2019 has come, where should the wind of LTL Express blow?

2019 has come, where should the wind of LTL Express blow?

In the past January, the LTL express sector accounted for half of the financing cases in the logistics industry, and the amount of financing jumped up to 100 million yuan. It can be seen that even though people generally believe that the economic environment is cold and the capital is suffering from a cold winter, in a short period of time, LTL has The express field will still play a big role. However, the “cold” environment has made entrepreneurs more rational.

2019 has come, where should the wind of LTL Express blow?

During the Spring Festival, the heads of LTL express companies also sent letters of thanks to the “family” who worked hard throughout the year. These letters of thanks also more or less reveal the direction of the company for the new year. As the saying goes, the plan of the year lies in the spring. At the beginning of the new year, it is the season of sowing. Where will the wind of LTL Express in 2019 blow?

1. Return to quality growth

It can be said that until 2018, players in the field of LTL express are still pursuing the strategy of “volume is king”, that is, the pursuit of economies of scale, but since the second half of 2018, the wind direction has gradually changed.

In the past few years, the field of LTL express has changed, and more and more 10,000-ton players have emerged. , ZTO Express exceeded 14,000 tons… Among them, it took only 2 years for ZTO Express to exceed 10,000 tons of cargo volume. Relatively speaking, the scale barrier is no longer so difficult to surpass.

On the other hand, players in the field of LTL express are basically formed. Even giants such as SAIC and SF Express are relatively difficult to enter the industry by themselves. Therefore, in 2018, they have adopted the form of mergers and acquisitions to reorganize old companies. The next market situation is more like the integration of stock, and the effect of the brand will become more and more obvious. Brands are built on word of mouth and quality.

Therefore, for 2019, more and more companies define this year as a “year of quality”.

1) Aneng: 2019 Quality Year

If you look closely at the “Today’s Aneng” official account, you will find that since January, Aneng has continuously published articles on quality and promoted the group’s strategy of high-quality growth.

“The logistics market in the future will be a competitive market that pays more attention to products, quality, and services. Whose products are closer to market demand, whose quality is more reassuring to customers, and whose services can make customer experience better, can become The most efficient connector in the field of commercial circulation, at this point, I hope that Aneng will achieve greater breakthroughs in 2019.” Qin Xinghua, President of Aneng, sees the future situation of the industry in this way.

At the 8th anniversary celebration of Aneng, Qin Xinghua also set a small goal for Aneng in the next five years: revenue of 100 billion yuan and an average of 300,000 tons per day. This goal must be achieved by relying on quality-driven growth and winning market recognition and trust.

This judgment is also the consensus of the entire industry.

2) Best: The Cognitive Revolution

In January, Best held the Best Express National Network Conference with the theme of “Quality Variable Wins”. Compared with last year’s theme – “Quantity Change Quality Wins”, it literally just changed the position of two words, but Best Group Chairman and CEO Zhou Shaoning believes that Baishi will experience a cognitive revolution in 2019, and defines this year as the “first year of quality” for Baishi.

“The competition in the industry has shifted from scale competition to value competition. We must use quality to increase market revenue and reduce costs. Improving quality is the most effective way to reduce costs.” Zhou Shaoning said.

3) Debon Express: customer experience is the lifeblood

For Debon, which has transformed into large-scale express delivery, by eliminating large-scale discrimination and entering the C-end market, the results of Debon Express in 2018 were also obvious. large proportions. In his New Year’s speech, Debon Express Chairman Cui Weixing even called large-scale express delivery “the lifeblood of Debon”.

At the same time, Cui Weixing also said that delivery upstairs is the lifeblood of large-scale express delivery. Due to the 2C nature of express delivery, compared with 2B LTL business, the dimension of customer experience is also increasing, and the lifeblood of customer experience is the delivery staff. Therefore, Debon announced when it changed its name to Debon Express that in the next three years, it will invest 3.5 billion yuan every year to actively build a “large-size system” that matches the needs of the large-size express market. One of these inputs will be used in facilities and equipment, and the other will be used in the performance and rewards of delivery staff.

4) Yimidida: Stable and far-reaching with the attitude of a dream chaser

On January 14, Yimidida announced the completion of the D round of financing of 1.8 billion yuan. This is the largest financing in the LTL express field this year. Yimidida said that after this financing, it will focus on service quality, and will focus on customer acquisition, core operation nodes (such as stations, train lines), research and development and investment in intelligent technology (automation equipment, full life cycle intelligent management and control) three Continue to increase investment and focus on major aspects.

In the past, we have seen the speed of one meter ticking, and its network coverage and volume growth have maintained rapid growth. Since 2018, Yimidida has been focusing on end coverage, network empowerment, technology research and development, etc., especially in June and July last year, it released 4 products in half a month to help partners improve quality and growth in speed.

5) ZTO Express: I would rather be slower, but also protect the brand

In the past two years, there have been many cross-border players, but ZTO Express is faster, breaking through the daily shipment volume of 10,000 tons in two years, and received a round of financing of 100 million US dollars last year. In the whole year of 2018, ZTO Express completed a cargo volume of 2.834 million tons, with an output value of 1.61 billion yuan, doubling from 2017. It can be said that ZTO Express is a dark horse in the field of LTL express.

The scale growth of cargo volume and the increase of capital have put the development of ZTO Express into the fast lane. ZTO Express stated that in 2019, it will strive to achieve the overall goal of 4.65 million tons of cargo volume and an output value of over 2.4 billion yuan. This also determines that the key to its work in 2019 is quality.

Regarding the strategy of 2019, Lai Jianfa, chairman of ZTO Express, emphasized that all work planning should focus on improving quality, and all work implementation should take improving quality as the fundamental standard, and strive to explore the quality road featuring ZTO Express.

At the same time, Lai Jianfa also put forward four concepts: the biggest advantage of express is the brand, it is better to develop slowly, but also to protect the platform; the most important task of express is to develop, it is better to have less business increment, but also to work together to capture revenue; The core competitiveness of Express Express is quality. We would rather have less honor and applause, but also focus on service. The highest standard of Express Express is sharing. We would rather have a heavier burden on the company and find ways to benefit our outlets.

2. Slow down and train the ability of hematopoietic

In the past, the competition in the field of LTL express was more of a scale competition, coupled with the influx of a large number of capital, “spending money to buy speed” is the main feature of this stage. Today, money has become less, capital has become more rational, and entrepreneurs have become more rational. Everyone has realized that the ability to make blood is more important than speed.

Not long ago, the author saw a photo in which Yang Xingyun, the founder and CEO of Yimidida, wrote four words on the whiteboard: profit model.

The author also saw such anxiety in the circle of friends of Yu Lianbing, chairman of Yousu. At that time, he sighed: “If you only seek quantity and do not control costs (no profit), there will be no way to improve quality.” In fact. , which is also the common anxiety of industry participants. In the past, in the pursuit of economies of scale, everyone has worried about “diseconomies of scale”.

Therefore, after the completion of the latest round of financing such as Yimidi Da, Yousu, etc., all major players intend to lower their speed and increase their hematopoietic ability.

1) Superior Speed: A healthy life is victory

From September 2018 to “Double 11”, Yousu Express has increased prices 12 times in a row in less than three months. In December of this year, the operating statement was positive and it began to make a profit.

In 2018, Usu moved forward under pressure and tenacity. Fortunately, the market began to accept and recognize Usu. Therefore, after entering 2019, Yu Lianbing, chairman of Usu Express, said, “We must make more outlets profitable and earn money. Get more money”, and promised that “Usu will not increase prices in the future, leaving more space to benefit franchisees and sites.”

“Returning to the essence of business in 2019, a healthy life is victory.” Yu Lianbing said.

2) Shangqiao: Reduce costs and increase efficiency

2018 is a very important turning point for Shangqiao. This year, they continued to polish their products, verify their business models, and received a round of financing of 100 million yuan in August. In terms of operational data, the efficiency of Shangqiao’s “public delivery bus” is more than 25% higher than that of traditional operations.

With the financing of 250 million yuan in the cold winter of capital, Shangqiao has sufficient ammunition and seized the last opportunity in the LTL field. Chen Fengyu, chairman of Shangqiao Logistics, listed several key words in Shangqiao’s 2019 plan: quality, efficiency, stability, and breakthrough. This also shows that market expansion is no longer the main direction of enterprises after financing, but more to become deeper and stronger.

“Throughout 2019, all of our work revolves around quality and efficiency to build our operating system, and all of our strategies revolve around one point: to be a valuable and respectable company, and everything is arranged around building core competitiveness, There are only four words in the core competitiveness: reducing costs and increasing efficiency.” Chen Fengyu said.

3. Integrate, transform, survive

In 2018, the entire LTL express market also showed a feature, that is, the wind of integration has resurfaced, and the old companies have radiated new vitality.

On the one hand, the large-ticket LTL market has become lively, and forces such as Jumeng, Yunpai, Duodaohuo.com, and Chuanhua Logistics Alliance have started to network. On the other hand, Tiandi Huayu merged into SAIC’s logistics sector, SF Express acquired Singbang and established Shunxin Jetta and Jiaji Express to seek transformation. The old companies began to radiate new vitality… Next, deep integration, transformation, and survival will become their keywords.

1) Jumeng: In the best times, do something worthwhile

The first financing event in the LTL field in 2019 was born in Jumeng. The company, which has been established for less than a year, has already received two rounds of financing at the level of 100 million yuan.

The dedicated lines in the past were difficult to connect for various reasons, but most of them were not organized. Therefore, in 2018, Jumeng carried out systematic design and rapid action through four aspects of dedicated line organization construction, top-level design, system implementation and product introduction, which accelerated the efficiency of partner integration.

2) SAIC Tiandi Huayu: Stability is the foundation to support long-term goals

Tiandi Huayu has joined SAIC’s logistics sector for nearly half a year, and is currently in the integration period of the two. During this process, the stability of personnel, business and the entire structural system is the foundation to support the long-term goal.

Therefore, SAIC Tiandi Huayu also carries out the strategic planning for 2019 with a steady development attitude:

First, increase network coverage and open 1,000 new stores. The service network needs to be further submerged. On the basis of the original 2,500 stores, 1,000 new direct-operated and franchised stores will be opened, covering all prefectures and cities across the country, and covering counties in the eastern region.

Second, work hard on speed, and the average aging time will increase by 1 day. By optimizing the layout of the transshipment center, updating and replenishing 1,300 trunk line and dispatch vehicles, and adding 1,000 new energy vehicles, the operation quality and efficiency can be greatly improved in trunk line, dispatch, and transshipment. The aging time is increased by 1 day.

In fact, every entrepreneur has a passionate side on the outside and a side walking on thin ice behind it. This sense of crisis keeps them rational. It is said that 2019 is “cold”, but it is this cold that can make companies slow down to check their bodies and make the industry squeeze the bubble. And in the process, any blow that doesn’t kill us makes us stronger.

The Links:   3HAC026254-001 3HAC14363-1 DISPLAY

Published on 09/19/2022