Domestic express delivery companies are stealing market share from large multinational players.
San Francisco, CA (PRWEB) March 30, 2013
The International Express Service industry in China has less than 20 years of history. The industry has experienced substantial growth in the past 10 years mainly due to the improved economic environment, rising income levels and improving infrastructure. In the past few years, e-commerce growth in China has also boosted the industry's performance, says IBISWorld. In the five years to 2013, revenue for the industry has been growing at an annualized rate of 7.8% to $3.7 billion.
As international express business operations require a high level of capital investment and advanced technology and systems, the industry is dominated by large foreign enterprises such as DHL, Federal Express and UPS. There are about 438 enterprises operating in the industry, but the top four contribute 84.0% of total revenue.
Relatively high profit margins are attracting many private domestic express companies to enter this industry, says IBISWorld. In 2012, several domestic companies received operating licenses for international express services from the State Post Bureau of China. With increasing numbers of private domestic enterprises entering the International Express Service industry in China, market share concentration is forecast to decrease in the next five years.
For more information, visit International Express Services in China industry report page.
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IBISWorld Industry Report Key Topics
The International Express Service industry in China provides transportation, collection, and express delivery services for parcels, documents and packages between China and foreign destinations. Services provided by the national postal system are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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