Good piece on how China’s e-commerce market, while promising much, is not for the faint-hearted. China may well be overtaking the online market in the US this year, but some of the biggest retailers are struggling to make a profit because of logistics costs. There is a rush to invest in logistics networks, with Alibaba leading the pack, but Lenovo and Suning Appliance committing serious amounts into the sector too. Can they recoup the investment in a highly competitive logistics market with very low profit margins?
By Alex Lennane