China Post's comprehensive acceleration will stir up a new round of competition in the express delivery industry
Our reporter Xiang Yantao
The "national team" made a resurgence in the already fiercely competitive express market.
"Securities Daily" reporter learned from China Post Group that starting from June 28th, China Post will launch a new round of speed-ups, the main content of which covers comprehensive speed-ups in delivery, optimization of postal routes across the network, support for aviation high-speed rail capacity, and own trunk lines. The scale of vehicles continues to expand.
It is understood that this "postal speed increase" covers more than 1,000 cities across the country, and will achieve "next day delivery" or "next morning delivery" in many provinces, cities and regions across the country.
"This year is a turning point in the development of the express delivery industry, and a stage of high-quality development will begin." Zhao Xiaomin, deputy director of the Post and Express Special Committee of the Shanghai Transportation Commission and an expert in the express delivery industry, said in an interview with a reporter from the Securities Daily. Since the beginning of this year, Guangdong, Zhejiang, etc. The local government has issued relevant regulations to regulate the development of the express delivery industry, and the express price war between e-commerce companies will gradually end.
From the perspective of industry development prospects, China Post is expected to become the "leading brother" in the express delivery industry.
"Next day delivery" in major cities across the country
"Securities Daily" reporters learned from China Post Group that after China Post’s speed-up, major cities across the country can enjoy mail "next day delivery", and more than 60% of express mail can achieve "next morning delivery".
Up to now, China Post has a nationwide logistics network covering urban and rural areas, with 54,000 postal outlets and 43,000 delivery service points across the country.
In terms of air transport capacity, China Post has 33 all-cargo aircrafts mainly based on B757 and B737 models. With Nanjing as the center, the hub-and-spoke distribution can directly reach major domestic cities such as Beijing, Shanghai, Nanjing, Hangzhou, Wuhan, Guangzhou, and Shenzhen. It also radiates to Seoul, South Korea, Osaka, Japan and other regions, and has formed an air transport network connecting domestic and overseas.
In terms of high-speed rail capacity, China Post has opened nearly 90 inter-provincial high-speed rail postal and postal routes, covering Sichuan, Henan, Hunan, Shaanxi, Beijing, Shanghai, Chongqing and other provinces and cities, allowing mail to be delivered next day and next morning. "become possible.
"Take the Changsha-Ningbo high-speed rail post route as an example. After the direct postal route is opened, the transportation time will be shortened from 65.4 hours to 52.9 hours. More than 80% of the mail between Changsha and Ningbo can be delivered every other day, 1 faster than before the opening. Heaven." China Post said.
In addition, this year China Post will continue to expand the scale of its own trunk line vehicles, renewing and purchasing additional 680 vehicles such as drop trailers, split vans, and on-site tractors, an increase of 2,069 vehicles from 2019.
Regarding the acceleration of China Post, Yang Daqing, a special researcher of the Chinese Society of Logistics and an expert in the logistics industry, believes that the "14th Five-Year Plan" period will be a critical period for the development of China's express delivery. Faster and more accurate are the two major directions of competition in the express delivery market. However, in the high-efficiency express delivery market, the public generally lacks consumer perception of postal express delivery.
First, the sense of crisis is forcing China Post to accelerate its development.
With the listing of JD Logistics, there are already 8 listed companies in the express delivery industry in China's express delivery market. Postal enterprises are facing multiple challenges. If they do not advance, they will retreat. Second, the implementation of the rural revitalization strategy may allow China Post Express to see an opportunity for revival.
"Postal express has a comparative advantage in the rural market. At present, Tongda and other express companies are developing integrated logistics. If China Post cannot grasp this round of development opportunities, it may not only lag behind in the express market, but also in some third-party logistics markets. It may also fall." Yang Daqing told a reporter from the Securities Daily.
Zhao Xiaomin believes that in the past few years, China Post has devoted itself to participating in international competition on behalf of China’s express logistics industry. Although the growth rate has been good in recent years, the current market situation and pace of the express delivery industry have undergone great changes. Great room for improvement.
The speed-up program launched by China Post this time can be said to be an all-round speed-up.
In April this year, the official website of China Post Group released the "Three-year Action Plan for China Post Group Co., Ltd. Reform."
The plan proposes to promote the reorganization and revitalization of assets, and to explore and study the strategic reorganization of express logistics and the strategic restructuring of postal enterprises' scientific and technological capabilities; under the guidance of the principle of "three factors and three suitable", deepen the reform of mixed ownership in layers and categories, and start express logistics in due course The company and China Post Securities mixed reform.
In Zhao Xiaomin's view, China Post needs to break through the old mechanisms and operating concepts of the past.
Since last year, the entire express logistics market has undergone great changes. Many companies have been fighting a price war. For China Post, now is a better opportunity for adjustment.
In addition, in the context of urban agglomeration construction and rural revitalization, China Post has the opportunity to accelerate the pace of mixed reform and IPO, and turn the "big post" into a "strong post".
Increasing competition in the express industry
Speaking of the impact of China Post's speed increase on the express delivery industry, Yang Daqing believes that the market has the characteristics of declining and increasing, and postal express speed may bring about the loss of high-efficiency parts in some areas of other express companies.
However, an increasingly competitive postal logistics enterprise will also stimulate the entire market to move towards quality competition, which is of positive significance to the development of market intensification.
"What is certain is that express companies with comprehensive service capabilities and high-end aviation capacity may strengthen their leading positions, and then build a market card position advantage, which will accelerate the integration of express market resources. In the future, express companies will not always be the 8 express companies and Chinese express companies. In the nine competitive situations formed by the Post, some companies may be integrated.” Yang Daqing said.
Since last year, some express delivery companies have relied on e-commerce platforms to disrupt the express delivery market at low prices, causing a price war in the industry.
In the first quarter of this year, the single-ticket revenue of many listed companies in the express delivery industry dropped significantly.
Some insiders believe that the possibility of low-price competition strategies adopted by express companies in the sinking market cannot be ruled out.
In April this year, Zhejiang Province passed the "Express Industry Promotion Regulations (Draft)", which stipulates that express delivery operators shall not provide express delivery services at a price lower than the cost.
Recently, the Guangdong Provincial Postal Administration and the Provincial Market Supervision Administration jointly issued the "Notice on Regulating Express Terminal Services and Prohibition of Illegal Charges", focusing on rectifying related issues such as "non-delivery to the agreed address" and "violating charges".
"With the follow-up of relevant policies in other places, the express price war between e-commerce companies will gradually end. Next, more attention will be paid to the high-quality development of the express industry. This year is an inflection point." Zhao Xiaomin believes that for express companies, When the price is low to a certain level, price failure will occur and market share will not increase, but there may be major problems in the capital chain and service quality, and enterprises will face the risk of transforming from a structural crisis to a systemic crisis.
China's express delivery industry has entered a systematic competition pattern, a single price war is unsustainable, and express delivery companies have come to a crossroads of change.
(Securities Daily)