The cutting-edge logistics technology born from China's "Double 11" shopping frenzy is rapidly expanding globally, becoming a driving force in the digital transformation of logistics and warehousing worldwide.

Cainiao, which has positioned "globalization" and "technology" as its dual strategic pillars, established an independent logistics technology division about three to four years ago to accelerate external business expansion. Today, Cainiao's logistics technology arm has achieved breakthroughs, securing major international contracts—including a partnership with Southeast Asian retail giant CP AXTRA.

Since the pandemic, e-commerce in Southeast Asia has surged, with supermarket and retail consumption increasingly shifting online. As the largest retail company under Thailand’s CP Group, CP AXTRA has prioritized digital transformation as a key strategy to build an integrated online-to-offline platform.

However, two years ago, CP AXTRA faced significant challenges in its transformation. The company aimed to achieve "fast, accurate, and high-quality" deliveries but struggled with speed. This led to a global search for a suitable system solution provider.

The bidding process attracted top-tier global vendors. CP AXTRA’s Group Wholesale CEO, Xie Yuchen, admitted that while Thailand traditionally favored Western software, the company adopted a pragmatic approach—"it doesn’t matter if it’s a black cat or a white cat, as long as it catches mice"—and ultimately chose Cainiao.

With Cainiao’s support, CP AXTRA’s digital capabilities improved dramatically, boosting its e-commerce share from 3% to 30% in two years. This marks not only a milestone for CP AXTRA but also a benchmark for Chinese logistics technology serving overseas enterprises.

For Cainiao, partnering with a retail leader like CP AXTRA strengthens its foothold in Southeast Asia and signals the global expansion of its logistics technology business as a new growth driver.

**Transforming CP AXTRA into a "Fast Fish"** CP AXTRA’s digital overhaul is a landmark event for Thailand and Southeast Asia’s retail sector. The 36-year-old company operates brands like Makro and Lotus’s across 10 countries, with over 2,700 stores and $15 billion in annual revenue.

Three factors drove CP AXTRA’s transformation: digital inevitability, shifting customer demands, and urgent supply chain upgrades. Xie noted that while traditional retail focused on moving goods from warehouses to stores, today’s customers expect speed akin to China’s "25-minute deliveries."

However, CP AXTRA’s vast scale, multi-country operations, diverse business models (B2B, B2C, O2O), and varying consumer habits posed challenges. After launching e-commerce in December 2022, initial in-house and third-party systems underperformed, prompting a switch to Cainiao within a year.

CP AXTRA’s Chief Digital Officer, Khun Tirayu Songvetkasem, emphasized the need for speed, precision, and quality in deliveries. Impressed by Cainiao’s Double 11 order-handling prowess and after multiple site visits, CP AXTRA finalized the deal.

Cainiao’s responsiveness stood out. Instead of a standard bid, Cainiao dispatched experts to co-create solutions tailored to CP AXTRA’s needs. "They saw our sincerity and commitment," said Bu Jiao, Cainiao’s APAC Logistics Technology Director.

Trust was rewarded: Cainiao deployed a 30-member team to Thailand, launching the system in three months. The joint iWMS (picking and packing system) boosted efficiency by 140% at Makro stores, while the TMS (transport management system) increased daily deliveries from 15,000 to 100,000 orders.

The partners are now developing AI-powered shelf optimization to enhance product visibility and accessibility. Khun Tirayu aims to elevate end-to-end efficiency from warehouse to customer.

The collaboration also opens doors to broader ties with Alibaba, including potential use of its AI model Tongyi Qianwen and a flagship store on Tmall Global for Thai goods.

**Cainiao’s Logistics Tech Goes Global** The CP AXTRA deal exemplifies Cainiao’s accelerated overseas push. After internal restructuring, Cainiao 3.0 focuses on a global, market-driven logistics network spanning cross-border delivery, local express, supply chain, and technology.

Cainiao’s logistics tech, now a core division, offers smart warehousing, execution systems, OTWB, control towers, RFID solutions, and robots—with several product lines exceeding $100 million in sales.

This year, Cainiao expanded globally, reorganizing into APAC (including Southeast Asia), Europe, the Americas, and Middle East/Africa regions. Local hires and expatriates ensure project delivery.

In FY2025 (ending March 31, 2025), Cainiao delivered 400+ global projects—40% of its three-year 1,000-project target in just one year. Revenue growth is robust, with overseas sales up 150% YoY, per Bi Jianghua, Cainiao VP and Logistics Tech GM.

Beyond logistics, Cainiao secured niche digitalization deals, such as RFID solutions for a luxury brand and flexible warehousing for a global FMCG leader in Toronto. It now serves 27 countries with 800+ projects.

Domestically, Cainiao’s tech spans express delivery, automotive, FMCG, and aviation—laying groundwork for global expansion. Major clients grew 61% last year, with high retention rates.

Bi Jianghua sees vast potential in global logistics tech, fueled by AI-driven digitization. Chinese innovation and cost-effectiveness give Cainiao an edge overseas. Unlike pure equipment vendors, Cainiao’s "operations + R&D" dual strength—rooted in its logistics expertise—ensures practical, attractive solutions.

Born from Alibaba’s e-commerce ecosystem, Cainiao, after 12 years, champions "international logistics" and "technology." It aims not only to build global networks but also to export logistics tech worldwide.

Following "Made in China," "China’s technology"—including logistics tech—is reshaping global digital infrastructure, with Cainiao emerging as a pivotal player.