"Alibaba targets logistics growth in Latin America as China trade slows Cainiao, Alibaba's logist...

"Alibaba targets logistics growth in Latin America as China trade slows

Cainiao, Alibaba's logistics arm, is traveling far from home to expand its business. The company recently launched its first parcel distribution center in Brazil, adding to its regional network of sorting centers in Mexico and C"
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"hile, the company said on Monday.

Alibaba's e-commerce business in China has been hampered by a combination of a cooling economy and aggressive rivals like Pinduoduo. For the first time, the company did not release sales counts for its annual ""Singles Day"" shopping festival, which fell on Nov. 11 and used to be a Super Bowl-like gala featuring pop idols and Jack Ma himself.

Cainiao has been accompanying AliExpress abroad, helping the Alibaba-owned cross-border market deliver Chinese products to consumers around the world. But it is now ramping up domestic services in some countries, hoping to turn local retailers into its customers. Earlier this year, the logistics giant began providing express courier service in Brazil, which now covers over 1,000 cities.

The new facility in Brazil is scheduled to further increase Cainiao's presence in the country. The plan is to open nine more distribution centers in seven states and install 1,000 “smart closets” in ten cities over the next three years.

Smart lockers, which allow customers to pick up their e-commerce packages, have become a common sight in China. It prevents couriers from going up and down buildings to deliver to people's doors and helps reduce human contact during times of COVID-19. In Brazil, Cainiao intends to use the infrastructure for intra-urban and cross-border logistics services, as well as food delivery in the future. One of Cainiao's Smart Locker customers is Piticas, a retail franchise focused on geek and pop culture products.

“Our consumers can buy online and receive their orders in a few days. In the future, we look forward to cooperating with Cainiao to utilize their smart cabinets, which gives our customers more pick-up options, as well as imports from China to Brazil, further increasing the efficiency of our supply chain,” said Vinicius Rossetti, Piticas CEO, in a statement.

Cainiao also wants to help Brazilian traders export products like coffee, nuts and propolis to China, reversing the traditional trade route. The company currently operates eight weekly charter flights between China and Brazil and plans to add more air and sea routes between the countries.

In July, Cainiao opened its sorting center in Israel, bringing the number of overseas sorting centers in use to ten at the time. As of June, Cainiao had more than 7,700 smart cabinets in operation across Europe. The logistics unit accounted for about 5.6% of Alibaba's revenues in the three months ending in June.

https://teg6.com/76833/noticias/alibaba-visa-crescimento-logistico-na-america-latina-com-desaceleracao-do-comercio-na-china/
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