Developing Courier Industry of Northwest China in Context of E-Commerce

Chinese postal sector is reviving thanks to the further development of telecom industry. As the new stimulator of postal sector, the application of B2C E-commerce in business world has brought about a huge amount of demand on courier service, which is one important part of postal service in China. However, in northwest China, the impact of B2C E-commerce on courier industry is very limited. What blocks the development of courier industry in the northwest China in the context of E-commerce and how should Chinese local governments do in order to stimulate its development? This paper tries to answer those questions. Based on a pyramid-like model of e-commerce diffusion developed by Bob Travica, the paper sets up its own model by examining the indispensable elements contributing to e-commerce development in developing regions. Then, the model is used in a market research conducted in several selected remote cities in the northwest china to find out problems and obstacles currently existing in taking advantages of E-commerce to develop courier industry. It is found out that poor performed elements in the model should be blamed for slow development in the postal industry of these regions. Conclusion is drawn that only by breaking down those barriers, can E-commerce be fully used to stimulate the development of postal sector in the northwest China. Then advises on government regulation and support are presented through careful evaluation of its feasibility