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Alibaba Group
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April 28, 2015

Cainiao Launches Its Largest Supermarket Distribution Center in Eastern China

Targets next-day delivery to 25 cities

Hangzhou, China, April 28, 2015 - Cainiao (formerly known as China Smart Logistics), the logistic affiliate of Alibaba Group (NYSE:BABA), announced today that it has established the largest distribution center supporting Alibaba's supermarket sales in eastern China. The center will enable next-day delivery of groceries purchased online via Tmall Supermarket (chaoshi.tmall.com) in 25 cities in Jiangsu Province, Zhejiang province and Shanghai.

Located in the city of Jinhua, the new distribution center is currently in trial operation and will begin operating officially in July 2015. The 60,000 square-meter houses 1,200 employees and tens of millions of goods and is the fifth centre in addition to the ones in Tianjin, Suzhou, Shanghai and Guangzhou.

Cainiao has teamed up with supply chain management firm Best Logistics to optimize warehouse operation and management. An advanced cloud-based inventory tracking and management system employing WiFi and GPS is in place to ensure efficient order processing from picking, sorting and packaging. Cainiao also partners with Winshine Logistics to handle the last-mile distribution.

"With online grocery shopping becoming increasingly popular in large Chinese cities through e-commerce platforms such as Tmall Supermarket, Cainiao hopes to work with different logistics partners to provide speedy delivery service across China," said Duan Zhiguo, head of supermarket logistics department at Cainiao, "We will continue to roll out more distribution centers for online supermarkets, therefore Chinese consumers in big cities and lower-tier regions can enjoy next-day or even same-day delivery."

When fully operational, this distribution center will align with Cainiao's existing warehouses in Shanghai and Suzhou to cover logistic support in the provinces of Jiangsu, Zhejiang, and An'hui and Shanghai area. In the future, delivery from the new center is expected to be expanded to all of Jiangsu Province and the northern part of Fujian Province.

Cainiao plans to support Tmall Supermarket to deliver products to over 250 cities across 25 provincial areas by the end of 2015. Amongst these 250 cities, residents in 50 cities shall receive their packages the next day after they make their purchases.

About Cainiao

Cainiao (formerly known as China Smart Logistics), the logistics affiliate of Alibaba Group, is dedicated to meeting the current and future logistics demands of China's online and mobile commerce sector. It operates a logistics information platform which provides real-time access to information for both buyers and sellers, as well as information that allows delivery service providers to improve the efficiency and effectiveness of their services.

Media Contacts

Teresa Li
Alibaba Group
+852 2215 5207
teresali@hk.alibaba-inc.com

Rachel Chan
Alibaba Group
+852 2215 5209
rachelchan@hk.alibaba-inc.com