DDS Express Branch closure Express industry planning to get out of the low price strategy

Source: Internet
Author: User
Keywords Added value East China
Tags added added value business company cost customer customer service daily express
15th afternoon news, Sina Finance from the DDS Express Company Headquarters customer service learned that the DDS Express Jiangsu and Zhejiang branch after the closure of the province, the Jiangsu, Shanghai and Anhui all outlets all stop, East China Express business all terminated.  The star is anxious to the chairman, home eager to send the founder of Chen Ping and Daily Express chairman, President Zhan and Sina Financial exclusive dialogue, said that the low price strategy is the main reason for its failure, express industry needs to improve value-added, return to rational prices.  Low-price strategy to open up the market stars anxious to the chairman, home urgent send founder Chen Ping said, leading to DDS Express Jiangsu and Zhejiang Branch closed the core issue is not the issue of express industry, but its governance issues.  He analysis pointed out, really DDS Express in South China developed very well, but in east China has taken the wrong low-cost strategy, east China with the City express the lowest cost in 6 yuan, and DDS but the price pressure to more than 2, which means they do a single loss. "DDS In the absence of a strong financial backing for the protection of the situation, the hope that by lowering prices to seize the market is not scientific, and can not be done for a long time."  "Daily Express chairman, President Zhan thought."  He continued to explain that the DDS into the East China market did not find the right positioning, they are not the way to take personalized service, but the use of low-cost to seize the market, price pressure to the following, which not only disrupted the entire express market law, but also make it difficult to maintain normal turnover.  Collect money for investment in addition, Chen also said that DDS Express with the collection of money to do investment also led to the current consequences, as this practice has a great risk, once the loss will result in arrears of customer loans and other major issues. Zhan that it is possible for companies to increase their cash flow appropriately, but it is unfair to use the collection money as cash flow to invest in the enterprise. "Unless there is a strong funding behind it, it is difficult to sustain."  "he added.  Express prices should return to the rational and for now the traditional courier companies into a vicious price war difficult situation, Chen pointed out that this is the market is not standardized, China's express industry is still doing low value-added work, the use of low-cost to attract customers, unlike the foreign express industry, to provide high value-added services. "But now the dilemma for them is also a turnaround, so that they are clearly familiar with the traditional mode of governance has come to an end, it may be through the improvement of service quality, strengthen internal governance and other ways to improve value-added, transfer price war."  He said optimistically. Meanwhile, Daily Express chairman, President Zhan said, express industry market is very large, the reason is caught in the current dilemma is due to the service level of express companies are not able to keep up, but simply rely on price war to attract customers, if express prices can be rational return, express companies will be able to have good development. (Cam is from Shanghai)
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