<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a545164f-f7d5-4855-adab-96786e8fb297.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a545164f-f7d5-4855-adab-96786e8fb297.png"/> Author | Huang Yu
Editor | Zhou Zhiyu
In the largest shopping mall in Kuala Lumpur, the capital of Malaysia, a store from a leading Chinese trendy toy brand is bustling with customers.
“To get rich, first build the road.” Having crossed the ocean to a foreign land, this trendy toy company must ensure stable supply for its local store, which relies on a flexible, responsive, and efficient logistics system behind it.
According to Wall Street Insight, the logistics service provider chosen by this leading trendy toy brand in Malaysia is Cainiao. Near Kuala Lumpur, Cainiao has the largest overseas self-operated warehouse in Southeast Asia, which has a dedicated trendy toy area that is locked and monitored for security.
“Many customers are queuing to enter the warehouse now,” Bruce, the country manager for Cainiao Global Supply Chain - Singapore &amp; Malaysia, revealed to Wall Street Insight. The demand from brand overseas customers is rapidly shifting from cross-border direct mail to overseas warehouses, driving its local business volume to grow several times since the beginning of this year.
This scene is a microcosm of the new global logistics front: as Chinese companies shift from “selling goods” to “brand localization,” overseas warehouses that can reduce logistics time from 10 days to next-day delivery have become a battleground.
In this land grab, cross-border players like SF Express and J&amp;T Express are engaged in close combat with international logistics giants, but Cainiao, which originated from Alibaba, is a more core force. This smart logistics unicorn, while serving as the “backing for Alibaba e-commerce,” focuses on “international” and “technology,” aiming to build a truly globalized and market-oriented logistics network.
The turnaround of Cainiao marks a symbolic event in the collective “going overseas” of the Chinese logistics industry seeking new growth poles. In the context of fierce competition and limited growth space in the domestic market, international logistics, accompanied by the rise of cross-border e-commerce, has become a “must-have option” for all leading players. As they accelerate the output of the digital capabilities and “Chinese speed” honed in the Chinese e-commerce era, a competition led by Chinese logistics power, aimed at reshaping global supply chain service standards, has already begun.
<h2>Guardians of Brand Going Overseas</h2>
A significant characteristic of the new round of Chinese enterprises going overseas is the aim to build global brands. A consensus in the industry is that “globalization is localization,” and choosing overseas warehousing has become an important measure to promote localization.
Overseas warehouses refer to storage facilities where multinational companies transport goods to the target market country through bulk shipping, establish or rent warehouses locally for storing goods, and perform sorting and shipping operations directly from the warehouse based on local sales orders.
Cainiao's capabilities in the overseas warehouse chain are comprehensive: from domestic customs clearance and sea freight to local warehousing and last-mile delivery, forming a complete closed loop to help enterprises achieve overseas outbound logistics.
Bruce pointed out that by establishing overseas warehouses in target markets, logistics efficiency can be significantly improved, allowing for same-day or next-day shipping after the consumer places an order; whereas cross-border direct mail takes at least several days or even longer
For larger brands, the overseas warehouse model offers a better customer experience, with efficient and stable fulfillment that can support sales growth.
Cainiao's overseas warehouses significantly shorten logistics times. It is reported that when merchants stock up domestically, after customers place orders, shipments from China to the final destination, even by air, take 5 to 10 days to reach Germany. Now, by stocking in overseas warehouses in advance, packages sent to Berlin can be delivered the next day or within two days after leaving the warehouse, comparable to local logistics efficiency. Cainiao's 2-3 day delivery service covers most regions in Europe, America, and Asia-Pacific.
In a sense, logistics service businesses engaged in overseas warehouse operations can be seen as guardians of corporate brands going global. Bruce mentioned a Chinese snack store brand that ventured overseas for the first time in early 2023, initially unaware of customs clearance, warehousing, and distribution, and even unsure whether to choose self-operated or franchised models.
After understanding the needs of this company, Cainiao provided a complete solution based on its knowledge of the Malaysian market and assisted in resolving customs clearance and distribution compliance issues. It is reported that this snack store brand quickly opened stores in over 30 large shopping malls in Malaysia, with rapid business growth.
Overseas warehouses are an important infrastructure for Cainiao's global supply chain business. Currently, Cainiao operates over 40 overseas warehouses in 18 countries and regions across Europe, North America, and Asia-Pacific.
It is worth mentioning that Cainiao's Asia-Pacific supply chain covers 10 core countries and regions, including Singapore, Malaysia, Thailand, Indonesia, the Philippines, Japan, and South Korea, providing local B2C and B2B warehousing and distribution services for global brands and Chinese companies going overseas, making it the logistics company with the widest coverage of warehousing and distribution networks in the Asia-Pacific region.
<h2>Land Grabbing in Malaysia</h2>
Recognizing the strong demand from Chinese companies going overseas for overseas warehouses, Cainiao quickly responded and accelerated the establishment of local warehousing networks overseas in the past two to three years, with Malaysia being one of the key battlegrounds viewed as a hot spot for Chinese enterprises going global.
Bruce was sent by Cainiao Group to Malaysia to explore the market in January this year.
He told Wall Street Insight that Cainiao has the largest local self-operated warehouse in Southeast Asia in Malaysia, covering tens of thousands of square meters, located near Kuala Lumpur, with convenient transportation linking Port Klang and the core area of Kuala Lumpur, achieving delivery within 1-3 working days across the West Malaysia Peninsula, with end delivery covering all of Malaysia and Brunei.
This warehouse provides enterprises with online and offline full-scenario distribution channel delivery and inventory allocation management, serving clients including Chinese brands going overseas and local fast-moving consumer goods companies. Current clients include Alibaba's Lazada platform, leading domestic trendy toy brands, clothing, beauty, and daily chemical brands, and merchants.
Cainiao's capability in smart logistics is also reflected in this warehouse in Malaysia. It is reported that the warehouse is equipped with intelligent storage, smart assembly lines, intelligent wave operations, and rotating ladders, as well as a separate area for high-value items with independent electronic locks, plus 24/7 surveillance cameras to ensure the safety of high-value products and efficiently guarantee the safe entry and exit of goods within 48 hours
Bruce stated that the overall technical level of this warehouse is leading in Southeast Asia.
&#34;When I first arrived, only half of this warehouse was in use, and now it is completely full, with very strong customer demand.&#34; Bruce revealed that Cainiao now has three overseas warehouses in Malaysia, part of which comes from taking over old customers, and another part is developed by itself; meanwhile, the overall business volume has increased significantly, especially with a noticeable growth in third-party customers.
It is reported that some of the new customers for Cainiao come from other logistics service providers, while others are newly developed through its local sales team. &#34;Currently, many customers are actively seeking cooperation with us, especially Chinese brands going overseas,&#34; Bruce said.
Due to the huge market demand, Cainiao is still in a rapid expansion phase in Malaysia, and there are plans to open more overseas warehouses. Cainiao has a dedicated warehouse selection team here, which has over ten years of relevant experience in China and has been working in Malaysia for two to three years, with the team size increasing year by year.
Bruce pointed out that Cainiao's competitors include local and international logistics companies, as well as cross-border logistics players like SF Express and J&amp;T Express, but Cainiao's market competitiveness in Southeast Asia can rank in the first tier, with overall pressure being relatively low.
Regarding the competitive advantages of Cainiao's overseas warehouses in Malaysia, Bruce believes that, firstly, the high-quality services provided by Cainiao in China have accumulated a good brand reputation; secondly, there is an advantage in warehouse location, as Cainiao's warehouses in Malaysia are close to transportation hubs, about a 20-30 minute drive from the city center, ensuring high delivery efficiency; in addition, Cainiao has built a mature local team to ensure a complete service process, guaranteeing timeliness and experience.
<h2>Ambition for Global Logistics</h2>
Overseas warehouses are just part of Cainiao's global smart logistics network.
Under the vision of &#34;global delivery within 72 hours,&#34; Cainiao's development has now entered the 3.0 stage, committed to building a truly globalized and market-oriented logistics network, covering cross-border logistics, local express delivery overseas, global supply chains, and logistics technology, with overseas warehouses categorized under the global supply chain business segment.
Like the mission of the entire Alibaba Group, Cainiao also aims to &#34;make it easy for anyone to do business anywhere.&#34;
Back in 2013, Cainiao was jointly established by Alibaba, Intime Group, Fosun, Fuchun Holdings, and the &#34;Three Links and One Reach&#34; companies, initially to meet the logistics service needs of buyers and sellers on the Alibaba e-commerce platform, serving as a logistics information intermediary.
Therefore, the first phase of Cainiao was positioned as a platform-based logistics technology company, with its business more focused on the domestic market.
Entering 2018, Cainiao entered a new development phase, successively acquiring and integrating four delivery companies and two warehousing operation companies, diving into direct logistics services and undergoing industrial transformation. It was also during this phase that Cainiao deeply engaged in the operation of physical logistics, laying the groundwork for a global logistics network.
This is because Cainiao found that after basically completing the digital transformation phase, express logistics needed to further adapt to the rapid changes in e-commerce forms and provide more innovative solutions. Therefore, Cainiao increased the industrial operation of logistics based on digitalization
At this stage, Cainiao's strength continues to grow, even reaching a point where it has the capability to &#34;fly solo.&#34;
According to data from ZhiShi Consulting, based on parcel volume in 2022, Cainiao is the world's leading cross-border e-commerce logistics company and has the largest logistics network globally in terms of geographical coverage. Meanwhile, according to the Hurun Research Institute's &#34;2023 Global Unicorn List,&#34; Cainiao ranks among the top ten global unicorns with a valuation of 185 billion yuan.
In the context of fierce competition and limited growth space in the domestic logistics industry, international logistics, which is booming alongside cross-border e-commerce, is the core for logistics companies to further expand their market space.
Against this backdrop, Cainiao is also accelerating its move into the third development stage. At the 2023 Global Smart Logistics Summit, Alibaba Group emphasized that one of the important directions for Cainiao's future development is &#34;focusing on the global market and building a global logistics network.&#34; This year, the milestone &#34;Global 5-Day Delivery&#34; product was rapidly launched.
At the same time, marketization has become the &#34;main theme&#34; of Cainiao's development. At the 2024 Global Smart Logistics Summit in September last year, Cainiao Group CEO Wan Lin clearly stated: &#34;Cainiao will continue to expand its global logistics backbone network, serving not only Alibaba's e-commerce but also the open market.&#34;
To meet the needs of cross-border e-commerce companies for efficient overseas expansion, Cainiao continues to invest and has established a global smart logistics network with end-to-end capabilities, now possessing the largest cross-border logistics warehouse network in the world.
After two years of internal transformation and &#34;convergence and focus,&#34; Cainiao's strategic direction has become increasingly clear, with &#34;international logistics&#34; and &#34;technology&#34; as the two main lines. In the future, Cainiao aims not only to become a promoter of the global logistics network, serving global merchants and brands, but also to continuously enhance its technological capabilities and export its logistics technology capabilities globally.
A 12-year major cycle, Cainiao, which once primarily served Alibaba, is expected to grow into a more market-oriented global logistics giant in the next 12 years, relying on its &#34;e-commerce&#34; and &#34;technology&#34; genes.
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菜鸟智慧物流网络有限公司

In the post-Alibaba era, Cainiao Logistics is accelerating its expansion into global markets, particularly with significant business growth in Malaysia. As Chinese companies transition towards brand localization, overseas warehousing has become crucial, reducing logistics time from 10 days to next-day delivery. Cainiao has established self-operated warehouses in Southeast Asia to meet the needs of brand-exporting clients, driving substantial growth in local business volume. The Chinese logistics industry is collectively "going global," reshaping global supply chain service standards with digital capabilities and "Chinese speed."

- A leading Chinese toy brand is thriving in Kuala Lumpur, supported by a robust logistics system provided by Cainiao.  
- The demand for overseas warehouses is surging as brands shift from cross-border direct mail to local fulfillment, significantly enhancing delivery efficiency.  
- Cainiao's expansion in Malaysia, with over 40 overseas warehouses globally, positions it as a key player in the competitive logistics landscape, aiming to build a truly global logistics network.

In the post-Alibaba era, Cainiao accelerates global customer acquisition