At the end of 2020, Fengchao Express Cabinet was fined one after another because of complaints about violating the anti-monopoly law and charging users overtime fees. On January 14 this year, the China Consumers Association once again named “the overtime charge of the smart express cabinet to cause dissatisfaction, and gave an example of Fengchao express cabinet”, which once again pushed the issue of Fengchao express cabinet charges into a public controversy.
But on the other hand, there are still giants entering this field. According to the data from Tianyan, the intelligent express cabinet service provider Henan Yida Warehouse Information Technology Co., Ltd. (Yida Warehouse) received nearly 35 million yuan on January 7, 2021. RMB strategic financing, the investors are Jingdong Group, Suning Group and Pinduoduo.
How should we view the business of express cabinets?
Why is the problem still growing?
Regarding the overtime charging of Fengchao express cabinets, it has been fermenting since May last year. In essence, the fundamental problems have not been optimized or more reasonable solutions.
Recently, Hu Xiu visited several communities in Chaoyang District and Haidian District in Beijing to understand the situation.
On the one hand, consumers believe that this is an infringement of their own rights. Why do they need to charge for express delivery charges when they purchase goods? Moreover, it is a two-way charge; on the other hand, some couriers put the express in the express cabinet without their own consent. The pressure to deliver the express is understandable, but the delivery should also be divided into categories, such as fruits, and placed in the express cabinet If it is not taken for a long time or if you forget to take it, it is easy to break, including slightly large and heavy items.
A consumer who was picking up couriers next to the express cabinet reflected to Tiger Sniff: I understand that the express cabinet overtime charges, but the responsibility does not lie with our consumers. For example, if I buy something, the express fee is included in it. Why? Also charge me the courier fee again.
Hu sniff asked who he thinks should be held responsible for the above-mentioned consumers experiencing overtime charging? He said that he would look for a courier because he (the courier) delivered the courier. He should contact me in advance and ask me if I want to put the courier in the courier cabinet. If I say yes, he also reminds me that I will be charged for overtime To bear.
Of course, the consumer also understands that the courier is under great pressure to deliver the courier, but in this case, after the courier puts the courier in the courier cabinet, he should give a detailed notification: Say how many hours will the courier be overtime Please take out the courier at what point. And can’t deliver express delivery too far from home.
Another consumer said that the express delivery timed out and it (express counter) charged me with money, I think it’s okHowever, if you let the courier pay the money and let me pay the money, then I think this responsibility should be with the express cabinet service provider, because I cannot tolerate the collection of money on both sides. “From another perspective, 996 is also very unfriendly to work,” the consumer sniffed at the tiger.
“If you don’t want to put it, there’s no way. It used to be free of charge. Now it also charges two-way. It’s not as good as a rookie. And the cabinet design is also very unreasonable. Some storage boxes have a small compartment. It’s not easy to pick up, because the large storage boxes are all on it. It is really inconvenient to take large and heavy goods, and sometimes it will hit people.” A post-90s consumer said to the tiger.
In the process of learning about tiger sniffing, a few consumers also expressed their understanding of the issue of express cabinet charges. They believe that if the courier does not take it out, it will always occupy the storage cabinet. After all, this is also a commercial activity. The express cabinet operator must definitely want to increase the utilization rate of the cabinet. At the same time, they also said that spending money is not supported, but there is no way. The express delivery timeout (express cabinet) deducts money, and the 50 cents is not too much. Sometimes there is no time to collect it, and sometimes the delivery is at night and the next morning is busy. Up.
In addition, some consumers have reported to the China Consumers Association that the items delivered in the express cabinets have been lost or taken away by others.
If the fundamental problem of express cabinets is not solved, consumers will still be dissatisfied. Not only will they fail to achieve the positive effects of cultivating the market, they will also affect the company’s own brand, reputation, and revenue.
Difficulty in profitability, large space
From the perspective of profit model, it is nothing new for domestic express cabinet companies not to make money. Tiger smell understands that the revenue model of express container operators includes four items:
First, charge the courier. Charging standard: The charging situation varies from city to city, about 3-4 cents in the first-tier cities and 2-3 cents in the second-tier cities.
Second, charge users overtime fees. Charging standard: If the agreed pickup time is exceeded, generally 0.5 yuan and 1 yuan will be charged for pickup.
Third, advertising fees. The courier cabinet and the screen, and WeChat can accept advertisements.
Fourth, other value-added services. Mainly o2o services, including fresh food self-pickup, waste recycling, storage, etc.
From the perspective of expenditure, the annual operating cost of a group of express cabinets has reached 100,000 yuan. The cost of express cabinet includes cabinet cost, site rent, equipment depreciation, laying agency commission, maintenance and repair, electricity and network fees, communication fees, management fees, etc.Insiders have calculated that the operation and maintenance cost of one (group) express cabinet will reach 100,000 yuan a year.
A media person in the field of express cabinets told Huxi that the property rent paid in the industry is about 5,000-8,000 yuan/year per cabinet, and the total of large, medium and small storage cells together is basically 100 cells. Relying on the income of express cabinets alone, it is difficult for express cabinet operators to turn losses into profits in a short time.
According to the Fengchao Cayman financing announcement issued by SF Express on January 7, 2021, in the first three quarters of 2020, Fengchao Cayman achieved operating income of approximately 1.46 billion yuan and a loss of approximately 846 million yuan. In 2019, Fengchao Cayman lost 781 million yuan. It is understood that Fengchao has been burning money since 2016.
Fengchao Technology is the only domestic company that has a market share of 70% and charges consumers overtime fees. In the case of two-way charges, Fengchao Technology’s loss has not changed, and the loss has increased, let alone other express delivery Cabinet enterprise. One can imagine how difficult it is for express cabinet companies to make money, and the break-even point has not been found.
But this did not affect the investment layout of express delivery and e-commerce giants. In addition to the aforementioned express cabinet company “Yida Warehouse” announced that it has obtained nearly 35 million yuan in strategic financing; SF Holdings announced that Fengchao Cayman intends to raise financing (B round) that night, and the investor estimated that it will invest 400 million yuan. The US dollar subscribed for the newly issued 484 million common shares of Fengchao Cayman (Fengchao Cayman is a parallel offshore company established by Fengchao Technology overseas).
In 2020, Zhongtong will also identify terminal construction as the company’s key project. Tuxi’s terminal products include Tuxi express cabinets and the acquired Haier’s Goodaymart smart express cabinet business. As of the third quarter of 2020, a total of approximately 65,000 terminal stations have been constructed and 8,500 express cabinets have been installed.
According to the data of the professional version of Tianyancha, as of January 11, 2021, there are more than 800 express cabinet-related companies in my country that are active, surviving, moving in, or moving out. Among them, my country will add more than 280 express cabinet-related companies in 2020, a year-on-year increase of 54%.
Long-term vision
The express cabinet business is difficult to make profit in the short term. In the long term, it may be a good business. The long term may be 3 years, 5 years, or even 10 years. There is a question worth noting-how long is the service life of express cabinets?
Fengchao replied to Tiger Sniff that the express cabinet is properly maintained and can be used for a long time without a specific number of years.word.
Analysts in the express cabinet industry told Huxi that the total express delivery business volume for the whole year of 2020 was 83.36 billion, a year-on-year increase of 31.2%. The amount of express delivery will increase in the future. In the short term, express cabinets are not a good business to make money, especially at this stage, which is still in the stage of burning money. Now everyone is losing money to grab the market. It depends on the future profitability and the longer-term market. Money will also enter the game now.
“Many new communities have already included the express cabinets in their planning, and a community does not just put the express cabinets. If you don’t get in early, you won’t be able to enter after the community is planned.”< /p>
Analyzed from the perspective of revenue, he said that, in fact, express cabinets are still a tool. Recently, Fengchao has launched an e-commerce portal on its official account. This can be regarded as a new business channel for Fengchao, but The problem is that everyone just uses Fengchao as a pick-up tool, and does not leave the express cabinet as “a role for express delivery.”
Like Zhongtong’s inbound express cabinet, it is mainly to deal with the problem of future express volume. In 2020, the total express delivery business volume completed was 83.36 billion pieces, a year-on-year increase of 31.2%. In the future, the express delivery volume will become larger and larger, which is a very good opportunity for express cabinet service providers and enterprises to invest in the layout.
“Moreover, many new communities have already planned the express cabinets during the planning. A community does not just put the express cabinets. If you don’t enter the office earlier, you will not be able to enter after the community is planned.” The analyst said.
According to the report issued by the State Post Bureau, the number of intelligent express cabinets nationwide will reach 750,000 in 2020, and the market size will be close to 30 billion yuan. In terms of express delivery business volume, the national express delivery business volume in 2020 will be 83 billion pieces. On January 14 this year, the State Post Bureau stated that the delivery rate of urban smart express boxes (cabinet) will reach more than 10% in 2021.
In other words, express cabinets have huge room for development in terms of market size and delivery rate. In addition, coupled with the impact of the Black Swan incident, the contactless delivery form of express cabinets also gives investors or companies on the sidelines more imagination.