It is said that China Post will cut into local express delivery at a low price: Beijing charges 5 yuan starting price
the private funded express delivery industry will usher in the strongest competitor. Recently, it was reported that the local postal services under China post are vigorously launching the intra city express business, and the charging standard will be much lower than the current charging standard in the express industry. The strong point resources and other advantages of the postal system, if supplemented by the price advantage, may crowd out the private funded express currently struggling on the food and clothing line
the interview with China business daily confirmed that this was true. As early as April, 2011, Shanghai Post has launched the business express delivery business, and is piloting the intra city express delivery business at the rate of 7+2. The rumored Business Express business of Beijing post may hit the market with a charging mode starting from 5 yuan
Beijing Pilot low-cost express
a person in charge of private express told this newspaper that the charging mode of starting at 5 yuan may trigger a new round of vicious competition. If you refer to this 5+1 charging model, all private express delivery will lose money
recently, it was reported that Beijing post will launch a low-cost express service in the six districts of the city as a pilot to meet the needs of users between ordinary parcels and EMS. At present, the commercial delivery Bureau under Beijing post, which has a team of 300 people, has been officially established. In terms of pricing, the low-cost express starts at 5 yuan, and packages over 1 jin are charged according to the standard. Its low-cost express business is mainly aimed at bank and enterprise bills and domestic small parcels. In the future, it will gradually expand and build a batch of nationally renowned Shandong new material brands to the same city express business. In terms of timeliness, the above businesses can ensure that the express mail received and sent in the morning will arrive on the same day
the introduction of ultra-low prices into the market, supplemented by exclusive postal distribution, and through contact with human and business resources, the news of Beijing Post's pilot low-cost express delivery has made many private express management uneasy. A person in charge of domestic private express told this newspaper that if the news is true, the charging mode of starting at 5 yuan may trigger a new round of vicious competition. In today's high labor and logistics background, if we refer to this 5+1 charging model, all private express will lose money
what surprises many people in the express industry is that the main body of the launch of low-cost express business this time is Beijing post, which is subordinate to China Post. The current business of China post is divided into three categories: postal business, postal savings bank and express logistics. Among them, China Post's express logistics company is specialized in operating and managing the national postal express logistics business, with EMS express delivery and CNPL China Post Logistics and other brands
after nearly two years of adjustment, the price of EMS is now comparable to that of SF express, which is slightly higher than that of four supplies and one delivery
Xu Yong, chief consultant of China Express Consulting, said that China's postal law clearly stipulates that postal universal service business and competitive business of postal enterprises should be operated separately. Among them, express delivery business, savings business, including some toll collection businesses, are clearly divided into competitive businesses, which should be separated from the basic postal businesses that enjoy the financial support and subsidies of national policies
it is not only against the postal law, but also against the principle of fairness of market competition to compete with private express while holding state financial subsidies. Xu Yong said. During the interview, the management of many private express enterprises held similar views
response: the service is just upgraded
it is subordinate to the commercial express business of Shanghai post. The tariff standard is 7+2, that is, the first 1kg is 7 yuan, and each successive 1kg and its zero plus 2 yuan, which is slightly lower than the price of private express
according to the above news, Beijing is only the beginning of the nationwide replication of the low-cost express business. After the completion of the innovation pilot in the urban area of Beijing, the above model may be promoted nationwide in the future. I tried to contact the relevant person in charge of China Post, but there was no response
the relevant person in charge of Shanghai Post told that, in fact, this model has already been piloted in Shanghai. Since April, 2011, Shanghai Post has launched its commercial express delivery business and conducted pilot operations
according to the interview, the business express business subordinate to Shanghai Post has a tariff standard of 7+2, that is, the first 1kg is 7 yuan, and each successive 1kg and its zero plus 2 yuan, which is slightly lower than the price of private express
for the accusation of violating the postal law and the principle of competition fairness in the industry, the above-mentioned person in charge of Shanghai Post responded to this newspaper that the current business express delivery business is gradually developed on the basis of its basic postal business. For example, in the past, if users had certain requirements for the safety of mailing small items, they could generally adopt the mode of registered mail. The number of plastic bags in circulation was significantly reduced, but the registered mail must be delivered to the post office business window, which was not in line with the behavior habits of young mainstream users. On this basis, China Post has given certain permissions to local postal branches to upgrade the original postal model, which is also a small part of the postal reform
the person said that in order to ensure that there is no or as little horizontal competition with EMS, which belongs to China Post, Shanghai post makes a slight distinction between the sending content and service scope of Business Express. For example, the weight of the items sent is mostly small items within 1kg, such as documents, certificates, bills and cards. The service scope is limited to the whole territory of Shanghai, and only a few domestic small package services are provided
unattainable competitive advantage
some people suggested that even if China Post plans to get involved in the express delivery industry, it should also aim at foreign express delivery, and provide international express delivery and high-end express delivery services more than other plastics, rather than reducing its size and entering at a low price
whether this postal commercial express business, known as low-cost EMS, will be recognized as having a direct competitive relationship with ordinary express business, I am afraid it will become an important measure of the rationality of its existence
according to the recently drafted Interim Measures for the administration of the collection and use of postal universal service funds, it is proposed to collect postal universal service funds in the entire express industry. According to the collection standard of the fund, it is 0.1 yuan/piece for domestic intra city express delivery, 0.2 yuan/piece for domestic non local express delivery, 1 yuan/piece for Hong Kong, Macao and Taiwan, and 2 yuan/piece for international express delivery; Enterprises with less than 20 employees or an annual revenue of less than 2million yuan may be exempted
this collection standard, which is called "part money" in the industry, is believed to cut 25% to 40% of the enterprise's profits from ordinary express delivery enterprises. At present, the profits of express delivery enterprises in China are generally between 3% and 5%. While collecting part money from private express enterprises, China Post also enjoys the financial subsidies of the state for postal services. The competitive advantage of China post is too obvious. The person in charge of domestic private express said angrily
the impact of cheap EMS on the market is also self-evident. Whether it is the 5+1 rumored by Beijing post or the 7+2 charging mode being implemented by Shanghai post, it is difficult for private express enterprises to achieve under the current cost mode
Xu Yong said that in addition, compared with private express delivery companies, the postal system has many logistics advantages that are difficult for the latter to achieve. For example, it has points all over the country, has planes that can be used for express delivery business, enjoys green channels on railways and highways, and has preferential policies in parking in urban areas. Resource advantages and point advantages make it easy to obtain a larger share in the terminal market. Now, if it turns its financial advantages into price advantages, it will make it difficult for many private express enterprises to survive
many people in the express industry appealed to this newspaper that despite years of development, China Post still has a lot of room to improve in providing universal postal services. For example, due to the imbalance of resource investment in the central and western regions, it should invest its limited resources in services to protect citizens' basic communication rights, rather than compete with private enterprises. Another person suggested that even if China Post plans to get involved in the express delivery industry, it should also aim at foreign express delivery and provide more international express delivery and high-end express delivery services, rather than lowering its body size and entering at a low price
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