J&T is entering China, and it may be only one official announcement.
Editor’s note: This article is from WeChat public account “800 rush” (ID: jiaji800li ). The original title “Indonesia Express Black Horse Sword refers to the Chinese market, do you want to deliver more? 》
文 | 蒋菲
Edit | Chen Chen
These two days, the express delivery circle has a breaking news: a heavyweight overseas express player, plans to enter the Chinese express market, the investment amount may be between billions or even billions of yuan, is currently preparing for the national express network stage .
Multiple sources point the company to the J&T Express Group, a Southeast Asian express delivery company known as the “Daily Express Black Horse”. And a photo of J&T’s meeting in South Lake is even more proof of this speculation.
The Matthew effect is more and more obvious, the stronger the head player is stronger, the whole peak, the national pass, the fast… The third and fourth line express exits one after another, an overseas express chooses to enter the Chinese market, it can divide Going to a cup? Together with the founding team and investors of J&T Express, they all come from OPPO, which gives people more imagination.
Who is J&T?
J&T was established in August 2015. In just two years, J&T has become the number one company in the Indonesian express industry with a single-day ticket.
Since 2018, J&T has deployed domestic express delivery throughout Southeast Asia. Currently, it has nearly 7,000 offline outlets in Indonesia, Vietnam, Malay, Thailand, Philippines, Singapore and Cambodia. Thailand and the Philippines since February 2019 Network operations.
It’s worth mentioning that J&T founding team and investmentFang is from OPPO, and its founder, Li Jie, is also the founder of OPPO Indonesia.
Image from official website
Li Jie graduated from Beijing University of Science and Technology and worked for BBK. In 2008, he became the general manager of OPPO Susie. The OPPO Headquarters established the Li Jie Award in 2015 to recognize those who have made outstanding contributions to sales.
In 2013, Li Jie went to Indonesia alone, and Indonesia became the first stop for OPPO to go global. OPPO began an intensive layout of offline service outlets and executive teams in Indonesia. Li Jie Insighted into the potential demand of Indonesian people for quality express delivery services.
Before Indonesia’s logistics was similar to that of China’s postal system decades ago, it was necessary to go to the post office for receiving and mailing, and it was also using human tactics in terms of operations.
In 2015, relying on OPPO Indonesia’s all-round team, Li Jie began to step into the military express delivery industry and established the technology express company J&T Express, which became the most powerful express delivery dark horse in Southeast Asia.
In 2017, J&T acquired Sequoia Capital, which was valued at more than $500 million.
Why enter the Chinese market?
As early as January 2018, Shenzhen Yunlu Supply Chain Technology Co., Ltd. (hereinafter referred to as “Yunlu”) was established. It is a holding subsidiary of J&T in China and is positioned as a cross-border e-commerce company in Southeast Asia. The reporter on his official website found that his main business is the e-commerce packet line from China to Indonesia, Vietnam, Malaysia, Thailand and the Philippines.
Yun Jinghai, CEO of Yunlu, said in an interview with the media that the entire Southeast Asian region has a large population base of 700 million people. Now Southeast Asia’s e-commerce is like China 10 years ago. But “China’s supply chain is not ready”, and currently China’s quality manufacturers are not familiar with cross-border business.
The implication is that when the huge development potential of the Southeast Asian market breaks out and the market dividend comes, only those supply chains that have better localization and quality will become the most reliable choice for e-commerce sellers.
And Yunlu’s own supply chain also has weak links. According to an industry expert interviewed by Roggo. Logistics Salon: J&T’s supply chain business, including China’s domestic transportation, customs clearance, international transportation, etc. All are handed over to third parties, the front end of the supply chain is not well controlled, the entire supply chain management is weak, the cost is large, and the profits are diluted. At present, it has been deeply deployed in Southeast Asia, with heavy investment in assets and strong profit pressure. To reduce costs, it is necessary to control the entire link, which may prompt him to enter the domestic front-end supply chain.
Yang Jinghai pointed out that the daily air cargo from China to Malaysia is more than 200 tons, but the cargo shipped to Indonesia is only about 1/10 of Indonesia. The reason is mainly the customs clearance policy in Indonesia. At present, Indonesia lacks SKUs. The goods are not sold in the local area. The fear is that the goods cannot enter. If the customs clearance policy is relaxed, a large amount of goods will enter.
Yang Jinghai (image from the network)
In the Vietnamese market, the biggest difficulty is the issue of payment. Due to the local capital control, many e-commerce customers can’t get out of money. Given the capital chain problem, they don’t dare to make it bigger.
Therefore, J&T enters the Chinese market to lay a network in China and improve its cross-border e-commerce supply chain full link, which is the basis for the blowout of the upcoming Southeast Asian express market.
It is reported that J&T’s new Chinese company is likely to be headquartered in Jiading and Qingpu, Shanghai. It seems to have more advantages in terms of express delivery industry and convenient transportation. The customs clearance speed and number of SKUs in the Yangtze River Delta region It is the best choice and is very close to Yiwu.
With a lot of delusions
In contrast to the domestic express delivery market, J&T does not have a clear business support. However, as everyone knows, Duan Yongping is the behind-the-scenes soul of OPPO, and is still a lot of angel investors. J&T chose to layout the country at this time, letting people wonder if there will be a deep correlation between J&T and the future.
September 24, after a lot of trading, announced that it plans to issue 875 million US dollars of convertible senior notes, plus the initial subscription of the bond has the right to subscribe for an additional 125 million dollars in 13 days. In short, the fight will be more than 10 One hundred million U.S. dollars.
There is a notice in the announcement that the net proceeds from this offering are used to strengthen and develop the company’s business operations, R&D investment, continue investment and development of technology infrastructure, use of working capital and other general corporate purposes. Many aspects of the fight also indicated that the proceeds from this issue will be mainly used for platform R&D investment and new agricultural infrastructure construction.
In the second quarter earnings report on August 21st, many founders Huang Wei said that they are developing a “new logistics” technology platform, which will adopt a light asset and open model, and fight more and more in the joint logistics industry. Partners, to explore the feasibility of the special electronic face sheet for agricultural products, try to distinguish between agricultural products and ordinary parcels, in order to further promote large-scale agricultural products in rural areas, especially in remote areas.
Therefore, industry insiders predict that this round of financing will be more or less related to the “new logistics” platform announced earlier.
In the beginning, Huang Wei said: “We will not do sales, nor do we touch logistics and distribution. Ali has done a good job, why do you want to do it.”
E-commerce platform grows to a certain scale. Logistics is an inseparable link, but logistics is a chore. If you need a lot of time and financial resources to build it yourself, Jingdong Logistics seems to be a forerunner: 12 years in a row, one year. Loss of 2.8 billion. A lot of people who have been trapped in losses will not choose to build themselves. It clarifies the way of “light logistics”.
The strategy vice president of Jiduoduo Jiuding said at the earnings conference call that many companies will not invest in building large-scale storage buildings or distribution teams. The company will only integrate and utilize the resources available within the industry to improve service quality and efficiency. , which in turn reduces unit costs.
But looking at the current express delivery market, there are only a handful of express delivery companies that can be recruited into a lot. If you choose an overseas express delivery company, you will also face the test of acclimatization.