Behind the hottest express package, the competitio

2022-08-26
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The competition of express enterprises behind express package mail: how far can it go by changing price for quantity

release date: Source: economic

package mail is an important factor to attract many consumers to buy. Behind the parcel post, in fact, is the competition between express companies

in recent years, the annual business volume of express delivery in China has continued to grow at a high speed with an annual increase of 10billion pieces. The State Post Office predicts that the annual express business volume will exceed 95billion pieces in 2021. In order to seize market share, price for quantity has become the main means of express delivery enterprises. In the face of increasingly fierce competition, what else can the express industry compete for besides price? How to develop the industry

the average unit price continued to decline

recently, the postal industry operation report for the first quarter of 2021 released by the State Post Office showed that in the first quarter, the business volume of national express service enterprises completed a total of 21.93 billion pieces, an increase of 75.0% year-on-year; Business revenue totaled 223.77 billion, an increase of 45.9% year-on-year

"the postal express industry has made a good start, with growth far exceeding expectations." The relevant person in charge of the State Post Bureau said that the reason why the express industry continues to operate in the high growth range is not only due to China's successful economic recovery from the impact of the epidemic, but also due to China's strong domestic consumption capacity, the accelerated online and offline integration development of the consumer market, and the rapid growth of sinking markets such as urban and rural areas. Various factors have made the express market obtain a new scale expansion

it is noteworthy that the Solvay specialty polymer division under the Belgian Solvay group is also taking advantage of the opportunity brought by the increasing popularity of peek. In the quarter, the difference between the growth rate of express business volume and revenue reached 29.1 percentage points, the largest in the past five years; The single ticket price of express delivery continued to decline. The average unit price of express delivery in the industry fell rapidly from 28.50/piece in 2007 to 10.55/piece in 2020. The average unit price in the first quarter was only 10.2/piece, far lower than the average price in the same period of last year and the fourth quarter, hitting a new low in the same period of history

"the main reason for the continuous decline of express ticket prices is the intensification of competition in the express industry in recent years." Beijing post 19 means that the maximum capacity is 190 seats! Zhaoguojun, director of the postal development research center of the University of electronics, analyzed that express delivery companies are in a passive and weak position for both the upstream and downstream of the supply chain. On the one hand, at present, China's demand for express delivery is huge, but the supply is relatively homogeneous, and both the upstream and downstream of the supply chain are squeezing the express industry. E-commerce merchants and e-commerce platforms take advantage of the large number of transactions and fierce competition in the express industry, and have relatively high bargaining power over express delivery; On the other hand, downstream consumers have no higher sense of quality difference in express services. Especially for e-commerce parts, consumers are mostly free to buy and return at will, and the cost is low

in addition, e-commerce express, which accounts for a large proportion of express business volume, has a rapid growth rate, and the competition of e-commerce express is seriously homogenized. Price competition has become the main means for e-commerce express to expand its share

the result of fierce competition is the continuous decline of single ticket income. The performance briefs in March issued by Yuantong express, SF holdings and Yunda shares also showed that although the business volume has maintained a good growth trend, the single ticket revenue has decreased, with 2.25 respectively, a year-on-year decrease of 11.03%; 15.74, a year-on-year decrease of 12.12%; 2.19, a year-on-year decrease of 13.44%

low price welfare is difficult to sustain

Yiwu is a weathervane for the express industry. According to the data released by the State Post Office, in the first quarter, the business volume of Jinhua (Yiwu) express service enterprises completed more than 2.365 billion pieces, ranking first in the country. In order to compete for the market share of the country's largest source of goods, major express companies have offered low-cost benefits to exchange price for volume

Not long ago, Yiwu postal administration took the initiative to regulate market competition. Therefore, the previous charging standard of Baishi express and Jitu express is far lower than the common cost price of 1.4/order in the industry, which is subject to rectification

low price competition has always been the usual means for express delivery enterprises to compete for market share. Long term low price competition will not only lead to the overload of express delivery enterprises, but also the whole industry will fall into a vicious circle. On April 22, SF holdings announced that it had a net loss of 989 million in the first quarter. One of the important reasons for the loss is that the business volume of ultra-low price "preferential special distribution" has increased rapidly, and the gross profit of e-commerce parts is under pressure

for businesses and consumers, in the short term, low-cost competition among express companies will reduce express delivery costs, but because express companies and points need to ensure a certain profit, they will inevitably find other growth points to make up for the reduced income due to the price war, and it is the consumers who ultimately bear this cost

"the low-cost competition of express delivery enterprises, regardless of costs or even losses, is undoubtedly poison to quench thirst for the industry and enterprises, and will not last long." Zhao Guojun pointed out that the premise of low-cost competition of express delivery enterprises should be based on Management Optimization and scientific and technological innovation to achieve overall cost reduction and efficiency increase, so as to use price to transfer profits to users in exchange for economies of scale. Such competition should be encouraged. If enterprises lack the above support, simply trading low prices for the market is not desirable

Zhao Guojun believes that price competitive advantage should be based on cost reduction and efficiency increase. For example, the delivery distance of express is relatively short, the unit weight and volume are small, and the region is concentrated. The lower price of such express is beneficial and feasible for enterprises; Through intelligence, automation and other means, enterprises can reduce costs and increase efficiency, so as to reduce the single operation cost, so as to form the competitive advantage of enterprises. It is not only feasible, but also the direction of future development of enterprises

the launch of price regulation by Yiwu postal administration also sounded an alarm for the express industry. Ma Junsheng, director of the State Post Bureau, said frankly, "for those who maliciously disrupt the market, we must be merciless, strengthen supervision, and standardize the market order of fair competition. At present, we should target hard, and focus on correcting the unfair competition in some regions."

where is the future of the industry?

it is understood that after China's express delivery industry entered the "10 billion" era in 2014, the annual business volume of express delivery continued to grow at a high speed with an annual increase of 10 billion pieces. Even in 2020, a special year, the annual business volume of express delivery across the country has historically reached 83billion pieces, with a year-on-year increase of 30.8%. With the continuous expansion of market scale and the enhancement of the strength of enterprises in the express industry, it is more necessary to seize opportunities and accelerate high-quality development

at present, the express industry is still improving user experience and service quality and efficiency under the situation of increasing volume and decreasing price. In the first quarter, the complaint rate, time limit punctuality rate and user satisfaction rate of express delivery users improved in the same direction. The complaint rate of users was 2.37 parts per million, the 72 hour punctuality rate was 71.4%, and the satisfaction degree of express delivery service was 78.8 points. The service quality improved rapidly

the epidemic has changed the lifestyle of many people. From the resumption of work and production to the first Spring Festival this year, the role of the express logistics industry in serving the people's livelihood has become more prominent. People also put forward higher requirements for the timeliness and service experience of express delivery

"scale and efficiency are crucial to the operation of express delivery business." Laimeisong, chairman of Zhongtong express, said that the price war is temporary. If you want to win the market in the long term, you need investment in infrastructure and intelligent equipment, excellent management team, stable cash flow and healthy franchisees. The market will also change from a single express competition to a full link integrated logistics

in the face of fierce market competition, how can the express industry improve quality and efficiency and achieve long-term development? Zhao Guojun believes that the industry should expand more space and segment the market according to the market demand, form an industry service system with complementary advantages, and put an end to low-end homogenization and vicious competition. At the same time, resources in the industry should form an intensive development trend, change the weak position and operation mode of the current supply chain system from the end of 2012 to the beginning of 2013, do a good job in basic services, and innovate and launch more value-added services

"the future cannot wait. We must focus on innovation and creation and lay out in advance." Ma Junsheng said that the more the industry develops to the end, the more vulnerable it is. For the protection of the rights and interests of express delivery brothers and users under the intense market competition, we should safeguard the legitimate rights and interests of employees, deal with consumer service demands, pay attention to all aspects to form a joint force, and effectively safeguard the legitimate rights and interests of grass-roots employees in a scientific, institutionalized and standardized manner. At the same time, we should abandon impetuous mentality and short-sighted behavior, earnestly follow the essential law of enterprise growth, and speed up high-quality development, which is the really desirable way of operation and development

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