Author | Logistics mahjong beard
Source | Logistics salon
Entering 2022, two news of the express delivery industry quickly fermented in the industry:
First, the State Post Bureau announced that the volume of express delivery business exceeded 100 billion, and the business income exceeded 1 trillion.
Second, at the beginning of this year, Jitu officially announced the launch of the express delivery network operation in the United Arab Emirates and Saudi Arabia.
The express delivery industry is anti-"inner roll" inflection point
Why put these two pieces of news together? We think these two pieces of news may be an inflection point for the industry.
Looking back at the fundamental changes in the express delivery industry, around 2010, the rapid development of e-commerce drove the rapid growth of the express delivery industry, which lasted for many years to maintain a growth rate of more than 50%, after 2016, the growth rate of China's express delivery business began to slow down, in the context of the large base, the express delivery business volume exceeded 100 billion in 2021, and the number of parcels accounted for more than half of the world, ranking first in the world for 8 consecutive years.
For the express delivery industry, from the perspective of subdivision tracks, it can be roughly divided into e-commerce parts and time-sensitive parts, of which e-commerce parts, as the big head, have become a place where soldiers must compete. The main e-commerce parts of the access system, product homogenization is serious, are hoping to grab more business volume to open up the gap with the opponent, accelerate the differentiation of the competitive landscape.
Under the aggressive low-price rush strategy, the average unit price of the express delivery industry has decreased year by year, from 24.57 yuan / piece in 2010 to 9.54 yuan / piece in 2021.
The ongoing price war continues to erode industry profits and compress the profit margins of express delivery companies. In this regard, Ma Junsheng, director of the State Post Bureau, pointed out: "At present, the problem of unbalanced and insufficient development of the postal express industry is becoming increasingly prominent, the industry is large in scale but the quality is not high, and the development speed is fast but the advantages are insufficient. ”
In view of the key issues of low-price competition, quantity and quality, escrow with penalties, terminal delivery, courier protection, etc., the relevant departments have intensively issued relevant policies, which clearly stipulate that express delivery companies shall not provide express delivery services at lower than the cost price, the minimum delivery fee and the end of door-to-door delivery.
As an important variable in the development of the industry, the gradual landing of the policy has curbed the chaos of vicious low-price competition. It is reported that the number of policies introduced last year exceeded any period in history.
In addition, at the symposium of express delivery companies held by the State Post Bureau in December last year, it was emphasized to promote the high-quality development of the industry, and two signals were further released, directly setting the tone for the development of the industry this year:
First, oppose the "inner volume" and once again emphasize the prevention of unfair competition. Guide enterprises to provide personalized, integrated and global services, promote product classification and service stratification, and transform into an integrated express logistics provider. The regulatory level expresses the expectation of service upgrading and product stratification, and points out the medium- and long-term development direction of the express delivery industry.
Second, in promoting the "two in and one out" project, it is necessary to consolidate the results of express delivery into the village, and continuously strengthen the role of the main channel of two-way circulation between urban and rural areas of postal express; to change the way of thinking, to achieve new breakthroughs in express delivery into the factory; to seize the opportunity of RCEP to steadily go to sea, and constantly explore new paths to the sea.
In this regard, the "big guys" in the express delivery circle have also expressed their intention to develop towards high quality.
Therefore, in light of the overall industry situation, the layout of the Middle East is an important measure to respond to the needs of the industry for high-quality development in the era of 100 billion votes.
Running fast? Or steady?
Around 2018, it is rumored in the industry that a 10 billion group enterprise will disrupt China's express delivery industry. Sure enough, the following year, this company acquired Longbang Express, which has express delivery business qualifications, obtained the express delivery business license and express delivery network in the shortest possible time, and launched the network in China in March 2020.
The emergence of the pole rabbit has brought a new round of reshuffle to the entire industry, and the speed of development is staggering.
In June, October 2020 and the beginning of 2021, the daily single volume of Jitu exceeded 5 million, 10 million and 20 million respectively. And now the boss in the Tongda department, the daily order volume from 0 to 20 million has taken more than ten years, while the pole rabbit has only taken 10 months.
The rapid development speed and unexpected playing style attracted a lot of capital optimism, last year Jitu Express was rumored to have completed multiple rounds of financing such as $1.8 billion, $250 million and $2.5 billion, and the investors were Boyu, Hillhouse, Sequoia, Tencent and other star investment institutions. Immediately after, the news of Jitu's imminent listing came out.
In December last year, Jitu acquired the express delivery business of Best Group in China for 6.8 billion yuan, and the combination of the two, Jitu entered the domestic "first echelon" with a market share of nearly 15%.
After the acquisition of Best Express, Jitu can not only directly obtain business volume and market share, but also gain certain advantages in the sinking market, and in the field of Chinese express delivery with obvious first-mover advantages, Jitu will directly obtain corresponding operating experience from Best Express, and obtain large-scale development and achieve profitability in the future competition.
Of course, this is the most ideal state, the degree of integration of the two determines the perfection of this marriage, but no matter what, Jitu will directly make up for the shortcomings of the Tao system entrance, sinking network resources, allocation resources and express delivery talents, which is also a cost-effective deal.
As an enterprise founded from Indonesia and then returned to China for development, "domestic + international grasping" is the biggest difference between Jitu and other express delivery companies in China.
According to the official website, Jitu's express delivery network covers 10 countries in China, Indonesia, Vietnam, Malaysia, Thailand, the Philippines, Cambodia, Singapore, the United Arab Emirates and Saudi Arabia, serving more than 2 billion people worldwide. According to industry insiders, Jitu will continue to net in Latin America, Africa and other places. In the future, it is believed that Jitu will go to more overseas countries to create a global logistics network.
Not long ago, Hurun released the "2021 Global Unicorn List", and Jitu was listed for the first time with a valuation of 130 billion yuan, becoming a logistics company on the list with a valuation second only to Cainiao, causing a hot discussion in the industry.
Perhaps it is these international networks that have become an important plus for Jitu.
Can Jitu carry the banner of China's express delivery to the sea?
Of course, it is not only Jitu who actively "go out", but also other express delivery companies are currently laying out overseas.
In the Tongda department, Zhongtong and Baishi have a distribution network in Southeast Asia. ZTO copied the franchise express delivery model to Cambodia, Myanmar, Laos, Vietnam and Thailand; Best went to Thailand, Vietnam, Malaysia, Singapore and Cambodia. However, the density and market share of the two self-operated networks are still a long way from the pole rabbit.
Cainiao is also building a global network. As a platform, Cainiao and Jitu operate differently, and mostly use the form of resource integration. In terms of domestic collection and international trunk line network, Cainiao has basically been established; in air trunk line transportation, similar to Jitu, it cooperates with airlines in charter business; and on foreign delivery networks, Cainiao cooperates with local logistics companies or postal services, in order to make up for the lack of delivery networks, Cainiao also builds its own self-pick-up cabinet model overseas. Overall, Cainiao's financial resources, vision, layout, and digital foundation are all online. Relative to Cainiao, the scale and trunk line capacity of Jitu should be strengthened; compared with the terminal self-operated network of Jitu, there is still room for further development of Cainiao's resource control.
As a domestic express delivery bully, SF naturally has such ambitions, especially after the acquisition of Kerry, SF has obtained the logistics network of Kerry in Thailand, and in the future, with the help of Ezhou Huahu Airport, SF with all-cargo aircraft resources will be like a tiger. Industry insiders judge that with reference to DHL and other enterprises, SF will have a peak period of acquisition in 5 to 10 years.
Compared with the domestic express delivery company's overseas model and status quo, Jitu obviously has its own advantages. This brings us to the core of Jitu, which is also incomparable to other Chinese express delivery companies at present.
The first is the advantage of self-operated networks. As we all know, the advantages of the self-operated network are mainly the service quality controllable, and in the Chinese mainland, although the pole rabbit does not fully adopt the direct operation mode, it will play the "direct management + franchise network" to the extreme.
Second, mature, replicable business models. In the Chinese mainland market, the execution of Jitu is obvious to all, in just over a year, it tore a piece of meat from the hands of express delivery giants and took away 8% of the market share;
Similarly, as mentioned above, jitu was founded in Indonesia, the world's largest archipelago country, and then extended its tentacles to many countries in Southeast Asia, and has cultivated rich trading capabilities in different countries, and can adapt to development well in land countries, island countries, and religious countries, which can be said to have its own international genes. In the Southeast Asian market, Jitu reduced the dimension of the blow according to local conditions, and on the coverage rate of terminal delivery, Jitu ranked first in Southeast Asia, and the proper delivery rate also made it difficult for opponents to look back. This powerful and rapidly replicable overseas market development model will continue to accompany Jitu to the sea...
In addition, the vertical management of the headquarters and the high degree of regional autonomy are also the fundamental reasons for the super localization ability of Jitu.
Also in the Middle East, which has just started to network, Jitu adopts the management mode of unified standards of the group and a high degree of regional autonomy, taking into account the quality of service and flexible development. For example, Jitu in Dubai, the integration of offline small logistics providers, with points and surfaces, combined with online customers to place orders, offline orders, courier door-to-door pickup and delivery mode, the complete system and other express delivery gap ...
Focusing on China, after the acquisition of Best Express, Jitu's market share has made great strides into the first echelon, and the integration of the two networks will be accelerated in the future; looking at the world, Jitu has a pan-Asia-Pacific logistics network. According to relevant sources, at present, Jitu is profitable overseas, and in the future, Jitu will combine the express delivery network of ten countries to achieve resource reuse and management collaboration.
Perhaps, in the era of 100 billion votes, the market is optimistic about this set of "domestic + international" in one of the international integrated logistics network, as the pole rabbit into more and more emerging countries to cultivate deeply, the value of its global network will be further highlighted, so look down, the value of the pole rabbit is bound to be revalued again. Are you bullish?