Alibaba’s Cainiao opens its LatAm headquarters in Brazil

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Alibaba's Cainiao opens its LatAm headquarters in Brazil
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Alibaba’s logistics arm, Cainiao, has installed lockers in Brazil for local customers to pick up their packages.

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BEIJING – Ali Baba’Cainiao’s logistics arm announced on Monday the opening of its Latin American headquarters in Sao Paulo, Brazil.

The expansion comes as China’s retail growth slows – Alibaba for the first time did not release total sales for its flagship Singles Day shopping festival which ended on Friday. The company’s international e-commerce platform, AliExpress, recently turned its attention to South Korea and Brazil, in addition to a years-long attempt to break into Europe.

Cainiao ships most AliExpress orders from China to Brazil, the company said, saying it operates eight charter flights a week between the countries.

Low-cost drones and Bluetooth headphones are among the most popular products with local customers, the company said.

The logistics business, which also operates in China, accounted for 6% of Alibaba’s revenue in the quarter ended June 30.

Cainiao also works with local merchants in Brazil. The company officially opened a parcel sorting center in the country on Monday, following the October launch of sorting centers in Mexico City and Santiago, Chile.

The company says its local express delivery network covers more than 1,000 cities in Brazil, with one-day delivery to customers in Sao Paulo and some other cities.

Three-year plan

Over the next three years, Cainiao said he plans to set up an additional 1,000 lockers in 10 cities across Brazil for delivering packages and food. The company also announced plans to launch nine more fulfillment centers in seven states in Brazil.

Cainiao said its expansion will also help Brazilian companies sell products such as coffee, nuts and propolis – a health product – to Chinese consumers through Alibaba’s Tmall e-commerce platform.

Alibaba’s logistics arm, Cainiao, has installed lockers in Brazil for local customers to pick up their packages.

cainiao

Alibaba took majority control of Cainiao in 2017. The logistics arm still ships and does business with other companies — most of Cainiao’s revenue comes from those third parties, according to a financial disclosure.

In the quarter ended June 30, revenue from the logistics business rose 5% year-on-year to 12.14 billion yuan ($1.71 billion).

By contrast, Alibaba said revenue from its international retail business this quarter fell 3% year-on-year to $1.57 billion, mainly due to difficulties in the European market. China trading, by far the company’s biggest business, saw revenue fall 2% to $20.45 billion.

Alibaba is expected to release its quarterly results on Thursday.

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