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    The Express Industry Suffers From The Cold Winter Of E-Commerce: The Stars Are Anxious And The Franchisees Lose A Lot.

    2012/3/13 16:53:00 4

    Express E-Commerce Loss

      

    Express industry

    Recently, heavy news broke out again. Insiders said that Alibaba's investment company, Beijing Xing Chen, was then disbanded by Day Day Express Ltd.

    If the rumor is true, it will be the first large express company to go bankrupt in 2012.

    The reporter recently asked the Ji'nan franchisee for the morning rush of the morning star. The staff of the company said they didn't know about the headquarters situation. Ji'nan startin's emergency business was in a state of stagnation, and the franchisee suffered a heavy loss.


    Ji'nan franchisee lost 500 thousand yuan


    More than 1400 employees have not paid their salaries for more than two months.

    Now that the company is losing money in business, we are losing money. We would like to invite you to take part in it.

    A person familiar with the matter disclosed a short message at a logistics forum that Chen Ping, the company's CEO, said that according to the content of the SMS, the new star of the courier industry was already on the verge of bankruptcy.

    Whether the rumor is true or not? The reporter has verified this recently, and found that the website of the morning rush can not be opened. Meanwhile, its service phone can not be connected.


    In March 7th, a reporter searched online for an advertisement of Ji'nan star Chen's regional investment promotion in Ji'nan branch. According to the way of contact on the advertisement, the reporter contacted a staff member of Yang's name in the company.

    It is understood that the company is a star joining company in Ji'nan. Because of the unclear situation of the head office, the company has stopped operation and suffered heavy losses.

    "When the company has just started to operate, we encounter such a situation. We are very helpless because there is no profit. Now the market is losing a lot. And the Beijing head office has not given a positive answer. It always says that it is being adjusted."

    The staff said very reluctantly.

    He told reporters that at the moment, there were two franchisees in Ji'nan, and their operation time was less than a month ago. At present, the company has not yet obtained business qualification, so it has not yet formally launched the collection and delivery business, and the operation has not had much impact on consumers.

    However, he was very upset because the 400 thousand capital of the initial operation such as franchise fees, vehicles, personnel, margin and so on could not be recovered.

    "The franchisees in Ji'nan have lost more than 500 thousand yuan in total. We also hope to give a story through the media. After all, it is not easy for young people to start their own businesses," he said.

    The staff member said.


    Rapid expansion of franchise mode


    Cause disaster


    stay

    Morning rush

    After being rumored to be bankrupt, several insiders pointed out that the important reason for the sudden closure of star industry was the mode of joining the company. The expansion speed of enterprises adopting this mode is fast, but the mode requires high level of risk control and management.

    "Unlike the direct camp mode, franchisees have their own stores and customers, and have their own fixed markets. Therefore, the interests of franchisees and express companies are often inconsistent, which puts forward very high requirements for the management of express enterprises."

    Zhang Kai, director of Ji'nan Office of Debon logistics, said.


    Zhang Kai said, in the direct camp mode, all the business points are a set of management systems, all service standards and processes are the same, and the management and control are relatively strict.

    He said that like the state of Germany, such a direct logistics business model is even the wages of workers are fixed, and many join the logistics company's affiliate are self financing, compared with the direct mode, the mode of joining the enterprise to join the point of control is more difficult.

    More importantly, as the members of the affiliate tend to be the original personnel, their service level depends on the control of the head office. If the company's control is not strict, the enforcement standards of the service points of each join point are often different, leading to different customers' feelings of the credibility of the enterprises, which has a great impact on the development of the enterprises.

    "To put it simply, the mode of joining is more flexible, which is more conducive to the expansion of the storefront, but the risk is also great."

    Zhang Kai said.

    However, Zhang Kai also admits that although the direct management mode is relatively strong in management and control, the cost of control is relatively high, so the service prices are often relatively high.


    In Zhang Kai and other industry insiders, the important reason for the sudden closure of star Chen is that it has taken the risk of too high collection payment mode (COD).

    He pointed out that courier companies must ensure that the collection of loans quickly return to the company, otherwise it is easy to appear the problem of capital chain.

    If the business control is poor, it is not uncommon for the salesmen to escape privately. Therefore, the COD business has higher operating costs and risks for the express company.


    Cheng also electricity supplier failed electricity supplier


    As the first national express company specializing in e-commerce B2C and B2B services in China, star Chen has long been concerned by the industry for its market positioning.

    By leveraging the trend of e-commerce development, relying on accurate market positioning, set up just 3 years star morning rush company to become the fast forward industry in the field of e-commerce pioneer. Before the accident, there were more than 150 operation and distribution centers, more than 3800 outlets, 28100 employees, 130 thousand daily processing volume, and the total network turnover reached 750 million yuan in 2011.

    Insiders pointed out that entering the field of electronic commerce is also a deep reason why starchen is in a difficult position. It can be said that "Cheng is also an electricity supplier, but also an electric supplier."


    More than one industry insider said.

    Morning rush

    The fundamental reason for the accident is that the current situation of the e-commerce industry is not good. The e-commerce industry has entered a period of adjustment after the rapid development in 2008 and 2009.

    "Along with the development of e-commerce, the express industry is also facing a series of problems brought by the rapid expansion. Many enterprises have gone up in scale, but the management has not been able to keep up with the low threshold of the logistics industry, and the competition is fierce. Therefore, the risk is still relatively large."

    A person in charge of logistics in Ji'nan gestus told reporters.

    "Ten years ago, the gross margin of e-commerce was as high as 100% to 200%, but gross margins have dropped to less than 10%."

    A courier industry insider told reporters.

    This is due to rising labor costs and rising oil prices. On the other hand, because of the increasing number of courier companies involved in homogenization competition, prices have been rising.


    It is understood that at present, there are more than 8000 express enterprises in the country. Due to the fierce competition of enterprises, the price of basic services can not be raised, and various taxes and fees are paid more, resulting in the "Red Sea" pattern of the current market, and the "double low" pattern of low price and low service level has not changed.

    A senior official of Ji'nan gestus logistics group told reporters that the low market threshold is an important reason for the low price and vicious competition in the express industry, especially in the field of e-commerce. With more and more express companies seeing the market potential of e-commerce and joining them, the delivery price of e-commerce websites is also getting lower and lower.

    The reporter understands that for many express companies, entering the field of electronic commerce is just "looking very fashionable". Because of the fierce competition, the delivery of e-commerce websites has not even delivered the profits of ordinary business express. Many of the express enterprises that enter e-commerce have no profit at all.

    In this sense, Xing Xing is just another victim of "cold winter" in e-commerce.

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