FedEx still delivers on Chinese investments

Believing in the strong growth prospects for China's domestic and international cargo markets, FedEx, the operator of the world's largest cargo airline, will continue to invest in the Chinese market, said Eddy Chan, Head of China and senior vice-president of FedEx Express.

"As China has become not only a supplier but also a growing consumer market, the e-commerce in the country has become one of the fastest developed industries, with numerous opportunities for FedEx China," said Chan. "We have adapted to this new trend and new consuming model, and through service enhancement, strong operational strength and extensive experience in connecting local markets to the world, we are now helping consumers increase their competitive advantage in an ever-changing business world."

The real revolution in trade is the direct participation of more and more small and medium enterprises (SMEs) all over the world into international trade lanes. The Internet has dissolved trade borders to create a technology-led, explosive global e-commerce market, he said.

For FedEx, high-value, cross-border e-commerce shipments are the trend-setting focus.

"We kept our focus on engaging with customers across all channels - online, mobile, over the phone and in person - as well as enriching the online shopping experience," he said."In the Asia-Pacific, including China, FedEx is helping e-tailors grow and enhance their customer service, their operations, and their bottom line."

China is now the largest e-commerce market in the world, with e-commerce accounting for around 12 percent of sales in the country. Figures show that China's e-commerce market is expected to grow another 46 percent in 2014 to a projected $446 billion, a great opportunity for express delivery companies at home and abroad.

In China, FedEx is moving quickly to match e-commerce shipping strategies, he said.

"To accommodate a wide range of customer demands, FedEx China will continue to improve its services, reflecting our commitment to customer satisfaction and innovation, while offering peace of mind for online shoppers."

According to Chan, China has been undergoing another economic transformation, from labor-intensive country to a knowledge-intensive economic market, and China's economic growth has become more quality-oriented as the country's consumption surpassed investment for the first time to become the largest contributor to the economy's growth.

Through the convergence of Internet connectivity and FedEx transportation services, consumers and businesses can access the local economy from almost any part of the world, said Chan.

FedEx is now offering both international and domestic services to customers, and vows to continue to expand their operation to reach more second-, third-, and fourth-tier cities.

"Our goal is to support our customers as they grow their business by providing a reliable air and ground network that connect seamlessly to the FedEx global network," he said. "As one of the world's largest express delivery companies, FedEx Express is committed to supporting open and efficient trade across borders, while further enhancing the service network between China and other trading partners to seek new market growth, he said.

FedEx has announced the establishment of the FedEx Shanghai International Express and Cargo Hub at Shanghai Pudong International Airport, which is one of the important facilities in the Asia-Pacific Region for FedEx.

It will provide greater access and convenience from East China to Europe and the US, it said.

The company said it would promote it as the important international gateway in China and the international air cargo transportation center in the Asia-Pacific Region.

Chan said in the future, the company will further work to address issues like tariffs, non-tariff barriers, service barriers, restrictions on investment, local content requirements and customs.

"When the customs are slow and inefficient, they serve as barriers to us and our customers," said Chan.

"Breaking down trade barriers helps our customer reach new markets, which translates into business growth, jobs, a more efficient pipeline for goods and economic growth."

FedEx has already enlarged its presence to develop China's medical logistics service market, which has been surging recently as the supply and demand for healthcare goods is increasingly more global, driven by longer life expectancy and technological advancements.

In 2010, China's pharmaceutical sector attracted $1 billion VC investment and launched 33 IPOs. China is the world's number two pharmacy market, but is forecast to rise to $100 billion in 2015.

Figures show that 25 percent of all healthcare products are estimated to be temperature-sensitive, and by 2016 more than half of the top 50 best-selling drugs will require cold chain transportation.

Eyeing the prosperous outlook, FedEx is working on connecting medical products to people around the world, through temperature-controlled packaging and fleets, and customized delivery services, said Chan.

In 2012, the company introduced a variety of cold chain shipping solutions that help connect manufacturers in innovative ways with more markets across industries, including thermal blankets, a cold shipping package option and deep frozen shipping solution.

"FedEx will continue to focus on some key vertical markets such as healthcare," he said.

FedEx was one of the first express cargo companies operating between the two regions, and in the past years FedEx has dramatically enhanced its services between China and Europe to meet increased customer demand, as China has become Europe's fastest-growing export market and second largest trading partner, and China's exports to the EU hit $4 trillion in 2013, according to the Chinese General Administration of Customs.

FedEx is committed to offering customers a competitive edge by strengthening its connection between China and Europe, Chan said.

FedEx launched its express air cargo, the industry's first express direct flight from the Chinese mainland to Europe in March 2005. In addition, FedEx also links Asia and Europe with direct flights.

"FedEx added two Boeing 777F flights from Asia to Europe, including our first direct flight from the FedEx Asia-Pacific Hub in Guangzhou to Europe in 2012," said Chan.

"For instance, when it comes to shipping low-value items, tracking and short transit times are not a priority; customers want reliable and cost-effective transport solutions."

zhengxin@chinadaily.com.cn