Chinese logistics firms to follow Alibaba’s Indian ecommerce route

All eyes are glued on Alibaba’s entry into the Indian ecommerce industry, which was reported to be anytime in 2016. This development would definitely change the current leadership board but it has also opened up opportunity for other related and supporting industries of ecommerce.

One such industry is the logistics & delivery sector. Alibaba’s logistics partners, back in its home country China are looking to gain entry in the Indian ecommerce world along with the etailer.

To partner with local logistics firms

Alibaba has started assembling its India core team, including its logistics unit. The etailer has already tied-up with Allcargo and Mypacco. And Indian logistic companies are more than eager to get Alibaba’s business.

But Chinese logistics firms are looking at India’s market to increase their revenue and global reach. As per reports, TTK Express, YTO Express and STO Express are in talks with Indian counterparts to form strategic partnership.

“They have been exploring opportunities to enter India. Many Chinese ecommerce companies from small to Alibaba have already started deliveries in India,” revealed one source.

China’s ecommerce invasion

Thanks to Paytm and Alibaba, many Chinese sellers and products are spreading their presence in the Indian ecommerce market. Flipkart too has roped in vendors from the neighbouring country.

Now that the logistics players too are crossing the borders, how will it affect ecommerce-centric delivery firms’ business? The long-term goal of these Chinese players is also not clear at this stage.  And is there enough room, with Flipkart’s Ekart along with many other national firms already fighting hard for some space?

“I think SF (Express) and all are relevant in the Indian scheme of things. Whether it is YTO or ZTO, they will have an Indian presence or will need to have investment in domestic companies if they want to have a play in the Indian market. People have been meeting, but I am not sure whether it is more from the strategic investment point of view or now probably to have own setup,” according to TA Krishnan, CEO of Ecom Express.