A Look at China’s Logistic Industry Post-COVID-19
Source：the investor
From：Taiwan Trade Center Chicago
Update Time：2020/07/15
Since the COVID-19 outbreak a few months ago, China’s economy is finally starting up again, and demand for logistics spaces and buildings has been on the rise. The crisis, which hit a peak in early 2020, increased the e-commerce industry, which is already an industry giant to begin with. Since lockdowns and quarantines have gone into effect across the world to keep people safe, online shopping has increased significantly. China, specifically, saw a 400% growth in sales for online markets. Thus, with this much growth, the need for space to manufacture and ship these goods is critical to the process. Richard Huang, head of the JLL China logistics sector, said that he expects a continual growth even after the recent surge.
In addition to online shopping, the healthcare industry is also seeing a surge for PPE and pharmaceuticals. This is yet another industry that requires significant warehouse space for production. This industry and e-commerce all relate to the incredible growth of China’s consumer market domestically, not to mention internationally. Despite this growth, reports say that it will be focused in cities, creating an uneven growth across the nation.
Investors in Asian countries are seeing the growing demand for space and gearing up to capitalize on such a high trend. Reports say that investments will significantly increase over the next ten years. Specifically, LaSalle Investment Management stated that over $600 million from their international investors has been planned to Chinese logistics as of April 2020. The key to these investments, then, is finding warehouses that are big enough and allow for efficient production as well as distribution.
The e-commerce market has been one of the few industries that have remained profiting during the economic crash due to the shutdown, and it can only look to increase as the warehouse market increases significantly and becomes more essential to production.
Source：https://www.theinvestor.jll/news/china/industrial/chinas-logistics-market-set-for-post-covid-19-boom/