After much speculation about the European locations Alibaba wants to target with its logistics subsidiary Cainiao Network, the bullet now seems to be in the bag. The Chinese e-commerce giant has its eye on Liège. Near Liège Airport, it wants to build a large distribution centre.
Prime Minister Charles Michel announced the news, after which it was confirmed by Alibaba itself at the Global Smart Logistic summit, according to Belgian newspaper De Tijd. The logistics centre will serve as a hub for the rest of Europe. Cainiao Network has long been handling e-commerce shipments via the Liège airport. Placing a European hub here is expected to significantly increase the number of flights between Asia and Liège Airport.
Alibaba focuses on Europe
The move underlines Alibaba's focus on Europe and the Benelux. It has had an office in the Netherlands since 2016, serving both the Dutch and Belgian markets. The internet giant aims to not only ship goods from China to Europe, but also vice versa. Chinese consumers can get products from the West through Alibaba.
Deliver within 72 hours
Alibaba lures online shoppers worldwide by offering products at very low prices. In return, customers have to wait a bit longer for their packages. In some cases, the delivery time goes up to a month. With the arrival of international hubs, Alibaba seems to want to reduce that delivery time. Indeed, in addition to Liege, Alibaba is also planning to open a 'logistics hub' in Dubai, Hangzhou, Kuala Lumpur and Moscow. In a press release, it states, "In 30 cities in six regions, we already deliver products within five days. The goal of our new hubs is to expand that number of cities to 100 in the next three years. Our ultimate goal is to deliver packages anywhere in the world within 72 hours."
Boost for Belgian e-commerce sector
Earlier this week, German Wirtschafswoche speculated about an Alibaba logistics centre in Hamburg, Germany. That Liege will eventually play a role in this is a boost for the Belgian e-commerce sector. Last year, it was revealed that our southern neighbours are missing out on distribution centres and jobs because companies are placing their e-commerce DCs just outside the Belgian border. This way they avoid Belgian regulations on night work and labour costs, which tend to be more lenient in neighbouring countries. According to calculations by trade federation Comeos, Belgium is losing up to 15,130 jobs as a result.
