Foreign Investment Into The Express Industry Forced The Pformation Of Domestic Enterprises

Recently, the Executive Council of the State Council decided to further open the domestic express delivery market and promote the fair and orderly competition of domestic and foreign capital.

"Let domestic and foreign express enterprises compete with one another, forcing domestic enterprises to improve their management and management capabilities and improve their service levels."

The entry of foreign express giants will undoubtedly bring new changes to the fierce competition of China's express delivery market.

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At present, the development of express industry in China has entered a stage of rapid growth, with an average annual growth rate of over 50%.

It is estimated that the average daily delivery volume will exceed 100 million by 2020.

According to the state post office data, from 1 to August this year, the volume of business of the national express delivery service enterprises totaled 8 billion 160 million, an increase of 52.7% over the same period last year, and business income totaled 123 billion 40 million yuan, an increase of 42.3% over the same period last year.

Behind the rapid growth, the express industry is facing multiple problems such as disorderly competition.

"Too fast growth is not a good phenomenon. In vicious price competition, blindly pursuing business volume will only sacrifice the quality of service."

Xu Yong, chief consultant of China Express consultancy network, said.

According to statistics, at present

It has become the second largest express industry market in the world after the United States. Opening the express market further widens the way for the international express giants to enter the Chinese market.

Although China is already the second largest express industry in terms of volume of business, the revenue of domestic express companies is only 1/8 or even 1/10 of that of foreign express companies.

Because of the fierce competition, most express companies have chosen to get market share at a low price. This low price competition has left the courier enterprises on the brink of life and death.

At present, there are three phenomena in the express industry, that is, small profits, no profits and competition.

Insiders say that many express companies pursue expansion speed and compete at low prices, so they have no time to take care of service quality and have no ability to improve their services.

With the further opening of China's express market, China's express delivery enterprises need to face pformation and upgrading and enhance their competitiveness with foreign enterprises in the future international division of labor in the global express industry.

Not long ago, American Express Company UPS and FedEx (the Chinese name "FedEx" has won the domestic express delivery license in Beijing area, and UPS has obtained the express service license in 33 domestic cities.

Yang Daqing, a senior logistics and supply chain media player, said that after foreign express entered the domestic express market, the competition of future express would exacerbate the competition in the ecosystem.

One is to rely on the electricity supplier ecosystem, such as the "Express Department" express enterprises rely on rookie, easy to buy and other electronic business platform; one is relying on the manufacturing ecosystem, such as Debon, home express, relying on mobile phones and other manufacturing enterprises to develop related logistics.

And enterprises not in the ecological circle are bound to marginalization.

Turning to the development trend of the future express industry, Yang Daqing said that we need to build a common platform to create a common ecosystem of industries.

"Not only is distribution, but also through big data, with communities, retailers, electricity providers, manufacturing platforms to achieve interconnection."