Signs of Domestic Demand Recovery in China? ... Parcel Delivery Volume Approaches 100 Billion Units

Reached Milestone 71 Days Earlier Than Last Year
Monthly Average Shipments of 13 Billion Units... Monthly Revenue of 100 Billion Yuan

China's courier delivery volume reached 100 billion items 71 days faster than last year. Authorities emphasized that this reflects system efficiency improvements and domestic demand recovery.

According to the China National Postal Administration on the 13th, China's courier handling volume has reached 100 billion items this year, achieving this milestone 71 days earlier compared to last year. China's average monthly courier delivery volume reaches 13 billion items, with monthly sales exceeding 100 billion yuan (approximately 19.087 trillion KRW), all of which are record highs. The courier volume in July is estimated to have increased by 22% and sales by 16% compared to last year.

[Image source= Xinhua News Agency]

Wang Weihan, Director of the National Postal Administration, explained, "This impressive figure demonstrates the vitality and increased efficiency of China's courier industry, reflecting broad economic dynamism and resilience." Lu Zhenwang, founder of Wanching Commerce Consulting, told the state-run media Global Times (GT), "With purchasing power spreading in rural markets, China's courier market has rapidly developed," adding, "Improvements in logistics infrastructure have sped up delivery times, providing significant benefits to rural buyers." He added, "Previously, parcels ordered online took 3 to 5 days to arrive in rural areas, but now delivery times have been greatly shortened."

GT emphasized, "More than 1,200 prefecture-level public delivery service centers and over 300,000 village-level logistics centers have been established across China." It continued, "With close ties to manufacturing, rapid adoption of new technologies, and higher service quality, China's courier industry is evolving," further noting, "Capabilities are being strengthened through advancements in unmanned technology and expansion of air transport networks."

China's consumer market has shown slow recovery even after transitioning from zero-COVID to with-COVID policies. In June, China's retail sales increased by only 2.0% year-on-year, significantly below the previous month's 3.7% and the forecasted 3.3%. Since October last year, the only time the market exceeded expectations was in May (3.7%). July is expected to show some recovery, but market forecasts remain at 2.6%. Key indicators such as retail sales and industrial production for last month are scheduled to be announced on the 15th.