internal and internal turmoil, express industry how to break the Bureau

Since June this year, the National Postal Administration has released 2012 years of Express business audit business list, unlike in previous years, this year's audit list of many figures, both traditional private express, state-run Express, there are FedEx, UPS and other foreign-funded enterprises, More importantly, has been in the edge of the electric dealers have also been licensed, such as Jingdong, Van, Amazon (China), the domestic express industry has been a smoke.

"The Wolf is coming."

The domestic express industry competition has been going on for a long, but the intensity is not high, because each enterprise in the main geographical distribution is basically the same, in addition to Shun Fung, EMS, such as Shentong, Yuantong, Chengtong and other Express Enterprise Services range, quality, timeliness difference is not small, for the use of express enterprises, individuals may not be more selective, This market is in a sense a seller's markets, from the price changes can be seen in the express industry, 2010, 2011 Express Industry experienced a number of price increases, or more than 20%, his main users of the electricity business enterprises basically have no bargaining power, can only accept the results, and express companies to the electrical distribution of goods packaging, Products have strict requirements, goods must meet his requirements in order to carry, which is also the main reason for the electrical logistics. After the state Post office announced the Express licence, domestic express enterprises have exclaimed "Wolf", and recently sent the news of EMS price reduction, this year double a big promotion in EMS, FedEx also high-profile intervention, domestic express industry or because of new entrants and some of the changes in corporate strategy to shuffle.

Strife

In terms of participation, express and electrical business is closely related to the upstream and downstream industries, electric business has become an important source of business in The courier industry, the relationship between the electric power and express is not due to the growth of business volume and more harmonious, on the contrary, contradictions continue to deepen, mainly because the two "imbalance between supply and demand", That is, the express industry for many years to expand distribution range, in the infrastructure investment, service quality improvement is not obvious, and the electrical business in the high-speed growth at the same time the consumer shopping experience has become an important means of competition for market share, the objective requirements of express delivery can provide faster, better service, and this is precisely the status quo with the express industry "contrary", Express industry has obviously not keep up with the pace of the electric business, electric business enterprises have to consider their own logistics, the main electric business, Beijing-east, where guests, Amazon and so on have their own logistics system, of which about 70% of the current orders are to rely on proprietary distribution, the electricity dealers in addition to ensure the quality of the service, the cost is also relatively low, In Beijing, for example, an order to express the cost of at least 7 yuan, and the cost of the electricity dealers will not exceed 5 yuan, the overall cost of self-employment will be lower than the third party express more than 20%. So whether it's a match or a cost to the operation of the electric operator, self-distribution advantages are obvious, the courier industry orders for the loss of more and more serious, October Beijing-East stopped using Shentong foreshadowed the strong entry of the electrical business logistics, but the electrical logistics of the initial investment will be very high, and need professional operation, Self-built logistics can be said to be passive choice.

In addition to the pressure from the electrical business to create their own businesses, express industry is also faced with two threats, one is the electric dealers license to obtain licences may trigger the price war; the price war in the electric business industry has become a normal, just get the license of the electric business of proprietary logistics is likely to introduce this mechanism into the entire industry, Because the current logistics system of the electric dealer is to support its own business mainly, external forwarders business is only a supplement, even if the price war on their own impact will be very limited, but for other express companies are different, stall too big is easy to be dragged down by this price war, on the other hand, foreign express strong entry, Although FedEx entered the Chinese market as early as 1984, but its market share has been very small, and mainly positioned in high-end users, with little cooperation with the electrical business, but from the mature operating system abroad so that it has more advantages in management, cost savings on domestic express companies and he is not the same, so, Similar to FedEx, if the company began to change its strategy to expand the business, may be more impact on the domestic express industry, such a situation, prompting the domestic express industry have to think about how to reverse the disadvantage.

Remedy

To achieve "the right remedy" needs to start from the business and management two angles, first, to "grasp" business, the electrical business can become the industry's most developed space for the development of the field, the company's 2012-year sales are expected to reach 350 billion, according to the customer unit price of 200 yuan, this part of the express revenue will reach 35 billion And to get the electric dealer This "cake", express industry must be its own advantages and the needs of the electricity business combination, such as in the higher proportion of the electricity quotient of the region to implement customized services, focus on the development of these areas of the network system, according to the order distribution to determine the layout of the network, do a good job, extension of the link, reduce and the staff to conduct a good training, the use of centralized order to reduce operating costs; in the expansion of business, according to the industry, package attributes, regional and so do a good job classification, and then take the operation of the Mechanism, as far as possible to avoid the use of price warfare means to seize customer groups, such as Shentong, Yuantong and other Taobao orders to establish a special logistics system To seize the business, infrastructure investment is indispensable, at present, in addition to Shun Fung, EMS owned aircraft, other express main transportation relies on road, rail transport, timeliness nature can not guarantee, in the general loss of the industry through its own resources quickly improve the operation of the hardware facilities, Therefore, the domestic express industry needs more external capital, VC is one of the optional, only in the use of external funds need to be particularly cautious, to clear the long-term objectives of enterprises, to avoid capital and enterprises because of inconsistent goals caused by the contradictions intensified.

Second, to really improve management, and to focus on improving the supply chain system, the domestic express is basically still in the "manual labor" stage, information, automation tools, directly affect the efficiency of operation, UPS, FedEx and other foreign express already realized the automatic sorting, tracking information on the package is very clear, Domestic Express enterprises need to fill in this lesson as soon as possible, more explore the use of automated sorting system, and using handheld devices such as PDA real-time upload data, so that the logistics of the package information real-time and visualization. Do a good job, feeder, DOT, the warehouse connection, through the data analysis, grasps the parcel quantity the area distribution, the time distribution characteristic, then optimizes the network layout; As the main private express enterprises in the coverage of the difference is not small, homogenization will become more and more serious, so each express enterprise should highlight its own "regional" characteristics, That is to define the key development area under the big strategy of network coverage, to realize the service of no difference or better than the competitor in the main first-line city, and to develop the network system of some regions according to the characteristics of their customers in other regions, and to ensure the absolute advantage of the regional service;

Third, in order to seek cooperation in the competition, any express company can not achieve in all areas of the absolute advantage of competitors, after the implementation of the layout of the key areas, can be in the relatively weak areas of grafting services, such as the use of the branch of the other logistics companies, express Enterprise itself is responsible for the "last kilometer" distribution, This can not only save costs but also effectively improve efficiency; can even and foreign-funded express cooperation, because although there is a strong expansion of foreign express desire, but the speed of development and limited by the policy, even if the transition strategy will have to go through a period of time, so the foreign express enterprises can find the interests of cooperation points, The two cooperation complementarities are relatively strong, domestic private express enterprises can learn "foreign express" advanced management, operating experience, foreign-funded express can effectively expand their coverage through private Express, in the two in-depth cooperation, the middle and low customers to adopt a differentiated approach will become another competitive and profit growth advantages.

Forth, the express industry needs to establish an emergency mechanism, so that it can withstand extraordinary operating pressure at some special points, that is, the express industry can not rely entirely on the normal operation under the pressure capacity, the need for this year's "double 11" strategy into the real operating capacity (although the express industry or the emergence of the problem of warehouse explosion), In a short period of time to establish a rapid response to the business volume of the organizational system, in fact, this is the future of business development in advance reserve their own software capabilities, this is the real embodiment of the operating level of the express industry indicators. Five, the express industry needs to be prepared to deal with the changes in industry policy, express industry and electricity business similar, a lot of rules in the gray zone, in relation to the user's vital interests, there is no strong restrictive mechanism, package loss, damage, delay, and many other problems can not be effectively resolved, the social parties to standardize express industry calls more and more high, For the express industry legislation in the pace of acceleration, the policy of the steering may directly affect the actual business, or even the enterprise carries significant risks, if such risk conduction to the financial level will cause the whole system chain break, leading to similar cases of the rapid recurrence of the stars.

Private Courier has arrived at the crossroads that must make a change, cumulative problems in the next 1-2 years will focus on the outbreak of user churn, loss expansion, business contraction will become the precursor of the industry reshuffle, in the context of strife, the domestic express industry must really convert their own business thinking, one hand grasping business, single-handedly grasping management, Make full use of internal and external resources and industry development environment, with the development of the perspective of the current problem, remember to put their own and the industry into the abyss of price war; The form is not optimistic, but the outlook is still available.