Foreign Express Company Wins Domestic License In Beijing

Recently, the reporter learned that UPS and FedEx have two domestic logistics companies in Beijing. UPS said in an interview with reporters that up to now, UPS has already obtained the express service license in 33 cities in China. In May 2014, UPS obtained the license to carry out the domestic express service in a total of 14 new cities, including Beijing, Fuzhou, Hefei, Shenyang, Zhengzhou and other first tier cities.

Thanks to the fast growing e-commerce market, foreign-funded enterprises have seen huge market opportunities in China. According to the AI Consulting survey data, in 2013, the scale of e-commerce market in China was 9 trillion and 900 billion yuan, an increase of 21.3% over the same period last year, and the scale of e-commerce market in 2017 will reach 21 trillion and 600 billion yuan.

Because of this, in 2009, the new postal law was promulgated and implemented. Foreign logistics companies who had already launched express business in the Chinese market began to apply for the domestic express delivery license to the Chinese government.

In 2012, some foreign-funded enterprises first granted a licence to further layout the Chinese express market. However, the data released by the State Post Office show that in 2013, the share of domestic private express companies accounted for nearly 80%. Shun Feng, EMS and "four links and one access" have been competing fiercely with foreign logistics companies.

"Two foreign logistics companies, UPS and FedEx, have posed a great threat to domestic counterparts. Although the domestic logistics companies have an absolute advantage in the market share, UPS and FedEx have developed rapidly. They have gained more and more customers by virtue of good logistics services and high logistics efficiency. With the development of overseas electricity providers, UPS and FedEx will have greater opportunities. " Shen Zhengyuan, senior researcher of CIC consultant, said.

Shen Zhengyuan believes that compared with the domestic enterprises such as Shun Feng and Tantong, the advantages of these foreign giants lie in the higher level of logistics informatization and standardization, the higher comprehensive efficiency of the logistics infrastructure and the stronger service capability. However, as a backward market player, these foreign-funded enterprises will face greater challenges at the beginning.

At present, the domestic express company's business field is mainly concentrated in the low-end areas such as parcel delivery, and most foreign-funded enterprises provide "supply chain management" value-added services. In contrast, foreign-funded enterprises have higher service prices.

"Logistics costs are generally 5 items: transportation, warehousing, loading and unloading, value-added operation and operating overhead. Efforts made by foreign logistics companies to reduce costs include, on the one hand, providing comprehensive logistics services and paying attention to project logistics, which is conducive to the formation of scale effect and reduce operational overhead costs. On the other hand, continuous improvement of logistics information configuration is of great significance to overall management and reduction. Logistics cost The effect is more obvious. " Shen Zhengyuan said.

Besides, UPS Foreign companies have been committed to long-term investment and development in the Chinese market. Customer Provide a full range of services. In May 2014, UPS opened a new contract logistics storage center in Beijing. The center's non bonded storage area covers an area of 6500 square meters, 19 kilometers away from Beijing Capital International Airport. It mainly serves the growing logistics demand in the Chinese market, provides four hours distribution service in the urban area, and provides the next day distribution service to all major cities in the country.

In June this year, UPS opened rail freight between China and Europe to expand the multimodal express service combination, which will help customers effectively balance the supply chain cost and transport timeliness. UPS China to Europe railway freight service covers two major routes: from Chengdu, China to Poland, and from Zhengzhou, China to Hamburg, Germany. With the existing freight and highway transportation service network, the speed of the railway freight transport will be 50% faster than that of the ocean freight, and the cost will be 70% lower than that of the air freight.