China delivers on express shipment (2)

A report from the Boston Consulting Group has suggested that China is likely to surpass the United States to become the world's biggest online retail market in 2015, a year in which the country's online retail sales are expected to be worth more than $360 billion.

The Chinese e-commerce giant Alibaba Group Holding Ltd has taken to holding an annual "Singles' Day" promotion on Nov 11 every year. On the day last year, its two online shopping arms, Taobao.com and Tmall.com, recorded 19.1 billion yuan in sales.

But the surge in e-commerce transactions has resulted in difficulties for Chinese courier companies.

Da Wa, secretary-general of the China Express Service Association, said domestic demand for express services will far exceed the supply for at least the next five years.

Daniel Zhang, president of Tmall.com, said in an interview with China Daily last year that the combined number of packages ordered on peak days from Tmall.com and Taobao.com could even "exceed the total number of packages that Chinese courier firms can handle in a single day".

Ma at State Post Bureau said China is trying to build a modern postal industry.

"The revenue from the domestic express industry is expected to triple in 10 years by 2020," he said. "But we should first improve the quality of the service."