E-commerce giant JD.com has announced plans to expand its logistics capabilities in order to meet the growing demand for online products. The plan also coincides with the influx of new online merchants as more businesses shift to selling their products on the internet in the wake of the coronavirus pandemic.
The company announced that it will be building three new automated logistics parks, which will be located in Zhengzhou, Henan Province, Langfang, Hebei Province, and Dezhou, Shandong province. The addition of the so-called Asia No. 1 facilities is meant to strengthen and expand the company's ability to meet its same day or next day delivery service, which it plans to offer to more lower-tier cities in China. The three new facilities will bring the company's total number of automated sorting parks to 28.
The expansion of its logistics capabilities is also a preparation for the surge in new orders during the country's upcoming 618 mid-year shopping festival. The event, which will be held on June 18 hence the 618 names, is expected to bring in thousands of new customers to the company's platform.
Other e-commerce operations have also made similar moves in anticipation of the 618 online shopping festival. Chinese consumers typically go on a shopping spree during the event, spending billions of yuan to buy items that are being sold at steep discounts.
The company mentioned in a statement that the combination of its use of big data forecasting and the addition of the new facilities should greatly boost its ability to deliver items to customers as fast as possible. Being able to meet customer demand during the upcoming event is crucial for the company as it is essentially the first major shopping event in China since the end of the pandemic-related lockdowns.
Cainiao, Alibaba logistics unit, has also announced plans to strengthen its logistics network. The company announced that it will be utilizing a fleet of automated delivery vehicles and building additional pick-up stations to increase the speed of its deliveries. The company added that it plans to charter over 100 flights and 20 freight trains dedicated to shipping goods during next month's shopping festival.
Alibaba had stated that it has already received over 100,000 applications from merchants who will be participating in its Tmall 618 promotions. The merchants will be offering different promos and discounts during the event to entice consumers to buy their products. The company expects the number of participating merchants this year to more than double when compared to last year's event.
