Factors Behind Failure Of FedEx In Chinese Local Market

With the rapid development of China's economy,China's logistics industry has undergone tremendous changes,and new private express enterprises have developed rapidly.The Chinese government has guided the sustainable development of the logistics industry from the aspects of policy formulation,standard implementation and in form activation.FedEx,as the earliest logistics enterprise to enter the Chinese market,has been listed as one of the top ten logistics companies in China.In the early stage of development,FedEx also played a guiding role in China's logistics enterprises.Many Chinese logistics enterprises learn from their successful experience.However,in recent years,the market share of foreign logistics enterprises,including FedEx,has been greatly reduced,and some of them even quit the Chinese market.This paper takes FedEx as the research object,compares the development status of Chinese logistics enterprises,makes a detailed analysis of the reasons for its failure in the Chinese market,and studies the possible success factors of foreign multinational companies.This study shows that the main reasons for FedEx's failure in China include cultural differences(in terms of customer behavior),language differences(in terms of Chinese website management,marketing,advertising and promotion),and domestic regulations(in terms of domestic policies)Market competition(competition with domestic logistics companies),Market demand(in terms of domestic policies).ARGES and quality services,as well as supply chain management(in terms of rapid and safe delivery anywhere within the jurisdiction of China's large territory).Combining the reasons of failure,this paper gives other multinational enterprises in the future.