Cainiao express network has covered more than 1000 cities throughout Brazil, local orders after an average of 2 to 3 days delivery, Sao Paulo and other core cities can achieve the next day or even the next day;
Polar Rabbit has established a distribution network covering all 26 states and 1 federal district in Brazil, which is one of the few local express delivery companies with nationwide coverage except Brazil Post.
Keeta, a takeaway service owned by Meituan, entered the Brazilian market in May this year and plans to invest US $1 billion within five years to build a nationwide instant distribution network to provide Digital tools support for restaurant merchants;
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China investment in Brazil has topped US$66bn over the past 14 years, and market forecasts suggest China companies are on track to capture half of the country’s e-commerce market. Under this background, more and more China logistics enterprises accelerate the pace of layout in Brazil and achieve fruitful results.
In response, DHL, an international logistics enterprise, said that the partnership between China and Brazil covers a wide range of economic fields, from China enterprises entering the Brazilian market to deep market cultivation in the next few years, logistics plays an important role. For China logistics enterprises, Brazil is not only an expanding consumer market, but also an open innovation experimental field, which also makes it one of the main strategic destinations for China brand internationalization.
Of course, China logistics enterprises also face many challenges when expanding the Brazilian market. For example, cultural differences, the complexity of the business environment, the uniqueness of the regulatory environment, and the particularity of Brazil’s logistics landscape, with long transport distances and a primary reliance on land modes.
So, how can China logistics companies improve efficiency in Brazil? DHL made five practical recommendations:
First, optimize the utilization rate of storage structure. China logistics enterprises should give full play to the potential of distributed logistics structure and set up distribution centers and hubs in strategic areas outside the southeast. For example, by laying out distribution networks in regions such as the Northeast, it is possible to radiate the national market while optimizing costs and improving customer experience. Taking the automobile industry as an example, enterprises can focus on building a perfect inbound logistics (I2M) system to achieve high controllability, synchronization and quality assurance of direct supply of production lines.
The second is to choose flexible and adaptable local partners. China logistics companies can partner with logistics partners familiar with Brazilian market needs to ensure delivery accuracy, supply chain visibility and cost control. China enterprises are accustomed to adopting a pay-as-you-go cooperation model, which requires their partners to have flexibility to cope with fluctuations in business volume. Take DHL service a fashion e-commerce platform as an example, when the enterprise enters the Brazilian market, it needs to build an operation mode with the receiving center as the core. DHL tailor-made solutions to absorb fluctuating volumes, real-time operational adjustments, and operational stability and cost competitiveness even in the face of significant demand peaks within the framework of customer-required SLAs.
Third, establish a sound legal and regulatory support system. China enterprises need comprehensive support in Brazil’s legal, regulatory and tax fields, and choose logistics partners with rapid implementation capabilities. Transportation of goods within Brazil requires a large number of administrative approvals, and logistics service providers familiar with the local operating environment can help anticipate risks, guide strategic decisions, and customize solutions to specific market or regional needs to ensure compliance and operational efficiency.
The fourth is to adapt to the operational requirements of Brazilian e-commerce. Brazilian consumers are among the world’s most demanding e-commerce delivery timeliness. Sustainable growth in a market of more than 200 million people requires robust and well-planned logistics systems adapted to regional characteristics, but it is not enough to focus solely on consumer demand. It is also necessary to achieve the most accurate sales forecasts possible-including sales volume, category mix and inventory layout-and design optimal warehousing and transportation solutions. This is especially important during peak sales periods such as Black Friday. In addition, investment in technology and automation is increasingly becoming a key element in improving efficiency and controlling costs.
Fifthly, relationship and trust are the cornerstones of high-quality business cooperation. For Brazilian logistics partners, it is important to be prepared to deal with cultural differences in cross-border business dealings. In addition to adapting to the working styles and expectations of Chinese partners, business cooperation requires both parties to seek consensus on short-term working models and long-term trust building.
Industry experts said that with the continuous expansion of Brazil’s e-commerce market and the continuous deepening of China-Pakistan economic and trade, China logistics enterprises will accelerate the transformation from “network coverage” to “efficiency deep cultivation.” Relying on technology-enabled warehousing and customs clearance, combined with localization cooperation to solve compliance and infrastructure problems, head logistics enterprises are expected to gain more development space in Brazil market and become an important force for China-Brazil supply chain coordination.