Jinhua’s Express Delivery Ranks First in China
In the first quarter, Jinhua’s express delivery volume totaled 1.165 billion items, valuing 4.487 billion RMB, a year-over-year increase of 32.1% and 24.0%, respectively. According to statistics released by the State Post Bureau on April 13, China’s express delivery volume totaled 12.53 billion items in the first quarter, an increase of 3.2% year-on-year; and the income totaled 153.4 bn RMB, a decrease of 0.6% year-on-year. In other words, Jinhua’s increase in rate of express delivery and express delivery income are higher than the national average by about 30% and 25%, respectively. Jinhua’s express business accounted for almost 10% of the country’s.
In January 2014, the management department of Jinhua’s postal industry counted the business income of express delivery companies in Jinhua for the first time. In January of 2014, the business income was 460 million RMB, and this number increased tenfold by January 2020 thanks to the rapid development of Jinhua’s e-commerce industry.
In the first quarter of this year, the top ten cities in express delivery volume were (in order) Jinhua (Yiwu), Guangzhou, Shenzhen, Shanghai, Beijing, Hangzhou, Jieyang, Suzhou, Dongguan, and Chengdu. Without the growth of Yiwu’s business volume, Jinhua wouldn’t have been able to surpass Guangzhou and rank first in China. Lou Lidan, director of the Jinhua Post Administration, said that Yiwu alone could rank third in China because its business volume accounts for more than 70% of Jinhua’s.
The current share of China’s express delivery accounts for 50% of the world’s, and the express delivery of Zhejiang accounts for 20% of China’s. The express delivery of Yiwu, a well-known distribution center for small commodities, accounts for 30% of Zhejiang’s. In 2019, Yiwu’s express delivery volume reached 5.92 billion items, ranking second only to the 6.35 billion items processed by Guangzhou.
According to Lou Lidan, the reason that Jinhua has overtaken Guangzhou in the first quarter of this year can be chalked up to four factors: First, the price of express in Yiwu is low, so many e-commerce companies came to build warehouses in Yiwu. Second, the logistics industry in Yiwu resumed normal operation in mid-February when the pandemic situation was alleviated, and its rate of resumption of work ranked first in Zhejiang. Thanks to a series of policies for employment and subsidies issued by the Yiwu government, all industries resumed operations successfully. At the same time, the management department of Yiwu’s express delivery simplified the business process and launched the assistance service of “one staff member helps one company to resume operation.” Third, many online e-commerce companies offered express subsidies for special events such as Woman’s Day, which prompted shopping crazes. Fourth, many consumers are staying at home during the pandemic, and online shopping has become a new trend of consumption. (By Mao Weijun, translated by Wei Han, edited by Kendra Fiddler)