Why Does Shun Feng Go Into O2O, Crazy Expansion Or Turn Into A Dilemma?

For a traditional industry star enterprise, any action will become the focus of media attention. At the same time, considering the propagation nature of the media itself, it does not exclude the speculation of others. Indeed, even an excellent company like Shun Feng is not easy to succeed in the transformation of Internet e-commerce. What comes along with success is always thorns. But problems and difficulties are two completely different concepts, and how to interpret them is just a matter of one's mind.

As a leading enterprise in the express industry, we must pay attention to this minimum fact if we want to sing off and Shun Feng. Although SF has repeatedly tested the water in the field of electronic commerce, it is far from successful. However, with its huge volume, strong executive power, and the professional logistics distribution and storage capacity that no one can afford in China, Shun Feng is far from getting into trouble. Even the "worry" is exaggerated.

Objectively speaking, from the current situation of domestic express delivery industry, though it can not be said that Shun Feng It is an absolute advantage in every field, but it does not mean that many people will object to it. And Shun Feng is willing to invest in O2O actively, not because of its business predicament, but because of the transformation of SF to Internet e-commerce. As the former Shun Feng preferred CEO Liu Miao said, "the original intention of SF to do e-commerce is not to squeeze upstream and downstream, nor to rebound, but to build a network platform for selling healthy and safe imported food."

Shun Feng also has the unique conditions for successful transformation. In essence, O2O is actually using the Internet to transform traditional industries. The key of O2O mode lies in online payment and offline experience. And Shun Feng, which has the most outstanding logistics distribution and warehousing capacity in the country, a large offline shop, a strong expansion of energy and willingness, including offline and online, has almost all the characteristics of O2O successful cases. Whether it is the previous Shun Feng convenience store, Shun Feng preferred, or the recent "enter the rural market" and just on line "Shun Feng hey guest" is a concrete manifestation of the transformation of SF to the electricity supplier.

　　 Whose dilemma is it?

Singing and declining? Express industry The basic pattern!

This is a strong teacher who is developing rapidly in China and has swept the international market. With huge volume and explosive energy and amazing efficiency, SF's little move will make the entire express industry tremble and make the competition panic on the palm of the hand.

Whose dilemma is it? Who is threatening it? There is no denying that every company will encounter more or less problems. But if a leading industry in a industry is in trouble, it will be as if the whole industry has encountered the same cold winter.

Therefore, if SF falls into a predicament, it is like saying that the whole courier industry does not make money; some people also call Post EMS and Shun Feng to compete for aviation. This is a typical weak thinking (or EMS thinking). It is ridiculous: one is in the ascendant and the world is invincible; one is dying, stiff and immortal! As everyone knows, from top to bottom, the postal EMS will regard Shun Feng as a strong enemy, but ironically, Shun Feng can rather see "four links and one Da" as its opponent, and also disdains to associate with EMS.

No matter from any point of view, the real dilemma of the express delivery industry is nothing more than the survival and death of state-owned postal EMS.

From the perspective of the domestic economic structure, the express industry typically reflects the distribution of China's economic gravity. The national team EMS, entrenched in the Beijing Tianjin Tangshan region, is a base area, but it is completely defensive in the whole country. It is the only way to win the economy. The four links and one reached the source of the rising power of Alibaba, such as Alibaba, and grew up in the Yangtze River Delta as a base. But its business was single and its life hung on the line. In the Pearl River Delta and Guangdong, Hong Kong and Macau, it was a strong base for the whole country.

According to the experience of the United States, those small and medium-sized express companies scattered across the country can not escape the fate of mergers and acquisitions by the above giants. In my opinion, whether from the current strength or strategic layout, SF is one step ahead, taking advantage and promising.

In terms of competition and management, Shun Feng and post EMS take the high-end route, while the four links are more particular about the wilderness route. Therefore, compared with the four links and the dead EMS, Shun Feng has almost unlimited potential.

For example, Shun Feng and EMS have standard uniforms, vehicles and management rules and regulations, especially in large shopping malls, where special counters are used to collect items. The four links and one way are more rich in people and not dark in color, not only in clothing and vehicles, but also in the competitive way.

In general, you will see that Shun Feng and post EMS have regular and orderly shop and counters, and are relatively regular sorting and distribution. The four links and one more are in the broad daylight, open air sorting, and the way of guerrilla warfare to and fro across the shopping malls and streets, has nothing to do with neatly standardized. Although the above situation has benefited a lot from reducing the cost of enterprises and raising net profit, it has also made some irreparable losses in the shaping of corporate culture, brand communication and development potential.

In addition, in the traditional business field, it is undeniable that SF has encountered some problems, but it is far less serious than imagined. Shun Feng has always been focused on high-end market, but in recent years, relying on the rise of Taobao's electricity supplier, "four links and one reach" has laid the shop all over the country, even some parts below county level and even remote villages. Especially famous is that the "four links and one Da" main differentiation competition route, with low price wins, the lowest can reach 5 yuan, while Shun Feng is 12 yuan in the same city, 22 yuan in different places. Now, in the whole industry as a whole, price cuts, even the "tall" on the SF also had to announce the introduction of electronic business speed, electricity supplier preference, Shun Feng small box, Shang Meng Hui, green channel and other e-commerce products, including the "SF small box" of the city is only 8 yuan, the provincial price is only 12 yuan.

As for postal EMS, Shun Feng has always been dismissive and sniffed. It is no exaggeration to say that post EMS has no strength to compete with Shun Feng, and there is no bottom line price concessions to attract those consumers who are particularly sensitive to price.

It is said that the latest price concession activity of postal EMS has launched a minimum price of 4 yuan for the same city express, 5 yuan for Beijing, Tianjin and Hebei, and the lowest price of 12 yuan in the field. However, due to its Brawn in distribution and storage capacity, the preferential effect is also very limited.

Therefore, we can be fully responsible for the fact that post EMS simply does not threaten SF, much less the high-end customers who threaten SF. The only consolation is that in view of the background of the national team and its profound roots, postal EMS has accumulated a number of loyal customers in the past years. The eyes of these people are more political than economic interests. Therefore, these markets are the last straw to help the postal EMS survive.

In short, compared to the rigid and immortal death of postal EMS, and the "four links and one reach" and the status quo of the emergence and fate of the wilderness, Shun Feng, as the leading industry without doubt, is far from the "trapped beast" in its bad performance. It is more like a new upstart who is attacking the whole country in an all-round way. In particular, it is worth mentioning that in this era of expansion, the increasingly shrinking postal EMS should be more careful about its own survival: listing, reform or bankruptcy. This is a problem.

But SF is not completely invulnerable. In the field of electricity and Internet, Shun Feng lacks congenital genes and needs to make up for bad work. As a leading traditional enterprise, SF has typical traditions in all aspects: long history of development, huge and numerous offline stores, tens of thousands of team sizes, military management of enterprise system and strict enforcement power, all of which are totally different from Internet Co's preference for "thinking more than execution" and "small beauty".

As of January 2014, SF has nearly 240 thousand employees, more than 10 thousand transport vehicles, 14 own owned freighters and more than 7800 outlets throughout mainland China and overseas. It is no easy task for such an excellent traditional enterprise to succeed in the transformation of Internet electronic commerce. But as the downstream industry of e-commerce, express logistics has the unique advantage of expanding upstream.

Taking into account the traditional enterprise gene, Shun Feng to the transformation of the electricity supplier, it is bound to choose the O2O mode!

　 "How to enter the SF? O2O "

In August 2013, SF, which has always been a poor money, raised tens of millions of dollars. Wang Wei, who has always been known for his prudence or even prudence, is not a spur of the moment, but intends to exert himself to the rural market and new business areas and expand his scale in a big way. What's more, in 2013, it was called the year of SF's crazy expansion. In the next two or three years, the expansion of SF will not slow down. But correspondingly, the postal EMS, which has been specially approved by the State Council, has failed. At the end of December 2013, when the IPO was about to open, China Post Express Logistics Co., Ltd. (postal EMS), which had been preparing for listing for five years, unexpectedly took the initiative to withdraw the application materials for IPO listing on the grounds of strategic adjustment.

Along with the first large-scale financing, it is the strong business expansion and orderly strategic advance of SF. Observers say that even if SF enters O2O, it will not break Wang Wei's worries. But in my view, this view completely ignores the transformation of SF to the electricity supplier, and the following measures can be seen as the embodiment of SF's transformation strategy.

This is the first time that SF has formally announced its entry into the low-end market that it has always avoided. This is the inevitable result of many years of development of SF, because only by truly occupying the rural market can we solve the last business constraints of SF EXPRESS, especially the weak advantage of overcoming the "four links and one go", and will bring the postal EMS closer to the dead end.

As of January 2014, SF has nearly 240 thousand employees and more than 7800 outlets throughout mainland China and overseas, according to Shun Feng's official website. The postal EMS official website only shows that by the end of 2010, nearly 100 thousand employees were employed, covering all the cities, counties and townships (towns) of 31 provinces (autonomous regions and municipalities directly under the central government) throughout the country, reaching more than 200 countries and regions in the world, including Hong Kong, Macao and Taiwan, with more than 45 thousand outlets. Only then can we find that postal EMS's business outlets in remote rural areas are large and extensive. More importantly, in view of the fact that SF and the "four links and one Da" have completely wiped out the high-end market of the city, the post EMS may lose its last position in the future and face the test of life and death.

To get involved in the rural market is also the proper meaning for O2O to enter into the market, and it is also a key step for SF to prepare for the "fresh market". Rural areas are the source of fresh markets, and occupying the countryside is of great significance for SF to choose this high-end "fresh platform". In short, getting involved in the rural market is a further business expansion after the repeated attempts of Shun Feng convenience store, Shun Feng optimization and SF Hayes. It is of great significance.

It is worth mentioning that in December last year, Alibaba group and Haier group announced strategic cooperation. The two sides will work together to build a complete logistics distribution system and standards for home appliances, such as logistics and distribution services, and installation services. Observers analyzed that Ali invested in Haier, targeting the commercial value of rural electric providers and rural logistics platforms. And Ali's coveted rural market has also indirectly promoted the acceleration action of SF to the rural market.

Huang Gang, a famous logistics and supply chain expert, said: "rural electric business is a super market. 1 billion 400 million people, 400 million have become online shoppers. The largest 1 billion people are in the countryside. The 10 billion have at least 700 million people's market development value. At the same time, with the promotion of urbanization in rural areas, business opportunities have been very obvious. Whoever can solve the logistics and localization services will get the market. In the future, the O2O shopping experience of rural electric providers will become the mainstream development trend.

In addition, we need to pay special attention to another rapidly developing new business area of SF: SF's huge expansion in the field of "warehousing and logistics", which was added in July 2012. So far, 26 warehouses have been built, providing customers with one-stop supply chain logistics solutions for warehousing, sorting and distribution. In fact, the business mainly focuses on food cold chain logistics, which is also necessary for the development of O2O.

It is worth mentioning that even the unprofitable international business has been working hard and has never given up. Due to the background of Hongkong and Hongfeng, the international business first targeted Southeast Asian Chinese with close proximity to mainland China, Hong Kong, Macao and Taiwan. Besides the mainland of China, SF has opened a number of National Express businesses. The expansion of SF EXPRESS's international business is closely related to the development of SF's preferred development. Up to now, apart from the opening of mainland China, Hongkong, Macao and Taiwan, SF has opened Express Services in the United States, Japan, Korea, Singapore, Malaysia, Thailand, Vietnam, Australia and other countries. This remarkable achievement has been carved into every express list by Shun Feng.

Finally, taking into account the mode of SF's entry into the rural market, some people believe that the mode of SF to encourage internal employee agency and individual entrepreneurship is not feasible either from management or from business. It is said that this is the first time in the past 20 years that SF has delegated authority and opened its own logistics system. However, the agency mode of SF is essentially a company's "internal entrepreneurship", not a traditional pure affiliate mode. According to SF's insider sources, when the rural franchisees are developed and perfected, sooner or later, the company will recover their battalions. If the attempt fails, the company's strong support for these franchises will not exceed 2 years.