SF Express and Cainiao 'Compete' in Terminal Logistics
According to data from the State Post Bureau, China's express delivery business volume has ranked first in the world for eight consecutive years, and will continue to maintain a high-speed growth trend in 2022. Recently, with the release of the 'Double 11' promotion strategy of the e-commerce giants, the express logistics industry will usher in a peak season, and players in this industry are also gearing up to stand out in this 'Double 11' battle. Siege.
However, compared to the price competition in previous years, this year's express delivery industry puts more emphasis on service, so players in the express delivery industry have begun to work hard on the 'last mile' of express delivery services, and the caring, fast and convenient ' 'Door-to-door delivery' service has become the key to grabbing the market and shaping the brand.
Plus code 'home delivery'
Recently, express logistics companies such as SF Express and Cainiao have announced the addition of “home delivery” services. From the adjustments of the giants, it is not difficult to see that shifting from price competition to service competition has become a new idea for the development of the express delivery industry. The reason why SF Express and Cainiao focus on 'door-to-door delivery' and emphasize that 'if you don't come to your door, you will be compensated' is also self-evident.
First, consumers have a strong demand for 'home delivery' services. With the continuous increase of the scale of express delivery, consumers' demands for logistics are also becoming more and more diverse. However, most of the express mail from e-commerce platforms has not been delivered to the door, either in the express cabinet or at the collection point. , which brings great inconvenience to users who need door-to-door delivery. As an important means to improve the logistics service experience, door-to-door delivery can provide more detailed product structure, richer logistics scenarios, and more diverse Service form to meet more personalized needs of customers in all links of the supply chain.
Second, the 'home delivery' service has greater profit margins. Although terminal logistics has been criticized, 'home delivery' is indeed a scarce service. The express delivery that can deliver the goods to the door not only guarantees the service ability, but also the delivery fee per piece is relatively higher than other express delivery services, and such 'high-end packages' are also more profitable businesses for express delivery companies. SF’s long-term position as the “No. 1 express delivery brother” is not unrelated to its “time-sensitive” business. Therefore, the profit margin of the “home delivery” service is also worthy of being valued by more express delivery companies.
Third, the 'door-to-door' service can increase the competition barriers of enterprises. As the competition between brands and customers intensifies, the competition in the second half of express logistics has entered a fierce stage. The addition of the 'home delivery' service can strengthen the existing service level while extending a more detailed product structure and richer logistics scenarios. Through this differentiated service, it can virtually go further Widening the gap between the company and its competitors in the high-end parts business can not only improve the brand premium ability, but also rely on the brand to increase market share and strengthen competition barriers.
Nowadays, more and more express delivery companies are constantly seeking to improve service quality, and 'home delivery', as an important means of improving service experience, has also become an important area for them to compete for more. Obviously, the express delivery giants have already staking their land on the 'last mile', and their models for the end of express logistics are also emerging in an endless stream.
SF Express 'Keep Improving'
In fact, door-to-door delivery has always been a special service of SF Express, and it can also be said to be a barrier to competition that it has built over the years. And not long ago, SF Express put forward higher requirements for itself: SF Express announced that starting from September 5, it will launch the promise of 'SF Express will pay if you don't deliver the parcels to your door' in 50 major large and medium-sized cities across the country. This time, SF Express was able to self-pressurize, proactively increase the difficulty of service, and upgrade the service experience again, which also demonstrates its confidence and confidence in its service hard power.
In terms of scale, SF Express has continuously consolidated its comprehensive logistics service network, laying a solid foundation for its continuous improvement of service capabilities and output of high-quality experience. SF Express has created differentiated products by continuously adjusting its operating chassis, product structure, and technological means, which has also allowed it to occupy a leading position in the time-sensitive parts track for a long time. According to the '2021 Express Service Satisfaction Survey Results' released by the State Post Bureau at the beginning of the year, there is no suspense that SF Express won the first place in overall satisfaction and public satisfaction. In terms of the whole process time limit, SF Express is also the only company with a time limit of less than 48 hours and an on-time rate of over 90% within 72 hours.
In terms of branding, SF's higher level requirements for 'home delivery' services have further promoted the improvement of its brand image. In fact, SF Express has basically achieved door-to-door delivery of express delivery before, and the emphasis on door-to-door service this time further demonstrates its ultimate pursuit of service quality and user experience, and also makes users inherently aware of its service quality has been further strengthened. In addition, with the increasingly fierce competition in the express delivery industry, the improvement of SF's overall door-to-door delivery level will undoubtedly increase its bargaining chip in the competition in the quality of terminal logistics services.
In terms of resources, SF Express has invested heavily in technology, hardware, personnel, etc., providing an effective guarantee for its strategic upgrade at the service level. SF Express provides technical support for vehicle loading, illegal dumping, and vehicle scheduling through visual computing and other AI capabilities, and has carried out in-depth digital intelligence upgrades for multiple links such as collection, transfer, transportation, and delivery to improve door-to-door efficiency and service experience. In addition, SF Express also has a group of high-level, high-quality, and relatively stable courier teams. These grassroots personnel have already been equipped with the ability to deliver parcels to their homes.
Door-to-door delivery should be the industry's 'standard equipment', but now only a few companies such as SF Express can carry the banner of industry standards. And SF Express has also obtained higher returns by virtue of its own advantages. It is reported that the growth rate of time-sensitive parts in SF’s time-sensitive business sector can be 2.6 percentage points faster than the GDP growth rate. In the first half of 2022, time-sensitive parts achieved a year-on-year growth of 5.1%.
The rookie 'expands the territory'
Following SF Express, Cainiao has also begun to make efforts in the 'home delivery' service. It is reported that Cainiao has applied for the registration of the 'Cainiao Home Delivery' trademark on August 23. At the previous 2022 Cainiao Open Week, Cainiao CEO Wan Lin also said that 'delivering goods to your door in multiple ways' is one of Cainiao's most important tasks this year. Obviously, Cainiao is intending to increase the service scope of its direct delivery business, thereby improving the service quality at the end of express delivery.
In terms of methods, Cainiao 'Door-to-Door Delivery' has launched a variety of service methods to better meet the diverse needs of users. Cainiao has added three new ways of 'door-to-door delivery'. One is direct-operated door-to-door delivery. For orders from Tmall Supermarket and Tmall International, Cainiao will deliver directly to consumers; % of the rookie stations can be realized; the third is 'Taobao special delivery' on-demand fulfillment of the contract to deliver the goods to the door. Cainiao has adopted various methods to promote the implementation of 'home delivery', making up for the disadvantage that its terminal delivery cannot be delivered to home.
In terms of scope, Cainiao's 'home delivery' service has covered multiple cities, further enhancing its scale effect. Prior to this, Cainiao had joined forces with Tmall Supermarket to promise 'payment if you don't come to the door' in more than 300 cities across the country. Recently, Cainiao has expanded the scope of this commitment to orders from Tmall International. Tmall International has access to 80% of Cainiao bonded warehouses to provide 'home delivery' services. So far, the service has been piloted in Hangzhou, Xi'an, Jiaxing and other cities, and the door-to-door delivery rate in key cities has been leading the industry since the pilot.
In terms of categories, Cainiao's 'door-to-door' distribution service is extending to more categories, effectively helping different industries create unique solutions. Cainiao has begun to actively deploy in various complex supply chains around the timeliness, safety, and service of delivery. Corresponding supply chain solutions, such as 'delivery to door for heavy food, damages must be compensated'; major appliances 'next day delivery, late must be compensated'; cold chain 'thawing must be compensated', and these solutions will be provided by Cainiao Chain service quality has been pushed to a new level.
'Door-to-door delivery' is an important part of e-commerce sales, and for Cainiao, which relies on Alibaba's complete e-commerce system, making efforts to deliver goods to the end can help it create a closed loop of express logistics. Thanks to its strong e-commerce retail background, today’s Cainiao has also begun to move towards JD.com, which understands the combination of business flow and logistics at the end.
The road ahead is not smooth
For a long time, express delivery giants have been committed to getting through the 'last mile' of express delivery services. However, in the longer logistics chain, there are bound to be more problems that need to be solved. Therefore, whether it is to meet the needs of more users or to upgrade their own services, Cainiao and SF Express will face many challenges and pressures if they want to fully implement the 'home delivery' service.
For SF Express, 'door-to-door delivery' needs to rely on more manpower and greater subsidies in the short term, which will undoubtedly cost a very high market cost. Thanks to the consistent practice of 'door-to-door delivery' service standards, SF Express has an advantage in upgrading its 'door-to-door delivery' service strategy, but it is undeniable that the 'last mile' requires a lot of manual work, while 'delivery The service quality of 'door-to-door' will inevitably need to be exchanged for higher cost and efficiency. The rigid rule of 'payment if the package is not delivered to the door' will undoubtedly restrict SF Express to excessive logistics costs.
For Cainiao, the launch of Cainiao's 'home delivery' service is relatively short, and it still needs constant rectification and upgrading in terms of resource allocation and service quality. Although Cainiao has launched a variety of home delivery services, due to lack of experience, its management of 'home delivery' services is not perfect, and most of the Cainiao stations are not yet capable of carrying out this service. Therefore, such services There are more or less problems when executing the landing. In addition, Cainiao still needs time to complete the rectification and upgrading of outlets, and it may be difficult to make achievements in the short term.
What's more, as more and more express delivery companies begin to pay attention to and join the 'home delivery' track, Cainiao and SF Express will face more intense external competitive pressure. Nowadays, more and more express delivery companies no longer stick to a single business model. Therefore, in addition to SF Express and Cainiao, Zhongtong Standard Express, Yuantong Yuanzhunda, Yunda Zhicheng.com, and Douyin have all launched their own high-end express delivery services. Products, to highlight their own service labels such as timeliness priority, door-to-door delivery, and exclusive customer service. Not to mention JD.com, which has been working hard on the 'last mile', has already made a lot of innovations in terminal logistics services, and it has been quite effective.
All in all, although getting through the 'last mile' is the goal that the express delivery giants have been pursuing, it is also a 'stubborn disease' that the entire logistics industry has been difficult to solve. As we all know, the terminal delivery service of an express delivery often needs to consider many factors such as human resources, service level, logistics cost, and related policies. However, SF Express and Cainiao's 'delivery to the door, if you don't deliver, you must pay' can be practiced from the proposal to the implementation. To what extent remains to be considered.
SF Express and Cainiao 'Compete' in Terminal Logistics
According to data from the State Post Bureau, China's express delivery business volume has ranked first in the world for eight consecutive years, and will continue to maintain a high-speed growth trend in 2022. Recently, with the release of the 'Double 11' promotion strategy of the e-commerce giants, the express logistics industry will usher in a peak season, and players in this industry are also gearing up to stand out in this 'Double 11' battle. Siege.
However, compared to the price competition in previous years, this year's express delivery industry puts more emphasis on service, so players in the express delivery industry have begun to work hard on the 'last mile' of express delivery services, and the caring, fast and convenient ' 'Door-to-door delivery' service has become the key to grabbing the market and shaping the brand.
Plus code 'home delivery'
Recently, express logistics companies such as SF Express and Cainiao have announced the addition of “home delivery” services. From the adjustments of the giants, it is not difficult to see that shifting from price competition to service competition has become a new idea for the development of the express delivery industry. The reason why SF Express and Cainiao focus on 'door-to-door delivery' and emphasize that 'if you don't come to your door, you will be compensated' is also self-evident.
First, consumers have a strong demand for 'home delivery' services. With the continuous increase of the scale of express delivery, consumers' demands for logistics are also becoming more and more diverse. However, most of the express mail from e-commerce platforms has not been delivered to the door, either in the express cabinet or at the collection point. , which brings great inconvenience to users who need door-to-door delivery. As an important means to improve the logistics service experience, door-to-door delivery can provide more detailed product structure, richer logistics scenarios, and more diverse Service form to meet more personalized needs of customers in all links of the supply chain.
Second, the 'home delivery' service has greater profit margins. Although terminal logistics has been criticized, 'home delivery' is indeed a scarce service. The express delivery that can deliver the goods to the door not only guarantees the service ability, but also the delivery fee per piece is relatively higher than other express delivery services, and such 'high-end packages' are also more profitable businesses for express delivery companies. SF’s long-term position as the “No. 1 express delivery brother” is not unrelated to its “time-sensitive” business. Therefore, the profit margin of the “home delivery” service is also worthy of being valued by more express delivery companies.
Third, the 'door-to-door' service can increase the competition barriers of enterprises. As the competition between brands and customers intensifies, the competition in the second half of express logistics has entered a fierce stage. The addition of the 'home delivery' service can strengthen the existing service level while extending a more detailed product structure and richer logistics scenarios. Through this differentiated service, it can virtually go further Widening the gap between the company and its competitors in the high-end parts business can not only improve the brand premium ability, but also rely on the brand to increase market share and strengthen competition barriers.
Nowadays, more and more express delivery companies are constantly seeking to improve service quality, and 'home delivery', as an important means of improving service experience, has also become an important area for them to compete for more. Obviously, the express delivery giants have already staking their land on the 'last mile', and their models for the end of express logistics are also emerging in an endless stream.
SF Express 'Keep Improving'
In fact, door-to-door delivery has always been a special service of SF Express, and it can also be said to be a barrier to competition that it has built over the years. And not long ago, SF Express put forward higher requirements for itself: SF Express announced that starting from September 5, it will launch the promise of 'SF Express will pay if you don't deliver the parcels to your door' in 50 major large and medium-sized cities across the country. This time, SF Express was able to self-pressurize, proactively increase the difficulty of service, and upgrade the service experience again, which also demonstrates its confidence and confidence in its service hard power.
In terms of scale, SF Express has continuously consolidated its comprehensive logistics service network, laying a solid foundation for its continuous improvement of service capabilities and output of high-quality experience. SF Express has created differentiated products by continuously adjusting its operating chassis, product structure, and technological means, which has also allowed it to occupy a leading position in the time-sensitive parts track for a long time. According to the '2021 Express Service Satisfaction Survey Results' released by the State Post Bureau at the beginning of the year, there is no suspense that SF Express won the first place in overall satisfaction and public satisfaction. In terms of the whole process time limit, SF Express is also the only company with a time limit of less than 48 hours and an on-time rate of over 90% within 72 hours.
In terms of branding, SF's higher level requirements for 'home delivery' services have further promoted the improvement of its brand image. In fact, SF Express has basically achieved door-to-door delivery of express delivery before, and the emphasis on door-to-door service this time further demonstrates its ultimate pursuit of service quality and user experience, and also makes users inherently aware of its service quality has been further strengthened. In addition, with the increasingly fierce competition in the express delivery industry, the improvement of SF's overall door-to-door delivery level will undoubtedly increase its bargaining chip in the competition in the quality of terminal logistics services.
In terms of resources, SF Express has invested heavily in technology, hardware, personnel, etc., providing an effective guarantee for its strategic upgrade at the service level. SF Express provides technical support for vehicle loading, illegal dumping, and vehicle scheduling through visual computing and other AI capabilities, and has carried out in-depth digital intelligence upgrades for multiple links such as collection, transfer, transportation, and delivery to improve door-to-door efficiency and service experience. In addition, SF Express also has a group of high-level, high-quality, and relatively stable courier teams. These grassroots personnel have already been equipped with the ability to deliver parcels to their homes.
Door-to-door delivery should be the industry's 'standard equipment', but now only a few companies such as SF Express can carry the banner of industry standards. And SF Express has also obtained higher returns by virtue of its own advantages. It is reported that the growth rate of time-sensitive parts in SF’s time-sensitive business sector can be 2.6 percentage points faster than the GDP growth rate. In the first half of 2022, time-sensitive parts achieved a year-on-year growth of 5.1%.
The rookie 'expands the territory'
Following SF Express, Cainiao has also begun to make efforts in the 'home delivery' service. It is reported that Cainiao has applied for the registration of the 'Cainiao Home Delivery' trademark on August 23. At the previous 2022 Cainiao Open Week, Cainiao CEO Wan Lin also said that 'delivering goods to your door in multiple ways' is one of Cainiao's most important tasks this year. Obviously, Cainiao is intending to increase the service scope of its direct delivery business, thereby improving the service quality at the end of express delivery.
In terms of methods, Cainiao 'Door-to-Door Delivery' has launched a variety of service methods to better meet the diverse needs of users. Cainiao has added three new ways of 'door-to-door delivery'. One is direct-operated door-to-door delivery. For orders from Tmall Supermarket and Tmall International, Cainiao will deliver directly to consumers; % of the rookie stations can be realized; the third is 'Taobao special delivery' on-demand fulfillment of the contract to deliver the goods to the door. Cainiao has adopted various methods to promote the implementation of 'home delivery', making up for the disadvantage that its terminal delivery cannot be delivered to home.
In terms of scope, Cainiao's 'home delivery' service has covered multiple cities, further enhancing its scale effect. Prior to this, Cainiao had joined forces with Tmall Supermarket to promise 'payment if you don't come to the door' in more than 300 cities across the country. Recently, Cainiao has expanded the scope of this commitment to orders from Tmall International. Tmall International has access to 80% of Cainiao bonded warehouses to provide 'home delivery' services. So far, the service has been piloted in Hangzhou, Xi'an, Jiaxing and other cities, and the door-to-door delivery rate in key cities has been leading the industry since the pilot.
In terms of categories, Cainiao's 'door-to-door' distribution service is extending to more categories, effectively helping different industries create unique solutions. Cainiao has begun to actively deploy in various complex supply chains around the timeliness, safety, and service of delivery. Corresponding supply chain solutions, such as 'delivery to door for heavy food, damages must be compensated'; major appliances 'next day delivery, late must be compensated'; cold chain 'thawing must be compensated', and these solutions will be provided by Cainiao Chain service quality has been pushed to a new level.
'Door-to-door delivery' is an important part of e-commerce sales, and for Cainiao, which relies on Alibaba's complete e-commerce system, making efforts to deliver goods to the end can help it create a closed loop of express logistics. Thanks to its strong e-commerce retail background, today’s Cainiao has also begun to move towards JD.com, which understands the combination of business flow and logistics at the end.
The road ahead is not smooth
For a long time, express delivery giants have been committed to getting through the 'last mile' of express delivery services. However, in the longer logistics chain, there are bound to be more problems that need to be solved. Therefore, whether it is to meet the needs of more users or to upgrade their own services, Cainiao and SF Express will face many challenges and pressures if they want to fully implement the 'home delivery' service.
For SF Express, 'door-to-door delivery' needs to rely on more manpower and greater subsidies in the short term, which will undoubtedly cost a very high market cost. Thanks to the consistent practice of 'door-to-door delivery' service standards, SF Express has an advantage in upgrading its 'door-to-door delivery' service strategy, but it is undeniable that the 'last mile' requires a lot of manual work, while 'delivery The service quality of 'door-to-door' will inevitably need to be exchanged for higher cost and efficiency. The rigid rule of 'payment if the package is not delivered to the door' will undoubtedly restrict SF Express to excessive logistics costs.
For Cainiao, the launch of Cainiao's 'home delivery' service is relatively short, and it still needs constant rectification and upgrading in terms of resource allocation and service quality. Although Cainiao has launched a variety of home delivery services, due to lack of experience, its management of 'home delivery' services is not perfect, and most of the Cainiao stations are not yet capable of carrying out this service. Therefore, such services There are more or less problems when executing the landing. In addition, Cainiao still needs time to complete the rectification and upgrading of outlets, and it may be difficult to make achievements in the short term.
What's more, as more and more express delivery companies begin to pay attention to and join the 'home delivery' track, Cainiao and SF Express will face more intense external competitive pressure. Nowadays, more and more express delivery companies no longer stick to a single business model. Therefore, in addition to SF Express and Cainiao, Zhongtong Standard Express, Yuantong Yuanzhunda, Yunda Zhicheng.com, and Douyin have all launched their own high-end express delivery services. Products, to highlight their own service labels such as timeliness priority, door-to-door delivery, and exclusive customer service. Not to mention JD.com, which has been working hard on the 'last mile', has already made a lot of innovations in terminal logistics services, and it has been quite effective.
All in all, although getting through the 'last mile' is the goal that the express delivery giants have been pursuing, it is also a 'stubborn disease' that the entire logistics industry has been difficult to solve. As we all know, the terminal delivery service of an express delivery often needs to consider many factors such as human resources, service level, logistics cost, and related policies. However, SF Express and Cainiao's 'delivery to the door, if you don't deliver, you must pay' can be practiced from the proposal to the implementation. To what extent remains to be considered.