On October 29, 2021, Best agreed to sell its express delivery business in China to Jitu for approximately RMB6.8 billion, and the transaction is expected to close in the first quarter of 2022. Immediately after the announcement of joining the network fusion in early December, Jitu released an announcement, and now there is only more than 1 month left before the estimated deadline for the completion of the integration of Jitu Baishi, how is the progress of Jitu Baishi integration? Are the former best branch owners satisfied with the integration plan? Was the integration process smooth? These are all issues that need to be paid attention to in the process of promoting the integration of the two networks.
At present, according to the understanding of Double One, the integration process of the two networks is difficult, if the terminal integration plan cannot be agreed, it is bound to cause an unfavorable situation of injuring the enemy by one thousand self-inflicted losses of eight hundred, and the re-integration of the resources of this "weak meat and strong food" is a hard battle for Baishi and Jitu, from the current situation we have learned, the acquired Baishi is obviously in a more embarrassing and dilemma.
According to the franchise network fusion plan released by Jitu in December, four scenarios that may occur in the fusion process are constructed:
Scenario 1: After consultation, the original Pole Rabbit and the former Best Franchisees will be divided into regions and become the only franchisees in their respective regions;
Scenario 2: After the original Pole Rabbit and the original Best franchisee passed the negotiation, one of the parties terminated the contract and withdrew, and the other party became the only franchisee in the region;
Scenario 3: After consultation between the original Pole Rabbit and the former Best franchisee, the joint venture company was established and became the only franchisee in the region;
Scenario 4: Both the original Pole Rabbit and the original Best franchisees have withdrawn, and the agent area is looking for new franchisees.
The above plan does take into account the possible situations, but in actual operation, the terminal franchisees on both sides are deadlocked, unwilling to merge and withdraw from the network, it is difficult to form a consensus, if the problems erupt in a concentrated manner, it will have a significant impact on the smooth transition of business in the region.
At present, there are several situations of end fusion:
1. The outlets have been sold, the price is not satisfied, but there is no way to delay
An average of 20,000 tickets entered the port every day, and the outlets with 10,000 tickets out of the port sold the outlets to Jitu at a price of nearly 1 million yuan, and the person in charge of the outlets no longer continues to operate the express delivery business. Asked whether he is satisfied with this price, the person in charge said: "Of course, he is not satisfied", he has a lot of high-quality large customers in his hands, the receiving price is relatively good, the proportion of Tao customers is relatively high, once and Zhongtong outlets were equal, but the leaders of the provinces and regions have left after more than 1 month of transition period, there is no better way, simply sell it.
It is understood that half of the network integration plans in the province and region are still undecided, but continuing such a stalemate is obviously not good for Best outlets. Since the release of the plan, the amount of dispatch has continued to decline, and now, the amount of parts has been cut off, resulting in cost loss in many aspects such as venues, vehicles, equipment, etc. According to such a situation, one day the outlets will be dragged down, and under the balance of many parties, perhaps "selling cheaply" is the most time-saving and labor-saving solution.
2. Continued negotiations with no reasonable outcome
For the veterans of Baishi, running Baishi for many years, investing a lot of financial resources, time and energy, it is also extremely difficult to take the last step of accompanying Baishi.
The person in charge of a Century outlet said that before negotiating the integration plan, the network management manager had clearly stated that the integration was more inclined to the pole rabbit. The integration plan of Baishi and Jitu from the first negotiation in the second half of December to the last negotiation today lasted more than 2 months, from the trading outlets to the split outlets, the two sides are always unable to reach an agreement, and the provinces and regions even issued an ultimatum, which must be completed before the 25th of this month, so the pressure on the outlets is very large.
The key point in the failure to reach consensus in the negotiations is that the demands of the two sides are too different. The first time the two parties negotiated with the buying and selling outlets as the integration plan, the other party proposed that if the Bitu purchased the Baishi outlets, it would pay more than 2 million yuan, on the contrary, if the Bishi purchased the Bitu outlets, it would pay more than 8 million yuan, which was obviously more difficult for the person in charge of the Baishi outlets to accept. Whether it is from the size of the business volume, the operation ability or the level of customer service service, it is obvious that the Best outlets are better, but the acquisition amount has such a huge gap, which is incomprehensible.
If the acquisition plan does not work, then the regional split will be carried out, but how to split the region, who will decide who belongs to the precinct, whether this decision is convincing, whether the two sides can unanimously accept the criteria for dividing the area, and so on, these practical issues are also headaches.
Delay in determining the final plan, the number of dispatches to the outlets continues to shrink, and the volume of incoming shipments in just 2 months has decreased by 70%, which is a huge blow to the daily operation of the outlets, and I hope that in the next step, the two sides can come up with a more reasonable plan to achieve a mutually beneficial and win-win situation and promote the stable and healthy development of the network.
3. The network is troubled internally and externally, and the instability is strong
On the one hand, to bear the pressure of integration, on the other hand, to the headquarters to protect their legitimate rights and interests, the road of Baishi outlets is not easy to walk, in the case of internal and external troubles, it is not conducive to the promotion of effective integration.
Less than 4 months have passed since Jitu announced the acquisition of Best, and it is obviously a huge challenge to quickly promote the integration of terminal networks in such a short period of time. There is nothing wrong with survival of the fittest itself, but it is necessary to come up with better solutions based on the real operating conditions and profitability of outlets. Being too hasty may force outlets to revolt ensuite, increasing instability at the end. Stable at the end, the quality of service can be continuously guaranteed, which is also the core competitiveness of future express delivery!
The problems that have arisen in the current integration process need to be solved, and they are also worth pondering. Due to the excessive number of outlets involved in this acquisition and the large scale of business, problems are inevitable, and as a lesson, in the subsequent integration process, the two sides may need to adopt a more flexible negotiation method to make the integration more stable.
Source: Double One Consulting
Typography: Xiaolan