On Friday, Cainiao, a logistics company owned by Alibaba, scheduled its first shipment for core equipment and components required for the construction of the upcoming distribution center in Pakistan from the port in Shanghai, China.
By the end of September this year, Cainiao will have built two intelligent express distribution centers for Daraz, an e-commerce platform in South Asia. The centers will be located in Karachi and Lahore, Pakistan and the Cainiao team will work in Pakistan for 4 months until the project is completed.
Cainiao has built hundreds of automated distribution centers of different scales in China while it has built nine national distribution centers in Europe, Asia and America. The project in Pakistan is its first deeply integrated distribution project in South Asia.
Daraz is a well-known e-commerce platform in South Asia. Established in Pakistan in 2012, Daraz operates in Pakistan, Bangladesh, Sri Lanka, Nepal and Myanmar, covering a consumer market of nearly 500 million people. As an emerging market for e-commerce, the strong consumer momentum in South Asia is also driving the rapid growth of Daraz’s business. Some data shows that the overall growth of the company has exceeded 85% in the past two years.
The rapid growth of Daraz has impacted its logistics systems and the new distribution center could help relax the pressure on the company’s logistics.
Cainiao is taking its logistics technology capabilities to overseas market. Before last year’s Double 11 Shopping Festival, Cainiao built an automated warehouse of the largest scale in Southeast Asia for Flash Express, the largest courier company in Thailand in terms of unit volume, helping Flash Express gain a competitive advantage.