Vertical Electric Dealer discount per single minimum of 2 yuan: small and medium logistics on the verge of bankruptcy

Network transmission of Shun Fung Express monthly income million, for many courier practitioners can only be an embarrassing irony.

"Our personnel, fuel, rents and other costs increased by 15%-20% a year, but compared to five years ago, the price of each order has fallen by 50%." "July 10, a landing with (local logistics distribution) in charge of the reporter said that due to the electric business industry price war caused by the overall non-profit, as a supplier of logistics enterprise survival status has been deteriorating.

When the price war between the electric business enterprises to curry favor with consumers, the logistics supplier becomes the scapegoat of the cost-cutting of the electric business enterprise, and becomes the bull's eye of the price butcher. South China, a distributor of electrical logistics enterprises to reporters that some signed the annual contract of the electric dealers, even within a year, the demand for logistics suppliers to reduce the price three times, "the current 3 yuan per single situation in the industry everywhere, three years the entire industry at least 20% enterprises sadly exit."

In this respect, the only product will (Nyse:vips) in charge of Logistics business senior Vice President Tang Tanji in an interview, said that the electrical business and express logistics is to rely on the relationship between the teeth, the current electric business platform for logistics suppliers of the crazy prices, not only to the logistics enterprises struggling in the brink of bankruptcy, In the long run will also let the electrical business industry's logistics bottleneck more prominent, "the whole industry chain in Zeize."

Minimum of 2 RMB per order

With the continuous development of China's E-commerce market, the electrical business logistics industry has also grown. Tang Tanji to reporters, according to the service of different types of electrical business, electrical logistics is mainly divided into two camps, that is, the service Taobao, cat, such as platform-type three-line, and services to the vertical distributor of the landing match. In addition, the Beijing-east, Xun, Amazon and other electric platform distribution has also taken a self-built model.

Tang Tanji said, from the cost, the cost of these three types of logistics models from high to low in turn: three-way, self-built express, landing with. For example, he said, a package from Guangzhou to Xian, a three-to-one price of about 18-20 yuan, landed price of about 9-10 yuan.

"Compared to the three-way, the day of the landing is too far away." "The above mentioned landing with the owner said, with the national distribution network of a three-, sitting on the cat, Taobao giant gross amount, and the latter norms, support, maintain a high customer price."

Of course, focus on the regional market management, due to the relative to the price advantage of a three-way, and can collect money, and according to customer requirements customized flexible process characteristics such as the only product will, Dangdang, Macquarie and other vertical electric operators are the choice.

In fact, in the domestic electric business enterprises in the first profit of the only goods will, as a result of the use of the landing mode, to achieve the continuous reduction of logistics costs. Only the results showed that its logistics cost accounted for 16.7% of total revenue in the first quarter of the 2012-year period, which was reduced to 15.2%, 13.9%, 12.5% and 12.1% in four quarters thereafter.

"Compared to the electric business platform, the bargaining power of the floor is very weak." "The above floor with the owner said, the national landing with many enterprises, the majority of employees in hundreds of people, daily orders in 10,000 single or so, basically rely on the electricity dealer's order to match, otherwise it will be difficult to survive."

The person told reporters that as the industry's first profit-making enterprises, only goods will not be the price war hit the most powerful, there is a reserve floor, and some of the industry's well-known electric dealers even a year pressure of three times, each single minimum pressure to 2 yuan, simply collect the cost, "the first quarter of this year we are forced to adjust the price once."

Especially since 2012, the vertical electric business itself is becoming more and more fierce competition, raise funds more suffering, reduce the challenge of operating costs, logistics suppliers day more bitter.

In the industry, a large company has experienced two rounds of financing, the plan to launch the listing process, but in the current operating situation, had to temporarily forget.

Guangzhou, a logistics enterprise in charge of the reporter said that the landing with the industry a few years ago is not bad, now generally not profitable, in addition to a number of newspaper distribution team for value-added considerations of entry, three years industry few new entrants.

In addition to not profit, landing with enterprises also face the embarrassment of cash flow, due to the electricity business enterprises collection of money, many landed with negative cash flow operating state.

As for the Beijing-east, a shop, and so have their own logistics of the electric business, then the most cost-effective distribution of 60%-70% to their own, the rest of the "chicken" is left to the floor with.

The price of goods will increase logic

Tang Tanji that, from the cost point of view, landing matching is the current Electronic business logistics is an indispensable link, its cost is not only a low than the three-way, but also more efficient than the electrical logistics.

"A three or four yuan order, logistics companies are difficult to profit, but also must bear the cost of return shipping costs, complain." Tang Tanji said that the loss of logistics suppliers ' profits eventually will affect the quality of the distribution service, the tension relationship will inevitably have the consequences of dual-loss, on the one hand, the logistics industry in the suppression of the electricity business struggling to survive, on the other hand, the electrical business into its own unprofessional logistics industry, may also be due to excessive investment and failure to end.

The above floor with the head of the reporter also said that more landing with enterprises due to survive difficult and exit the market, the supply and demand relationship has a reversal of the day, and the replacement of the supply has a long lag effect, which will perplex the electrical business of the logistics bottleneck more prominent.

"From this point of view, the only product will be proposed by the third party distribution of the insured, is a long-term consideration." "The landing with the person in charge, the three-way Tatsu and Taobao had also encountered this era of mutual complaints, but then Taobao took a series of norms, support measures, reflecting the industry leader in the outlook and atmosphere.

The personage thinks, as the representative of the vertical electric business, only the product will present the practice also lets the landing match enterprise to see this kind of foresight. Only goods will be held in the recent Logistics business conference announced to the third party logistics distribution insured, to determine the minimum tariff of 6 yuan per single. Tang Tanji to reporters that the goods will also be signed with the logistics of long-term cooperation agreement (different from the one-year sign of the cooperation model), and focus on the cooperation of small and medium-sized logistics providers to provide cash flow solutions.

"As a listed company, this kind of price-insured strategy does pose a challenge to logistics costs," he said. "But Tang Tanji that there is a big account and calculate the small account of the difference, there are immediate interests and long-term development of the Division," only goods will now daily orders more than 100,000, but also in the rapid growth, we do not want to have a day without express availability of the situation. " Only vice president of the Xiaohui to reporters stressed that the landing with the cost of insured goods will be borne by the company, the cost will not be transferred to the user, and from the point of view of the only products, the initiative in addition to optimizing the supply chain, but also to enhance the user experience.

Even from the overall cost, Tang Tanji also believe that the cost of the price-insured strategy, will easily be brought about by the rise in Word-of-mouth and sales and amortization.