China Express industry into a new round of vicious competition?

The people-funded express industry will usher in the strongest competitors. Recently, there is news that the postal service of China Post, is in the midst of the launch of the same city express business, charging standards will be much lower than the current tariff standards. Postal system a strong network of resources, such as advantages, if supplemented by price advantage, or will squeeze the current struggle in the "food and clothing line" on the people-funded express.

By the "China Business newspaper," The interview confirmed that this matter is true. Shanghai Post as early as April 2011, has launched business courier business to "7+2" tariff standards, in the pilot City Express business. And rumors of Beijing Post Business Courier business, or will be 5 yuan charging mode to hit the market.

Beijing pilot Low Price Express

A private courier told our correspondent, 5 Yuan charging model will trigger a new round of vicious competition. If the reference to this "5+1" charging mode, all the private courier will lose money.

Recently, Beijing Post will be a pilot in the six areas of the launch of "Low-cost Express" business to meet the ordinary package and EMS between the user needs. At present, a 300-person team of Beijing Post's business delivery bureau has been officially set up. In terms of pricing, the Low-cost Express 5 yuan, more than 1 kg of parcels by standard fare increase. Its launch of the Low-cost Express business mainly for bank bills and small domestic parcels, the future will gradually expand to the same city express business. In the statute of limitations, the above business can guarantee the morning receipt of the express arrival.

Ultra-low prices in the market, supplemented by the exclusive postal distribution resources, Beijing post pilot "Cheap Express" news, so many private express management began to fidget. A private courier in China told our correspondent, if the news is true, 5 yuan charging mode will cause a new round of vicious competition. In today's high human and logistics background, if the reference to this "5+1" fee model, all the private courier will be a loss.

More let express industry many people are surprised that the introduction of Low-cost courier business, is subordinate to the Beijing post of China Post. China Post's current business is divided into 3 categories, respectively, for the postal service, postal Storage Bank and courier logistics. One of China Post's Courier logistics Company is a professional operation and management of the National postal Courier Logistics business, with EMS SpeedPost and CNPL-mail logistics and other brands.

After nearly two years of adjustment, EMS today's price has been able to and private courier in the Shun Fung do the same, than "four to one Tatsu" slightly higher.

China Express Consulting Network chief consultant Xu said that China's "postal law" has clearly stipulated that postal enterprises in general Service business and competitive business should be divided into business. Among them, courier service, savings business, including some of the charges on behalf of the business, are clearly divided into competitive business, should be with the national policy funds to support and subsidize the basic postal business areas.

"If one side is holding the financial subsidy of the state, while the market competition with the private courier, not only violates the postal law, but also violates the fair principle of market competition." "Xu said. In the interview process, many private courier business Management, all hold a similar view.

Response: Service upgrades only

Subordinate to the Shanghai Postal Business Courier Business, the tariff standard for "7+2", that is, the first heavy 1KG for 7 yuan, each continued heavy 1KG and its zero plus 2 yuan, compared to private courier prices slightly lower.

Beijing is just the start of a nationwide replication of cheap courier services, the news said. After the completion of the innovation experiment in Beijing city, the model may be extended to the whole country in the future. The reporter tried to contact the relevant person in charge of China Post, but was not answered.

Shanghai Post's relevant officials told reporters, in fact, this model has already begun in Shanghai pilot. Since April 2011, Shanghai Post has launched the Shanghai Post Business Express business, pilot operation.

Reporter learned that, under the Shanghai Post Business Courier business, the tariff standard for "7+2", that is, the first heavy 1KG for 7 yuan, each continued heavy 1KG and its zero plus 2 yuan, compared to private courier price slightly lower.

For the industry "in violation of the postal law and the principle of competition fairness," the Shanghai Post said the person in charge of the response to the newspaper, the current Business Express business, is in its basic postal business gradually developed. If the previous user to the security of small items to be sent to a certain request, generally can take the "registered mail" mode, but registered mail must be sent to the Post Office Business window, and its model has not quite in line with the young mainstream user's behavior habits. On this basis, China post to the local postal branch to give certain authority to the original postal model to upgrade, which is a small part of the postal reform.

The person said that in order to ensure that with the same China Post EMS does not produce or as little as possible to create a competitive relationship, Shanghai Post in the business courier of the content and service scope of a slight distinction, such as the goods to be sent to the weight of more than 1KG of small items, such as files, documents, bills and cards, the scope of service limited to the whole of Shanghai, Only provide a small number of domestic packet services.

Unmatched Competitive Advantage

Some people suggest that even if China post is to be involved in the courier industry, it should also aim at foreign express delivery, more international express delivery and high-end courier services, rather than lower the body at a low price admission.

This is called "cheap EMS" postal business courier business, whether it will be identified with the ordinary express business has a direct competitive relationship, fear will become its existence is an important measure of rationality.

According to the recently drafted "Postal Universal Service Fund levy the use of management interim measures", the entire express industry to levy a universal postal Service fund. And according to the fund's levy standard, for the domestic city express 0.1 yuan/piece, the domestic off-site 0.2 yuan/piece, Hong Kong and Macao 1 yuan/piece, international 2 yuan/piece, 20 employees below or annual revenue of 2 million yuan enterprises can be exempted.

This is the industry known as the "money" levy standards, is believed to be from ordinary express enterprises cut off the 25%~40% of corporate profits. At present, China's express enterprise profits generally in 3%~5%. "One side from the private courier enterprises to collect ' money ', while also enjoying the state of the financial subsidies to the postal service, China Post's competitive advantage is too obvious. "There are domestic private courier of the head angrily said.

The impact of "cheap EMS" on the market is self-evident. Whether it is Beijing post rumors of "5+1", or Shanghai post is implementing the "7+2" fee model, are under the current cost model, private courier enterprises are difficult to do.

In addition, the postal system compared to private courier companies, Xu said, in logistics there are many of the latter difficult to reach the advantages, such as its own network throughout the country, there can be used for courier business Aircraft, its railways and highways enjoy a "green channel" in the urban parking and other aspects have policy concessions. Resource Advantage and Dot advantage make it easy to get a bigger share in the terminal market. Now if its financial advantages into a price advantage, will make many private express enterprises difficult to survive.

A number of courier industry in the call to this newspaper, although after years of development, China post in the provision of postal services in General Service business still has a lot of room for improvement, such as the central and Western resource investment imbalance, it should be limited resources to protect the basic rights of citizens of the service, rather than with private enterprises to fight cake. Other people suggest that even if China post is to be involved in the courier industry, it should also aim at foreign express delivery, more international express delivery and high-end courier services, rather than lower the body at a low price admission.