Comparison of Cross-Border Reverse Logistics of a Fast Fashion Brand in China

Abstract

With the advent of "Industry 4.0" and the associated disruption caused by such rapid digital transformation, the logistics industry was able to develop cross-border delivery and increase demand for any given product. However, the risks associated with Cross-Border Reverse Logistics (CBRL) remain largely unexplored, and there is a paucity of research in this area. Hence, this study's objective is to investigate the e-commerce delivery system and CBRL model of a major fashion brand. The study is based on a case study approach comparing the CBRL processes of the Zara official site with one of their main channel partners, Alibaba. Data was collected through archival records, a secondary data bank and interviews with Zara representatives for a deeper analysis. The analysis reveals that both Zara and Alibaba's official sites currently have issues with their CBRL operations. The development of cross-border logistics represents a great opportunity to improve current Zara's and Alibaba's e-commerce platforms business model. In a very competitive market, a lack of a cross-border logistics system could represent a potential loss. Compared to local reverse logistics, cross-border remains at a relatively primitive stage. However, local reverse logistics can provide insights to Zara and Alibaba towards developing and improving CBRL. The case findings lay the foundation for a better understanding of CBRL e-commerce's challenges and support the need to optimize these systems to improve customer service in China.