As Mexico’s annual online shopping event, Hot Sale has become a window into one of the world’s fastest-growing e-commerce markets. The 2025 edition set a record with sales of MXN 42.7 billion (USD 2.3 billion), up 23.7% year-on-year.
With leading platforms reporting record transaction volumes, parcel processing surged 81.82% from last year, creating a new stress test for foreign logistics firms operating in Mexico, including iMile and J&T Express.
In 2023, almost all major couriers suffered warehouse overloads as market growth outpaced capacity forecasts, causing widespread fulfillment disruption and losses. Since then, J&T Express has restructured its supply chain network, strengthened delivery capacity, and improved product timeline planning.
iMile adopted a full-chain operations strategy built on deep optimization of its capacity network and technology stack. The result: average delivery time improved 25% year on year, with more than 90% of parcels now delivered within six days.
In Mexico, China’s logistics expertise is a clear competitive edge. Historically, parcel delivery was dominated by the self-operated logistics arms of Mercado Libre and Amazon, along with FedEx, DHL, UPS, and local players such as Estafeta and Redpack. These firms often charged higher prices, offered slower service, and lacked solutions for small e-commerce parcels. Over the past three years, Chinese-backed companies have begun redefining the market through speed and cost efficiency.
Founded in 2017 by Rita Huang and headquartered in Dubai, iMile was created to solve last-mile delivery challenges in the Middle East. Today, it has roughly full coverage across that region, more than 95% coverage in key Latin American markets such as Mexico and Brazil, and expanding footprints in Europe and Australasia. Eight years on, its network spans 30 countries.
At its core, express delivery is a scale-driven business: only by growing large can a company win share. Replicating success globally, however, is not easy. For iMile, two factors are decisive: technology and localization, both woven into a tightly engineered system.
The company recently upgraded its strategy beyond the last mile, launching a full-chain logistics suite that covers dedicated domestic e-commerce delivery with returns, time-definite express, customs clearance and distribution, cross-border direct mail, and heavy-goods freight. The solution also adds flexible value-added services, such as proof-of-delivery, cash-on-delivery, customizable delivery attempts, and non-delivery report services.
“iMile is growing up,” Huang told 36Kr. As the leader of an organization with nearly 4,000 employees worldwide, her thinking has become increasingly systematic. On localization, a perennial challenge for Chinese logistics firms abroad, Huang said the strategy is to build wide first, then build deep: achieve full-area coverage quickly, then tighten the network through standardization and systemization. “The process is the business.”
The following transcript has been edited and consolidated for brevity and clarity.
36Kr: During this year’s Hot Sale, your parcel processing volume rose 81.82%. In 2023, the industry was still overwhelmed. How did such a transformation happen in just two years?
Rita Huang (RH): In 2023, Mexico’s leading e-commerce platforms expanded simultaneously, flooding the market with demand that far exceeded logistics capacity. The entire industry spent months recovering from the chain reaction triggered by that promotion period.
The year 2024, by contrast, was calm. Mexico’s election year had merchants and consumers watching policy trends cautiously. For us, that quiet period was a crucial window to catch up on network building. Our coverage jumped from under 60% in 2023 to more than 95% today, and our number of service sites grew fivefold. That groundwork made this year’s stable growth possible.
36Kr: What actions drove that leap?
RH: There were five main steps.
First was the network strategy adjustment. In the Middle East we relied heavily on a self-operated model, but Mexico’s labor dynamics are very different. It is manufacturing-driven, with high driver turnover and strike risks. Self-operation alone could not scale fast enough. So in late 2023, we introduced a franchise model on top of our self-operated base, allowing partners both inside and outside the industry to join quickly.
Second was resource concentration. In 2024 we redirected core corporate resources to Mexico, dispatching experienced managers and tech leads from other countries to strengthen the network nationwide, ensuring it was broad and resilient enough to withstand peak season surges.
Third was empowerment and flexibility. Franchising requires giving each regional leader autonomy to tailor growth locally. Autonomy can be a double-edged sword since management styles vary, but it is essential for localization. We allowed these differences while unifying key backend systems for finance, data, and reporting.
Fourth was the data system overhaul. We rebuilt our big-data platform so every node operates under the same digital language. Headquarters and regions alike can now track capacity, cost, and service quality in real time and adjust quickly.
Fifth was peak season project management. For the Hot Sale, preparation began right after the Lunar New Year. Dedicated teams forecast demand by region, pre-allocated resources, and coordinated cross-region transfers when predictions deviated.
Together, these steps delivered nationwide coverage and operational resilience. From market entry to network stability typically takes three years, and Mexico proves the rule.
36Kr: With so many franchise partners, how do you keep control?
RH: Logistics is about preparing and mobilizing resources, people, and vehicles. Our formula remains to build wide, then build deep. Many early Mexican franchisees had never handled logistics. We first helped them understand the business logic: per-order revenue, cost structure, driver management, expected profit. Once they understood the math, we trained them through standardized protocols covering procedures from warehouse zoning to scanning, sorting, and outbound processes, all with documentation, screen-capture demos, and spot audits.
The key is turning the process into a habit. We localized our prior experience, embedded it in the system, and made the process the business. Even as partners scale or staff turnover occurs, systemized workflows keep operations stable. This is the reason we remain resilient during peak season. Once processes and systems merge, external shocks hardly disrupt us.
36Kr: iMile entered Mexico in 2021 as its first LATAM market. Looking back, why choose Mexico?
RH: We gauge new markets by several metrics. First is e-commerce penetration, which determines order volume and density. Among six global regions, Latin America offered the biggest growth potential after the Middle East. Southeast Asia was already maturing, while compliance costs in Europe and North America were too high.
We also considered the business environment in terms of licensing and regulatory ease, and Mexico scored well. We initially eyed Chile, but with only about 17 million people, its market was too limited. Another factor was the expansion pace of leading Chinese e-commerce players. By 2021, we judged the window open and moved quickly.
36Kr: Your approach seems especially cautious compared with peers.
RH: That’s in our DNA. Entering any market, we first strengthen the network, team, and system before pursuing rapid scale. Every step must support long-term, healthy growth.
36Kr: People often compare J&T Express and iMile. Where do you differ most?
RH: Each company plays to its strengths. iMile has been technology-driven from day one. About half of our Chinese staff are engineers. Though not the largest team, we build and manage our entire system in-house, allowing deep integration between platform architecture and operations.
If business units need a new feature, our tech team can start iterating the same day. That responsiveness lets us replicate proven products and processes across countries. In fast-paced cross-border logistics, this efficiency and stability become lasting advantages.
36Kr: So putting process and business into the system is your secret?
RH: Exactly. Our stability does not rely on any single tool or team but on a deeply integrated system spanning frontline operations to back-end management. It is the result of eight years of continuous iteration.
Every step has a clear, standardized procedure managed through the system. This ensures stability in delivery success and on-time rates, even during seasonal surges. Peak season orders can reach 40% of annual volume. One bad week can hurt partners’ full-year performance. That is why upstream clients value long-term stability, our greatest advantage.
36Kr: What’s the essence of building a capacity network for a cross-border logistics company?
RH: Network building is not just opening warehouses or buying trucks, but a system-level project. Step one is to solidify the base, the dedicated e-commerce delivery network. Only once that is stable can express, heavy-freight, and value-added lines thrive.
We build networks through standardized operations and technology-driven logic, focusing on three priorities:
- First, a unified global management system. From day one in any country, we establish an online foundation covering finance, compliance, and operations monitoring. The system must automatically generate three core reports: a complete profit-and-loss report, a national budget model, and a site operation model. Once these work in sync, headquarters can truly manage business, budget, and resources based on data.
- Second, sufficient local empowerment. Country teams receive full trust and authority since they best understand trade flows, city structures, and legal nuances. During peak season, local managers can expand warehouse networks without waiting for headquarters’ approval.
- Third, long-term investment and patience. Network building is a marathon. In Saudi Arabia, we spent three years cutting average delivery time from 15 minutes to five minutes through countless process iterations and stress tests. That refinement takes time.
36Kr: But market needs differ widely, don’t they?
RH: Absolutely. Our formula is 70% replicable and 30% localized. The 70% covers universal management language, operational systems, and tech frameworks, while the 30% focuses on assimilating to local culture and habits.
For example, our internal management portal originally used task checklists, which worked well in the Middle East. In Italy, however, teams preferred visible progress bars for a sense of achievement. Recognizing and adapting such nuances keeps the network running smoothly.
36Kr: Your smart logistics algorithm seems to shine in some regions.
RH: Its impact was most visible in Australia. There, houses are detached and delivery density is low, so each driver covers a large area. Efficient route optimization directly determines how many parcels a driver can deliver daily.
After two years of continuous tuning, our algorithm now cuts delivery route time by 20–30% for the same order volume. In LATAM or the Middle East, the logic differs, so our tech team customizes algorithms on top of the standard engine to fit local realities. Every adjustment aims to save drivers time.
36Kr: What is your universal formula for entering new countries?
RH: Several essentials. A unified management language and standard protocols enable international expansion without chaos. Data-driven operations ensure resources are used efficiently, with three data layers—operations, business, management—visualized in real time. Local adaptation fine-tunes workflow details and interface design. Finally, 90% of decisions rest with country teams, with only major matters escalated to headquarters.
The goal is to balance standardization and localization, achieving efficiency without rigidity.
36Kr: What’s the one element you will never compromise?
RH: The standardized management and operating foundation, the 70% base. Without it, the 30% localization layer has no platform to stand on.
36Kr: Which core capabilities best express iMile’s global advantages?
RH: Three things. First, global resource coordination. Compliance and digital-operations experience gained in the Middle East directly support expansion in LATAM and Europe. Our legal and customer service teams in Mexico can cover all Spanish-speaking markets, enabling new projects in Colombia and El Salvador to launch quickly.
Second, dynamic organizational design. This year we formed a LATAM regional division, granting greater decision power to country managers while sharing talent, training, and tech resources. That has doubled our expansion speed compared with initial forecasts.
Third, rhythm control. We began researching Europe in 2022 but launched only after meeting GDPR and labor-law requirements. In Italy, it took two years to roll out from preparation. That patience is essential to sustainable globalization.
36Kr: Operating across the Middle East, LATAM, and Europe must bring cultural friction. How have you navigated that?
RH: Cultural conflict arises when people refuse to see from others’ perspectives, a loss of respect. We have been through several phases: first hiring entirely local teams, which led to poor execution, then sending mostly expatriates, which caused communication gaps. The best outcome comes from hybrid teams.
Effective information flow is key. Our country heads are ethnically Chinese or have Chinese heritage, while the operations, human resources, and finance leads are locals. As long as those three leaders fully grasp the goals, execution stays strong.
36Kr: What are the pain points of cross-cultural management?
RH: Three levels:
- First, communication. In LATAM and other non-English markets, managers speak Spanish or Portuguese. Translation gaps often mean everyone thinks they understand, but execution shows otherwise.
- Second, the sense of belonging. If top management is entirely expatriate, locals feel detached and lack commitment.
- Third, iteration gaps. Operational know-how must flow from local teams back to headquarters and return as refined processes. Cultural and distance gaps slow this iteration.
36Kr: How do you assign decision rights?
RH: By moving decisions forward. Without that, overseas operations stall. Some firms require reports on every minor issue, which kills speed. Our country heads hold more than 90% local authority, and only exceptional items go to headquarters.
A mature country head might not speak to me for a month, yet I can see performance instantly through our system data.
36Kr: In your view, what defines a truly globalized company?
RH: First, global mobility of talent: a Polish employee can work in Africa seamlessly because management language and decision processes are standardized.
Second, delegated decision-making: local authority paired with strong oversight through internal and external audits.
Third, real localization: local senior talent must be part of decision-making.
36Kr: iMile now operates in 30 countries with 4,000 employees, excluding warehouse operators, drivers, and contractors. What is next?
RH: We will keep doubling down on technology and localization, aiming to cover 100 countries in the next five years.
36Kr: And the endgame for iMile?
RH: We have reached a pivotal stage, consolidating regional competitive strengths. Real advantage comes from either unique capabilities or staying half a step ahead in iteration.
We aim to be a truly global logistics technology enterprise, not just a business expansion story. Through technology-driven integration with each local ecosystem, we deliver standardized, high-quality services worldwide. In eight years, we have built our tech and management architecture from zero. Now it is time to let that system scale across more countries, achieving a true global network effect.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Ren Qian for 36Kr.