The Eastern Air cargo again seeks the transformation, this time, the direction is the electricity merchant

Absrtact: In the reorganization of the freight and logistics sector to expand the world after the unification of the East air freight again to seek transformation, this time, the direction of the electricity business. Not long ago, established in the end of 2012, Shanghai Oriental Air Logistics Co., Ltd. (China Eastern Airlines logistics company) under the electronics

In the reorganization of the freight and logistics sector to expand the "Heaven and earth" after the East Air cargo to seek a transformation, this time, the direction of the electricity business.

Not long ago, established in the end of 2012, Shanghai Oriental Air Logistics Co., Ltd. ("Eastern Airlines Logistics company") of its E-commerce site "Eastern Origin direct" on-line. Eastern Logistics companies hope that through E-commerce platform, driven by direct sales, for the self-Courier department to provide basic supply for the aviation industry to increase direct customer supply.

The intention of China Eastern Airlines to build modern logistics providers is self-evident. Oriental Airlines (600115. SH) Chairman Liu accepted the "China business newspaper" reporter interview, said: "The past is called Air freight company, is now the logistics company Tube Air freight company, the air freight as a link in logistics, through other products to continuously enrich the logistics." ”

The problem is that the "Heaven and earth" strategy of China Eastern air freight has not seen any success after a series of mergers and acquisitions. The air cargo industry "nine losses" of the situation has never been fundamentally changed, the Eastern Air cargo for two consecutive years of loss, 2013 the first half of the operation is still a loss. Always hope that the integration of air cargo operations, the realization of business model transformation of the East Airlines can explore a successful model, is still unknown.

Freight forwarding is only part of the transformation of the Eastern airlines, according to our correspondent understand that China Eastern Airlines is discussing the strategic transformation of the group, including the replacement of new logo and body painting, such as a series of major brand action is also brewing.

Logistics structure reorganization of China Eastern Airlines

Recently, China Eastern Airlines logistics company officially launched the E-commerce site, "Eastern Origin direct." According to the official website, the Eastern Origin direct is the Eastern Airlines full use of its own route network resources and independent development of the electric dealer sales platform, will take the "Origin collection, aviation Express, proprietary distribution and real-time information tracking" of the entire industrial chain operation mode, main imports of fruit, milk, meat products, such as raw fresh food.

The reason for the choice of fresh food imports, Eastern Airlines related people said that the eastern airlines of nearly 500 passengers, cargo aircraft and access to more than 1000 sites at home and abroad to give the site the network advantage of procurement of origin, Eastern Airlines own air capacity and the report, Customs clearance qualification, To allow the eastern origin of the direct network to achieve rapid air transport and rapid clearance of the seamless convergence, can be faster to deliver fresh food to consumers.

East Airlines Test hydropower, is considered to be the Eastern logistics company since the establishment of a new action. China Eastern Logistics company was established in December 26, 2012, after nearly a year of reorganization and integration.

China Express Logistics Consulting Network chief advisor Xu in the interview with the reporter pointed out: "East Airlines Test hydro-electric, as an attempt may be, Eastern Airlines biggest advantage is that there are customers, high-end customer demand, sales have a certain advantage." And airlines can integrate local products through the aviation network. ”

Sales can take advantage of existing customers, but the problem to be solved is warehousing and distribution. Xu that distribution will be a challenge for China Eastern Airlines. Airlines do not manage the ability of express companies, the key is whether to reduce the cost of distribution.

There are no successful examples of airlines ' involvement in the field of electrical business. Public data show that March 2011, HNA Business announced the new "Excellent Yue Life Network", into the electricity business. But the site only survived a year to call a curtain call. Eric Kingston, the consulting analyst, said that the domestic market competition is very fierce, HNA and the cat, Beijing-east and other large manufacturers of such as compared to the technology, procurement and other aspects of almost no advantage to speak.

The difficulty of freight transport transformation

"Civil aviation has high-tech, high investment, high risk, high sensitivity and low return of the industry characteristics, we promote two transformation, one is the passenger transport transformation, one is the freight transport transformation." In the freight transport transformation, we are making some changes for reference to some good business models in the world. Liu told reporters.

China Eastern Airlines is the first to put forward the "Heaven and earth" strategy, and a high-profile advance of the airline.

May 31, 2011, the largest domestic freight airlines-New China Cargo Airlines was founded. China Cargo Airlines is in the original cargo, freight, Great Wall airlines on the basis of the joint reorganization, with 19 full cargo aircraft.

According to the interior of the Eastern Airlines, the East air Freight "heaven and Earth" strategy was first proposed by Liu, in the follow-up implementation has also been Liu Strong support. Liu also with China Cargo Airlines executives to the United States FedEx and UPS Exchange learning.

For freight integration, the original idea of Eastern airlines is to east far logistics, China Eastern Air Transport, Eastern Express integration into the cargo airlines, through the "full flow" access, not only to provide air cargo transport services, but also plans with raw materials manufacturers, distributors, consumers and other transport providers and other cooperation.

However, after the integration of China Cargo Airlines in Shanghai and the Yangtze River delta as the country's largest air cargo market, and has the strength of fleet size and transport capabilities, but failed to see results. At the end of 2012, a stock transfer listing information shows that 2012 years to the end of November, cargo airlines loss of 637 million yuan.

December 2012, Eastern Airlines acquired China Ocean-held Shanghai Oriental Voyage Logistics 29.7% Equity, to achieve a wholly-owned holding Shanghai Oriental Voyage logistics. Soon thereafter, the Eastern Airlines listed in Shanghai, the transfer of its holding of China Cargo Airlines 51% stake, and the acquisition is the eastern logistics.

Through the above two steps, China Eastern Airlines to the voyage logistics and cargo Airlines two freight forwarding business, an important subsidiary of the assets of the integration. December 26, 2012, East Airlines logistics company was established.

Xu that the integration of Eastern "heaven and Earth", the key lies in whether the "express" to provide door-to-door, time-limited services and value-added services, extending the service. These services are the advantages of the express company, not the airline's expertise.

Freight forwarding is only part of the transformation of the Eastern airlines, according to our correspondent understand that China Eastern Airlines is discussing the strategic transformation of the group, including the replacement of new logo and body painting, such as a series of major brand action is also brewing.

However, October 8, the East Airlines publicity department related to this reporter said: "Not yet to the substantive stage, but the brand and strategic development departments in preparation." ”

Liu revealed that recently, the East airlines assembled to meet to study the future development of strategic transformation. He told our correspondent: "Whether it is business-to-business, or consumer-to-consumer, airlines have not been out of the application-to-application (airport to the airport), and the market is still a wall, so our transformation is to transform the wall apart." We do some fresh direct delivery, including cold chain, fresh chain business model innovation and product structure adjustment, this is our exploration. ”

Liu has been hoping to transform China Eastern into an integrated service integrator, connecting air carriers, hotels, car rental companies and other service providers, and connecting passengers and corporate customers, and China Eastern as a resource integrator and service docking center.

Cai Yang, chief information officer of China Eastern Airlines, said that the airline used to be the carrier's role, essentially a business-to-business company with hundreds of agents. And the future to become a company, directly facing 80 million of passengers, marketing services posed a great challenge. On the other hand, the profit model has changed. "In the past, based on the profit model of air tickets, the future is to establish a new profit model, that is, based on passenger resources and information platform economy." ”

But the transition is not easy, taking freight as an example, China Eastern Airlines to promote "heaven and earth" to provide comprehensive transport solutions is the main direction of the current development of domestic cargo, many airlines have explored this attempt, but there is no successful mode.