Cut is already known to everyone.
In order to quickly gain a foothold in the fiercely competitive Chinese express delivery market, Jitu adopted the same strategy as Pinduoduo—burning money. In addition to large investments in the construction of transshipment centers and outlets, vehicles, and personnel, in order to seize the market and attract more customers, the receiving price of Jitu is often lower than that of local Tongda express delivery, which has caused dissatisfaction with Tongda franchisees.
The second new player has a close relationship with JD. It is Zhongyou Express with JD’s endorsement. Unlike JD Logistics, Zhongyou’s label is “Sinking Market” and “Affiliate System” The positioning of “Express Delivery” coincides with the differentiated development of JD Logistics, and echoes JD’s offensive on the sinking market.
In the recruitment announcement, Zhongyou Express stated that it is committed to becoming “a well-known courier company with the best price-performance ratio in China”, providing a cost-effective price plan. The service products mainly focus on 3KG small items and e-commerce parcels, which will be domestic E-commerce platforms, micro-commerce and micro-shops, new types of e-commerce, professional markets and retail customers provide services.
From the pricing point of view, Zhongyou also compared the standard Tongda express delivery system, which has obvious intention of grabbing the market.
The third is SF Express’s new business. SF Express and CICC jointly established Shenzhen Fengwang Express Co., Ltd. in April this year. According to Yibao.com’s report, the brand is tentatively designated as Fengwang Express. It is also designated as a franchise express delivery system, and franchisees will be preferentially produced among the franchisees of Shunxin Jetta, an express brand under SF Express.
Fengwang will focus on the development of low-end e-commerce products. As early as 2018, SF Express acquired the franchise express company Xinbang Logistics and established Shunxin Express with the franchise model, focusing on the low-end market, and it is also increasing The proportion of cheap express delivery, the e-commerce special service “SF Express” was launched in May 2019, and each order was as low as 4 yuan.
Jitu, Zhongyou, Fengwang, three new players are open to join, and the service targets are low-end products, e-commerce products, etc. It is not difficult to see that the targets of the three are the e-commerce express market dominated by Tongda.
II. E-commerce express “Three Kingdoms” upgrade
E-commerce platforms have a strong say in the express companies in the industry chain. Ali’s rapid development has led to the rise of Tongda Express, but it has to live in the shadow of a rookie, both ends are held by Ali.
But I have to admit that after the rise of Pinduoduo, the monopoly of upstream e-commerce orders has weakened.
According to Pinduoduo’s financial report,