’s Daily Overseas Edition

getUrls?link=4ca256a20244ff666d82902d072579ea - Competition in the express industry is overweight

On May 4, at the SF Distribution Center in Huangpu District, Guangzhou, the staff was Ordered sortingExpress packages. Photo by Wei Jinsong (People’s Vision)

Express delivery in the same city and different placesAverage price” upside down”, head Enterprise financial situation is under pressure, grass-roots express outlets are struggling to operate, and courier dispatch income continues Compression… In recent years, the relatively stable express delivery industry has set off a new round of price war. As the”6.18″ promotion is approaching, express delivery companies are attracting e-commerce with low prices.

What impact will this have on the express delivery industry and practitioners? What do couriers, franchisees, consumers think about this?

Competition is fierce, and the average price in the same city and different places is”upside down”

Express delivery fee is e-commerceCost is a big piece, whose courier fee is cheaper, The lower the free shipping conditions, the more customers favor.” Online shop The shop advocates Xiao introduced that the price war in the industry since last year has lowered the delivery fee, and many are like him This kind of e-commerce has tasted the sweetness.

Zhang Xiao has been operating an online store on a large e-commerce platform for nearly 3 years, and its offline delivery place is located in Zhejiang.”If the scale of the online store is not large and self-built warehouse is not cost-effective, the e-commerce company will choose to store it locally Enterprises cooperate and provide warehousing, packaging, sorting, and delivery services on their behalf.” Zhang Xiao introduced that there are many local”cloud warehousing” institutions that provide integrated warehousing and distribution services for e-commerce companies. These institutions have long-term cooperation. span class=”candidate-entity-word” data-gid=”2005710″ qid=”6595885351611421966″>The courier company cooperates with strong bargaining power, and the price of the goods is also affected by this round of express price war Keep going lower.

According to reports, the express delivery industry has basically formed SF Express, JingdongJingdong. /span> and”three links and one reach” (Yuantong, Zhongtong, Shentong, Yunda) is the main pattern, and the price is relatively stable. However, since the second half of last year, new companies such as Jitu Express have entered the market. In order to seize market share, express companies have rushed to lower prices, triggering fierce competition. On April 9th, in Yiwu, Zhejiang Province, where the express delivery price war was constantly escalating, the local Postal Administration gave a “low The reason for “price dumping” requires Best Express and Gitu Express to rectify, and stop some distribution centers.

The notice issued by the State Post Bureau a few days ago shows that in the first quarter of 2021, the brand concentration index CR8 of express and parcel service was 80.5, a decrease of 5.4 compared with the same period of the previous year, and a decrease of 1.2 compared with the same period of 2019; The differentiation is serious, and second- and third-tier companies are gradually cleared out; affected by fierce market competition, the performance of major companies is under pressure, and corporate financing has increased.

Compared with other countries, the average unit price of China express delivery industry is originally higher Under the price war, the market is increasingly under pressure. The data shows that the difference between the business volume of the express market and the growth rate of business income in the first quarter was as high as 29.1 percentage points, and the average unit price of express delivery was only 10.2 yuan, which was lower than the average price of the same period last year. At the same time, the average prices in the same city and in different places were 6.4 yuan and 6.1 yuan, a year-on-year decrease of 9.2%and 22.9%respectively. The State Post Bureau notified that this was the first time that the average price of express delivery in the same city exceeded that of express delivery in other places.

The average price in the same city and in different places has been”upside down”, which shows the intensity of the price war. China Logistics Society Special ResearcherYang Daqing pointed out in an interview with our reporter that some express companies compete for customers with low prices on the one hand, and compete for franchisee resources with subsidies on the other, making price wars a normalization. Competitive tools.

What impact does it have on the grassroots outlets?

How does the price war affect companies, consumers and practitioners?

E-commerce and warehousing companies are the key targets of major express companies in the price war.”Yuncang is in volume, with fast turnover and large scale of delivery. When they connect with the courier company, they flatten the cost, so the price for e-commerce is relatively low. The average weight of the items I sent was lower last year. Before and after the’Double 11′, when the price was relatively low, there were 1 yuan 4 jiao, 1 yuan 2 jiao, and even a piece as low as 1 yuan. This year’s June 18 is estimated to be similar.” Zhang Xiao said.

Ordinary consumers have no obvious feelings about price wars.”Recently, when shopping online, free shipping by merchants has become more and more common. Free shipping is also available when you buy a cheap commodity, which was rare in the past.” Beijing citizen Wang Xi said, “However, the cost of express delivery by myself has not been reduced, and the timeliness of express delivery has been reduced. For example, the delivery of outlets is slow, and some couriers do not have the consent of customers. Just put the express mail downstairs, the locker or even the gate of the community. I have a problem with the price war of express industry What I have heard. In some respects, consumers have indeed benefited. For example, some express companies that take high-end routes have put down their positions and recently launched economical services. However, it is estimated that e-commerce companies are the most affordable in the price war, as the receipt of goods. Fang’s consumers, service experience has even declined.”

Yang Daqing explained that the reason why ordinary consumers do not have obvious feelings about price wars is that price wars are more likely to happen to large merchants and large customers. The process of low-price competition, not ordinary consumers.

“Industry competition is fierce. Each company wants to cut prices. The outlets have to cut costs and lower the delivery fee, which ultimately affects the enthusiasm of the couriers. The outlets cannot recruit or retain people, so you must ensure that the couriers Salary and outlets are also under great pressure.” said Zhao Wei, the person in charge of a franchise outlet.

Yang Daqing pointed out that the price war has caused direct damage to vulnerable first-line franchisees.”Grass-roots outlets are hungry and full, and the market is easily out of order. The instability of franchisees will inevitably lead to a high turnover rate of employees in the outlets, which will affect the continuous optimization and improvement of terminal services.”

Lin Feng, who has been working as an employee for nearly three years, introduced that due to the increasingly fierce price war in the industry, the delivery fee per order has dropped and the amount of delivery has continued to rise.”The distribution fee for our outlets was originally 1.2 yuan, but now it’s reduced to 1 yuan. I heard that some outlets sent an order for only 0.8 yuan. Some colleagues who had worked together switched to delivery.”

Price wars It is easy to cause a vicious circle. In order to ensure the completion of the delivery, the courier often sacrifices the quality of service. Many front-line couriers report that customers often complain about the deterioration of the service quality of couriers.”With such a high pressure, it would be nice to be able to complete the daily workload. It is difficult to guarantee the quality of service anymore,” Lin Feng said.

Experts pointed out that the impact and pros and cons of price wars require specific analysis. Yang Daqing said that if the price war is built on the basis of cost reduction through refined management and technological innovation, which manifests itself as gaining scale advantages at low prices and concessions to customers, then this low price is Competitive strategy should be allowed. However, if the company is not based on the above-mentioned basis, but purely kills competitors with low prices and disrupts market order in pursuit of short-term benefits, it will become a disruptor of market order and an obstacle to the upgrade of express delivery services. This kind of price war should be governed by regulations. Supervision.

Yang Daqing said:”If some companies use financing to launch an offensive price war, it will force companies that are unwilling to fight a price war to fight a defensive price war, causing the entire industry to fall into market disorder and price chaos.”

Promote the healthy and orderly development of the express delivery industry

China is a major express delivery country, and the express delivery business volume has remained the world’s largest for many years. In the first quarter of this year, the total volume of the express delivery service industry across the country has reached 219.3 Billion pieces, a year-on-year increase of 75.0%.

However, a large express delivery country does not mean a strong express delivery country. Many industry experts pointed out that China’s express delivery market is still a”red sea” of fierce competition, and low-end price wars are prevalent. The sustained, healthy and orderly development of the industry urgently needs to turn to a high-level competition track.

“Leading international express companies are investing heavily in the purchase of cargo aircraft and other equipment for digital and intelligent upgrades. Chinese express companies are sitting on a huge market and should not spend tens of billions of dollars on price In terms of attracting customers, this customer acquisition model is often inefficient and short-term. In particular, the leading companies in the industry should focus on promoting the healthy, orderly and high-quality development of the industry, rather than blindly fighting prices or even lowering the basic-level outlets. The unit price of the courier depends on the price war to kill the opponent.” Yang Daqing said.

Faced with the intensifying price war, the express industry frontline workers call for more Guaranteed.

Concession to consumers should also be based on the premise of healthy and orderly development of the industry.”Consumers certainly prefer better services and more affordable prices, but this should not be based on harming the interests of workers.” Wang Xi said.

In Wang Xi’s view, some enterprises have transformed labor-management contradictions, consumer and enterprise contradictions into contradictions between consumers and workers, which is not conducive to the solution of the problem.”What consumers can do is to understand and care more about the courier brothers. The government should give full play to the regulatory role, regulate the operation of the market, and protect the rights and interests of consumers and workers.”

However, relevant localities and departments have begun to rectify.

On April 22, Zhejiang Province passed the”Regulations on Promotion of Express Delivery Industry in Zhejiang Province” (Draft)”, stipulating that express delivery operators shall not provide express delivery services at a price lower than the cost; e-commerce Platform operators must not use technology or other means to block the normal services of express operators; platform express operators must not prohibit or impose unreasonable conditions to restrict other express operators from entering.

From May 24th to 25th, the Zhejiang Provincial Postal Administration successively held the province-wide postal express The special rectification of market order Yiwu on-site meeting and a special symposium with leaders of provincial headquarters of various express brands emphasized the need to resolutely maintain market operation order and resolutely safeguard the legitimate rights and interests of express employees.”Recently, relevant departments have taken actions to rectify the express delivery market, and express delivery prices here in Zhejiang are picking up overall.” Zhang Xiao said.

Yang Daqing believes that behaviors that violate the principles of competition and launch price wars purely for price wars should be supervised, so as to promote enterprises to invest funds in the”knife edge” of service upgrades and intelligent transformation.”On the one hand, it is necessary to gradually increase the entry barriers for enterprises to avoid companies adopting opportunistic competition strategies and disrupt the orderly market with the help of money-burning models. On the other hand, it is necessary to increase supervision and allow enterprises to return to the value competition track.” /p>