Cainiao Network signs Watsons for swift deliveries

Hong Kong-based drugstore chain Watsons has become the first multinational retailer to sign on to Cainiao Network’s “ship from store” service, which delivers in as fast as two hours by fulfilling online orders at the store nearest the consumer.

The service is available to users of Alibaba Group’s B2C shopping site Tmall who live within a 3km radius of a Watson’s store. Similar to Hema supermarket, shoppers simply choose a location for fulfillment, then the store’s staff collects the items for a courier to pick up and deliver.

Chinese consumers typically expect delivery of online orders within three days, but the merger of online and offline commerce, which is the main driver behind the New Retail innovations springing up in China, has prompted a demand for instant distribution, says Cainiao president Wan Lin.

“The ways technology has enabled commerce has accelerated a fundamental change in the logistics sector,” he says. “Linking online with offline, couriers have shortened the way we calculate delivery times from days to minutes.”

More than 200 Watsons stores in Shanghai, Guangzhou, Shenzhen, Hangzhou and Dongguan offer the service. The plan is to eventually expand nationwide to 3000 Watsons branches in more than 430 cities. Until now, only domestic retailers such as Alibaba-owned Intime department store and packaged-food chain Zhou Hei Ya partnered with Cainiao for “ship from store” fulfillment in China.

Cainiao launched the service in January as a way to improve the shopping experience for consumers while allowing retailers to effectively use their inventories for both online and offline channels. Coverage now extends to 400 stores in about 30 cities in China, including Beijing, Xian, Suzhou, Dalian and Kunming. Orders using the service increased tenfold in those three months, the company says.

Cainiao is planning for even more growth for the service. The company says “ship from store” will soon grow beyond fast-moving consumer goods and food to the fashion and apparel sector.

●  This story originally appeared on Alizila.com, the independent but Alibaba-funded source of news on Alibaba Group activities.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.