Viewpoint | Intelligent Investment

China Cross-border E-commerce Warehouse Demand and Outlook

November 12, 2024 15 Minute Read

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  • Over the past two years, China’s leading cross-border e-commerce platforms Shein, Temu, AliExpress and TikTok Shop, collectively known as the “four little dragons”, have rapidly gained global market share on the back of their competitive pricing; effective supply chains; innovative marketing campaigns; and attractive purchasing experience.

 

  • While this has resulted in a surge in warehouse demand in South China, it has also led to some debate over whether current expansionary momentum is sustainable or even replicable in other markets. Barriers to growth include trade conflict; transformation of business modes; limits on airline capacity; and e-commerce platforms’ development of self-built warehouses, all of which could weigh on future leasing demand.

 

  • This CBRE report analyses the logistics warehouse site selection and real estate strategic planning of China’s cross-border e-commerce platforms by assessing their business and supply chain models.