20 May 2010 13:38

Dangdang to build Wuxi logistics hub

Shanghai. May 20. INTERFAX-CHINA - Online book retailer Dangdang.com plans to build a logistics center and an eastern China headquarters in Wuxi, the company announced on May 20.

The logistics base, covering a total area of 80,000 square meters, will implement Internet of Things technologies for storage management and product delivery purposes, said the announcement.

The center will be the core logistics hub for the eastern and southern parts of the country.

Zhang Yanping, a senior analyst with iResearch previously told Interfax that most e-commerce companies are actively developing their own logistics networks to cut costs and improve after-sales service.

Dangdang announced in April that it would invest RMB 1 billion ($146.4 million) toward the construction of three major logistics centers in the northern, eastern and southern regions of China. The company has built six logistics bases since its establishment in 1999.

Dangdang generated total revenue of RMB 4 billion ($586 million) for 2009 and is currently expanding its online retail scope from books to diversified product categories.