Boom In Trade and Investments in Transportation Spur Growth of 3PL Markets in the Chinese Retail Sector.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c47801) has announced the addition of Frost & Sullivan's new report: Strategic Analysis of 3PL Markets in the Chinese Retail Sector to their offering.

This Frost & Sullivan research service titled Strategic Analysis of 3PL Markets in the Chinese Retail Sector provides an overview of the 3PL market in the Chinese retail sector, analysis of the various segments of retailing and their logistical needs, along with an analysis of key market drivers, restraints and trends that are impacting the 3PL market in the retail sector. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following sectors in retailing: apparel and fashion retailing, food and grocery retailing, furniture retailing, home electrical appliance retailing, and multi-segment retailing.

Market Overview

Since the accession of the World Trade Organization (WTO) in 2001, China has opened up its retail market and correspondingly increased the trade volumes between China and the rest of the world. This has led to increased foreign investments in transport, warehousing, freight forwarding and other services, since the restrictions to operate in the logistics industry have been disappearing. "By efficiently tackling the challenges of skilled manpower and geographical diversity, third-party logistics (3PL) service providers can emerge successful in the Chinese retail sector," cites the analyst of this research service. "They need to develop strategic partnerships with retailers and fully capitalize the market which is fully liberalized and open."

The retail industry is a major contributor to the nation's growth with the organized retailing constituting almost 30 percent of the entire retail market. Therefore, organized service providers, both multinational and domestic, need to tackle the price competition from the small unorganized participants, and further improve their expertise to expand their presence in the retail sector. Apart from the increasing penetration of multinationals, the 3PL activity is gaining momentum also due to the need for integrated logistics solution offering, competitive advantage through leaner supply chains, opening more towards outsourcing to focus on core competencies, and benefit from cost savings. As retailers are beginning to realize these benefits, significant growth of 3PL markets is imminent.

Government Support in Developing Infrastructure Encourage the Presence of 3PL Service Providers

As eastern and southern parts of China already have in place robust road and rail network, central and western parts are currently witnessing infrastructure improvements to ensure an operating environment that is conducive for logistics service providers. This is essentially facilitated through the Government incentives. More than 80.0 percent of the investment is directed toward transportation to develop a more integrated network of highways, railways, airports and ports. Logistics parks and distribution centers offering services such as freight management, warehousing, and inter-modal services are likely to be developed in cities such as Guangzhou, Shenzhen Beijing, Shanghai, Tianjin, Wuhan, Chongqing and Dalian. The Government is also seeking to computerize and link these parks nationwide.

"There is increasing adoption of 3PL services to achieve economies of scale in the wide geographic extent of the nation, as well as to tackle the multiple and varying jurisdictions in the several provinces," observes the analyst. "Hence, it is crucial that service providers are familiar with local jurisdictions, which vary with provinces so that the uniformity in their service offerings is maintained."

For more information visit http://www.researchandmarkets.com/reports/c47801