I don’t think there will be any impact, because the current express delivery market is no longer a time for disputes between the heroes, but the overall situation has been decided!
1. Current situation of the express delivery market: After two years of integration, the overall situation of the current express delivery market is basically the same. Alibaba, SF Express, plus JD.com, and of course other express companies are still alive, but Life is not going to be easy. Alibaba now directly controls the three telecommunications companies, YTO, ZTO, STO, and Best. The combined market share of these four companies exceeds 50%, which basically accounts for half of the country. If ranked by business volume, these four companies all enter the market. Top 5.
Excluding Alibaba, the remaining two companies are SF Express and JD.com. There is not much to say about SF Express. In terms of revenue, it is still the leader in the express delivery industry. It has made many plans in the past two years and still has potential to be tapped in the future. Jingdong Express is actually not having an easy time. Although it has a good business volume relying on Jingdong, it has been losing money due to high self-construction costs. Otherwise, Liu Qiangdong would not have laid off his courier brothers this year. Because of this, JD Express has also begun to collect parcels to seize the market share of other express delivery companies. This will put greater pressure on some small and medium-sized brands.
Generally speaking, the express delivery sector will continue to consolidate. Some small and medium-sized express delivery companies may be acquired or withdraw from the market in the future, and their market share will continue to be eroded by the first-camp express delivery companies.
As the express delivery market is basically integrated, the emergence of Xiaomi Express will not have any impact on existing express delivery companies. Because its size is simply not enough to support a logistics company like JD Express, building a self-built logistics system is too expensive. JD.com is still losing money for such a large company, which will seriously hinder the development of the entire Xiaomi Group.
2. The core goal of Xiaomi Express: The core reason why Xiaomi established its own express delivery company is to solve its own distribution problems. The current shipment volume is actually quite large. In addition to mobile phones, there are also various smart homes. The Rufengda currently used by Xiaomi can be said to be criticized by people. To be honest, as a small Taobao seller, I didn’t know that there was such a courier company before.
Xiaomi, which is known as an Internet company, actually uses such an unknown small courier company to deliver goods! Of course, another reason for using Rufengda is that Lei Jun supports his friends. Rufengda is the express company that Chen asked his fellow countryman to run when he was working as a regular customer.
For example, Fengda Express has been complained by Xiaomi users for more than a day or two. In the long run, it has actually damaged Xiaomi's reputation. If we want to completely solve this problem, it seems that we can only build our own express delivery company. Moreover, when Xiaomi went public, SF Express took a stake. If Xiaomi establishes a courier company, it will be able to get technical help to a certain extent.
Therefore, the essence of Xiaomi's self-built logistics system is to solve its own problems. The current shipment volume is not small. If it is shipped by SF Express, the cost will be high for Xiaomi. Using its own express delivery may cost less. Come down.
However, building a self-built logistics system will also cost a lot of money. This is an asset-heavy model. I wonder if Xiaomi has enough capital to burn it!
Generally speaking, Xiaomi's self-built express delivery will not have a big impact on the existing logistics system, but self-built logistics will be a big test for Xiaomi in the future, especially its ability to burn money! Don't end up like making chips, only to find that it's too expensive and end up giving up halfway.
The announcement issued by the Trademark Office of the State Intellectual Property Office a few days ago shows that the Class 38 and 39 trademarks "Xiaomi Express" applied by Xiaomi have been approved. Among them, the business scope of 39 categories of trademarks covers package delivery, express delivery services, etc. This has triggered speculation about Xiaomi’s self-built logistics. Many netizens even believe that the emergence of Xiaomi Express will have a huge impact on the traditional express delivery industry. What about the impact?
We do not deny that Xiaomi is a very good company. It has been less than 10 years since its establishment, but it has developed into a giant company with an annual turnover of nearly 200 billion.
In addition to mobile phones, Xiaomi is also good at other smart products. At present, Xiaomi has accumulated a large number of loyal fans. There is still a certain market space for establishing an express delivery company based on these fans.
But I think it is very difficult for Xiaomi to make a difference in the express delivery industry.
First, the current competitive landscape of express delivery has been determined
After years of development, my country’s express delivery industry has formed a market dominated by SF Express, Postal Service, Four Links and One Express, and JD Logistics. In the express delivery system, these eight express delivery companies have occupied the vast majority of my country's express delivery market, and this share is still growing.
According to statistics from the State Post Bureau, in 2018, the national express delivery service companies completed a total of 50.71 billion pieces of business, a year-on-year increase of 26.6%; the cumulative business revenue reached 603.84 billion yuan, a year-on-year increase of 21.8%, of which 8 in the first half of 2018 The market shares of express delivery companies are as follows: Zhongtong has a market share of about 17; Yunda and YTO have a market share of 14 and 13 respectively; Best, STO and SF Express have a market share of 10, 9 and 8 respectively.
And the market share of these 8 express delivery companies is increasing year by year. In 2016, the market share of CR8 in the express delivery market was 77.4. By the end of 2017, it had risen to 81.1. By the end of June 2018, it continued to increase to 81.5.
Second, express delivery needs a large customer base
Although Xiaomi has a large number of rice noodles, these rice noodles are not enough for Xiaomi to impact the traditional express delivery industry, because in addition to Except for high-end express delivery companies such as SF Express EMS, Sitongyida is basically a volume model. Only if the volume of express mail is large enough can there be room for survival. At present, whether it is SF Express, EMS, Four Links and One Express, or JD.com, they all have a wide range of customer sources. Among them, SF Express and EMS already have fixed high-end customers, Four Links and One Express mainly relies on Alibaba, and JD Logistics has its own With the support of huge shopping malls, these companies have a fixed source of customers, which is enough for them to dominate the express delivery industry.
For example, in 2018, the express volume of ZTO Express reached 8.56 billion pieces, and the corresponding operating income was only 17.6 billion yuan. It will be difficult for Xiaomi to win over customers from these eight express delivery companies. JD.com has learned from this. Dong Logistics itself mainly serves JD.com customers. In recent years, JD.com has also started to provide collection services, but the effect is not obvious. Many JD salesmen cannot receive express mail at all, so some salesmen have appeared. Complete the task and send yourself something ridiculous.
If we cannot grab more customers from cr8, Xiaomi’s customer volume alone will not be enough to support the development of Xiaomi Express. For example, the overall shipment volume of Xiaomi mobile phones in 2019 was 119 million units, of which 47.96 million units were shipped domestically. If other Xiaomi products are included, the domestic express delivery volume will only be between 100 million and 150 million units a year. time, this kind of express volume is simply incomparable to the volume of express mail that reaches all directions.
Third, express delivery needs to be supported by a complete logistics system and requires continuous large-scale capital investment
my country's express delivery industry has reached a turning point in its development to this day. It is difficult for an extensive or simple franchise express delivery industry to work. The future express delivery industry will definitely develop towards intelligence, efficiency and humanization. The future express delivery industry will pay more attention to user experience, including timeliness and safety.
Because of this, the future express delivery industry will need a lot of investment to establish a complete logistics system, which requires Xiaomi to have enough capital to support it, and this investment will not be effective in one or two years. Requires long-term investment. If Xiaomi spends a lot of money to build a logistics system, if there is no source of customers, it will also create huge pressure on Xiaomi. Therefore, Xiaomi’s self-built logistics must grasp the critical balance of cost and profit. If there is no high traffic and high monetization It is basically difficult to maintain the foundation of e-commerce.
At present, Xiaomi Express is in the stage of registering a trademark and has not obtained the operating license from the State Post Bureau. There is currently no accurate time when Xiaomi Express will be officially launched.
But I personally believe that Xiaomi’s establishment of an express delivery company is not to impact the business of the traditional express delivery market. Its main purpose is to improve Xiaomi’s delivery system.
Today, Xiaomi is no longer a simple mobile phone manufacturer. At present, Xiaomi’s business covers many products. In addition to Xiaomi mobile phones, Xiaomi currently also has Xiaomi Mall. They sell many products produced by Xiaomi. , such as smart bracelets, TVs, smart home products, etc., and the growth rate of these businesses is very obvious. It can be expected that Xiaomi’s other businesses besides mobile phones will become larger and larger in the future, which requires Xiaomi to have strong logistics The system provides support.
Xiaomi has not had its own logistics system for a long time. Instead, it uses third-party logistics. In the early days, it used Rufengda, but Rufengda gave customers a very bad experience and was damaged to a certain extent. It damaged Xiaomi's image and brought bad experience to many rice fans. Later, Xiaomi cooperated with SF Express and YTO. But after all, you cannot control some things by yourself when using third-party express delivery.
Therefore, as Xiaomi’s business scale expands, Xiaomi urgently needs to establish its own logistics system. This can not only improve the user experience, but more importantly, it can effectively reduce the logistics costs of the production and store operations and enhance supply. chain management capabilities, thereby further improving Xiaomi’s competitiveness.
The emergence of Xiaomi Express, I think, will not have a big impact on the express delivery industry, not even an impact.
If Xiaomi builds its own logistics, the only one that can be compared directly with is JD.com. Let’s take a look at the current situation of JD.com
An ecological chain as strong as JD.com cannot yet support JD.com Regarding logistics, I think it is difficult for Xiaomi Mall alone to support Xiaomi’s self-built logistics.
But this is just the appearance we can see. Maybe Xiaomi has its own layout for "Xiaomi Express". Let's see what the experts say:
Registering a Class 39 trademark does not mean that Xiaomi can already carry out express logistics services. Xiaomi also needs to obtain an express business license approved by the State Post Bureau. Zhao Xiaomin estimates that Xiaomi will not wait to apply for a new license and is more likely to acquire a license from the market. He believes that Xiaomi will not adopt the form of completely building its own logistics like JD.com. Time and efficiency will not allow this approach. Xiaomi should develop express delivery business through mergers and acquisitions and integration.
Therefore, Yang Daqing believes that e-commerce companies must grasp the critical balance between cost and profit when building their own logistics. E-commerce companies that do not have high traffic and high liquidity should not build their own logistics. However, at a time when domestic logistics efficiency still needs to be improved, the advantages and prospects of self-built logistics still make many technology and Internet companies eager to give it a try. Zhao Xiaomin predicts that many companies such as Xiaomi, Lenovo, and Didi may get involved in related fields.
Let us wait and see what layout Xiaomi Express will adopt!
It has been established for a long time and there will be no big impact
Just like Hello bike, it also came out when ofo and Mobai were competing against each other. The impact is not bad, and it can occupy a good market share. However, in terms of impact, it is still SF Express after all, and most of the rookie market is probably not big.
If the service is good and the price is reasonable, anyone entering the logistics industry will be supported. Increased competition is a good thing.
According to data from the China Trademark Office: Xiaomi Corporation has 6 "Xiaomi Express" trademarks, and the registration categories are Class 39, Class 42, Class 9, Class 38, and Class 38. Category 35. The "Xiaomi Express" trademark submitted by Xiaomi Company on August 1, 2018 has been approved on June 21, 2019.
Xiaomi will provide "guaranteed next-day delivery" service for more than 90 of its smartphones and other products. It will be available to users in more than 150 cities in India.
For those who want a faster than usual online shopping flow, you can choose this service. You only need to pay 49 rupees to get the service. In addition, as long as the order is placed before 3 pm on the same day, it will be eligible for this service. condition. This shows that Xiaomi’s ambition for short-distance delivery has emerged. According to Xiaomi’s official website, Xiaomi currently has about 2,300 offline experience stores (self-operated and cooperative) across the country.
Recently, some netizens broke the news that Xiaomi applied to the Trademark Office to register the "Xiaomi Express" trademark.
"Xiaomi Express" trademark
After searching, I found that the "Xiaomi Express" trademark can indeed be found on the China Trademark Network, and there are more than one. There are 6 "Xiaomi Express" trademarks under the name of Xiaomi Company, and the registration categories are Class 39, Class 42, Class 9, Class 38 and Class 35.
This batch of trademarks was applied for registration on August 1, 2018. Currently, 2 have been successfully registered, 1 has been announced for preliminary review, and the rest are still in "pending review" status.
Among them, the "Xiaomi Express" trademark No. 32620452 was approved for registration on June 21, 2019, and was approved for use in Class 39 of "package delivery, express delivery services (letters or goods), express delivery services, transportation For services such as tool breakdown towing services, shipping cargo, travel accompaniment, protected transportation of valuables, driver services, transportation, commodity packaging, navigation, and cargo storage, the dedicated period is until June 20, 2029.
Although it is just a trademark application, Xiaomi’s small move is more speculated by netizens that it wants to enter the logistics industry.
In fact, in recent years, the rapid development of online e-commerce has also led to the rapid development of the logistics industry, whether it is established logistics companies such as SF Express, YTO, Yunda, and ZTO, or Cainiao founded by Jack Ma Logistics, or Liu Qiangdong’s JD Logistics, has achieved good results.
Therefore, it is not impossible for Xiaomi to enter the logistics industry. In fact, Xiaomi is not the only technology company to apply for "express delivery and logistics" trademarks. When the information about Tencent's registration of the "Penguin Logistics" trademark was exposed, it also attracted a lot of attention.
Tencent registered the "Penguin Logistics" trademark
According to data from the China Trademark Network, Tencent applied to register the 34816953 "Penguin Logistics" trademark on November 21, 2018, and the use was approved The scope is Category 39 transportation information; logistics and transportation; transportation reservations; commodity packaging; commodity packaging; travel reservations; transportation; cargo storage; express delivery services; parcel delivery and other services.
Currently, the trademark is in "pending review" status.
On December 14, 2018, Tencent officially responded to the "Penguin Logistics" trademark. Tencent stated: "Penguin Logistics" is a trademark registered by the Purchasing Department of Tencent. It is only used to undertake Tencent's internal logistics business and provide unified logistics-related business services to teams within Tencent that need logistics products. As a platform, integration SF Express, DHL, EMS and other third-party logistics provider resources. There are neither "self-operated" product and business teams, nor any plans for external services.
Unlike the "Penguin Logistics" trademark, Xiaomi has not officially responded to the registration of the "Xiaomi Express" trademark so far.
Today’s express delivery market is no longer a time for disputes between the heroes, but the overall situation has been decided!
1. Current situation of the express delivery market
After two years of integration, the overall situation of the current express delivery market is basically the same. Alibaba, SF Express, plus JD.com, and of course other express delivery companies The company is still alive, but life is not going to be easy. Alibaba now directly controls the three telecommunications companies, YTO, ZTO, STO, and Best. The combined market share of these four companies exceeds 50%, which basically accounts for half of the country. If ranked by business volume, these four companies all enter the market. Top 5.
Excluding Alibaba, the remaining two companies are SF Express and JD.com.
There is not much to say about SF Express. In terms of revenue, it is still the leader in the express delivery industry. It has made many plans in the past two years and still has potential to be tapped in the future. Jingdong Express is actually not having an easy time. Although it has a good business volume relying on Jingdong, it has been losing money due to high self-construction costs. Otherwise, Liu Qiangdong would not have laid off his courier brothers this year. Because of this, JD Express has also begun to collect parcels to seize the market share of other express delivery companies. This will put greater pressure on some small and medium-sized brands.
Generally speaking, the express delivery sector will continue to consolidate. Some small and medium-sized express delivery companies may be acquired or withdraw from the market in the future, and their market share will continue to be eroded by the first-camp express delivery companies.
As the express delivery market is basically integrated, the emergence of Xiaomi Express will not have any impact on existing express delivery companies. Because its size is simply not enough to support a logistics company like JD Express, building a self-built logistics system is too expensive. JD.com is still losing money for such a large company, which will seriously hinder the development of the entire Xiaomi Group.
2. The core goal of Xiaomi Express
The core reason for Xiaomi to set up its own express company is to solve its own distribution problems. The current shipment volume is actually quite large. In addition to mobile phones, there are also various smart homes. The Rufengda currently used by Xiaomi can be said to be criticized by people. To be honest, many small Taobao sellers did not know that there was such a courier company before.
Xiaomi, which is known as an Internet company, actually uses such an unknown small courier company to deliver goods! Of course, another reason for using Rufengda is that Lei Jun supports his friends. Rufengda is the express company that Chen asked his fellow countryman to run when he was a regular customer.
For example, Fengda Express has been complained by Xiaomi users for more than a day or two. In the long run, it has actually damaged Xiaomi's reputation. If we want to completely solve this problem, it seems that we can only build our own express delivery company. Moreover, when Xiaomi went public, SF Express took a stake. If Xiaomi establishes a courier company, it will be able to get technical help to a certain extent. Therefore, the essence of Xiaomi's self-built logistics system is to solve its own problems. The current shipment volume is not small. If it is shipped by SF Express, the cost will be high for Xiaomi. Using its own express delivery may be able to reduce the cost.
However, building a self-built logistics system will also cost a lot of money. This is an asset-heavy model. I wonder if Xiaomi has enough capital to burn it!
Generally speaking, Xiaomi's self-built express delivery will not have a big impact on the existing logistics system, but self-built logistics will be a big test for Xiaomi in the future, especially its ability to burn money! Don't end up like making chips, only to find that it's too expensive and end up giving up halfway.