With the rise of various e-commerce platforms, traditional offline physical stores have been impacted, and people have gradually become accustomed to online shopping. The most indispensable part of online shopping is the express delivery service.
After the survival of the fittest in the shopping mall, the domestic express delivery industry has gradually formed a scene divided by Jingdong, SF, Post and three links and one group, and other small brands can only be limited to some areas struggling to survive in the cracks.
But in recent years, a previously unheard of express delivery brand has frequently appeared in the commodity logistics information, and has occupied a place in the oppression of these giants.
It is understood that this company is completely losing money and making money, and does not hesitate to spend 100 million yuan every day to enter the Chinese market, and even the old express YTO was almost "stolen" by it.
Of course, such rapid expansion has also brought it a lot of problems, and the controversy of consumers about it has intensified.
What is the divine behind this express delivery, which can make a name for itself in today's saturated Chinese market? What happened to it that caused controversy among many consumers?
"Mixed Blood Express"
In recent years, friends who often shop in Pinduoduo probably know that most of the default logistics of merchant delivery has changed from the original three-way and one-delivery to the current Jitu Express.
Many people are puzzled by this, where did this express come from, they have never heard of it.
No wonder everyone has questions about this, this Jitu Express has indeed emerged in the Chinese market in recent years, and it is also an express brand from the Indonesian market to China.
Although its birthplace and base is in Indonesia, its boss is a Chinese, and its establishment is only a domestic brand to occupy the Indonesian market.
In 2013, OPPO Group entered the overseas market, when Li Jie, the regional general manager of Suwan region, was ordered to go to the Indonesian market to open up sales channels.
Li Jie is an old employee of OPPO, who has been working in BBK, the predecessor of OPPO Group, since 1998, and was slowly promoted from grassroots sales, which can be said to be experienced in hundreds of battles.
After arriving in Indonesia, I did not know the Indonesian language despite my lack of familiarity. However, with years of rich experience accumulated through hard work, Li Jie quickly became popular in the local market under the condition that communication relied on translation, and obtained 20% of the sales share of the Indonesian market in the first year, so that the name of OPPO mobile phones in Indonesia has been established.
At that time, Indonesia's smartphone penetration rate was not high, and it was a big cake for the mobile phone industry that had not been completely cultivated. Li Jie has ambitions to make a career in Indonesia in preparation for his return to the core of the group.
But with the expansion of the market, the problem of the Indonesian market has also emerged, that is, the quality of the supporting express delivery industry is too poor.
In the era of rampant e-commerce, it is somewhat outrageous to open up sales channels and rely on offline stores to bloom everywhere, but online sales cannot be avoided to be supported by perfect express delivery services.
At that time, the Indonesian express delivery industry had two major problems, that is, too few outlets and poor security of express delivery. Electronic products such as smartphones have high requirements for the safety of express delivery, and bumping them is likely to cause injury to the goods.
After pondering hard, Li Jie finally decided that OPPO would take over the route of self-operated express. In this way, "J&T Express" was born in August 2015.
Coincidentally, at that time, the Indonesian government was concerned about the development of e-commerce and successively introduced a number of welfare policies. This allowed Li Jie to see the broad prospects of the market, decisively resigned and focused on express delivery, and soon became the leader of Indonesian express delivery, and expanded its business to the Southeast Asian market.
After the popularity of foreign mixing, Li Jie did not stop his steps, but planned to return to China for development. So after acquiring Longbang Express, he changed the brand name to Jitu and began to enter the Chinese market.
Burning money to lay down the rivers and mountains
J&T Express entered the Chinese market in 2019, when the Chinese market was close to saturation, and it was even more difficult to insert a bar.
But Li Jie had planned for this, he directly found "three links and one delivery" to talk about cooperation, and used the delivery fee as a reward in exchange for the opportunity to share express delivery outlets with them.
It is already common for many domestic express outlets to share, and they also know the current market situation, and do not put Jitu in their eyes, so they happily reached a cooperation.
In this way, Jitu Express successfully solved the problem of infrastructure and completed the first step of developing the market, and then opened its fangs like the domestic market.
If you want to attract customers, then the easiest thing is to make a profit. Jitu showed the attitude of an upstart from the beginning, attracting many merchants at a price much lower than the market price, and then Li Jie set his sights on Pinduoduo, which was also born in the squeeze of several major e-commerce companies and became bigger and stronger.
Pinduoduo bosses Huang Zheng and Li Jie both have a fate with BBK, so they got in touch through this relationship. Li Jie is eager to open the Chinese market, and the low price of Jitu Express can attract traffic for Pinduoduo as a merchant, and the cooperation between the two is logical.
Since then, Jitu Express has taken over most of the commodity logistics of Pinduoduo. In order to quickly develop the market, Li Jie did not hesitate to burn 100 million yuan a day for ten months, which also made Jitu Express quickly spread in China, which also attracted hostility from other brands.
Business wars and crises
In October 2020, Shentong, YTO and Yunda joined hands to announce the termination of cooperation with Jitu Express and stopped providing network services for it. As soon as this measure came out, it really brought great trouble to Jitu.
But the matter has come to this, if you want to win, you have to fight harder, so Jitu did not hesitate to spend 6.8 billion yuan to directly acquire Best Express in the thin West Mountain, solving the problem of outlets.
Seeing that Jitu was so decisive, in order to protect its own market interests, the two sides started a price war, and for a while the express delivery industry was forced to roll up madly.
Such a price war was fought, resulting in a lot of impact on the entire industry, and finally the intervention of the regulatory authorities was quelled, but Jitu has occupied a place in China at this time.
Such crazy expansion and capital injection has also brought a huge burden to Jitu, not only the financial pressure is increasing, but also faces the problem of uneven service quality and continuous decline in consumer trust, and the development prospects are still not optimistic.
epilogue
J&T Express is also aware of these problems and acquired SF's Fengwang Information in May this year, hoping to improve the user experience to change the public's perception of it, but it still seems to have little effect.
The competition in the domestic express industry is still continuing, I don't know what kind of sparks all parties have, let's wait and see!