On March 8, Alibaba’s Cainiao logistics arm announced the opening of its LatAm headquarters in São Paulo, Brazil. The announcement comes just one year after the e-commerce giant bought 50% of Loggi, Brazil’s third largest delivery service. Cainiao aims to take advantage of Brazil’s e-commerce and delivery sectors, which were worth around US$11 billion in 2016 and are expected to grow nearly 20% by 2019, making it one of Alibaba’s fastest growing markets.
TAIPEI — The launch of Cainiao, Alibaba’s logistics divisionLatin ,’s American headquarters in Sao Paulo, Brazil, was announced on Monday.
The development in retail in China is slowing, and Alibaba, for the first time, withheld information on overall sales for its famous Singles’ Day shopping extravaganza, which ended on Friday. In addition to a long-running effort to expand into Europe, the company’s international e-commerce site AliExpress recently turned to South Korea and Brazil.
According to the firm, Cainiao transports the majority of AliExpress purchases from China to Brazil through eight weekly charter aircraft.
According to the business, inexpensive drones and Bluetooth headphones are among the top goods for local clients.
Alibaba’s revenue for the three months ending June 30 was 6% accounted for by the logistics sector, which also operates in China.
In Brazil, Cainiao also collaborates with regional retailers. Following the opening of sorting facilities in Mexico City and Santiago, Chile in October, the business formally unveiled a package sorting facility in the nation on Monday.
With one-day delivery to consumers in Sao Paulo and certain other areas, the firm claims that its local express delivery network in Brazil spans more than 1,000 cities.
Three-year plan
Cainiao stated that it intends to install 1,000 more lockers for package and food delivery in 10 Brazilian cities during the following three years. The business added that it intended to open nine additional distribution locations in seven Brazilian states.
According to Cainiao, the company’s growth would enable Brazilian companies to sell products including coffee, almonds, and propolis, a health supplement, to Chinese consumers through Alibaba’s Tmall e-commerce website.
In 2017, Alibaba acquired a controlling stake in Cainiao. According to a financial declaration, the logistics division still completes shipments and conducts business with other organisations. In fact, the majority of Cainiao’s revenue comes from these third parties.
Revenue from the logistics business increased by 5% year over year to $12.14 billion yuan ($1.71 billion) in the quarter that ended on June 30.
In contrast, Alibaba said that difficulties in the European market were mostly to blame for a 3% year-over-year decline in sales from its international commerce retail sector during that quarter, to $1.57 billion. The company’s biggest segment by far, China trade, had a 2% decline in revenue to $20.45 billion.
On Thursday, Alibaba is expected to announce its quarterly profits.
