Cainiao Expands into Spain, Connecting Across Europe

Consumer Staples Author: Notrice Jul 13, 2023 11:10 AM (GMT+8)

According to EqualOcean, on July 7th, leveraging Cainiao's self-built express delivery network in Spain, Cainiao International Express(菜鸟国际快递) announced the gradual launch of weekend delivery and same-city delivery services in Spain's core cities to continuously improve and optimize local logistics services.

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According to data from Cainiao International Express, the cross-border parcel volume in Spain increased by over 60% compared to the same period last year in June. The network currently covers over 30 cities in Spain, with core cities like Madrid and Barcelona achieving "next-day delivery" for express shipments.

EqualOcean has learned that Cainiao has successfully implemented weekend delivery services in core areas such as Madrid, Barcelona, and Valencia, reducing the average delivery time by 1-2 days after collection. This means that consumers in these regions can expect to receive their packages over the weekend. In addition, Cainiao's same-city delivery service also covers several core cities in Spain and Portugal, providing O2O instant delivery services for local offline chain stores and supermarkets.

Furthermore, Cainiao has established overseas logistics infrastructure in Spain, including overseas warehouse clusters, automated sorting centers, distribution stations, and self-pickup lockers, to cater to various logistics scenarios such as cross-border parcels, local warehouse shipments, last-mile delivery, and same-city delivery.

Many Chinese e-commerce giants recognize that Spain is an important gateway to the European market. Rubén Portillo, the Operations Director for Spain and Portugal at AliExpress(速卖通), has referred to Spain as the "Gateway to Europe" and believes that developing the Spanish market is crucial for entering Europe. Currently, AliExpress has become the second-largest e-commerce platform in Spain.

SHEIN has been deeply cultivating the Spanish market for over a decade and has now become the second-largest fashion brand in Spain, surpassing the local fashion giant ZARA. Temu, the overseas version of Pinduoduo, also considers Spain as its primary target for entering the European market. Spain was included in their first batch of European sites launched in April this year. Furthermore, there have been rumors that TikTok is planning to enter the Spanish market and has actively recruited talent locally.

Unlike the highly competitive international market, there are still many development opportunities for e-commerce in Spain. According to data from the Spanish National Markets and Competition Commission (CNMC) and commercial data platform Statista, it is projected that e-commerce sales in Spain will grow by 20% by 2023. In comparison, digital research firm Insider Intelligence predicts a growth rate of only 8.9% for global e-commerce sales in 2023. With an internet penetration rate of 93% in Spain, but only a 63% penetration rate for online shopping, it indicates that there is still significant untapped potential in the e-commerce market.

In 2022, Cainiao has already become one of the world's top four cross-border logistics companies, second only to DHL, FedEx, and UPS. In late June, Joseph C. Tsai(蔡崇信),Chairman of Cainiao Group & Executive Vice Chairman of Alibaba Group , shared the development strategy of Cainiao, stating, "Cainiao will adhere to its global strategy and continue to invest in building logistics capabilities." In the future, Cainiao will see Spain as a springboard to further expand its presence in other European markets.