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FedEx slashes prices for bigger market share in China

Published: 23 Feb 2009 17:40:39 PST

Feb. 24, 2009 (China Knowledge) - FedEx Corp recently cut its express service by 70% in a bid to secure bigger market share on China's mainland, and the move has caused great pressure to the domestic private express firms, the official Xinhua News reported.

According to the report, FedEx China cut its prices four times during the period from October 2007 to August 2008 to a level close to those set by the domestic private express firms.

Statistics from the China Federation of Logistics and Purchasing showed that FedEx's market share jumped to 4.8% at the end of September from 0.8% at the end of June, making it the biggest express service provider in the country among the four overseas express giants, say UPS, FedEx, DHL and TNT, said Xinhua.

U.S.-based FedEx entered China in the 1990s and it now has expanded businesses into over 220 Chinese cities.

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