Home Business Courier company operating data released in October: still in the low-price quagmire, the market is optimistic-e-commerce-cnBeta.COM

Courier company operating data released in October: still in the low-price quagmire, the market is optimistic-e-commerce-cnBeta.COM

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Although express companies are still struggling in the quagmire of low-price competition, this situation will improve with continuous investment and the gradual realization of cost reduction and efficiency enhancement. On November 19, four express companies, SF Express, Shentong, Yunda, and Yuantong, released their October operating briefings. In terms of October revenue, SF Express, Yunda, YTO and Shentong express business revenues were 13.26 billion yuan, 3.719 billion yuan, 3.604 billion yuan and 2.336 billion yuan, respectively.


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However, in terms of the year-on-year growth rate of express delivery revenue, YTO had the highest growth rate in October, reaching 27.59%, while Yunda, Shentong and SF Express’ revenue growth rates were 20.39%, 16.88% and 13.22%, respectively.

In terms of the volume of business completed in October, the volume of business completed in October of Yunda, YTO, Shentong and SF Express was 1.716 billion, 1.574 billion, 1.105 billion and 833 million, respectively.

Single ticket revenue continues to fluctuate

Single ticket revenue is the core of operating data. In October, the single ticket revenue of SF Express, Yuantong, Yunda and Shentong was 15.92 yuan, 2.29 yuan, 2.17 yuan and 2.11 yuan, respectively.

Single ticket revenue is the key to the company’s revenue. Once single ticket revenue declines, the overall revenue will still be affected even if the business volume grows rapidly. For example, the single ticket revenue of SF Express and Shentong declined by 6.9% and 6.22% respectively in October. As a result, even if the business volume of SF Express and Shentong increased by 21.61% and 24.33% year-on-year in October, their revenues only increased by 13.22% and 16.88%. Although Yunda’s business volume only increased by 19.47% in October, its October revenue increased by 27.59% year-on-year because its single ticket revenue rose 6.8% to 2.29 yuan per ticket.

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From a vertical perspective, the single-ticket revenue of major express companies has continued to fluctuate this year. Take SF Express as an example. Since February this year, SF Express’s single ticket revenue has been at a low level. From February to October, SF Express’s single ticket revenue was 15.11 yuan, 15.74 yuan, 15.84 yuan, 15.59 yuan, 15.91 yuan, 15.96, 15.98 yuan, 17.6 yuan and 15.92 yuan. The single ticket revenue for the same period last year was around 18 yuan.

Low-price competition is still an unavoidable problem for express companies, and homogeneity is one of the important reasons. YTO has previously stated that due to the continuous concentration of industry concentration towards leading companies and the high degree of homogeneity of products and services in the same industry, the company must achieve differentiation and increase in the future by improving service quality, focusing on cost control, and improving product structure. Industry competitiveness.

Regarding the issue of low-price competition, Lai Meisong, Chairman and CEO of Zhongtong, said that business volume and market share are crucial to the growth and future of express delivery companies, and scale and efficiency are the keys to victory. As industry competition returns to rationality, express delivery prices are expected to stabilize next year.

Reducing costs and increasing efficiency and increasing investment are the key

Even if it is still in the low-price competition stage, the capital market is still optimistic about express companies.

As of the close of November 19, Yunda shares and Shentong Express had their daily limit, YTO Express rose 8.41%, SF Holdings rose 3.18%, and Zhongtong Express, which closed on November 18, US stocks closed up 9.54%. In addition to the collective rise in the stock prices of listed companies, according to Tianyancha on November 17th, Jitu Express received $1.735 billion in Series C financing.

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Wang Pengbo, a senior analyst in the financial industry of Broadcom Consulting, said that capital’s optimistic view of the express industry is not only due to the good performance of express delivery companies this year on Double 11, but the essence is that the infrastructure and technical capabilities of express delivery companies are improving, which drives efficiency. In the long run, the income of express companies and the stability of the industry will gradually improve, which is one of the reasons why the outside world is optimistic about the express industry.

Since the beginning of this year, many express companies have actively invested in infrastructure and digital transformation. Shentong said that the company’s performance in the first three quarters of 2021 was under pressure because it enhanced the customer expansion and service capabilities of franchised outlets for competition, and appropriately adjusted its market policy support for the same period of the previous year. At the same time, in order to increase the production capacity of the entire network, capital expenditures have been increased.

Yunda also said that due to differences in informatization and refined management capabilities, express delivery companies have gradually shown gradients in their full-time management and service capabilities, and the delivery service levels of leading companies have continued to improve.

SF Express increased its pre-investment in new business in the first quarter of this year. In the second quarter of this year, Zhongtong also invested more than 1.5 billion yuan in the construction and upgrading of land acquisition and distribution centers, in order to strengthen the basic capacity building of core express business and the ability to develop integrated logistics services.

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SF Express stated in its October business briefing that it completed the acquisition of 51.5% of Kerry Logistics on September 28. Since October, the company’s monthly business briefings have consolidated the relevant business income of Kerry Logistics. Therefore, in October, SF Express’s supply chain and international business revenue was 8.75 billion yuan, a year-on-year increase of 779.1%.

Logistics industry expert Yang Daqing told CBN reporters that in the future, express delivery companies can only enter the high value-added market through continuous integration and upgrading, or through lean management and digital intelligence transformation to reduce operating costs.


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