CRI听力:Express Delivery Industry in China Faces Transformation

Express deliveries grew more than 43 percent in the first half of 2015, compared with the same period last year.

According to head of China's State Post Bureau, about 14 billion parcels were delivered in 2014, up 52 percent.

Song Guowei is a courier who has been in the express delivery industry for three years.

He says more people are using this service and he is sending more packages on a daily basis.

"I send about 100 packages every day. The volume will double during days where promotions are taking place. Now, it is not only young people who purchase goods online. Old people also like online shopping."

The express delivery industry has appeared in government reports for two consecutive years since 2014, and is called the "dark horse" of the economy.

Chinese Premier Li Keqiang has said the industry creates jobs and stimulates consumption.

Shao Zhonglin, former deputy secretary general of the China Express Association, says the continuous growth of express delivery industry is accelerating the integration of urban and rural areas.

"Since 2014, express service points have increased by over 50-thousand, mostly located in rural areas. The service network has covered about half of the country's rural areas. We expect the network to cover all villages and towns by 2020, so that people living in the countryside can buy high-quality goods from all over the country, and at the same time sell native products to the other parts of the country."

Despite rapid development of the industry, many managers are planning ahead and taking precautions due to fierce competition and dropping profit.

Yu Lianbing, president of UC Express, a Chinese express company, says many companies are thinking about transformation to better adapt to the current situation.

"The overall profitability of express companies is declining due to factors like rising rents and manpower cost. Many factors are pushing large express companies to transform to integrated logistics service provider, medium-sized companies more specialized, and small companies more personalized. "

China has over 8-thousand express delivery companies, with almost 6 million workers employed in the industry.