The fastest 4-hour delivery time in Hong Kong: JD, Hong Kong, and Macau have opened multiple self operated centers, accelerating the competition among express delivery giants

Reporter: Wang Yubiao Editor: Liu XuemeiThe layout of express delivery giants in the Hong Kong and Macao regions is accelerating.On October 17th, JD Express announced the upgrade of its Hong Kong and Macau express delivery business

Reporter: Wang Yubiao Editor: Liu Xuemei

The layout of express delivery giants in the Hong Kong and Macao regions is accelerating.

On October 17th, JD Express announced the upgrade of its Hong Kong and Macau express delivery business. Daily Economic News reporter learned from the scene that JD Express has opened multiple express delivery operation centers in Hong Kong and Macao regions such as Kowloon, New Territories, and Hong Kong Island, focusing on self operation throughout the entire process.

In terms of business model, it is not limited to B2C/B2B warehouse and distribution integrated services. After the upgrade, JD Express can provide local express delivery, Hong Kong Macau mutual shipping, and Hong Kong Macau to mainland mutual shipping and door-to-door delivery services for Hong Kong and Macau users.

As of press release, the stock price of JD Logistics (02618. HK) rose nearly 3% during the session, while the stock prices of SF Express and Tongda Express companies both slightly declined.

In terms of timeliness, Hong Kong's express delivery business replicates according to the mainland's "211" standard. The reporter noticed that the fastest delivery time for local express delivery in Hong Kong is 4 hours, and the night delivery time will also be extended to 22:00 at the latest. In Macau, local express delivery also achieves the fastest morning delivery.

JD Express Hong Kong Kwai Tsing Express Operations Center Image source: Photograph by journalist Wang Yubiao

Ma Wei, the head of JD Logistics' Hong Kong express delivery business, revealed in an interview with the Daily Economic News that in order to further shorten the transit process, each operating center of JD Express in Hong Kong integrates functions such as sorting centers and express delivery stations, equipped with numerous semi-automatic operation equipment, and the entire process can be completed in up to 4 hours. In addition, JD Express also brings services such as door-to-door delivery, night delivery, and "smiling face orders" from mainland China to Hong Kong and Macao.

The Hong Kong and Macao regions have one of the largest incremental express delivery markets in China, and no express delivery company will give up. Express logistics expert Zhao Xiaomin said in a WeChat interview with reporters that before the arrival of Double 11, JD Logistics will increase its coverage in the Hong Kong market, which is also an important consideration for the logistics globalization layout proposed in the previous stage.

Since 2015, JD Logistics has strategically laid out Guangzhou Jiulong Yayi, Dongguan Yayi, and Huadu Yayi, and has formed a comprehensive domestic and international logistics warehouse distribution network with hundreds of central warehouses, bonded warehouses, export warehouses, and direct mail warehouses in South China. Nowadays, the express delivery business is undergoing a new upgrade in Hong Kong and Macao, complementing the important puzzle of landing accessories in JD International Logistics strategy.

To become a global and comprehensive logistics group, the Hong Kong and Macao markets are a necessary option for layout. Whether it is for the entire Greater Bay Area or Southeast Asia, it is crucial for the Hong Kong and Macao regions to increase network laying, "said Zhao Xiaomin.

As far as the Hong Kong express delivery market itself is concerned, on the one hand, the Hong Kong and Macao regions have a vibrant market, with increasingly frequent economic exchanges with the mainland, and a higher demand for logistics and express delivery.

On the other hand, compared to the slowing down mainland e-commerce market, the growth rate of the Hong Kong e-commerce market is at a high level. According to data from the Hong Kong Government Statistics Department, in 2022, e-commerce sales accounted for nearly 10% of the total sales of Hong Kong's retail industry, an increase of 21% year-on-year.

Express delivery is a standard feature of e-commerce, and the shortage of terminal delivery manpower and high labor and land costs have been hindering the development of the Hong Kong express delivery market, making it even more difficult to match the high growth rate of e-commerce today. The new market competition is naturally hidden within it.

Daily Economic News

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