Market demand has nurtured a huge express delivery market, and has pushed hundreds of express delivery companies to the cruel situation where competition is fierce. Competition-chaos-shuffle-integration seems to be the unchangeable law in the market economy. In order to make the express delivery industry with more complaints more standardized, the new "Postal Law" has been introduced and will be officially implemented on October 1 this year. Industry supervision may prompt this market to bid farewell to the era of rash heroes and enter service quality and corporate branding. Competition. Great changes are coming "The express delivery industry is brewing a huge change." Wuhan Yima Express Tian Jifeng told reporters that almost every domestic express company is "finding money", trying to grab the first time to grow up, otherwise it will be "eaten" . All this stems from the new "Postal Law" officially implemented on October 1, 2009, which sets a higher threshold for private express delivery companies. The new law stipulates that to operate express delivery business, you must first obtain an express business operation permit, and then apply for an industrial and commercial business license with the permit. The threshold for obtaining express business licenses has been greatly increased. The new law stipulates that: the registered capital of express services in the same city must be more than 500,000 yuan, off-site express services must be more than 1 million yuan, and international business should be more than 2 million. According to statistics, there are currently more than 30,000 domestic express delivery companies, and about 80% of private express delivery companies do not meet the minimum requirements for registered capital. According to industry insiders, before the implementation of the new "Postal Law", pre-approval is not required for the express delivery industry. Not only can you apply for individual businesses and sole proprietorship enterprises, even if you apply for a limited liability company, the minimum registered capital is only 30,000 yuan (the minimum for a single shareholder is 100,000 yuan), in the case of complete materials, you can get a business license within 5 working days. Therefore, "a garage, a few tables, a computer, a few salesmen can run a courier company." The same is true across the country. It is understood that there are currently more than 10,000 courier companies in China, including more than 5,000 registered in the industrial and commercial department, and no more than 20 private courier companies with a registered capital of 1 million yuan. That is to say, once the new "Postal Law" is implemented, only 20 private express companies can become regular troops, and the rest will either be eliminated or desperately "find money". In Tian Jifeng's view, the express delivery industry will usher in the best moment and the worst moment. "On the one hand, the new law recognizes the legal status of qualified non-post express companies, especially private companies. Obviously, such a result makes private express companies deeply gratified and allows us to see an increasingly regulated market. But on the other hand For most private enterprises, it is a tragedy that may lead to a large number of unemployed people. At present, the express delivery industry in Wuhan, whether formal or not, has tens of thousands of employees, and some companies are now withdrawing from the express delivery industry. " The "Earthquake" of the national express delivery industry also began. Just one day before the new "Postal Law" was formally promulgated, the famous red express horse in the same city in Beijing announced its withdrawal from the express delivery market on September 30, 2009; two months later, in January 2010, the private express delivery company DDS declared bankruptcy; 3 In April, Alibaba invested in stars; in May, HNA Group held a private express company, Tiantian Express. Unconfirmed news: Guo Guangchang, the head of Fosun Group, may become a strategic investor in Shentong Express. Low-profit competition What is most controversial in the new "Postal Law" is not the increase of the threshold, but the supporting documents of the new "Postal Law"-"Provisions on the Scope of Specialized Business of Postal Enterprises (Draft)". Businesses under the following grams are delivered as letters and are classified as postal companies. After more than 10 years of development, private express delivery has become the dominant player in the domestic express delivery market. They own more than 80% of the same city express and more than 50% of the intercity express. For many private courier companies, the same-city and off-site courier with fierce competition and low profits of less than 100 grams has always been their main business. Among them, 80% of the same city express and 30% of the off-site express business are file businesses. The "franchise policy" is undoubtedly a heavy blow to the low-cost competitive express industry. "No one knows the price war in the express delivery industry, and no one knows. For the sake of competition, to pull customers, I am 10 yuan, you 8 yuan, and he may be 6 yuan." Tian Jifeng introduced, the company's 2 kg city express price is already low To 6-8 yuan, it still can't resist the low price of 5 yuan from companies such as Shentong and Yuantong. According to estimates by the Chinese Academy of Social Sciences, the current domestic express delivery prices are mostly lower than the lowest average price. "Some courier services are cheaper than ordinary postal parcels. Ordinary parcels are borne by consumers to be sent to and collected from the post office, and express delivery is a door-to-door service, which is more costly for enterprises. If the price is cheaper than ordinary parcels There must be a loss. " However, even so, no one would dare to raise prices easily. In November 2009, among the five private express companies in Jiangsu, Zhejiang and Shanghai, Shentong, Yuantong, Yunda, and Zhongtong successively announced price increases within three days, with an increase of up to 40%. Shentong even temporarily suspended cooperation with Taobao. After 5 days, the plan was over. The reason is the opposition of their largest customer, the powerful Taobao sellers alliance. Facing the ruthless market, the private express industry has spread the saying that whoever raises the price first will die first, and whoever does not increase the price will wait to die. "Various problems in the private express delivery industry already exist, and the new" Postal Law "just burned a fire." Tian Jifeng said, just as the DDS that closed in January this year was the result of negative policy stimulus, but it is also an industry inevitable. DDS attacked the city strategy pool with the most primitive ultra-low price strategy and expanded rapidly. Taking its seizure of the East China market as an example, in just five months of entering Shanghai, DDS's daily order amount increased dramatically to 150,000 yuan, actually relying on "5 yuan in the same city, 6 yuan in the province, and 8 to 8 provinces across the province. 10 yuan, 20% higher volume, the most primitive ultra-low price strategy. In the case of a sharp increase in the number of express mails and the difficulty of operating and delivering services, DDS still adopts this low-price competition strategy, which means that the more orders received, the greater the loss. Under the surge in labor and network costs, its The ultimate break of the capital chain becomes a necessity. People in the industry believe that behind the collapse of DDS, the industry's dilemma of "low threshold-low price competition-low cost expansion-unsustainable funding" in the private express delivery industry is exposed, and the reshuffle is imminent. Venture capital "Although the threshold of registered capital is low, in fact, if you want a courier company to have a foothold in the rivers and lakes, the capital requirements are quite high. To start a courier company in the same city, if you want to survive, you must invest at least 500,000 yuan in the early stage; if If you want to open a domestic express delivery company in a nationwide network, the investment must be calculated in tens of millions of yuan. "Tian Jifeng introduced. "Private express delivery companies will face bottlenecks such as capital, management, and talent when they develop to a certain period. If the funding dilemma is not resolved, companies will not be able to survive. Therefore, for the recent cooperation between venture capitalists and domestic investors and express delivery companies, I personally think that This is a great thing. "Tian Jifeng believes that this industry has now reached the time of rapid development with the help of external forces. On the one hand, the private express industry is eager to find funds, and on the other hand, venture capitalists are also very optimistic about the prospects of this industry. "Despite the chaos in the industry, it is an indisputable fact that China's express delivery industry is on the rise." "Now, this industry has a formal legal status, and it will be more secure to enter outside the industry." It can be foreseen that once the venture capital After entering, the uneven service caused by rapid development will be solved to the greatest extent, and the express delivery industry will go on a good development track. The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. For more information, please click download to view all articles. ZHONGSHAN GRUWILL HARDWARE CO.,LTD , https://www.zsgruwill.com