Shenrancaijing original
author | Tang Yahua
edited | Mufeng
The battle for express delivery to the sea is about to break out.
On August 26, Jitu announced the official launch of Jitu Wangbao service, providing cross-border light small-piece delivery services with discounted prices and stable timeliness for customers sent to Europe and the United States. Also in August, SF launched the "Wolf Warrior Plan" for the Southeast Asian market, and the chairman Wang Wei personally supervised the battle. The reason behind
is that the domestic express delivery industry enters the stock market competition on one hand, and the policy impact on the other hand. On July 21, 2022, the Ministry of Commerce and 27 other ministries issued a document to promote the going out of digital culture and foreign trade; at the beginning of this year, the "14th Five-Year Plan" of Postal Industry Development Plan" of the State Post Bureau also clearly proposed to express delivery to "enter villages, factories and overseas".
As the fastest-growing overseas business among the mainstream domestic express delivery players, what Jitu has been doing in the past year is to integrate internal resources and expand the scope of overseas.
acquired Best in October 2021. After the integration of the two networks, in June 2022, Jitu founder Li Jie announced that Jitu's average daily ticket volume in May had exceeded 40 million, while in May, Zhongtong, YTO, and Yunda were 50 million orders, and Shentong and SF Express had about 30 million orders. As a result, Jitu's market position in the domestic market has successfully entered the first echelon.
In terms of overseas business, Jitu, which started in Southeast Asia, has now put its flag on the territory of Middle East , Europe and the United States and other countries. In terms of specific practices of going overseas, Jitu uses localization strategies and a "heavy" model of building self-built warehouses and distribution systems to provide services across the entire chain of logistics.
It can be confirmed that going overseas has become the key to the domestic express delivery companies deciding the victory or defeat in the second half.
"reorganize" overseas express delivery
Vicky has been in the UK for many years and is currently doing marketing work in Singapore independent e-commerce platform. In her experience, it is almost impossible to have the same express delivery experience in China.
Before the epidemic in 2020, her shopping was still mainly offline. "E-commerce in Singapore started late and developed slowly. Before, the online and offline prices and product types were not much different. In addition, online shopping had to bear the freight itself, and the timeliness could not be guaranteed. The labor cost here is particularly high, resulting in the express delivery price being very expensive. The shipping fee for buying things is about 7.5 yuan. If you return and exchange goods, you will bear the round-trip shipping fee, and buying small things is not worth it."
Since the epidemic, she and her friends have gradually started shopping online. With the development of platforms such as Shopee, there are more and more merchants, and there are more and more types of products, and you can basically buy them for daily needs. She noticed that most of the things bought from Shopee are delivered by Jitu, and the locally shipped products from can be received in one to two days. If it is from China or other countries, it can also be received in about a week.
"In recent years, it is really great to be able to buy things on some cross-border e-commerce platforms or Taobao and send them directly. The local prices in Singapore are very high. Some friends around me who come from China or friends in Singapore will choose to shop online. They buy cabinets, sofas, etc. from China. There are many types of options, and the shipping fee is much cheaper than buying here." Vicky told Shenran. Before
, it is inconvenient to return and exchange local express delivery, so you need to find the express delivery and send the goods yourself. Because she usually has to go to work, Vicky rarely has time to go to a courier company to send it, and there is no shipping insurance, which has led to her rarely buying clothes online in the past. Recently, Jitu has a home-to-door return and exchange business, and Vicky has made more shopping.
Compared with Southeast Asia's relatively developed express delivery network, Rome, which is engaged in e-commerce platform investment business in São Paulo, Brazil, found that local express logistics are even more problematic.
Brazil e-commerce infrastructure, but development is almost at a loss. "Credit cards can be used for online payment, but I often can't find the reason for several consecutive credit cards.There are some problems with payments that are not fatal. If you put them in the numerous express logistics links, it is a "disaster". "He said.
According to him, local express delivery in Brazil mainly relies on Brazilian postal services, and there are bugs in almost every link. First of all, the address system is very chaotic . The stall number of the shopping mall is connected to the number on the street. Moreover, whether it is a shopping mall or on the street, the address number arrangement is irregular. There may be 147 next to 135. "I have a strong ability to find addresses in China. I have been here for more than a month. Every time I go out to see someone, I can only go to one place to take photos for the other party and ask the other party to pick me up. "
In addition, in Sao Paulo , door-to-door delivery and terminal delivery may not be the same company. There are many local large and small receiving companies, but the delivery is mainly done by Brazil Post. The entire system is divided and difficult to track. The loss of express delivery happens from time to time . There are merchants I complained to Rome that once, the receiving company took away a car of express delivery, but the system showed that the goods were not received in the warehouse. Later, I searched the surveillance and found that a person secretly transported 2,000 express delivery at night. The merchant was very angry and stopped doing business in Brazil.
and there was something even more outrageous. "When delivering the express, some couriers did not call to notify the recipient, and just waited downstairs. The user needs to check the system by themselves and show that the express delivery was downstairs and get it. When picking up, some couriers will not carefully check whether they are themselves. They can even take away the express delivery without signing. "Rome said.
Since the end of 2021, Jitu has been preparing for its business in Brazil. In May 2022, Jitu officially opened in Brazil.
Rome observed that Jitu sent more than a thousand people from China, rented a very large place, and laid out warehouses on a large scale and connected with development. "At first glance, they were determined to do a big deal, and even had their own canteen and chefs. "
" Express logistics is a heavy project. To build warehouses, buy cars, and train people, a large number of couriers are needed. I don't know how long it will take for the express logistics situation here to be completely improved, but Jitu has always been relatively solid in making seas, willing to invest money and people, and is determined to do things well. Jitu will definitely activate this market when it comes in. "Rome told Shenran.
Rome learned that in some countries in the Middle East, there is even no unified address system, and the address can only be written similar to " McDonald's third on the left side". Jitu went to re-regulate the address system, which is equivalent to doing infrastructure construction.
started in 2015 and expanded its business to the entire Southeast Asia. Jitu was uninterrupted throughout the year and was 7*24 hours a day The services that are common in China's express delivery industry are very alternative to foreign peers who do not deliver on holidays, the official website of express delivery orders is not updated, the customer service phone number is not answered, and the delivery service is not delivered after get off work. However, it has indeed "rectified" the express delivery markets in many countries, which can almost be regarded as a "dimensionality reduction strike".
Now, continuing to deepen the services of Southeast Asian countries and expand the Middle East and South America markets, Jitu's old tricks are more like fish in water.
- E-commerce And express delivery, no one can do without whom
Jitu has 70% of its express delivery business volume comes from e-commerce parcels. It can be seen that Jitu's success is inseparable from the development of global e-commerce in the past decade. Moreover, the express delivery industry still has a lot of room in many countries in the future. Data released by
eMarket in June 2022 shows that in 2021, the domestic e-commerce penetration rate will be as high as 24.9% , and the e-commerce penetration rate in the United States, the United Kingdom and Canada are all 2. Below 0%, while Thailand, Philippines , Vietnam , Malaysia , and Indonesia, the e-commerce penetration rate is all lower than 5%.
For consumers, the express logistics experience during online shopping is a plus point, because even if the goods cannot be received, you can still complain to the merchant to solve the problem. However, when it comes to the merchant side, express delivery cannot keep up and receive complaints and compensation one after another, and the business is likely to be ruined. So for merchants, express delivery is a choke.
For many years, most express delivery companies have been in a strong relationship with e-commerce platforms. Previously, Jitu had worked closely with cross-border e-commerce platforms such as Shopee and Shein. According to media reports, the latest Pinduoduo overseas project will also cooperate with Jitu Express . The e-commerce platforms where
Vicky and Rome are located have cooperative relationships with Jitu.
In Rome's view, is now in the whole of Brazil's local e-commerce momentum. The government encourages the development of the platform, and merchants also realize that they should accept and do e-commerce seriously. Some merchants used to do offline wholesale, which was very easy and unwilling to do e-commerce. On the one hand, it was because e-commerce was too tiring, and e-commerce prices were too low, which destroyed their offline system. But now they have started doing it, because many e-commerce merchants directly bought goods from China, and local wholesalers felt the crisis.
Nowadays, the demand for buying and selling in Brazil is relatively strong. During the epidemic, the market education of online shopping has been further popularized. Local networks and payment methods are already available. Only logistics is stuck at the last link, which has caused headaches for cross-border e-commerce platforms and merchants. The company where
Rome is located can receive a large number of complaints from users that have not received the goods every year, but the express delivery company's system shows that someone has signed for it. Many merchants complained to Rome that the profits of opening an online store are already low, but when they encounter a lot of complaints, the business can basically not be carried out.
At present, Jitu has played a certain role in entering the Brazilian market. In the past, merchants suffered losses and were injured in this regard. Now when Rome is investing, the situation has improved to a certain extent because of a courier company like Jitu, which builds its own warehouse and controls the entire process. The platform where
Vicky is located mainly helps merchants build their own online stores, and helps merchants manage stores, list products, inventory cleaning, logistics docking, etc. She noticed that many merchants began to ignore logistics, and only when some express delivery was slow or damaged or lost, users complained that the importance of logistics was realized.
"In fact, express logistics is a very important part of the process of delivering things to end users. And this is also a major cost for merchants. Whether the goods can be picked up in time and whether there is any damage during the delivery process is important." Vicky said. Merchants who are connected to
Vicky can choose Jitu Express or other express delivery. As the service deepens, express delivery companies are also constantly improving. Recently, Jitu has opened some stations for merchants in Singapore. In addition to the past couriers who came to pick up the pieces, merchants can also deliver the express delivery by themselves.
Currently, Jitu’s service in Singapore is relatively smooth, and the newly added home-to-door return and exchange and station services for merchants are also being improved. Vicky noticed that merchants and users have good feedback, and will also recommend new merchants to use Jitu first. Since Jitu cooperates with the platform, merchants can also get certain discounts.
In fact, Even if the efficiency of China's express logistics crushes most countries in the world, localization is still a matter that needs to be continuously improved when conducting business locally.
Rome mentioned that there was feedback from merchants that although the efficiency and accuracy of postal delivery in Brazil were poor, they would open the internally transferred order numbers to merchants. Merchants could see where the goods were transferred and what links were in, and they could also check and monitor them. However, domestic express delivery companies going overseas do not have this approach, and Jitu has no corresponding function in Brazil for the time being. Brazilian merchants hope to add this function locally in the future.
express delivery to go overseas in a melee, and it is the king to sink in.
The domestic express delivery business has entered the stage of stock competition, and going overseas has almost become the "fat meat" targeted by all mainstream express delivery companies.
Professor and senior logistics teacher at Wuhan University of Science and Technology Wang Yong mentioned that with the shift in the growth rate of domestic GDP, the industry structure has gradually stabilized. Whether from national policies or industrial laws, express delivery is the general trend.
Southeast Asia is the first stop for Chinese express delivery companies to go overseas and the second battlefield where all companies fight against each other outside the domestic market.
In 2022, the war on express delivery to sea was particularly fierce. In February, ZTO's transshipment center in Bangkok, Thailand was officially launched; in April, YTO, which has been deploying express delivery business in Vietnam for more than two years, announced its opening in Manila, Philippines; in August, SF Express launched the "Wolf Warrior Plan" for the Southeast Asian market.
iResearch Analysis brand retail industry analyst Wei Jianhui mentioned that Chinese express delivery companies are currently mainly doing overseas local express delivery in Southeast Asia, and the best ones are Jitu, Best, and SF Express; Cainiao, followed by SF Express. The development of each company is different.
Best Express has certain competitiveness in Thailand, Vietnam and other places.
"SF Express has been in overseas layout for a long time, but the effect is not very good. Last year, SF Express acquired Kerry Logistics, but Kerry's express network is only relatively strong in the Thai market. In addition, Kerry's core is freight forwarding ( international freight forwarding ). The acquisition of Kerry will greatly enhance SF Express's freight forwarding competitiveness, but in the early stage, SF Express's business cooperation in Southeast Asia tends to be a light asset model. For Southeast Asia's local express network business, it still needs to be invested heavily." Wei Jianhui said.
Cainiao is positioned as platform logistics, and its core is to integrate global resources and build a cross-border logistics service network. Wei Jianhui mentioned that Cainiao invested a lot of money in core hubs, distribution centers, overseas warehouses, etc., to control the core key nodes of business processes, and is also very strong in digitalization. Overseas terminal delivery is mainly entrusted to third parties.
Jitu can be said to be a leader in express delivery companies going overseas. "Jitu takes advantage of overseas OPPO and vivo's proxy network resources, plus the internal management and incentive mechanisms are relatively in place, seize the time window and quickly start the Internet. Jitu has outstanding strength in Southeast Asia," said Wei Jianhui.
Jitu made a strategy of sea: First, build a warehouse, logistics and distribution team, open up the entire industrial chain, and build high barriers; second, localization; third, work closely with e-commerce platforms to jointly improve the service system; finally, business in multiple countries around the world is progressing together to enhance synergy.
can be calmed down and grasping every link of express logistics in one's own hands is Jitu's biggest advantage over other competitors. At present, among the several companies in the express delivery overseas war, many of them choose to take charge of part of the chain and make up for the shortcomings through a cooperation model.
But Jitu's international express is all its own from the delivery to the trunk line customs clearance and the terminal delivery network. It can achieve door-to-door order to the end, reduce delivery errors, improve delivery efficiency, track transportation status, and have advantages in service, timeliness and cost control. At the same time, Jitu has direct sales and franchise, and the combination of light and heavy models is conducive to scale expansion.
Wang Yong mentioned that after Jitu entered every new market, built a network covering the local national network through local operation, and then connected through cross-border aviation trunks, relying on the domestic and foreign dual-line layout to achieve a complete closed-loop path. quickly broke the gap in express delivery companies focusing on the e-commerce field, and then found a way out for e-commerce logistics.
Currently, Jitu’s e-commerce partners include BELLA, Lazada, Shein, Shopee, TikTok, Pinduoduo, Tmall Taobao, etc.
Outside Southeast Asia, Jitu has taken the lead in the Middle East and Latin America, and is now advancing towards Europe and the United States. In January 2022, Jitu operated express delivery in the Middle East and entered the Latin American market in February. In recent months, Jitu has successively launched small package dedicated services in the UK, Germany, the UAE, Saudi , Mexico and other countries. At present, Jitu's local express network covers many Southeast Asian countries, as well as 13 countries including the United Arab Emirates, Mexico, Brazil, , Egypt, , etc.
In Rome's view, Jitu's biggest advantage is that he dares to make up his mind and dares to gamble."It requires a lot of determination to do express logistics business. It is not like some entertainment software that can attract a certain number of new users by investing a marketing fee. The advertising profit is also fast, and the monetization chain is very short. Express companies will spend 1 billion this year and may cost 1.5 billion next year, which requires long-term investment. At least I saw them sending a lot of people in Brazil and investing a lot of money. This is very courageous."
Wang Yong believes that in China, Jitu's advantage lies in the ultimate cost-effectiveness. When going overseas, Jitu's advantage lies in its successful localization model and experience, as well as the strong pioneering and execution ability of the OPPO and vivo teams.
Today's Jitu has been doing a good job in overseas business. Internally, business volume and service capabilities are also improving. Jitu, which is connected to the Taobao system, rose from 7th in March to 3rd in June. The second quarter report of China Logistics Service Brand Index (Express Logistics) in 2022 shows that in the top ten list, Jitu, who acquired a hundred generations, entered the top ten list for the first time, ranking sixth. In the service capability ranking, Jitu was on the list for the first time, rushing into the top three with 82.97 points.
attaches so much importance to the Chinese market because China is the most developed region in the world in e-commerce express delivery. Jitu's internationalization is not only indispensable for the technology, talents and experience of the Chinese market; in the future, new innovative achievements and talents in the Chinese market can also continuously deliver fresh blood to Jitu's larger internationalization.
Next step, the integration of service capabilities for the domestic market and the extent to which the hard bones of the Middle East, Europe and the United States can be chewed overseas. It will be Jitu’s biggest challenge and the biggest bargaining chip for its listing.
*The title picture and the accompanying pictures in the article are from unsplash. At the request of the interviewee, Vicky and Rome are pseudonyms in the article.
