Losing Money to Be a Tycoon

May 31st, Thursday.

Magic City, the headquarters of Shengyun Express Group.

Shengyun Express Group is currently the leading domestic express delivery industry, occupying half of the express delivery business.

It basically covers cities at or above the prefecture-level and county level in developed areas, especially in the surrounding areas of Magic Capital. It has basically achieved the goal of delivery without blind spots, and has even started the internal testing of overseas shopping transshipment business.

However, the reputation of Shengyun Express is not very good.

This company has a history of nearly 20 years since its establishment. Its rapid development and growth is mainly due to the franchise strategy. When the growth rate of the entire express delivery industry remains at a high level, this is greatly beneficial to quickly gaining market share. The advantages.

However, with the slowdown of industry growth and the advancement of the company's development stage, after the end of the extensive growth era and the arrival of the era of refined management, the drawbacks of this franchise system have gradually become prominent.

On the one hand, there are many network levels and difficult management. Many franchisees have strong influence. Headquarters instructions are difficult to implement effectively, and uneven services may affect terminal service evaluation;

On the other hand, the low proportion of self-operated transshipment centers will also reduce efficiency to a certain extent and extend the time for express delivery.

Shengyun Express Group is a giant, even within the company, it is divided into three or four different express business brands, and there is a certain degree of competition between them.

How to solve these problems is the most troublesome thing for Shengyun Express in recent years.

At this time, several senior executives of Shengyun Express are in a meeting to discuss some issues of Shengyun Express in terms of development planning.

The chairman of Shengyun Express is Nie Yunsheng, but he cannot fully control the entire group. Although several major shareholders and senior executives of several companies who are fellows and friends with him will support him in most cases, But many times there will be some different opinions.

Therefore, if you want the entire group company to develop in the direction you expected, you need a large number of meetings to unify internal thinking.

At this point, the meeting has entered the final stage, and the big bills have basically been discussed.

A company vice president said: "Mr. Nie, everyone, regarding Tenda's Upwind Logistics is preparing to build an air transport route, I have compiled a copy of the materials and distributed it to everyone."

"Mr. Nie, how should we deal with this matter?"

Although the formal preparation of the air freight route by Upwind Logistics is two months later, Lu Mingliang is already making some simple preparations and publicity.

For example, sending out a few flyers when delivering express delivery, and arranging some exhibition boards at the Upwind Station for publicity.

Because the express business is not like other businesses, time waits for no one.If you wait for the air transportation business to be completed before publicizing and guiding customers to use it, it will be too late, and the first few flights will definitely not be able to pull much cargo.

It must be promoted in advance in the area covered by the Fengfeng Station, and a large number of orders can be received when the cross-city express service starts.

Therefore, the news naturally reached Shengyun Express.

The vice president has summarized all relevant situations into a report.

Upwind Logistics currently takes the "last mile" express delivery business as its main goal, and Shengyun Express has always maintained a close cooperative relationship with it.

Currently, Defifeng Station is rapidly expanding in the four cities of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng, and the number of stores is growing rapidly.

Although in terms of the overall scale, it still cannot be compared with the industry leader such as Shengyun Express, after the cross-city express business of Upwind Logistics is opened, it will inevitably pose a certain threat to Shengyun Express.

Therefore, Shengyun Express must respond as soon as possible and consider countermeasures.

Nie Yunsheng has already read the report, and his face is slightly solemn: "This is completely within our expectations. Upwind Logistics has been making huge losses and helping us with the dirty work. It is impossible to say nothing else. "

"Now they have to do cross-city logistics, which is also a logical thing."

"Backed by the Tenda Group, their goal must be centered on these four cities. Through the advantages of the Upwind Station, they will first open up the market with high-quality services from the high-end population in the big cities, and form a dislocation competition with us."

"I have to say that this business model still poses a certain threat to us."

"Moreover, we don't have many methods. The density of the upwind stations in these cities is already very high, and the delivery experience is completely better than ours. This is made with real money. We are unlikely to adopt a similar model."

"What do you think?"

A vice president said: "Do you want to unite with other express companies to block it? Just like Chilu Express back then."

Obviously, this is the simplest, rude, and most effective method.

Shengyun Express has done this kind of thing long ago, and it has succeeded.

A year ago, an express company called "Chilu Express" developed rapidly and targeted the sinking market in the central and western regions. With its good relationship with the e-commerce platform and each order is cheaper than Shengyun Express 1 The price of ~1.5 yuan has become a spoiler backed by a big tree.

Chilu Express attaches great importance to the sinking market. It has printed the earthy slogan similar to "the mountains are many high roads, and Chilu Express is not perfunctory" on the walls of thousands of towns and towns, and it has stated that it has made two consecutive losses Years of preparations are coming fiercely.

As a result, Shengyun Express issued the "Notice on Prohibiting Chilu Business on the Whole Network" and the "Punishment Notice on Acting Chilu Business", requiring the group company not to act as Chilu Express for any reason or in any form at both ends of the package. For business, fines were imposed on the branch companies that violated the agency.

Under this pressure, Chilu Express quickly fell into disrepair due to its low profit margins and chaotic internal management, lost the trust of investors, and quickly left the market, and is currently half-dead.

Therefore, in the face of the threat of headwind logistics, the first response of the senior executive of Shengyun Express was also to block.

But the other vice president immediately objected.

"This is not so good. There are still some differences between the nature of Upwind Logistics and Chilu Express."

"Chilu Express is a complete competitor relationship with us, and Fengfeng Logistics has maintained close cooperation with us before that. Even in the four regions of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng, Fengfeng Station has actually become us The last link of delivery."

"Although we will share some profits with each order of express delivery, we no longer need to deliver the express delivery to the door, we save a lot of labor costs, and the delivery efficiency and revenue have increased significantly."

"If we completely ban Upwind Logistics, then Upwind Logistics will inevitably block our shipments. Once the two sides tear their faces, it will be a huge loss to our daily business."

"What's more, the cross-city express business of Upwind Logistics has not yet been fully developed. Even if it is developed, it is mainly based on the high-end market of cross-city air transportation, which is somewhat misaligned with our business."

"Now it's blocked directly, it's a bit overreacted, I don't think it's appropriate."

Another senior also agreed: "I think so too."

"Another point is also very important, that is, Headwind Logistics is different from Chilu Express, and their actual risk tolerance is completely different."

"The rise of Chilu Express was favored by some big capitals, but after we blocked them, their express delivery business stagnated. These big capitals lost confidence in Chilu Express, so Chilu Express quickly declined."

"However, Upwind Logistics is entirely dependent on Tenda. It has lost more than a year since its establishment, but the stores are still open continuously. This shows that Tenda Group's senior management attaches great importance to the business of Upwind Station."

"It was originally a loss, but being blocked is just continuing to lose. Coupled with the support of Tenda's senior management, this is impossible for Upwind Logistics.

"On the contrary, it will allow them to devote all their energy to their express delivery business, relying on the advantages of a large number of stores to die with us, it is really not worth the loss."

"In layman's terms, those who are barefoot are not afraid to wear shoes."

"It is not a wise move to adopt a ban."

Everyone was babbling, and their opinions could not be unified.

Because after such a long period of development, Upwind Logistics is actually not an absolute competitive relationship with these traditional express companies, but a dual relationship between cooperation and competition.

In many areas, the couriers of Shengyun Express have become accustomed to throwing parcels to the Upwind Station and leaving, and the delivery efficiency has increased many times. Many outlets have adjusted their personnel and abolished them to save costs. Some unneeded couriers were removed.

If headwind logistics is hurriedly blocked, these express mails will either be delivered directly to the door or find a large number of new collection points.

The former is obviously unrealistic with insufficient staff, and the latter cannot be completed in a short period of time.

Seeing that everyone was almost discussing, Nie Yunsheng knocked on the table lightly.

"Well, let me say a few words."

"Feifeng Logistics started to do its own express delivery business. This is in our expectation and there is nothing to be surprised about."

"Of course, as a potential competitor, headwind logistics is a new model that must be prevented."

"But if we want to block it immediately, it is obviously overreaction. Even if we want to block it, we have to find an alternative to the Upwind Station before we can tear our face."

"It seems that we have been planning to solve the'last mile' plan before, and we must hurry up and implement it."

"Especially in the areas covered by the Deadwind Station, we must get rid of the dependence on the Deadwind Station as soon as possible!"

As the leader of the express delivery industry, Shengyun Express has obviously thought about how to solve the last mile problem.

Regardless of how you think about it, the final more economical solution is nothing more than two: Either a courier cabinet or a store-style station.

But they can't deliver express mail to their door like Fengfeng Station, because the labor cost required is too high.

It is not that the cost cannot be paid, but the profit must be guaranteed.

This kind of unprofitable and even loss-making thing, not to mention that the senior management of Shengyun Express disagrees, those big franchisees will definitely try to oppose it instead and will not cooperate fully.

In the end, most of the schemes of forcibly learning the Upwind Station cannot be implemented.

For express cabinets and non-delivery stations, these two solutions are definitely not as good as the upwind station in terms of experience, but Shengyun Express also has its own advantages: the express fee is cheap and the station covers more cities.

The cheap delivery fee means that many e-commerce merchants will send Shengyun Express by default in order to reduce costs, and many customers who are more price sensitive will sacrifice some experience and choose Shengyun Express.

Moreover, the courier cabinet solution is profitable, and the progress will be very fast if a large sum of money is dropped.

After these two programs are implemented, Shengyun Express can gradually get rid of the reliance on the upwind station in certain cities. When the time comes, we will take measures based on the situation, and we will be more confident.

Most of the high-level people present basically agreed with this view.

Nie Yunsheng finally made a decision: "Okay, then do so. Don't be alarmed by Upwind Logistics, and conduct business cooperation normally."

"At the same time, we will also invest a large number of express cabinets throughout the country, especially in areas with high coverage of the upwind station, and gradually establish our own'last mile' solution."

"Of course, in the early stage, we can set up some pilots first, observe and observe where there are upwind stations and where there are no upwind stations, to see how customers actually react."

"We must attach great importance to this matter!"