For several years, trade between China and the western world has largely involved cheap exports from China. However, a large Chinese middle class has emerged in recent years and with it, demand is rising for relatively expensive products produced in Europe.
PostNord helping e-retailers
Against this background, since early 2014 PostNord Denmark has actively worked to help Danish e-retailers begin selling on the Chinese market, for example through the e-commerce platform ULE, from which e-retailers can sell directly to consumers in China.
Danish logistics players in China have noticed PostNord’s initiative, and PostNord Denmark has signed parcel agreements with several of them.
50 tons of products per week
The fact that more and more products produced in the west are being sold to China is also clear from the quantities PostNord sends from Copenhagen’s airport. On average, up to 50 tons of products are shipped per week, compared with last year, when 30 tons were shipped per month.
The volumes are from both Denmark and Sweden, as all Swedish parcels being sent to China go through Copenhagen. “The growth we’re seeing now is a unique success story,” says Head of International Post, Production Development in PostNord Denmark, Mette Boisen.
She adds that more affluent consumers in China consider it very prestigious to buy goods from Europe. It could be anything from design products to powdered milk for families with children.
All shipments to China are packed at the international post center, or INC, at Kastrup. The products are placed in special containers that are suited for flight.
Working with an EU offer
PostNord is currently working with an EU offer on mail transports by flight. The new agreement applies for a two-year period with the option for an additional three years. “We are a compelling partner, partly because of the large volumes we handle and partly because of our reputation as a reliable partner. That makes us strong in negotiations for new contracts,” says Mette Boisen.
She expects shipments of goods to China to increase even more, and predicts the next parcel boom will arrive in conjunction with Chinese New Year in early February 2016.