Market value evaporates by 200 billion! SF Express really can't handle it anymore? The man behind him emerged from the water

Wen|Cheese Pie InterpreterEdit|Cheese Pie InterpreterWhen it comes to the domestic express delivery industry, the first thing that comes to mind may be the term "three connections and one delivery", but the so-called "three connections and one delivery" is actually just a giant in the e-commerce express delivery industry.If you look at the entire express delivery industry, SF Express, known as the "Maotai in the express delivery industry," is undoubtedly the industry leader and the true industry leader

Wen|Cheese Pie Interpreter

Edit|Cheese Pie Interpreter

When it comes to the domestic express delivery industry, the first thing that comes to mind may be the term "three connections and one delivery", but the so-called "three connections and one delivery" is actually just a giant in the e-commerce express delivery industry.

If you look at the entire express delivery industry, SF Express, known as the "Maotai in the express delivery industry," is undoubtedly the industry leader and the true industry leader.

However, Maotai is still Maotai to this day, but SF Express is no longer the SF Express it used to be.

As the most profitable express delivery company in China, SF Express has not recovered from a "Waterloo" until now. The companies that were originally under the pressure of SF Express have gradually started to exert themselves and strive to become the next industry leader.

Just as people speculated that the next "Maotai" in the express delivery industry would be one of the "Three Links and One Delivery" companies, an unknown name broke into the public's sight - Jitu Express.

What is the Holy Spirit of Jitu Express? What has it done to become the largest "dark horse" in the express delivery industry?

On April 8th, two years ago, SF Express Holdings released an announcement in which it expected a loss of 9-1.1 billion yuan in the first quarter, which immediately caused a stir among shareholders.

For many large enterprises, losing money is actually a very common thing, just like the vast majority of video websites in China are in a state of annual loss, but they still live well.

However, for SF Express at that time, the significance of this loss was extraordinary, as it was the first loss since its establishment. For more than 10 years, SF Express has been the most profitable company in the express delivery industry, and even in the first quarter of last year, SF Express made a net profit of 907 million.

So this loss was unexpected for everyone, and the next day, SF Express' stock price also plummeted. In just one day, SF Express lost 36.8 billion yuan in market value.

Even due to SF Express's lower limit, the stock prices of other express delivery companies have fallen to varying degrees, which can be said to be a fire at the city gate, causing disaster to the fish in the pond.

Since then, SF Express, the leader of the express delivery industry, has embarked on a path of no return. In just two months, SF Express, with a total market value of over 300 billion yuan, had a market value of 200 billion yuan evaporated out of thin air. Now, it has suffered consecutive losses of 2.1 billion yuan. If nothing unexpected happens, it is estimated that it will go dark all the way.

However, just as Shunfeng was falling from the altar step by step, an enterprise in the express industry broke out of the tight encirclement and acquired 100% of the equity of Fengwang, a subsidiary of Shunfeng, at a price of 1.183 billion yuan. This enterprise is the absolute "new star" in the domestic express industry - J&T Express.

This company, whose name seems very docile, is fierce in its way of doing things. Li Jie, the founder of J&T Express, used to be a salesman of Bubugao mobile phones, which were very popular at that time.

When he was still a salesperson at Bubugao, he won the sales championship in the Nanjing region for four consecutive years with his excellent eloquence and flexible mind.

It is not surprising that the success of the sales championship is achieved every year, but it is different for four consecutive years. What's more, Li Jie is still a top student in the management department of University of Science and Technology Beijing, so such talents are naturally seen by the headquarters of Bubu Gao. Soon he became the confidant of Duan Yongping, the founder of Bubu Gao, and was promoted to the sales manager of the headquarters.

In the years after that, Li Jie became Duan Yongping's confidant by virtue of his outstanding performance. Later, he expanded his business to Indonesia, making the subsidiary OPPO of Bubugao the second largest mobile phone company in the local market, and the first one was Samsung.

However, during his two years of career in Indonesia, Li Jie discovered a problem, which is that compared to the domestic express delivery industry, Indonesia's express delivery industry is very poor. Not only is the service quality poor, the transportation time long, but even the price is not cheap.

Li Jie, who has seen the developed logistics industry in China, believes that this is a very worthwhile business opportunity to explore. Therefore, he announced his resignation from his position at OPPO in 2015 and established a courier company called "J&T".

Although Li Jie has resigned, it does not mean that the connection between Li Jie and OPPO has been completely disconnected. From the beginning of establishing a courier company, his main business was to deliver OPPO's mobile phones.

And with the OPPO distribution network already spread throughout Indonesia at that time, Li Jie also successfully integrated J& T's express delivery stations spread throughout Indonesia and began expanding its business, bringing domestic express delivery concepts to Southeast Asia, quickly occupying the entire Southeast Asian market in just a few years.

However, at the beginning, Li Jie became the absolute leader of the Southeast Asian express delivery industry solely based on his logistics experience as a mobile phone seller. However, his express delivery philosophy is relatively backward compared to domestic companies.

At present, domestic express delivery companies are still constantly competing, but if one day, the competition in the domestic express delivery industry tends to stabilize, they will definitely choose to open up a new market, and then even J& T has been operating in the Southeast Asian market for many years and is likely to be defeated due to outdated technological concepts.

So in order to maintain himself from falling behind in the domestic market, Li Jie transformed his J& T Express Company has opened in China and is homophonically named "J&T Express".

At the beginning, Li Jie did not think about how big a storm Jitu could cause in China. The purpose of establishing this company was to quickly acquire advanced express delivery management concepts through competition in the domestic and other express delivery industries, and then apply them to major markets in Southeast Asia to prevent others from "stealing".

Although the purpose of J&T Express is different from that of other express companies, it is not easy to do it casually. After all, it is impossible to obtain the most advanced business philosophy. So Li Jie set a small goal for the newly established J&T Express to complete 20 million orders within two years.

Compared to other giants in the express delivery industry who casually order billions, Jitu's goal can be said to be very low, but after all, this is a newly established express delivery company, and a 20 million order is still somewhat difficult.

The most important thing for a courier company is to establish a large number of branches within its business scope, otherwise you won't be able to deliver there, and there won't be any business.

But setting up a network is a project that requires a lot of funding, J& The family resources brought from Southeast Asia in the T period were soon used up by the new J&T Express, but the network was only half paved.

Although it has only been halfway through, it is not impossible to barely start work, but this will inevitably affect the subsequent development of Jitu.

At this critical moment of dilemma, Duan Yongping, Li Jie's former boss and half teacher, stood out. Although he also knew what the purpose of his half students was to create J&T Express, he still believed that understanding could gain a foothold in China by virtue of J&T Express, and even become a major player in the domestic express industry.

So Duan Yongping took the initiative to raise 17 billion yuan, and OPPO also invested 7 billion yuan in J&T Express, which was used for Li Jie to spread express outlets all over the country.

There are express outlets, but the business is not yet settled. Just when Li Jie and the management of J&T Express tried their best to find business in China, a person took the initiative to find the door with business. This person is also a student of Duan Yongping, and also the founder of Pinduoduo, Huang Zheng.

Huang Zheng took the initiative to find Li Jie, and the two hit it off. J&T Express successfully won a large number of orders from Pinduoduo, which can be regarded as the official start of competition among other domestic express giants.

Every express delivery company has its own unique characteristics, and it is natural for Jitu, which has transitioned from Southeast Asia to the domestic market, to have its own characteristics.

Perhaps it is because of the same school, Jitu's tactics are almost the same as the original Pinduoduo, which is to seize the market with "suicide" low prices.

In fact, this method is not the first time for Jitu to use it. When he started in Indonesia, Li Jie used this strategy to quickly seize the express market in Indonesia, and this move was also learned from China.

However, Li Jie seems to have forgotten one thing, which is that since he learned this trick from domestic express delivery companies, it indicates that domestic express delivery companies have already used this trick, and the current price is already a product of price reduction.

Therefore, the strategy of occupying the market at a low price by Jitu is called a suicide attack by people. It is also because of this behavior that Jitu has encountered resistance in the industry. Although Jitu has successfully survived among numerous express delivery giants and become a new express delivery giant through its own efforts, it has also faced a new round of resistance.

Because of the low price policy of J&T Express, the company will try every way to reduce the cost in the way of distribution in order to pursue benefits, and the salary of employees is the main target of the company.

The decrease in wages has directly led to a large number of slacking off during delivery by Jitu's courier and other employees, resulting in a large amount of negative information.

In Southeast Asia, Jitu, once famous for its good service and fast speed, became synonymous with both slow and poor speed after entering China, which is unexpected.

So Li Jie changed his strategy, first putting in a large amount of funds to establish the reputation of Jitu, and then starting to change Jitu's reputation and services. In a short period of time, he transformed the original "Crazy Rabbit" into the beloved "Express Rabbit", and even today, when SF Express is declining, he fully acquired its subsidiary Fengwang for 1.183 billion yuan.

Although Jitu has become a rising star in the domestic express delivery industry in just a few years, for Jitu, the mainland is just a place for them to "learn", and the true home of Jitu is still in Southeast Asia and even other overseas regions.

Compared to other domestic express delivery companies, Jitu has a natural advantage in Southeast Asia and is also well versed in overseas development experience. If other companies want to develop overseas, their biggest competitor is Jitu.

It is easy to conquer the country, but difficult to defend it. I wonder if Jitu can maintain its position in the overseas express delivery field in the future.

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