PRESENTED BY:

CHITRASEN SINGH
CHANDRASHEKHAR SINGH
RAHUL TIWARI
POONAM NAIK
AMEY SANKHE
 INTRODUCTION
FedEx - World’s Largest logistics service provider & first
international logistic company to offer money back guarantee
in China

UPS – US based United Parcel Service, package delivery

company; delivers 15 million packages a day in more than
200 countries

As per Chinese legal regulations, foreign logistics management

companies including FedEx and UPS could do business in China only
through a partnership or JV
 FEDEX ENTRY IN CHINA
Adopted an aggressive approach

Invested heavily in procuring air – routes and in developing its own

aircrafts within and outside China for shipping goods

Vast Distribution Network across China

FedEx commenced operations in Memphis in April 1973 and entered

China in 1984 by acquiring Gelco Express International

Focused on MNC’s which had Chinese operations and were already

FedEx customers and also targeted Chinese entrepreneurs

Invested $ 67.5 million to acquire Evergreen International Airlines

 TARGETING CUSTOMERS
Solving all Shipment related problems of customers

Asia One & North American next day services

Investment made
FedEx was having its own Aircraft whereas UPS was
having space that it leased in aircraft
LOGISTICS INDUSTRY IN CHINA
China’s air Cargo market was fifth Largest in the world and during 90’s China’s demand
for time definite express freight was projected to grow by 20% per year till 2002

By 2000, competition in the logistics industry in China had

intensified
UPS decided to follow a more aggressive approach to expand its market
presence in China

November 2000 , the US Department of Transportation granted UPS air rights to operate
direct flights to China

FedEx announced an additional flights to its existing fleet of 11 Aircrafts

FedEx also stated its plans to inaugurate new infrastructure facilities in 4

Chinese states
 Contd…
In May 2001, UPS launched an advertising Campaign developed by reputed
advertising agency McCann Erickson --- “Brown Survey”

In association with OMD ,FedEx started sponsoring popular TV shows in

China during Mid 2001, like “Who wants to be a Millionaire?”

In April 2002, UPS launched an intra – Asia hub at Philippines and also had an
advertising Campaign titles “Asia” showcasing UPS as an logistics solutions
provider

In September 2002,FedEx planned to further improve its services in Southern China

by upgrading the aircraft servicing Shenzhen from DC – 10 to an MD - 11
 UPS post 2003
UPS took an ownership position in Sinotrans and
also became the first foreign carrier to form a
partnership with a domestic Chinese air carrier,
Yangtze River Express, cutting a day off delivery
times.” UPS Press Release June 18, 2004

In 2004, the United States signed a new aviation

agreement which allowed a five fold increase in air
cargo capacity between the two countries over the
next six years
 FedEx post 2003

• On September 2, 2003, FedEx launched its first direct flight

from Shenzhen to its hub in Anchorage, Alaska to keep up
with increasing demand in South China region.

•  "For China to sustain the kind of growth we have seen in the

last five years, it is essential that it establishes stronger links
to the economies of Europe and the United States." FedEx
Express Asia Pacific Division President David L. Cunningham
Jr., 2003

• FedEx plans to move hub to China after 2007.