Tens Of Thousands Of Express Enterprises Have Received Mergers And Acquisitions To Make E-Commerce Or Join Integration Tide.

A few days ago, the State Post Office deliberated and issued the "guiding opinions on mergers and acquisitions of express enterprises" (hereinafter referred to as "opinions"). It said it would actively strive to support preferential policies such as taxation, land and so on for the merger and reorganization of express enterprises, so that within 5 years, a large number of large express companies with annual revenues of over 10 billion and strong international competitiveness could be produced.

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In fact, as early as the "opinions" was promulgated, the domestic express industry integration has begun to embark on the fast lane.

Last year, the star suddenly succeeded in obtaining investment from Alibaba, and private express delivery company was officially incorporated into Hainan group's Daily Express. The world's largest logistics company ranked sixth in Huitong express.

Many more express companies are discussing with investment institutions including IDG, Lenovo, Fosun, Ding Hui, Huaping and new horizon. There may be more express mergers and acquisitions in the future.

The deterioration of price war is imperative.

In recent years, the scale of express service has expanded rapidly. Over the past year, the total volume of express service enterprises across the country has completed 2 billion 340 million units, an increase of 25.9% over the same period last year.

Express business income accounted for 45% of the total industry revenue, and the basic role of serving the national economy is increasingly apparent.

However, "express enterprises are small in scale, weak in strength, scattered in operation, low in industrial concentration, lagging behind in operation and management capabilities, and price wars and frequent delays in lost parts" have aroused national concern.

Ma Junsheng, director of the State Post Office, presided over the ninety-ninth director's office meeting, saying that the ultimate goal of promoting the merger and reorganization of express enterprises is to optimize the industrial layout, pform the way of development, and promote the pformation, upgrading and leaping development of the express industry.

Reporters learned that China's express delivery companies now have tens of thousands of enterprises, and the State Post Office has got more than 8000 licenses for express delivery industry. However, the scale of tens of billions of enterprises is currently only postal E M S and Shun Feng two, in the second camp of the "three links and one Da" scale is generally 1 billion yuan, many third, fourth camps small businesses are below billion yuan.

Xu Yong, chief consultant of China Express consultancy network, said that most of the private express companies concentrated in the middle and low end market, which accounts for nearly 60% of the business volume but less than 50% of the revenue.

The latest data from the State Post Office showed that the average price of the express service last year was 24.6 yuan, 1.2 yuan down from the end of the year.

The average unit price of the express delivery service was 18.8 yuan, which was 1.4 yuan lower than the end of last year.

Price war worsened.

"The restructuring of China's express delivery industry is imperative," Xu Yong said.

Electricity suppliers or join mergers and acquisitions integration tide

According to the opinion, there are six key points for the country to promote the merger and reorganization of the express industry, namely, encouraging the merger and reorganization of different types of express enterprises; encouraging the merger and reorganization of the franchised express enterprises; encouraging the merger and reorganization of the express related industries; encouraging the express enterprises to carry out mergers and acquisitions in the capital market; encouraging the merger and reorganization of different ownership express enterprises, and encouraging the pnational mergers and reorganizations of the advantageous express enterprises.

"Mergers and acquisitions between horizontal related industries have begun last year," Xu Yong said.

Reporters learned that, in March 29th last year, Alibaba formally signed a cooperation agreement with the star express company. The former injected 30 million yuan into the latter, acquired part of the shares and collaborated in the distribution of e-commerce.

Last May, Hainan Airlines northern logistics (Holdings) Limited signed a cooperation agreement with the founder of the daily express, James brothers, and the two sides will reorganize the daily express by joint venture.

In the new joint venture "Hainan express daily", HNA Group holds 60% and Jen brothers hold 40%.

However, the most notable concern is Ma Yun's joint Terry Gou investment in Baishi Logistics Technology Co., Ltd., which acquired 70% of Huitong Express's sixth in the industry.

In addition, the online shopping market, which has springing up in recent years, provides a new driving force for the express industry.

Data show that in 2008, China's e-commerce led more than 500 million packages, accounting for about 1/3 of the annual volume of the express industry.

C N N IC released the 2009 China Online Shopping Market Research Report. In the first half of 2009, the total consumption amount of online shopping in China amounted to 119 billion 520 million yuan, and some e-commerce enterprises stepped into the express industry.

Liu Qiangdong, chairman and chief executive officer of Jingdong mall board, said that in 2011, Jingdong mall will continue to increase investment in logistics and start construction of 7 first-class logistics centers and 25 two level logistics centers.

In the near future, the third round of US $1 billion 500 million financing will also be invested almost entirely in logistics and technology research and development projects. In the next 3 years, we will invest 5 billion -60 billion in logistics construction.

"E-commerce companies, including Jingdong, Dangdang, fan and so on, are also likely to become a force in the merger and reorganization of China's express industry."

Xu Yong said.

After the acquisition, there are many problems.

However, Xu Yong believes that horizontal mergers and acquisitions of China's express delivery industry are facing great challenges.

"At the moment, the impact of M & A and M & A on the market has not been shown. Whether it is HNA or Baishi, after the merger, how to pform franchisees, how to promote the development of strategy and business structure is clearly not yet operational."

Xu Yong said he personally believes that this shows that horizontal related enterprises have insufficient knowledge of entering the express industry.

The courier industry will face three major challenges, first of all, capital investment, which will affect many subsequent factors, followed by talents, especially the training of professional managers in the express industry, and finally, what kind of new business models should be established.

The core of capital, talent and technology business mode is capital.

"The toothpaste like investment mode does not apply to express companies, and it is also difficult to make an impact.

Therefore, mergers and acquisitions with blind impulse and greater sense will not succeed. "

Reporters learned that, recently, the international express giant D H L announced that it was fading out of the domestic express business.

It is reported that by the end of July, the company will sell its 100% share of Sinop full express to 100 million yuan and sell it to Shenzhen friends and Dao Tong Industrial Co., Ltd., and the purchase price of D H L in 2009 was 300 million yuan.

CITIC logistics analyst believes that the reason for its exit is that China's express industry's low price competition and the high cost of laying the network have great errors with investors' expectations.

Vertical acquisition lacks financing channels

But the most difficult thing is the vertical takeover of China's express delivery industry, Xu Yong said.

Reporters recently learned that China Post Express has begun to enter the IPO program.

Once successfully listed, it will become the first express company in China.

In addition, the listed companies in China's logistics industry are mainly concentrated in ports, docks, shipping, information and other fields, and there is no real listed company in the express industry.

"Direct enterprises are generally more likely to be listed, but there are not many direct outlets in China."

The head of a logistics company in Guangzhou said that according to the general post office, by the end of 2010, the independent sorting center had reached 2176, with 64 thousand outlets, an increase of 84% over the previous year.

But most of the outlets are non direct franchise outlets. "They are cost oriented and diversified. If the new influx of competitors in the industry will not cause great impact on them, there is still room for survival. They are generally unable to turn into a professional manager of the express industry. This gene can not be changed."

And several express companies with direct network have been purchased by FedEx before Tianjin's Datian, and D D S has collapsed.

"Without financing channels, it means that there is no financial support for mergers and acquisitions."