Some days ago, shENTong suspended the operation of SHentong Express, which brought a big blow to its partner, Express Express, and further escalated the conflict between Express Express and STO Express. After the failure of the cooperation with STO, Express is facing the crisis of network outage and restructuring failure. Before that, most people in the industry thought that Youku express would be the first to suffer.
Uexpress is an express delivery company with a similar scale and similar development trajectory. It also started its transformation in 2015 and focused on the strategy of large packages. It suffered continuous losses from 2013 to 2017, and even the decision makers had to go to the point of recovery in 2015. In this regard, why do people think that Youexpress will encounter a crisis before Express?
The sudden rise of the industry, Yousuexpress feel pressure
In the past year, the rapid development of the express industry, express giants have announced to enter the express field. Due to the pressure from Tongda and SF Express, Yousuexpress, which switched to express in 2015, now has to face pressure from express giants.
First of all, the integration and penetration of express and express is the general trend, yousuexpress will face increasingly fierce market competition in the future. According to the report, the scale of China’s express market reaches trillions, but the total market share of China’s top 10 express enterprises is only 3.2%, compared with 74.6% in the United States, there is a big gap. From this point of view, China’s express market has great space for development. Furthermore, relevant data show that the size of China’s express market has reached 200 billion yuan. Under the temptation of the market, express giants have arranged the express market, such as ZTO, Yunda, YTO, SF express and so on.
For express giants, the layout of the express field has its own considerations. On the one hand, the growth of express delivery market is slowing down. Entering the express sector can supplement the capacity of long-distance trunk lines and expand B2B business, thus diluting express transportation costs. On the other hand, in order to become a world-class logistics enterprise like fedex, France Post, Deutsche Post and so on, express is an essential part. So the express giant into the express field has become an irresistible trend.
Secondly, compared with logistics giants, Yousuexpress has both advantages and disadvantages. It is understood that compared with deppon, Aneng and other giants, Yousuexpress has a price advantage in the delivery cost within 30 kg of a single piece. Take beijing-Shanghai route as an example, the first weight of yousuexpress over 10kg is 8 yuan and the second weight is 4 yuan, the first weight of Deppon is 11 yuan and the second weight is 3 yuan, and tongda is more expensive. Of course, compared with these logistics giants, Yousuexpress has obvious disadvantages.
On the one hand, due to the size of their own fleet and the amount of business restrictions, there is often a small load of transport not complete the phenomenon of the car, and to wait for the full vehicle to start again, resulting in its transport time is not as good as the giant. For LCL freight, the lower the rate of empty freight, the higher the benefit. On the contrary, when the rate of empty cars is high, the benefit is lower, which is one of the disadvantages of small express companies like Yousuexpress compared with giants.
Secondly, Yousuexpress is at a disadvantage in terms of the number of outlets and routes. As its business has not yet penetrated into the vast second and third tier cities, leading to the enterprise in very few places express business is still in the blind spot. Specifically, on April 18, Yousu.com launched the “330 time-limited product”. Due to the limitation of blind spots in the number of outlets, Yousu.com failed to realize the promise of “if the time-limited product is not reached, the freight will be fully refunded” in most of the second and third-tier cities.
In addition, there is not much time for Youku to break out of the competition between express delivery and express delivery giants. Specifically, the express giants also began to focus on small parcels, similar to deppon, Aneng also intends to layout packages of 3kg-30kg. When the express and express giants are approaching the field of 3kg-30kg express, there will be less and less time for Yousuexpress to break through, and yousuexpress’s first-moster advantage in the 3kg-30kg express market is gradually weakening.
Compare has been listed in the logistics enterprise, do not have too much competition optimal speed Courier chip, and the optimal speed express and crossing express and other players in the field of express in operating direction very much the same, so although the optimal speed Courier express market potential is unlimited, but capital prefer investing in a relatively mature express enterprises to put big market, Be helpful for them to speed up to capture territory of express market.
Generally speaking, as a second-tier express, Due to the pressure of express delivery pattern, Yousuexpress chose to focus on the field of express early. Now it has to face the double attack from express and express giants. Under this situation, Yousuexpress has to speed up and race against time to get more opportunities to break out of the siege.
There are no shortage of stumbling blocks in the race against time
At present, Yousuo express has the first yousuo in 3kg-30kg lBO express, and also has a certain say. Last year, it obtained 2 billion yuan of financing. With the help of capital, Yousuo is obviously much easier in the process of racing against time, but it can not relax itself. And watch out for stumbling blocks in the race against time.
First, join the model of malpractice challenges. Compared with the express industry, express franchise system has gone through more than ten years of road, franchise mode can cover the business at low cost, but also achieved several express giants. But at present, the franchise model has exposed its disadvantages, the terminal network is difficult to manage and monitor, the quality of service can not achieve standardization. In this regard, sf express, Yunda, SHentong and other express companies are gradually shifting to direct operation, while Yousuexpress will face the above challenges in the form of direct operation of the center + affiliate site.
Second, high operating costs, insufficient funds. This year deppon, a giant in the field of express transportation, has invested a total of 3.88 billion yuan in the purchase of transport vehicles and express vehicles, among which 2.09 billion yuan is used for the purchase of transport vehicles. It can be seen that LLP express platform needs to invest a lot of cost to achieve good timeliness. As for Yousuexpress, due to its own strength is not as strong as Deppon, in the case of capital shortage, resulting in the launch of “330 limited time” service on April 18 this year, the progress is slow.
At present, the threshold of 3kg-30kg is low, which gathers a large number of small scattered and weak logistics enterprises. Scattered is also the unique scene of this industry, among which “not punctual” has become the potential pain point of the industry. In this regard, the purpose of “330 limited delivery” is very obvious. From the slogan of “330 limited delivery”, which promises to “refund the maximum freight if the limited delivery is not reached” in specific areas, it can be seen that Through “330 limited delivery”, Youexpress wants to establish its reputation of punctuality in the field of large parcel express. However, the slow expansion of product business will obviously affect the speed of the establishment of yousuexpress reputation, and then affect their position in the field of express.
Third, e-commerce traffic is relatively weak. At present, best Express, Jingdong Logistics and other e-commerce logistics are in the layout of 3kg to 30kg express field, “Tongda”, SF Express in Alibaba (Ali) ecology occupy an advantage, while yousu.com in the e-commerce traffic at a disadvantage. How to change the weak position in e-commerce logistics flow is also a big challenge yousu.com will face in the future.
Of course, uexpress is not limited to these challenges. In the race against time, it is believed that it will encounter various challenges, such as how to improve the cost-effective express service for users and how to quickly establish its own reputation.
Where is the window for yousuexpress to break out?
Now to be sure, optimal speed is facing trade at a market environment, the understanding to the simple system, motion, can rival Ann, gravels, anji express giants such as before and after the ambush, more time in the future, the market under the giant segmentation, is bound to usher in evolution situation, in this case, the express industry is bound to usher in merger and reorganization, eliminated. So there is no doubt that there is not much time for Yousu.com to break out of the siege, and where is the window for Yousu.com to break out of the siege?
First, to capture the fresh field, in the past two years, the new retail is in full swing, the fresh market is also expanding, and fresh large packages plus special timeliness, take express sorting will certainly be slow. With hub-and-spoke transportation network and B2B parcel direct mode of going to the middle, weak center and less transit, Uexpress can pick up goods from customers and send them directly to the airport distribution center for security check and boarding. These are the advantages of large parcel express compared with express.
Second, capture the transport of agricultural products. At present, the agricultural products market has a development space of 5 trillion yuan. The logistics and transportation of agricultural products has always been a hurdle in front of the development of agriculture, especially in the peak harvest season of agricultural products, the logistics and distribution of agricultural products in remote areas are plagued by “difficulty and high cost”. In recent years, under the call of “express delivery to the countryside” project policy advocated by the state, big parcel has become an opportunity for the development of the express industry to help farmers and benefit farmers. Not long ago, from yousuexpress and Nongte Group signed the rural product freight strategy, it can be seen that Yousuexpress is also willing to break through from the agricultural products express this piece.
Third, the whole network system of health Express. At present, Uexpress has more than 80 distribution centers, nearly 4,000 outlets, more than 40,000 employees, and more than 8,000 vehicles for transportation and delivery. If this scale is put in the express field, enterprises of this scale can only be classified as the second tier, but in the express field, this is a remarkable distribution system, which has been able to deliver in most regions of the country.
Therefore, in order to form its own advantage in the field of 3kg to 30kg express, Yousu does not need to recruit large-scale express franchisees into the network, but only recruit franchisees as needed to eliminate the loss of customers caused by the blind spot of network coverage. However, during the period of making up for its franchising outlets, Yousuon one hand needs to face the shaking caused by the failure of express franchisees to achieve profits or even losses, and on the other hand needs to face some problems caused by the franchising mode. It can be predicted that As long as Yousuexpress persists in improving its express network, it will have a good development prospect, which is similar to the logic of tongda’s early development through unified terminal crowdsourcing logistics.
Fourth, continue to focus on making the most cost-effective large package products in the market. In the past three years, Yousuke was “crossing the river by feeling the stones”. After several years of groping, Yousuke began to realize that in the field of express transportation, the market demand for 3-30kg parcel express is the strongest, so Yousuke began to build its position in the market of large parcel with 330 products. At present, the 330 launched by Yousuk takes advantage of its limited resources to aggregate advantage in the large parcel window period, and its long-term development is conducive to the cultivation of yousuk in this segment of the market.
Overall, fortunately, excellent speed to find the giant pliers has not yet in-depth 3kg-30kg express field, also in this field accounted for some opportunities, but in recent years, express and express and other corporate forces have begun to seize this part of the market share. Obviously, under the situation of express giant enterprises rush to the beach express market, the breakout time for express express will only be less and less. In this regard, to the agricultural products, fresh fields and other fields to obtain traffic at the same time, continue to expand their own, in the giant has not fully entered the 3kg to 30kg express field, through expansion, improve the express network, launched high-quality services and other ways to gradually establish their own leader, this is the best way to break out of the encircling.
Article/Liu Kuang public account, ID: Liukuang110