In China's package delivery market, smaller is better - Reuters
China's 35,000 express delivery companies can ship packages hundreds of miles for less than the cost of a standard U.S. letter, pricing out global players such as FedEx and UPS that control just 3 percent of the fast-growing market.
Size is normally an advantage in China, where large state-owned companies dominate industries from banking to energy. In express delivery, however, smaller has proven to be better.
Some industry watchers say the next phase of development will see a move towards reliability, service and specialisation instead of low cost. That will weed out many of the smaller companies and benefit the larger ones, including foreign firms.
China's 35,000 express delivery companies can ship packages hundreds of miles for less than the cost of a standard U.S. letter, pricing out global players such as FedEx and UPS that control just 3 percent of the fast-growing market.
Size is normally an advantage in China, where large state-owned companies dominate industries from banking to energy. In express delivery, however, smaller has proven to be better.
Some industry watchers say the next phase of development will see a move towards reliability, service and specialisation instead of low cost. That will weed out many of the smaller companies and benefit the larger ones, including foreign firms.
