The logistics industry starts capital competition and the average unit price of express delivery continues to decline for five years

　　The logistics industry, born in the grassroots industry, has gradually moved towards scale, marketization, intelligence and refinement in the process of rapid development of e-commerce. The arrival of the new retail trend has also brought broader development opportunities and exploration possibilities to the logistics industry. Under this new economic situation, my country's express delivery industry continues to maintain rapid growth. Data from the State Post Bureau shows that the total amount of postal service business in the first half of 2017 reached 80.95 billion yuan, a year-on-year increase of 25.5%; since the second quarter of 2017, China has entered the "billion-package era" of single-day express delivery on a regular basis.

　　Start capital competition

　　Against the backdrop of rapid growth in the logistics industry, express delivery companies have successively entered the capital market in the first half of 2017. Yunda Express was listed on the Shenzhen Stock Exchange in January, and SF Express rang the bell on the Shenzhen Stock Exchange in February. At this point, all "Three Connections and One Degrees" have been launched. At the same time, Debang Logistics entered the IPO queue, and Best Logistics submitted an IPO application to the US Stock Exchange in June. A series of listing processes mean that almost all large logistics and express delivery companies in my country have started listing plans. After listing, the main entities of the enterprise entered the era of capital competition under the opportunities and challenges of the industry's continuous expansion but the profits decreased.

　　The express delivery companies that have already been listed in China include SF Express, Shentong, ZTO, YTO Express and Yunda. So far, in terms of business volume, ZTO is ahead of express delivery companies with the main body of franchise. Since Debang will soon be listed on the exchange, the postal service is also accelerating mixed reform. In this way, the eight major express delivery companies have basically achieved the listing goal, but Debang's express delivery share is relatively small, and a new pattern of "7+1" may appear in the future.

　　However, as the industry develops gradually matures, demand for my country's express delivery industry has begun to enter a period of slowdown. Data from the State Post Bureau shows that from January to May this year, the total business volume of express delivery service enterprises in my country reached 13.91 billion pieces, a year-on-year increase of 30.3%, significantly lower than the level of 56.7% in the same period last year. At the same time, many problems such as low-price competition and rising personnel costs are still hidden problems facing express delivery companies. As early as 2012, the average unit price of express delivery in my country was 18.6 yuan, which had dropped to 12.7 yuan last year, and continued to decline for five consecutive years.

　　At this time, concerns were heard in the industry, saying that the "sudden" funds actually made it difficult for most express delivery companies to "digest" them, and may also lead to inaction after listing. Alibaba Chairman Jack Ma once said that after the express delivery companies raise funds, they should use their money to technology and talents, rather than use their money to fight in the market.

　　It is worth noting that state-owned enterprises may soon intervene in the express delivery industry. For private enterprises, there is not much market space in a short period of time, and they will enter refined operations next.

　　Receive policy support

　　In the first half of 2017, China's logistics industry received unprecedented attention from the policy level. In less than half a year, the logistics industry was mentioned by the State Council many times, including six tax reduction policies to encourage logistics companies to build warehousing facilities, issue documents to reduce logistics costs, and include express delivery regulations in the Legislative Plan of the State Council. Among them, the "Interim Regulations on Express Delivery" has entered the stage of soliciting opinions, which is also the highest-standard legal document in the country involving the express delivery industry, and it is also the first special express delivery legal document in the country.

　　Previously, the country encouraged express delivery companies to explore the integration of each other in the manufacturing industry. Some industry insiders analyzed that at present, the logistics efficiency of my country's manufacturing companies is generally low, which is also one of the reasons for the excessive cost of this type of logistics. It is recommended to divest resources between the two parties so that the manufacturing industry can do a good job in manufacturing. The existing logistics resources can be handed over to more professional logistics teams to better utilize resources. Professional people do professional things is the future development trend.

　　However, although China's express delivery industry is developing rapidly, most domestic express delivery companies have poor core competitiveness and low operating efficiency. They need to continuously support the sustainable development of the entire industry through technical equipment improvement and continuous efforts to support the technical equipment level. In this process, the government should give full play to the role of policy guidance and tax policy support, and establish special funds to support the intelligence of express delivery; as express delivery companies, they should accelerate their competitiveness through transformation and upgrading to intelligence, rather than increasing their market share through price wars.

　　Profit model to be tested

　　In fact, even if the logistics industry keeps up with the pace of capital, the competition at the new level is still cruel. It requires every entrant not only to be able to grab land, but also to show the ability to fight the country and defend the country and make it more difficult. The first thing that comes to the test is the long-standing profit model of the logistics industry.

　　In the first half of the year, the industry has repeatedly experienced incidents of franchise outlet bosses running away and express delivery "explosion". Some companies use the risk deposit of outlets to pay the arrears on their behalf, forming a vicious cycle. Because the current franchisee structure level of logistics companies is too complex, the headquarters policies are often not implemented in place at all levels, resulting in frequent negative events. At this time, the industry pointed the essence of the problem to the franchise system. According to the industry's unspoken rules, the terminal income of express delivery companies is divided into three parts, namely the face-to-face fee, the contracting and collection fee and the fine, among which the fine can even increase the overall income of the company. The sky-high fine storm of YTO also exposed the chaos of the logistics industry's franchise system. Although YTO finally clarified the incident, it is an indisputable fact that the core express delivery business does not make money. How to change this situation is a key issue that the industry needs to study in the future.

　　Therefore, industry experts recommend that express delivery companies weaken the hierarchical structure, maintain closer ties with franchisees, reduce the number of franchisees, carefully consider the regional franchise saturation, improve the replacement mechanism of the old and new, and re-understand the influence of the brand.

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