China's express sector development report 2014

In May 2014, the Development Research Center of the State Post Bureau and Deloitte jointly carried out an extensive and in-depth study on the China express industry and released a joint professional report named "China's Express Sector Development Report 2014".

The first chapter of the report analyzes the current status of China's express service market. The high growth rate in the express service market is noted and the ability to serve the livelihood of the common people by the express delivery service has improved. It is not hard to conclude that China's express industry is moving along in a growth momentum as the environment for development continues to optimize in China. Furthermore, the report shows four driving factors of development of China's express service market which are; policy factors, economic factors, social factors and technical factors. These four driving factors promote and condition each other and lead to the boom of China's express industry as a result.

The second chapter of the report is to overview the capital market in China's express sector. Based on the statistics of the M&A amount and volume of logistics industry per year from 2008 to the 2014 (Jan-Mar), our research indicates that M&A integration period is coming for the express sector in China. Also, we can get a conclusion from the cases we studied that M&A and restructuring are important ways for enterprises to strengthen their competitiveness. Brands, markets, resources and technologies are internal incentives for M&A. Successful M&A and restructuring helps enterprises achieve low-cost expansion and leap-frog development; at the same time, they are also significant in strategic transformation and to developing new competitive advantages.

Still, Chinese express companies have a long way to go before they go public. Up to this date, the IPO market of the express sector in China is not very active, possibly caused by stock market downturns and IPO-related barriers in recent years. So far, no domestic express company has been publically listed. At present, China's express sector is still in the early stage of development without deep integration and facing severe risks in compliance and profitability in the process of IPO financing.

The last chapter of the report is an outlook of the China's express industry. We do the forecast based on four aspects, which are macro-environment, industry development, enterprise development and technological development. Deloitte forecasts that China’s express sector will continue to grow rapidly driven by macroeconomic growth, development in the central and western regions and a sustained growth in E-commerce.

In 2014, the report "China's Express Sector Development Report 2014" is released coinciding with the Post-Expo Asia Pacific 2014 held in Hong Kong, China. It also can provide theoretical and data support for the people interested in Chinese express industry so that they could better understand and master the China market development trends.

(English version)
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