Jitu rushed to the Hong Kong Stock Exchange, what kind of "big chess" are express delivery companies playing?

Polar Rabbit, which has been running wildly for 8 years, is about to run to the Hong Kong Stock Exchange. Just four months after submitting the listing application on June 16, there was good news from J&T, and on October 17, J&T will officially land on the Hong Kong Stock Exchange. Although it entered the domestic express delivery industry late, this does not prevent Jitu from becoming the fastest listed express delivery company in China.

1. Rabbits running out of Southeast Asia

Founded in Indonesia in 2015, J&T has become the largest express delivery operator in Southeast Asia with a market share of 22.5% in just 7 years, and has also torn off 10.9% of the market share in the mouth of all directions. So how did the polar rabbit stand at such a height in such a short time? In fact, there are two main strategies for Jitu, finding allies and acquisition.

Li Jie, the founder of J&T, was once an employee of OPPO, responsible for developing the market in Indonesia, and even the original purpose of J&T was to meet OPPO's express delivery needs. Backed by OPPO's business in Indonesia, Jitu not only survived in Indonesia, but also conquered cities in Southeast Asia and became the largest express operator in Southeast Asia.

In 2020, Jitu intends to enter the domestic market, but at that time, the domestic express delivery business was almost divided by all directions, and Jitu wanted to get a piece of it, which was visibly difficult. So Jitu won over a second ally, that is, Pinduoduo. At that time, Pinduoduo had already occupied a place on the domestic e-commerce platform with its sinking market, relying on Pinduoduo, J&T left a name in the domestic express delivery industry, but this was not Jitu's goal. If you want to quickly occupy the market, the fastest way is to acquire mature express delivery companies.

After acquiring Longbang Express in 2020 to obtain business qualifications, Jitu successively acquired Tiantian Express and Best Express, and after gaining a firm foothold, it acquired SF Fengwang. Subsequently, relying on the price war, Jitu successfully became one of the largest express delivery companies in China.

However, despite this, the current situation of Jitu is not as good as the public thinks.

2. The dilemma of the polar rabbit

At present, there are two most important markets, one is the Southeast Asian market and the other is the domestic market, but unfortunately, recently, the development of Jitu in these two markets is not ideal.

Southeast Asia is the birthplace of J&T, and it is also the main source of Jitu's profits, but in the past two years, due to fierce competition, J&T's express delivery business in Southeast Asia has been greatly affected. In 2022, Jitu's revenue in Southeast Asia is $23.82, which looks good, but the year-on-year growth is only 0.2%, compared with the year-on-year increase of 127.2% in 2021, which is simply tragic. On the other hand, J&T's domestic business is still losing money, with a loss of $1.39 billion in 2022. Originally, China's business almost relied on Southeast Asia for "blood transfusion", and as the growth of Southeast Asian business almost stagnated, how to continue to make domestic business continue to become a problem.

In this case, Jitu decided to go public, without the intention of raising funds. However, the crisis that Jitu is currently facing is not just funding.

This year, Indonesia announced a ban on all online live streaming platforms in Indonesia, which led to heavy losses for Indonesian merchants. Malaysia also announced that it was considering enacting an e-commerce ban like Indonesia. In recent years, the development of express delivery relying on e-commerce has become a tacit understanding in the industry, with the development of e-commerce in Southeast Asia being overshadowed, where should Jitu go?

In addition, in today's express delivery market, consumers are not only pursuing price, but also service and quality, which is the shortcoming of Jitu. In the public satisfaction ranking of user express delivery services in the third quarter of 2022 released by the State Post Bureau, Jitu did not make it to the top five.

3. The "new battlefield" of the express delivery industry

In fact, in recent years, the express delivery companies that want to go public are not only Jitu.

At the end of September, information from the Hong Kong Stock Exchange showed that Cainiao had submitted a listing application to the Hong Kong Stock Exchange. Cainiao has now become a global smart logistics network, and if Cainiao can be successfully listed, it may become the world's first smart logistics stock. On the other hand, SF also submitted an application to the Hong Kong Stock Exchange in August, before that, SF has been listed on the Shenzhen Stock Exchange, if it can also be listed on the Hong Kong Stock Exchange this time, SF will become the first "A+H" share listed company in the express delivery industry. Ushered in three IPO news in a year, why did the express delivery giant go public?

Some industry insiders said that on the one hand, these express companies are to raise funds. With Jitu relying on price wars to seize the market and rookies "flying solo", the express delivery industry began a "war" without gunsmoke. If the major express giants want to become winners, they must need more funds.

On the other hand, express delivery companies are also for the new "battlefield". After extending its business network to Europe, America and other places, Cainiao has launched services such as "Promise Delivery, Late Compensation" in Europe, America and Asia, and continues to build a global logistics network while basing itself on China. On the other hand, by the end of last year, SF's express business covered 84 countries and regions, and SF's international business accounted for more than 30% of total revenue. After listing on the Hong Kong Stock Exchange, SF will not only attract more overseas investors, but also enhance its international influence and better develop its international business.

In August, J&T signed a cooperation agreement with HNA Cargo, and the two sides will carry out logistics cooperation around the world in the future. This cooperation will enable J&T's business to cover more distant areas.

For Jitu, going public is only a small goal, express delivery companies have begun a new round of "fighting", at that time, how far can Polar Rabbit go?

This article is synthesized from China Fund News, Node Finance, and Tiger Sniff APP