Chapter 1080 Countermeasures of traditional express delivery companies
Thursday, May 31st.
Magic City, the headquarters of Shengyun Express Group.
Shengyun Express Group is currently the leader in the domestic express delivery industry, accounting for half of the express delivery business.
It basically covers cities at or above the prefectural level and cities at or above the county level in developed areas across the country, especially in the areas around Shanghai. It has basically achieved the goal of no blind spots in delivery, and has even begun internal testing of overseas shopping transshipment business.
However, the reputation of Shengyun Express is not very good.
This company has been established for nearly 20 years. Its rapid development is mainly due to the franchise strategy. When the growth rate of the entire express delivery industry remains at a high level, this is very important for quickly gaining market share.
advantages.
However, as the growth rate of the industry slows down and the company's development stage advances, after the era of extensive growth ends and the era of refined management arrives, the disadvantages of this franchise system have gradually become apparent.
On the one hand, the network has many layers and is difficult to manage. Many franchisees are powerful and it is difficult to effectively implement the headquarters' instructions. The uneven service may affect the terminal's service evaluation;
On the other hand, the proportion of self-operated transfer centers is relatively low, which will also reduce efficiency to a certain extent and extend the time for express delivery.
Shengyun Express Group is a behemoth. Even within the company, it is divided into three or four different express delivery business brands, and there is a certain competitive relationship between them.
How to solve these problems has been the biggest headache for Shengyun Express in recent years.
At this time, several senior executives of Shengyun Express were meeting to discuss some issues in the development planning of Shengyun Express.
The chairman of Shengyun Express is Nie Yunsheng, but he does not have complete control over the entire group. Although several major shareholders and several company executives who are fellow villagers and friends with him will support him in most cases,
But many times there are some different opinions.
Therefore, if you want the entire group company to develop in the direction you envision, a large number of meetings are needed to unify internal thinking.
At this time, the meeting has entered the final stage, and the major proposals have basically been discussed.
A company vice president said: "Mr. Nie, everyone, regarding Tenda's Headwind Logistics preparing to build air freight routes, I have compiled a document and distributed it to everyone."
"Mr. Nie, how should we deal with this matter?"
Although it will be two months before Headwind Logistics officially prepares the air freight route, Lu Mingliang is already making some simple preparations and publicity.
For example, send out a few flyers when delivering express delivery, arrange some display boards at the headwind station for publicity, etc.
Because the express delivery business is not like other businesses, time waits for no one. If you wait until all preparations for the air freight business are completed before promoting it and guiding customers to use it, it will be too late. The first few flights will definitely not be able to carry much cargo.
It must be promoted in advance in the areas covered by Nifeng Station, so that when the cross-city express delivery business starts, a large number of orders can be received.
Therefore, the news naturally spread to Shengyun Express.
The vice president has summarized all relevant situations into a report.
Headwind Logistics currently aims to undertake the "last mile" express delivery business, and Shengyun Express has also maintained a close cooperative relationship with it.
Currently, Nifeng Inn is rapidly expanding in the four cities of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng and surrounding areas, and the number of stores is growing rapidly.
Although in terms of overall scale, it is still not comparable to industry leaders like Shengyun Express, but after the launch of the cross-city express delivery business of Headwind Logistics, it will inevitably pose a certain threat to Shengyun Express.
Therefore, Shengyun Express must respond as soon as possible and consider countermeasures.
Nie Yunsheng had already read the report, and his face was slightly solemn: "This is completely within our expectations. Headwind Logistics has been suffering huge losses and doing dirty work for us. It is impossible to say that there is no other plan.
"
"Now they want to do cross-city logistics, which is reasonable."
"Backed by Tengda Group, their goal is to focus on these four cities and use the advantages of Headwind Station to first open up the market with high-quality services among high-end people in big cities and form misaligned competition with us."
"I have to say that this business model still poses a certain threat to us."
"And we don't have many options. The density of Nifeng Station in these cities is already very high, and the delivery experience is completely better than ours. This is made with real money, and we are unlikely to adopt a similar model."
"What do you think?"
A vice president said: "Should we join forces with other express delivery companies to block it? Just like the original Qilu Express."
Obviously, this is the simplest and most effective method.
Shenyun Express has done this kind of thing before, and it was successful.
A year ago, an express delivery company called "Zhanglu Express" developed rapidly and targeted the sinking market in the central and western regions. With its good relationship with e-commerce platforms and the fact that each order was cheaper than Shengyun Express1
The price of ~1.5 yuan has become a disruptor with the big tree behind it.
Chilu Express attaches great importance to the sinking market. It has printed local slogans similar to "As high as the mountains are and as far as the road is, Chilu Express will not deal with it." It has been printed on the walls of thousands of towns and villages, and it has boasted that it has prepared for two consecutive losses.
Years of preparations are coming in full force.
As a result, Shengyun Express issued the "Notice on the Prohibition of Agency Business for Chilu on the Whole Network" and "Punishment Notice on Agency for Chilu Business", requiring the group company not to act as an agent for Chilu Express for any reason or in any form at both ends of the delivery process.
business, and fined branches that violated regulations.
Under this heavy pressure, Chilu Express quickly collapsed due to its low profit margin and chaotic internal management. It lost the trust of investors and quickly left the market sadly. It is currently in a state of limbo.
Therefore, when faced with the threat of headwind logistics, the first reaction of the senior executive of Shengyun Express was to block it.
But another vice president immediately objected.
"This is not good. The nature of Headwind Logistics is still somewhat different from that of Chilu Express."
"Chilu Express is a complete competitor with us, and Headwind Logistics has maintained close cooperation with us before. Even in the four regions of Jingzhou, Imperial Capital, Magic City, and Yangcheng, Headwind Post has actually become our
The last step of delivery.”
"Although we will allocate some profits to Niefeng Station for each express delivery, because we no longer need to deliver the express to your door, we have saved a lot of labor costs, and the delivery efficiency and revenue have increased significantly."
"If we completely ban Headwind Logistics, then Headwind Logistics will in turn block our express shipments. Once the two sides break up, it will also be a huge loss to our daily business."
"What's more, the cross-city express delivery business of Headwind Logistics has not yet been fully developed. Even if it is launched, it will mainly focus on the high-end market of cross-city air transport, which is somewhat misaligned with our business."
"It's a bit of an overreaction to block it right now. I don't think it's appropriate."
Another senior executive also agreed: "I think so too."
"Another important point is that Headwind Logistics is different from Chilu Express. Their actual risk tolerance is completely different."
"The rise of Chilu Express was favored by some big capital, but after we banned it, their express business development stagnated. These big capitals lost confidence in Chilu Express, so Chilu Express quickly declined."
"But Headwind Logistics relies entirely on Tenda. It has been losing money for more than a year since its establishment, but its stores are still open continuously. This shows that the top management of Tenda Group attaches great importance to the business of Headwind Station."
"It was already losing money, but being banned is just continuing to lose money. Coupled with the support of Tengda's top management, this cannot be a big blow to Headwind Logistics."
"On the contrary, they will be forced to put all their energy into their own express delivery business, relying on the advantage of a large number of stores to compete with us, which is really not worth the gain."
"To put it simply, people who are barefoot are not afraid of wearing shoes."
"It is not a wise move to adopt a blocking method."
Everyone was talking about it, and their opinions could not be unified at all.
Because after such a long period of development, Headwind Logistics does not actually have an absolute competitive relationship with these traditional express delivery companies, but a dual relationship of cooperation and competition.
In many areas, the couriers of Shengyun Express have become accustomed to just throwing the parcels at the headwind station and leaving. As a result, the delivery efficiency has increased many times. Many outlets have made personnel adjustments and eliminated them in order to save costs.
Recruited some unnecessary couriers.
If Headwind Logistics is rashly blocked, these express items will either be delivered directly to your door, or a large number of new collection points will be found.
The former is obviously unrealistic given the shortage of personnel, and the latter cannot be accomplished in the short term.
Seeing that everyone was almost finished discussing, Nie Yunsheng lightly knocked on the table.
"Okay, let me say a few words."
"Headwind Logistics has started its own express delivery business. This is within our expectations and there is nothing to make a fuss about."
"Of course, as a potential competitor, headwind logistics is a new model that must be guarded against."
"But to say that we should ban it immediately is obviously an overreaction. Even if we want to ban it, it will only happen after we find an alternative to Headwind Station."
"It seems that the plan we have been planning to solve the 'last mile' needs to be implemented as soon as possible."
"Especially the areas covered by Nifeng Station must get rid of their dependence on Nifeng Station as soon as possible!"
As the leader in the express delivery industry, Shengyun Express has obviously already thought about how to solve the last mile problem.
No matter how you think about it, there are only two more economical solutions in the end: either a express locker or a store-style post station.
But it is impossible for them to provide door-to-door express delivery like Niefeng Station does, because the labor cost required is too high.
It’s not that we can’t afford the cost, but we must ensure profits.
Not to mention that the senior management of Shengyun Express does not agree with this kind of unprofitable and even money-losing thing, the big franchisees will definitely oppose it and will not cooperate fully.
In the end, the plan of forcibly imitating Nifeng Station will probably not be implemented.
As for express lockers and post stations that do not deliver to your door, these two solutions are definitely not as good as Nifeng Post in terms of experience, but Shengyun Express also has its own advantages: express delivery fees are cheap, and its sites cover many cities.
The low express delivery fee means that many e-commerce merchants will default to Shengyun Express in order to reduce costs, and many price-sensitive customers will also sacrifice some experience and choose Shengyun Express.
Moreover, the express locker plan is profitable. If you invest a large amount of money, the progress will be very fast.
After these two plans are implemented, Shengyun Express can gradually get rid of its dependence on headwind stations in certain cities. At that time, measures will be taken depending on the situation, and it will be more confident.
Most of the senior executives present basically agreed with this view.
Nie Yunsheng finally made the decision: "Okay, let's do it this way. Don't alarm Headwind Logistics for now and carry out business cooperation normally."
"At the same time, we will also invest in a large number of express lockers in various parts of the country, especially in areas with high headwind station coverage, and gradually establish our own 'last mile' solution."
"Of course, we can establish some pilot projects in the early stage and observe them in places with and without Niefeng Station to see how customers actually respond."