One Billion Packages in One Day

One Billion Packages in One Day

Ben Thomas

Ben Thomas

Director, National Valuation

t: +44 207 182 2663 Ben.Thomas@cbre.com

Judy Zhu

Judy Zhu

Associate Director, National Valuation

t: +44 207 182 2683 Judy.Zhu@cbre.com

In China, Singles’ Day (11th November) is an annual shopping festival, like Black Friday and Boxing Day in the western world. Alibaba has successfully turned this day, which is a celebration of being single, into the world’s biggest online shopping event.
2018 Singles’ Day was a milestone for Alibaba, as it was the first time single-day package volumes surpassed the 1-billion benchmark. This blog post is going to look at the numbers, which in turn reflects the logistics network working behind the scenes of this shopping fiesta.

 

2018 Singles’ Day
Singles’ Day Sales and Packages Volume from 2009 to 2018

Singles’ Day Sales and Packages Volume from 2009 to 2018

2018 Singles’ Day Sales by Time of the Day and Comparison to Previous Years

2018 Singles’ Day Sales by Time of the Day and Comparison to Previous Years

Click to expand                            (source: www.alizila.com, wallstreetcn.com)

The total sales of 2018 Singles’ Day was CN¥213.5 billion, which is £23.6 billion or US$30.7 billion. By Comparison, in the UK, the one-day total sales of 2017 Black Friday was £1.4 billion and 2017 Boxing Day was £4.5 billion (source: BBC, Daily Mail).

In the US, 2017 Thanksgiving Day, Black Friday and Cyber Monday combined sales was US$19.6 billion, where US$14.5 billion was online (source: Practical Ecommerce)

The Logistics Network

Alibaba, not only as a platform for retailers but also for logistics partners, was able to cope with this large volume of packages mainly thanks to its own logistics data network, called Cainiao (means “Rookie”). Cainiao was established in 2013 by Alibaba to assist its retailer clients provide better delivery experience to their customers.

Cainiao is a large network of 3PL partners, drivers and warehouses, which expands to the most remote areas in China and beyond the border to rest of the world. However, what really empowers the network is not the physical network, but the enormous data it captures in the network. It uses big data to predict product stocks, plan driving routes, create package sorting solutions etc. Without all the elements of Cainiao working together, Alibaba would be unable to meet its Singles Day delivery commitments.

About Cainiao Network (by 31st December 2017)

About Cainiao Network (by 31st December 2017)

Click to expand

Summary

The Chinese economy is evolving from export-focused to consumer-focused. Previously China leveraged the large population as a source of manufacturing labour to support the export economy. Now China is turning this resource into an advantage again, as a source of generating demand and pumping up the consumer economy. Alibaba, together with many other technology businesses, has seized the opportunity to grow its own business as well as contributing to push the transition forward.


If you are interested in more details of this report or our other logistics reports, please contact Ben Thomas, Director of CBRE National Valuation – Logistics & Distribution, or Judy Zhu, Associate Director of CBRE National Valuation.

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A record year for investment into logistics

A record year for investment into logistics

Ben Thomas

Ben Thomas

Director

Ben.thomas@cbre.com

Andrew Marston

Andrew Marston

Research Director

Andrew.marston@cbre.com

The Property Perspective | UK Logistics H2 2017

  • 2017 was another exceptionally strong year for investment purchases into logistics. Asian buyers in particular were active acquirers of high value portfolios
  • Take-up fell in 2017, compared to the record breaking year that was 2016. Nevertheless at 17.2m sq ft, this was close to the long-run annual average
  • At the end of 2017, London Mayor Sadiq Khan released the new draft London plan. We analyse the proposals in relation to industrial and logistics properties in the capital
  • On page 28, the latest results from the CBRE UK Logistics Index, measuring performance through to the end of December 2017

 

 

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The Property Perspective, UK Logistics, H1 2017

The Property Perspective, UK Logistics, H1 2017

Ben Thomas

Ben Thomas

Director

Ben.thomas@cbre.com

Andrew Marston

Andrew Marston

Research Director

Andrew.marston@cbre.com


The Property Perspective | UK Logistics H1 2017

  • Following a record year for take-up in 2016, the momentum continued into the first quarter, before deals volume began to slow in Q2. Overall 8.81 million sq ft was acquired for occupation in units of 100,000 sq ft and above.
  • There has been a notable increase in deals within the smallest size band of 100-200,000 sq ft, reflecting the growing interest in urban logistics.
  • Logistics remains a popular real estate asset class, with total sales of single assets of £1.20bn, not far off the £1.33bn achieved over the same period in 2016. More overseas buyers are active, and the sector has also attracted many new names, not previously active within the industrial sector.
  • The first half of 2017 saw logistics properties once again perform strongly. The total return of the six months to the end of June 2017 was 5.0%, a marked improvement on the 4.1% achieved in H2 2016. Over the past twelve months, logistics assets have produced a total return of 9.3%.
    Ben Thomas of CBRE Valuation commented

“The logistics sector had another strong half year, continuing the trends we have seen over recent years and reflecting a very similar performance level to that seen in both halves of 2016.  Investment appetite remained strong in the sector with a broad spectrum of investors active in the market.  This strong investment appetite coupled with the continued of rise of rental values and an imbalance of supply and demand characteristics in the occupational market has seen yields compress during H1.”

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