A Study on the Logistics Strategies of Parcel Delivery Service Providers in China at e-Commerce era

Since its "Economic Reform and Opening up" in 1978, China's economy keeps progressing, with an average annual GDP growth rate of about 10 percent. Chinese people's life style has been changed by the extensive usage of Internet and shopping through e-Commerce, such that Parcel Delivery Service(PDS) industry has been introduced as a new attractive business sector as accordingly. However, development of Chinese PDS industry is not so competitive to compete with MNCs, such as FedEx, UPS, DHL and TNT etc. The pace of business in the Chinese PDS companies is not as quick as to foreigners, and management schemes are not matured yet, and also market order is still in disorder and confusion. Moreover, globalization of Chinese economy makes the Chinese PDS industry difficult to gain a solid basis and continuous development. This research explores the situation of Chinese PDS industry and diagnoses the SWOT points of Chinese PDS companies so as to find out the logistics strategy to compete with MNCs. Based on available literature related to the subject, a research framework was proposed to test the measures to enhance competitiveness of PDS providers in China. Those are five measures, such as reducing operation costs, using advanced information technology, increasing market efforts, increasing service offerings, and strategic alliances with international PDS providers. It also, aims to provide valuable ground data for Korean logistics companies considering investment into China logistics market.