*Japanese businesses have pre-stocked close to ten million goods in China ahead 
of Double 11 Global Shopping Festival 

*Pre-stocking is part of Cainiao's first-mile logistics service to help 
Japanese businesses improve logistics management, shipping efficiency, and 
supply chain management

Cainiao Network, ("Cainiao"), the logistics arm of Alibaba Group, today 
announces that Japanese merchants have pre-stocked close to ten million goods 
in bonded warehouses in China. This is in anticipation of a surge in consumer 
demand during the upcoming 11.11 Global Shopping Festival. From September to 
October, Cainiao saw a 286-percent growth in the volume of products stocked in 
China, where 198 flights and 68 ships were deployed to facilitate pre-stocking 
of goods from various key cities in Japan through its first-mile logistics 
services. Popular categories from Japan include beauty and cosmetics, 
healthcare, food, parenting and baby products.

This year, Cainiao has pre-secured double the cargo space compared to the 
actual cargo volume shipped from Japan to China during 11.11 last year. These 
goods are shipped to and pre-stocked in bonded warehouses in China, 
specifically Shanghai, Ningbo, Hangzhou and Yiwu. 

The establishment of a seamless logistics channel that facilitates B2C trade, 
in this case, cross-border e-Commerce, will be instrumental in supporting 
Japan's export industry, where data from World Bank showed that China is 
Japan's largest export country at US$144 billion (19.51 percent)[1].

As more Chinese consumers opt for same day or next day delivery options, they 
will be able to receive their orders as fast as the same day for selected 
products, or an average of three days, where the Japanese goods are delivered 
directly from bonded warehouses in China. In contrast, the traditional mode of 
e-Commerce logistics i.e. direct shipping method, will take an average of six 
days for the Japanese merchants to ship out the items from Japan after the 
purchase is made online. 

This is a significant improvement in delivery speed and customer experience, 
where Japanese merchants are able to provide the same delivery timeliness for 
Chinese consumers that is on par with Chinese merchants. Rising consumer 
expectations have also illuminated the need for smoother first-mile logistics 
which would lay the foundation for the growth of cross-border trade and 
e-Commerce. 

"Cainiao has ramped up our support for the export, cross-border e-Commerce and 
internationalization needs of Japanese businesses since our official launch 
last year. The first-mile logistics services through pre-stocking will enable 
Japanese businesses to achieve faster delivery times during the 11.11 Global 
Shopping Festival and we believe this will be a huge competitive advantage that 
will allow them to tap on the growing demand from Chinese consumers," said 
James Zhao, General Manager of Cainiao Global Supply Chain.

This latest development comes after Cainiao's official launch into Japan last 
November to provide diversified end-to-end logistics and supply chain services 
to local businesses, spanning first and last mile, warehouse management, 
international shipping, trucking and customs clearance. As a smart logistics 
company, Cainiao is able to digitalize the entire value chain of Japanese 
merchants to deliver greater visibility and transparency while aggregating 
industry leaders to provide a comprehensive service for businesses' logistics 
needs.
 
About Cainiao Network

Founded in 2013, Cainiao Network ("Cainiao") is a global industrial internet 
company and the logistics arm of Alibaba Group. As part of its commitment to 
create customer value, it adopts a collaborative approach to logistics that 
aims to improve efficiency and customer experience for all players along the 
supply chain. It carries forward Alibaba's mission of making it easy to do 
business anywhere by aiming to deliver anywhere in China within 24 hours, and 
across the globe within 72 hours.


[1]https://wits.worldbank.org/countrysnapshot/en/JPN/textview#:~:text=Japan%20to
p%205%20Export%20and%20Import%20partners%202018&text=Japan%20exports%20to%20Chin
a%20worth,partner%20share%20of%2019.05%20percent 

 
SOURCE: Cainiao