EMS Price Shock Express industry: Cost War and service war difficult choice

Original title: EMS Price Shock Express Industry

With the City Express 12 Yuan, EMS such price will let you echocardiography?

In China Post Courier logistics on the eve of listing, a price of EMS on the war caused by the express industry earthquake. "EMS is the price?" "Do you know why the price of EMS?" Recently, express industry people are asking each other.

This month, some provinces and cities in the EMS on the basis of standard prices to make concessions, the highest price range of 40%. The price of the back, is the EMS China Express market leader of the market gradually lost the reality, but also the Chinese express industry in the price war and service war between the difficult choice.

Beijing News reporter Somaly

Big Brother cut the price.

Over the years the price "high" EMS, suddenly in some regional markets to adjust prices.

The express industry price fluctuation is not unusual. However, as the longest operating history, the largest and most extensive network coverage of the Big Brother China Post EMS is rare.

Over the years the price of the "high" EMS, lifting 500g and within 20 yuan has been, the price of the renewed only in April 2010 a fine-tuning.

The reporter through the EMS 11183 Customer Service Hotline inquires, in Beijing with the City Express first weight is currently 12 yuan/kg, the weight of 3 yuan per catty, and through the official website of the Tariff inquiries, the first heavy 500g, Beijing with the city's tariff is still 20 yuan, continued to 4 yuan.

In Guangzhou, the price is more flexible. Guangdong Province Express has been from the original 16 yuan/kg down to 12 yuan/kg, continued to weigh 2 yuan/kg, sent to the Pearl River Delta region per ticket 18 yuan/kg, continued heavy 3 yuan/kg, but the price of the trans-province remained unchanged for 20 yuan/kg.

More striking is that EMS for E-commerce Express price adjustment. In some cities, EMS launched "within 1 kg per ticket 8 yuan" of the electrical business Express activities, which let EMS electricity prices and "four to one Tatsu" basically flat.

To the same city express as an example, Huitong, rhyme up to the first heavy price of 6 yuan, Qualcomm, Yuantong slightly higher than 8 yuan, Shentong for 11 Yuan, EMS old rivals Shun Fung Price of 13 Yuan, EMS price has a considerable advantage.

However, EMS this price is confusing, many branch EMS denied price, in the EMS official website no notice, according to the reporter understand, even in the EMS group has no dispatch.

An EMS insider told reporters: "EMS is the direct mode, the provincial and municipal branches do not have pricing power, but have the right to concessions." Various branches can be based on local conditions selectively discount promotions, so there have been various EMS prices are not uniform situation. And for the big customer discounts are already there, but before the area is not so big. ”

Paving the road for listing?

For this price reduction, the industry believes that EMS is intended to expand market share, but also to create good conditions for listing.

However, on the eve of the IPO, the EMS provinces and Cities Branch discount adjustment is particularly noticeable. What makes the old boss put down his body and play the price card of the pro-people? Industry guesses, EMS big moves frequently has the consideration which creates the good condition for the listing.

This May, EMS smooth meeting, to raise funds 9.97 billion yuan, EMS will also become the first share of China Express. EMS IPO matters have entered the countdown phase, and stay in the right time window. However, in the Express industry IPO assessment of the two main indicators of business volume and business income, EMS performance is not satisfactory.

As the head of the Express Enterprise, EMS has other express companies do not have the comprehensive advantages. For example, to cover the township level of a powerful terminal network, terminal tentacles have been extended to township level, in many remote areas, EMS is the only delivery of logistics channels. At present, other express enterprises can not be served in remote areas of business are with EMS cooperation. In the large customer base, EMS occupies a natural advantage, many countries, the head of large enterprises are basically EMS fixed customers. But the pace of EMS is not fast enough.

According to the company's prospectus, 2009, 2010 and 2012, the company's Courier business section of the operating income of 16.258 billion yuan, 18.377 billion yuan and 21.197 billion yuan, is still the industry's boss. But its growth rate has not caught up with the overall growth of China's express delivery market.

In the same period of 3 years, China's express business income from 47.9 billion yuan to 75.8 billion yuan. This directly led to its market share of the proportion of the year, according to the number of its prospectus, 2009 to 2011 three years of time, postal courier accounted for 34%, 32% and 28%, year-on-year decline.

From 2000 before more than 90% of the market share, up to now only 30% of the market, EMS boss status is precarious.

"Price war is the most powerful competitive weapon in the express industry." "In China Express Consulting Network, chief advisor Xu, price reduction is the most effective way for EMS to pull the volume of business." EMS launched Low-cost activities, but also the development of low-end market, hope to maintain the original quality on the basis of this attempt to stabilize their position.

EMS in the domestic development direction is very clear constantly improve market share, and strive to become the main channel of E-commerce and other fields. Industry insiders pointed out that the development of services to facilitate the promotion of word-of-mouth, change in the hearts of consumers in the Mail courier brand image, but all this takes time, in the face of the current plight of embattled, the launch of a price war is the fastest way to seize the market share in the mail courier.

EMS Electric Dealer Short Board

E-commerce explosive growth led to the market share of EMS declining, the current EMS difficult to shake the advantages of private enterprises in the electric business industry.

Market share from 90% to 30%, what changed the status of EMS? The answer is that e-commerce is exploding.

China Internet Network Information Center (CNNIC) statistics, 2011, China's online retail market transaction size of 801.9 billion yuan, an increase of 56.3%, with the accompanying, express market also expanded.

China E-commerce Research Center data show that from 2007 to 2011, China's network to buy express business income from 7.82 billion yuan to 78.06 billion yuan, a short 4-year growth of more than 9 times times, the private one of the four-pass (Qualcomm, Yuantong, Shentong, Huitong, Rhyme Tatsu) in this market to fight out a world.

In the case of the cat and Taobao, in the last year's bis, the amount of parcels produced in one day reached 2200余万件. Cat Logistics Division general Manager Gongtao introduced, one of the three links to the market share of more than 50%, Huitong, EMS, Shun Fung is located in the second echelon.

The EMS price adjustment for the electricity market to play Low-cost brand, "within 1 kg per ticket 8" discount. But it is not clear which stores have enjoyed the offer.

In fact, EMS did not see the big cake of the electric dealer.

As early as 2006, the EMS with Alibaba launched a special for the electric business of the economic Courier Products E-mail, charges lower than EMS, the provincial lifting charges for 15 yuan, the province and the Jiangsu-Shanghai and Beijing-Tianjin mutual send lifting charges are low to 10 yuan. In 2010, China Post Group and Tom Group jointly funded the company's shopping website "Mail Music Network", is the use of e-mail treasure.

However, e-mail service and did not keep up, let EMS missed the best development period of the electric Business Express. Due to the whole journey of E Po Road, that is, the transport of vehicles, but not the use of aviation resources, its transport time is also affected.

"The original choice e mail treasure, cycle the fastest also have a week, far half a month are normal, several times because of e-mail to get a bad rating, experience is poor, now if not particularly remote, other express to the place, the general will not choose e mail treasure." Taobao's owner said.

EMS insiders said that e-mail now the company's internal also basic marginalization.

In addition to the four-pass competition, EMS even faced the challenge of the same room brothers. China Post's mail business this year high-profile kill into the field of electricity, will be in the double 11 Taobao shopping festival during the first launch of E-commerce packets, by way of plain mail and express the same prescription of direct mail services, the first batch of Zhejiang, Shanghai, Jiangsu and other 6 provinces and cities door-to-door collection, national delivery services, and tariffs are also greatly reduced, and four to one close.

EMS is embattled. "Domestic private courier development is swift and violent, if do not reform, the position of operating income first may also be feared." Xu worried.

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