Nanchu Group - Feasibility Study of Urban Distribution Business Expansion
Company overview
Nanchu Warehousing Management Group Co., Ltd. (hereinafter referred to as "Nanchu Group") was established in 2002, with its headquarters located in Foshan, a core city in the Guangdong Tri-City Economic Circle. As a leading comprehensive logistics service provider in China, Nanchu Group operates in multiple sectors including warehousing services, commodity financing and management, business information, transportation and freight forwarding, and food cold chain logistics. The group currently manages nearly 30 subsidiaries nationwide and serves as an official delivery warehouse for both the Shanghai Futures Exchange and the Dalian Commodity Exchange, possessing strong capabilities in warehousing and supply chain integration. Its service network spans the entire country. In recent years, Nanchu Group has maintained steady development in its traditional core businesses while actively expanding into urban logistics and delivery services, aiming to build a more comprehensive and efficient modern logistics service system.
Research background
With the rapid development of e-commerce and modern manufacturing, urban logistics and delivery—acting as a critical link connecting the end-to-end logistics chain—has become a key determinant of enterprise competitiveness. Building upon its existing expertise in bulk commodity warehousing and circulation, Nanchu Group aims to expand into urban delivery services to enhance the completeness and responsiveness of its overall logistics network. However, the urban delivery market is complex, with diverse customer demands and significant challenges in route optimization and cost control. Therefore, a targeted market research study is essential to scientifically evaluate the market viability of this new business line.
Research scope
In March 2013, CEIDEA Research was commissioned by Nanchu Group to conduct field investigations targeting enterprises within a 30-50 kilometer radius of its self-built indoor warehouses. This study focused on understanding the primary industrial types and supporting industrial layouts within the region, collecting data on industrial distribution, scale, market concentration, key participants, and their respective market shares. Additionally, the research thoroughly analyzed the flow of goods—including raw materials, finished products, and reprocessed products. It also systematically gathered information on the logistics methods employed by enterprises, including warehousing and delivery models, service frequency, cost structures, and the usage of existing logistics and delivery service providers, providing foundational data for subsequent service optimization.
Expected outcomes
This study is expected to comprehensively capture the industrial landscape and logistics demand characteristics within a 30-50 kilometer radius of Nanchu Group's warehouses, clearly identifying potential market opportunities and service entry points for urban delivery services. The findings will provide Nanchu Group with quantified data and actionable recommendations for formulating a strategic expansion plan in urban logistics and delivery, thereby reducing business trial-and-error risks, improving resource allocation efficiency, and strengthening its competitive position in the urban logistics market.
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