The booming Chinese courier, express and parcel (CEP) will outgrow Europe’s largest market,Germany, within five years if it maintains its current dynamic growth rates. The world’s four
leading express players, DHL, FedEx, TNT and UPS, look set to win significant market share fromChinese operators by expanding their domestic services. Those are the key findings of a new “CEPMarket Fact Sheet China”* from CEP-Research.The Chinese CEP market has soared with average annual growth rates of about 25% in recentyears, nearly quadrupling in value from about EUR 1 billion in 2000 to over EUR 3.8 billion in2006, according to the market report. Demand has been driven by economic liberalisation, a surge inforeign trade and the emergence of a strong domestic consumer market.
Looking ahead, growth rates in the 25%-30% range are expected for the next few years, takingthe market to over EUR 12.5 billion in 2011, the report forecasts. This would make China biggerthan Germany, France and UK, the three largest express and parcel markets in Europe.
“These figures demonstrate what a key role China will play in the worldwide express andparcels industry in future. CEP companies in Europe and overseas who do not yet have a clear Chinastrategy risk missing out on excellent growth opportunities,” said Mark Winkelmann, ManagingDirector of consultancy ITA Logistics, the CEP-Research parent company.
The CEP Market Fact Sheet China also contains detailed financial and market share figures aswell as profiles of the main players in the Chinese market. The Fact Sheet shows that the domesticmarket remains highly fragmented, with a clear leader (China Post), several medium-sized nationwidecompetitors and a multitude of regional or local operators. The highly competitive internationalmarket is essentially divided up between DHL-Sinotrans, FedEx, China Post, UPS and TNT. The “Big 4”integrators are all investing strongly in China through acquisitions, network infrastructure(including new regional air hubs) and new services at present.
“The domestic market is much bigger than the international market and that is where theaction will be over the next few years,” Winkelmann commented. “The integrators are investingheavily in domestic services and we expect them to continue acquiring companies to build up theirmarket share. Chinese companies now face the challenge of developing strategies to defend theirmarket positions.”
The new CEP Market Fact Sheet China incorporates a thorough overview of China’smacro-economics and a general overview of the Chinese logistics industry, including obstacles andopportunities. It also contains a detailed examination of the CEP market structure and recentdevelopments.
The market report is targeted at strategic decision-makers, sales executives and operationalmanagers in international and regional express and parcel companies, as well as the wider transportand logistics industry and other interested parties. The 24-page report can be ordered online underwww.cep-research.com. The price is 790,-€ .
