Image Source : China Visual

BEIJING, November 14 (TMTPOST) — Cainiao Network, the logistics arm of Alibaba, plans to establish 9 distribution centers in the next three years in Brazil, according to its announcement on Monday.

The company is going to expand its local logistics network in Brazil through the creation of nine distribution centers, which cover key southeastern states in the southern American country. It's going to deploy 1,000 groups of smart express boxes in the top 10 cities of Brazil for serving cross-border parcels, same-city delivery, takeaway errands, and other businesses.

"We are optimistic about the huge development potential of e-commerce in Brazil, and have worked out a diversified logistics solution of cross-border and local logistics to serve sellers in China and Brazil," said Cainiao.

Latin America's e-commerce market has grown rapidly in recent years. Blacktip, a Latin American e-commerce consulting firm, reported that e-commerce sales in Latin America reached $115 billion in 2021, a 37 percent increase from last year. According to a survey released by e-commerce intelligence firm Neotrust, total e-commerce revenue in Brazil exceeded 161 billion reais ($30.23 billion) in 2021, up 27% year on year. The survey also revealed that e-commerce orders in Brazil grew by 17 percent in 2021.

"Our research shows that many Brazilian companies are constrained by expensive logistics equipment," said Cainiao. The Brazil São Paulo distribution center has been officially put into use, equipped with China's intelligent parcel-sorting equipment. After Cainiao's self-developed overseas distribution system is employed, the parcel sorting rate is expected to increase by more than 40%. The Cainiao express warehouse distribution network has covered the whole territory of Brazil. It takes an average of two to three days for delivery after local orders are placed, and only one or two days for delivery to core cities such as São Paulo.

According to Cainiao, the company has been engaged in local express logistics in Brazil since 2022, serving local brand merchants. Before that, Cainiao mainly targeted AliExpress merchants, providing cross-border logistics services from China to Brazil.