TNT Hoau grows in Chinese e-commerce market with Tencent deal

TNT Hoau, the Chinese subsidiary of TNT Express, has landed a deal to deliver e-commerce ordersfor Tencent, the country’s largest and most used internet service portal, following similar

The domestic road delivery company will provide road delivery services to customers ofE-commerce platforms under Tencent, such as sudi.qq.com and shop.qq.com. Tencent, founded in 1998and listed in Hong Kong since 2004, had revenues of RMB 28.5 billion (US$4.5 billion) in 2011 fromdiverse internet-based services and is targeting e-commerce as one of its strategic growthareas.

After securing partnerships with China’s B2B e-commerce giants, such as Alibaba.com andYoushang.com (Kingdee), the Tencent partnership marks a step further in TNT Hoau’s expansion intothe Chinese e-commerce logistic market. Currently, corporate customers of these e-commerceoperators are major clients for TNT Hoau.

The Chinese e-commerce market has grown rapidly to reach trading volume of RMB5.88 trillion in2011, according to China’s E-Commerce Development Report developed by the Chinese Ministry ofCommerce. This represents one-eighth of China’s GDP. The brisk growth in e-commerce transactionshas resulted in strong demand from e-commerce companies for third party logistics for their onlinecustomers.

“Customers of e-commerce operators have an increasing need for highly efficient and quality roaddelivery services with nationwide network coverage,” said Andrew Yang, Managing Director of TNTHoau. “We are glad to see a growing number of e-commerce operators making TNT Hoau their major roaddelivery service partner. We are encouraged by the positive feedback we have received on thequality of our Day-Definite service from the customers of e-commerce platforms.”

Since December 2011, TNT Hoau’s Day-Definite service has been ranked as the leading roaddelivery service provider for seven consecutive months by Alibaba.com’s customers. The evaluationis based on four major indicators: service quality, price, punctuality and safety, which isgenerated in terms of satisfaction based on service experience.

TNT Hoau’s Day-Definite road delivery service network spans 334 large and medium-sized cities,with nearly 1,300 depots. As a result of its wide reach and timely, secure and cost-effectiveservice offering, TNT Hoau has become the key road delivery service provider to customers ofChina’s major domestic e-commerce operators, which now have the option to place orders online forTNT Hoau’s Day-Definite road delivery service.

In May, the company launched Day-Definite road deliveries between between Guiyang, the capitalof Guizhou Province, and Shanghai/Wuhan. With the introduction of these new Day-Definite deliveryroutes, TNT Hoau’s Day-Definite service became available in three southwestern provinces includingGuizhou, Yunnan and Sichuan, and one municipality, Chongqing.

TNT Express China has 36 branches and five gateways for its international expressoperations.