Jitu spent 6.8 billion yuan in exchange for Taobao admission tickets How complicated is their relationship with Baishi and Pinduoduo?

After several years of losses, Baishi finally ushered in the takeover man. On the evening of October 29, Jitu Express announced that it had completed the acquisition of Best Group's express delivery business for about 6.8 billion yuan. Beijing Business Daily reporter learned from a number of practitioners that the volume of Jitu Express is now catching up with peers, and it will not be connected with Baishi in the short term. Best's mature network and team are the competitive springboard of Jitu Express, and it is also the fastest growth channel it can choose after its low-cost playing style is stopped. More importantly, Baishi is also connected to many Taobao merchants. From being banned from rubbing the net to beating the industry veteran, the "rabbit" of the pole rabbit has entered the deep water area of the industry. Especially when there are many barriers and barriers between express delivery companies, capital and e-commerce companies, intervening in each other's territory through capital operation may be a convenient way to achieve overtaking in curves.

Resources complement each other, find the right space to see the needle

During the "Double 11" period, some of the outlets of Jitu Express in Beijing will usher in a peak order. According to a person in charge of the outlet, the current outlet courier reaches 20 people, the average daily delivery volume is about 300-400 singles, and the per capita delivery is 2-3 communities, and it is expected that there will be more than 400 orders during the promotion period. "Sorting starts at 6 a.m., two dispatches a day, and can be completed around five or six o'clock in the afternoon, mainly pinduoduo packages." he said.

During the visit, the Beijing Business Daily reporter learned that the dispatch fee of some Jitu express delivery outlets ranged from 1.3-1.5 yuan, and the salary of about 10,000 yuan was used to expand the recruitment of couriers. Since the official launch of the network in March 2020, Jitu Express can be described as a horse galloping. At present, the gap between the density of its outlets in some parts of Beijing and its peers is narrowing day by day.

For example, in Chaoyang District, according to the official website data, the number of outlets of Jitu Express has reached 32, while the number of Yuantong is 41 and the number of Zhongtong is 56. On the outskirts of Beijing's fifth ring road, the number of outlets of Jitu Express even exceeds that of some established express delivery companies. A consumer living in Pinggu District told reporters that if she is not at home, she usually asks the courier to place the package in the Jitu express delivery outlet downstairs for preservation.

"Pinduoduo users are concentrated in the sinking market, Jitu Express needs to send these packages to, so there are more outlets in the low-line market, on the other hand, due to the high input cost, there is still a gap in the township area, and Jitu Express can just see the stitches in the peers." A senior express delivery practitioner explained this.

However, with capital operation to swallow the opponent's existing logistics resources to achieve a rapid leap, it is difficult for Jitu Express to refuse the temptation of Internet companies to play. On the evening of October 29, Jitu Express announced that it would acquire the express delivery business of Best Group for about 6.8 billion yuan, focusing on the network and team accumulated by Best. According to the data, as of the end of December 2020, Best Express has 87 transfer centers and more than 49,000 terminal outlets across the country. Among them, leasing-based transshipment centers and vehicle assets account for the majority.

At the same time, in recent years, the US stock market has continued to slump, and the express delivery revenue has shrunk year by year, which is quite painful. This year, not only has there been repeated reports of abnormal outlets, but the express delivery volume has also been surpassed by SF and Shentong in the first half of the year. According to the financial report, in the second quarter of 2021, the net loss of Best was 468 million yuan.

Operate independently, indirectly invade the Tao system

From the current point of view, Jitu Express does not want to affect the business operation during the "Double 11" period due to the acquisition. A baishi courier told the Beijing Business Daily reporter that according to his understanding, the two brands are independent operation, in the short term will not be connected to the grid, "double 11" period Baishi can still be delivered normally.

There are always similarities in history. Baishi, which accelerated its acquisition of Huitong Express to seize the market share of express delivery, may not have expected that a similar situation would happen to itself 11 years later. However, being included in the income of Jitu Express can trigger public discussion in the industry, and the core focus is still on the triangular relationship between Ali, Jitu Express and Pinduoduo. Alibaba's major shareholder, Ali, is also constantly increasing its weight, and by the end of 2020, Ali's voting rights on Best have increased to 46.7%.

This also means that after the acquisition of Best, Jitu Express is expected to undertake Taobao's orders for the first time. Prior to this, due to its ambiguous relationship with Pinduoduo, Ali has never opened the entrance to Jitu Express, including many rookie stations at the end, and has not cooperated with Jitu Express. A Jitu courier delivered in Chaoyang District told reporters that according to his experience, many rookie stations in Beijing are not allowed to put jitu parcels, so he usually chooses to put rookie express cabinets and Fengchao, or deliver them to the door.

In fact, for example, Jingdong did not access Shentong, Baishi, or Cainiao Station, Mama Station does not accept SF's packages, etc., and the exclusivity between express delivery and e-commerce platforms, or express delivery brands has a variety of factors. In addition to the capital connection between e-commerce and express delivery, the trade secrets between peers, such as customer information and item content on the face sheet, are also sensitive areas that enterprises covet and mutually exclusive. Secondly, due to the joint relationship between express delivery and the platform, the timeliness and stability of express delivery are important links for e-commerce to attract merchants and users. In order to provide the overall service quality of the platform, some e-commerce companies will give priority to or even cooperate exclusively with a certain express delivery company.

Therefore, when the network of Jitu Express gradually matures, it will naturally crave more sources of goods and more terminal delivery interfaces. Connecting Ali's Best has become a breakthrough target. This also means that Tongda enterprises will go head-to-head with Jitu Express on Taobao.

Improve market share and strive to get rid of low-price competition

"Dual brand operation is a strategy, and Bestway was eventually renamed Best. In the field of express delivery, the dual-brand operation is easy to cause resource dispersion, but it is not excluded that Jitu can find a path, just like OPPO and vivo. Gong Fuzhao, founder of Double One Consulting, believes that the policy has brought a lot of uncertainty to Jitu. Jitu quickly started the express delivery business at a low price, but was stopped by the regulatory authorities. Under the circumstance of emphasizing high-quality development and difficulties in profitability within the industry, grabbing the market at a low price is no longer a sustainable strategy, and acquisitions have become an important measure for Jitu to accelerate market share.

In April this year, Jitu Express and Best were named by the Yiwu Postal Administration for involving low-price dumping, and some of their distribution centers were suspended. The above-mentioned senior express delivery practitioners said that the purpose of the two low prices is different, Jitu is to grab the market, and Baishi is forced to be helpless. "Best's business volume has been robbed by peers, if there is no goods, the network will not be able to operate, but the low price can only exacerbate losses and network turmoil." He explained.

From rectifying low-price disorderly competition to increasing the 0.1 yuan payment fee to protect the rights and interests of couriers, express delivery companies are reversing strategies to adapt to changes in the policy environment. Beijing Business Daily reporter noted that before the "double 11", Yuantong and Zhongtong cancelled or adjusted some indicators respectively. For example, since October 1, YTO has carried out reduction and optimization of assessment items such as upgrade complaints, false signatures, and timely collection of outlets. At the end of October, Zhongtong Zhejiang Provincial Management Center issued a notice saying that the penalty for business volume assessment in the fourth quarter of 2021 was cancelled. At the same time, the official website of Zhongtong has also been revised to highlight product differentiation.

"This year's 'double 11' industry does not want to enter the vicious circle of disorderly price war and expansion of production capacity, so it began to raise prices, and enterprises also hope to protect profits and stock prices in the peak season, so that outlets can no longer grab customers at low prices in order to complete the indicators." It is expected that after the peak season, the price of express delivery will be difficult to fall below 1 yuan as in the past, and will stabilize in a certain range for a period of time. Gong Fuzhao said.

On October 29, according to the statistics of the State Post Bureau, since the third quarter, due to factors such as the rise in terminal dispatch fees and rising costs, the unit price of express delivery has increased month-on-month. Among them, the same city rose from 5.4 yuan in July to 5.7 yuan in September, the other place rose from 5.5 yuan in July to 5.6 yuan in September, and the international/Hong Kong, Macao and Taiwan rose from 61.7 yuan in July to 63.2 yuan in September. From a regional point of view, Zhejiang, Guangdong, Hebei, Fujian, Henan and other places have risen, of which Zhejiang express prices have risen for three consecutive months.

Beijing Business Daily reporter He Qian