Samsung SDS’s Makes Foray into Chinese Distribution Industry | Be Korea-savvy

Samsung SDS’s Makes Foray into Chinese Distribution Industry


The latest move by Samsung’s information technology affiliate will see the company work with Chinese shopping websites to deliver products around the globe. (Image: Yonhap)

The latest move by Samsung’s information technology affiliate will see the company work with Chinese shopping websites to deliver products around the globe. (Image: Yonhap)

SEOUL, NOV. 22 (Korea Bizwire) – Samsung SDS is branching out into the Chinese distribution industry after signing a business agreement with the Guangzhou Post Office.

The latest move by Samsung’s information technology affiliate will see the company work with Chinese shopping websites to deliver products around the globe.

According to industry statistics, China’s e-commerce market grew by 47 percent last year, with the figure for this year expected to stand around 27 percent.

Earlier this month, one of the biggest shopping sites in the world, Alibaba, reached 28 trillion won in sales during China’s Single Day, reflecting the rapid growth of the Chinese e-commerce market.

According to Samsung SDS, Kim Hyung-tae, a senior official responsible for Smart Logistics, met with officials from the Guangzhou Post Office on Monday for a contract signing ceremony.

Under terms of the agreement, Samsung SDS will provide a comprehensive logistics service including air freight and last mile delivery, which refers to the movement of goods from a transportation hub to their final destination.

Guangzhou is a major transport hub in the Chinese market boasting an annual air cargo volume of 7.3 million tons, with links to both the international trading port of Hong Kong and Shenzhen, a city famous for high-tech businesses.

The Guangzhou Post Office currently handles around 60 percent of all international parcels for products sold on Chinese shopping sites.

With its wide network of 62 branches in 33 countries, previous experience in business process outsourcing and price competitiveness, Samsung SDS is poised to take the Chinese distribution industry by storm via EMS channels of the Guangzhou Post Office.

Currently offering its logistics service to Thai shopping malls, Samsung SDS is hoping to expand its presence in other regions including China, North America and Malaysia using its Cello logistics platform, a system that handles ordering, stock management, and last mile delivery services.

“Through the new agreement, we hope to improve our competitiveness in China’s international e-commerce logistics industry, and actively adapt to the fast-changing market environment,” Kim said.

Hyunsu Yim (hyunsu@koreabizwire.com)

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