FedEx In China

FedEx China Expands B2B Services

The DTW Group will continue to operate the international freight forwarding, cargo transport and merchandise distribution businesses. Most of FedEx’s China-based shipments have been business-to-business, with the majority of express delivery packages shipped to or from 89 pickup and delivery locations covered by the joint venture network. Manufacturers in China are shifting factory locations further inland to escape rising labor costs in coastal regions. The FedEx international network currently connects more than 200 Chinese cities. The company plans to add 100 cities within the next few years. FedEx is now building a regional operations center in the southern city of Guangzho.

FedEx China Acquisition Has Government Approval

The Chinese government has made progress deregulating its market under World Trade Organization protocols. Reliable transportation networks such as those provided by FedEx China are critical to its development plan success. As wealth spreads throughout the country, freight transportation service areas must expand from major coastal cities, to inland cities in order to fuel growth and expansion. The acquisition does just that by providing FedEx customers access to cities outside the eastern seaboard like Wuhan, with twice the population of Los Angeles.

Chinese Economy Growth Impact On Small Business

According to Gene Huang, FedEx chief economist and a Shanghai native, the Chinese emerging middle class and growing consumerism will continue to seek goods and luxury items from the rest of the world. The company also hinted that it is examining the potential of package delivery to homes. As businesses relocate further inland, jobs and prosperity will move with them, opening an entire segment of the Chinese population to the Western world’s universe of products and services previously undreamed of.

The implication opens the door to small businesses eager to establish or strengthen market footholds in China. Assuming the Chinese middle class desire for Western goods continues to grow, it becomes imperative that all Western companies reinforce their presence by increasing advertising and developing marketing plans. This will require knowledge of the China Business culture, the rules for Doing Business In China, and China Business Travel.

FedEx History In China

• First express air carrier to operate in the market in 1984;
• First express carrier to directly serve China with its own aircraft in 1996
• Launched the industry's first direct flight from mainland China to Europe, March 2005
• Started first overnight express link between India and China, September 2005