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Goodman Report Sees Significant Logistics Opportunity from the Rapid Global Growth in e-Retailing

SYDNEY May 22, 2012 China

The comprehensive research report on the global online shopping market was conducted by Transport Intelligence, one of the leading providers of research on the global logistics industry, and focused on the key areas of:

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Take-up rates and popularity of online shopping around the world;

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The impact of the growth in e-retailing on logistics operations in developed and developing markets;

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The warehousing requirements and operations of some of the main e-retailing players; and

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Factors that will play a role in the growth of the industry.

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The report showed that at a time when retail sales in many markets have been sluggish, internet retailing has grown rapidly and this shift in consumer attitude has brought enormous benefits to the global logistics market. With growth in excess of 10% per annum in developed economies and more than 30% per annum in many less developed areas, e-retailing is at present in the rapid growth phase, with little sign of leveling off, the report said.

US$1 trillion US$1.4 trillion

US$1,000 US$279 billion Europe US$184 billion

China US$200 to US$250 China US$305 billion

Greg Goodman

China China Europe

By contrast, in developed regions where logistics infrastructure is relatively sophisticated, geographic factors determine the distribution strategies that e-retailers are adopting, ranging from overnight delivery from a single distribution point, to utilising multiple distribution points and duplicating main inventory lines. This highly fragmented situation has led to e-retailers developing their own fulfilment centres rather than relying on logistics operators, and dedicated purpose built facilities are being increasingly demanded.

"The report’s findings confirm that there is strong demand for high quality, built-to-suit warehousing solutions amid the rapid growth in this sector. This presents a range of opportunities for property groups like Goodman, who understand local market dynamics and have the specialist expertise and experience to respond to the specific property needs of individual e-retailers and third party logistics providers," Mr Goodman added.

Europe Germany

Tianjin, China

"The continued rapid growth in e-retailing is a real game changer for our business. We have undertaken a number of developments for the e-retailing sector over the last two to three years which is reflected across our portfolio, making it one of our largest customer groups," Mr Goodman concluded.

About Goodman

Australia New Zealand Asia Europe United Kingdom

Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant fund management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

For further information, please contact Goodman:

Mathew Werner

SOURCE Goodman Group

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