As China’s Economy Slows, Alibaba Looks to Latin America for Logistical Development

Alibaba
Share on linkedin
Share on facebook
Share on twitter
Share on reddit

Cainiao, which is in charge of logistics for Alibaba, is going far away to look for ways to grow its business. The company said Monday that it recently opened its first parcel distribution center in Brazil. This is in addition to its network of sorting centers in Mexico and Chile.

China’s slowing economy and aggressive competitors like Pinduoduo have hurt Alibaba’s e-commerce business there. For the first time, the company didn’t say how much money it made during its annual “Singles Day” shopping festival, which took place on November 11 and used to include a Super Bowl-style party with pop stars and Jack Ma.

Cainiao has been following AliExpress around the world and helping the cross-border marketplace, which is owned by Alibaba, ship Chinese goods to people all over the world. But it is now expanding its domestic services in some countries in order to attract local retailers as customers. This year, the logistics giant started offering express courier service in Brazil, which is now available in more than 1,000 cities.

Cainiao’s presence in Brazil should grow even more with the new building there. Over the next three years, the plan is to open nine more distribution centers in seven states and set up 1,000 “smart lockers” in ten cities.

In China, people often see smart lockers where they can pick up their online shopping packages. It keeps couriers from having to run up and down buildings to deliver packages to people’s doorsteps and helps reduce human contact during COVID-19. In Brazil, Cainiao wants to use the infrastructure for food delivery and logistics services inside cities and across borders. Piticas, a retail chain that sells geek and pop culture goods, is one of Cainiao’s smart locker clients.

“Our customers can buy things online and get them in a few days. In the future, we hope to work with Cainiao to use its smart lockers, which will give our customers more options for pick-up, as well as imports from China to Brazil, which will make our supply chain even more efficient, said Vinicius Rossetti, CEO of Piticas.

Cainiao also wants to help Brazilian traders send things like coffee, nuts, and propolis to China. This would be the opposite of how trade has usually gone. There are currently eight chartered flights a week between China and Brazil, and the company wants to add more routes by air and sea.

In July, Cainiao opened a sorting center in Israel. At the time, the company had ten sorting centers overseas. As of June, more than 7,700 smart lockers made by Cainiao were in use in Europe. In the three months that ended in June, the logistics unit brought in about 5.6% of Alibaba’s income.

Share This Article:

Share on linkedin
Share on facebook
Share on twitter
Share on reddit

Related Posts