With Introduction of New Policy of Logistics, Dangdang is expanding into the Yangtze River Economic Belt
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BEIJING, June 13, 2014 /PRNewswire/ -- On July 11th, China's State Council executive meeting passed the "Medium-term and Long-term Planning for the Development of Logistics", and made arrangement for the construction of traffic corridors to create the Yangtze River Economic Belt, which infuses strong impetus for China's e-commerce.
Facing such favorable national policies, Dangdang announced that it launched the expansion of warehousing and logistics bases for the second phase in June. Thirty new warehouses and stores, including the Forward Distribution Center (FDC), will be built within one year, mainly along the Yangtze River Economic Belt.
Up to now, Dangdang owns 23 logistics centers in Beijing, Tianjing, Wuxi, Guangzhou, Zhengzhou, and more, with a total area of 400,000 square meters. The Tianjin logistics base, which covers 100,000 square meters, was put into use in May.
Construction of the Yangtze River Economic Belt and traffic corridors bring new strategic growing impetus for the e-commerce industry along the river. According to statistics, the newly-planned Yangtze River Economic Belt covers 11 provinces and cities, accounting for 18 percent of the national territorial area, covering 36 percent of the national population, and about 37 percent of China's GDP. It include the two municipalities of Shanghai and Chongqing, as well as some big city groups such as Chang-Zhu-Tan and Wuhan City Group. Thousands of small and medium-sized cities around the Yangtze River will also be benefited.
Encouraged by the growth, major e-commerce companies in China are all making arrangement on storage and logistics in the planed the Yangtze River Economic Belt.
With the explosive growth of apparel retail and increasing customers in the middle cities, Dangdang plans to build 30 modern logistics warehousing centers in one year, focusing on the cities belonging to the Yangtze River economic belt, such as Nanjing, Changsha, Chongqing, and other important cities near the harbors.
Based on Dangdang's internal data, when each logistics center is put into use, 50 percent of packages within 350 km of the base can be delivered on the day of ordering rather than the next day.
Benefitting from improvement of the logistics system in the past year, Dangdang succeeded in promoting a speed-rising service project in the first half of this year. 70 percent of packages in China can be delivered within 24 hours or the next day, covering more than 2,500 cities and counties in China.
Ren Qiang, the Executive Director of Supply Chain Management in Dangdang.com, said that Dangdang innovatively launched pre-distribution center (FDC) inventory. The delivery time is greatly reduced, while the timeliness of delivery and turnover speed of logistics have been upgraded 100 percent.
In order to meet growing online demand from western and central provinces, Ren Qiang revealed that Dangdang is planning the third phase of logistics expansion along the Silk Road, which starts from Zhengzhou, fully making use of state's favorable policy for the National Silk Road Economic Belt.
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