and offline layout needs of alcoholic beverage merchants, Cainiao not only provides omnichannel fulfillment services, but also leverages digital technology like digital inventory management, one code for one item, and RFID traceability to help merchants reduce costs and increase efficiency.

It can be said that in the delivery of high-priced commodities like beverages, Cainiao Express's professional services have become a part of its market competitiveness, attracting more merchants to choose Cainiao Express as their partner, and providing consumers with higher quality and cost-effective services.

It should also be noted that Cainiao Express's strategy of being "easy to use and inexpensive" has become a key to gaining an advantage in market competition. The essence of this strategy lies in its ability to meet consumers' pursuit of cost-effectiveness under economic pressure, while ensuring that service quality remains uncompromised.

Insiders in the beverage industry have revealed that Cainiao Express has well-controlled damage rates in the beverage sector, and some platforms also recommend that beverages be shipped via Cainiao Express.

In the context of increasing economic uncertainty, consumers are seeking reasonably priced and reliable logistics options, and Cainiao Express has adapted to the current market environment and consumer needs, successfully attracting consumers by controlling costs while ensuring service quality, thus shaping a brand image that is both economical and reliable in service.

Clearly, as the domestic logistics industry enters a new era of interconnectedness, being easy to use and inexpensive has become a sword for Cainiao Express in fierce market competition.

2. Anchoring global logistics new infrastructure, international depth expands new market patterns.

It is undeniable that competition in the domestic market is entering a stage of intense rivalry, and logistics companies now urgently need to find new growth points and breakthroughs. In this context, Cainiao's international layout and expansion become particularly important and urgent. By establishing a logistics network worldwide, it can not only disperse the competitive pressure in the domestic market, but also open up new market space and acquire more growth opportunities.

At the Global Smart Logistics Summit in September 2024, Wan Lin, CEO of Cainiao Group, elaborated on the company's future development strategy. He believes that economic re-globalization and global industry chain restructuring present both challenges and opportunities for the logistics industry, which still has significant space to provide exceptional services, products, and experiences. Looking ahead, Cainiao will focus on global express delivery, global supply chain, and logistics technology innovations, continuously enhancing the experience and cost advantages of e-commerce logistics through lean operation and digital innovation.

Today, on the international stage, Cainiao's cross-border parcel business volume has reached the world's first position. Previously, Alibaba's 2024 fiscal year report showed that as of March 31, 2024, the daily average cross-border parcel volume of Cainiao had exceeded 5 million pieces.

The explosive growth of cross-border parcel volume is attributed to the company's logistics network construction on a global scale.

By establishing eHubs (digital trade hubs) globally, Cainiao has not only strengthened the connectivity of its logistics network but also enhanced its control over the global supply chain. These eHubs serve as multifunctional logistics centers, capable of handling a large volume of international freight, providing services such as customs clearance, warehousing, sorting, and distribution, thereby improving overall logistics efficiency.

It is worth mentioning that during this year's "November 11 shopping festival-related", Cainiao showcased its eHub located next to Hong Kong Airport to the media. As a key logistics hub in its global layout, the Hong Kong eHub not only undertakes the global cargo handling tasks departing from Hong Kong, including critical customs clearance and aviation palletization services, but also serves as the main distribution center for parcels in South China. These parcels can be quickly sent to the airport after completion of palletization, ensuring high logistics efficiency. As Cainiao's super hub in Hong Kong, it is also equipped with advanced automated storage and handling facilities, which not only speeds up cargo handling but also optimizes overall logistics costs.

(Cainiao Hong Kong Smart Port)

Now, with the launch of the second batch of eHub construction globally, Cainiao is rapidly integrating its global logistics network into the global and regional industry chain layout. It is worth noting that in terms of global supply chain, Cainiao operates over 0.8 million square meters of overseas warehouses worldwide and provides professional services in 18 countries and regions.

Cai Niao's global strategy is not limited to the expansion of its global express delivery network, but also includes in-depth layout in global supply chain and logistics technology innovation.

At the same time, Cai Niao adopts flexible cooperation and self-operated models in different countries. In some countries and regions, Cai Niao chooses to collaborate with local logistics companies, utilizing local enterprises' resources and market insights to quickly expand its service range. This cooperative model helps Cai Niao reduce costs, avoid risks, and rapidly adapt to the characteristics of different markets.

For certain key markets and countries, Cai Niao has clearly accelerated the pace of building its self-operated network. This means that Cai Niao is strengthening its control over these markets to provide more stable and efficient services.

It can be seen that in the global express delivery field, Cai Niao has introduced the 'Global 5-day Delivery' product covering 14 countries across Europe, America, and Asia, significantly enhancing the efficiency of cross-border logistics. This high-efficiency service not only meets consumers' demand for fast delivery but also enhances Cai Niao's competitiveness in the international market.

Taking the Spanish market as an example, Cai Niao not only provides express delivery services from China to Spain but also has established its own express network covering all 46 provinces in Spain, even reaching the outer islands. At the same time, it has launched a 'Next-Day Delivery' service at a price of 2 euros for express services from Madrid to all of Spain and Portugal, fully demonstrating Cai Niao's meticulous efforts and international competitiveness in overseas markets.

(Before the November 11 shopping festival-related, Cai Niao upgraded its Madrid distribution center, and its self-operated local express network in Spain has basically covered the entire country, including remote outer islands.)

By observing the small details, it can be inferred that Cai Niao intends to replicate the successful model of domestic economy express delivery in international markets. By establishing local networks overseas, Cai Niao will be able to respond to market demands more quickly, provide more flexible services, and rapidly expand its service boundaries and market influence. Based on this, it will also enable Cai Niao to offer more competitive services globally, attracting more international clients and strengthening its leading position in the global logistics market.

In conclusion, the results achieved in the first quarter demonstrate that AI capabilities have brought new opportunities to the company. With the continuous increase in the penetration rate of large models, continuous enhancement of product performance, diversification of landing scenarios, and further expansion of overseas business, Cheetah Mobile is expected to welcome a broader development space.

It can be seen that Cainiao's layout in the global logistics field is very determined. On one hand, based on the domestic market, by continuously optimizing the domestic logistics network and services, Cainiao Express has ensured its competitive advantage in the domestic market. On the other hand, looking toward the international market, Cainiao International Express is actively expanding overseas, and through a clear global strategy layout, the company is continuously exploring and seizing opportunities in the international market to open up greater growth space.