China'S Express Business Volume Leads The World. Single Ticket Revenue Still Hurts.

Pitney Bowes, a provider of electricity, transportation, mail and data technology in the US, has recently released a new phase of the transport index. It is estimated that the global package business will reach about 100 billion by 2020. It is estimated that by 2025, the volume of parcel business in 13 main markets will increase to 200 billion, and the CAGR in 2019~2023 years will be 13.7%.

The report says that as the world's first big express market, China leads other markets. The report shows that China's parcel business volume exceeded 50 billion 700 million in 2018, with an annual growth rate of 26%. If China were excluded, the number of packages in 12 other countries increased by only 6%, to 36 billion. The second, third largest US and Japan businesses are 13 billion and 9 billion.

The report points out that the revenue of the 13 countries last year was $317 billion, an increase of 13% over the same period last year. Despite the alarming growth in the volume of parcel business in China, there is still much room for comparison with the US express revenue. Last year, the US parcel income was $119 billion (38%), China was $91 billion (29%), and Japan was $30 billion (9.5%).

Seeing this set of data, people can not help but breathe in a cool breath. In 2018, the amount of package business in the United States was 13 billion, with only about 1/4 of the Chinese package business, while the parcel revenue was as high as 119 billion US dollars, which was 28 billion US dollars more than China's 91 billion dollars.

Why such a surprising data is due to the poor single ticket income of China's express delivery industry, leading the world's huge package business volume is not enough to support the parcel income to the peak.

SF October 18th night released "Shun Feng Cmi Holdings Ltd September 2019 express service business briefing" shows that in September, SF holdings single ticket income of 21.77 yuan, down 11.32% over the same period last year. Shun Feng is considered to be the leading enterprise in the domestic express logistics industry. Its business scope is wide, its timeliness is high, its brand advantages are obvious, and the single ticket income is relatively high, which is reasonable, but this is not enough to raise the average level of the industry.

In addition to SF, the single ticket income of other mainstream express logistics enterprises is rather bleak. From the "three links and one Da" recently released earnings report, the express delivery of express products in September single ticket income of 2.73 yuan, down 17.93%. In the 1-7 month of 2019, the income of the single pass ticket has been reduced from 3.44 yuan to 2.81 yuan, and the overall decline has reached 18.31%. From a year-on-year perspective, in addition to the 8.99% decline in January, the other month's year-on-year fall is over 10%.

STO's September express service single ticket revenue of 2.82 yuan, a year-on-year decrease of 13.5%. In the past three months, the company's express service single ticket income has declined year by year, and the rate of decline has also been increasing. According to the report, STO's June Express single ticket revenue was 2.85 yuan, down 8.36% compared to the same period last year. In July, the single ticket revenue of express service was 2.80 yuan, down 12.50% compared with the same period last year. In August, the single ticket revenue of express service was 2.76 yuan, down 13.48% compared to the same period last year.

The second quarter results released by China express in August 16th showed that the single vote revenue of China Unicom fell by 11.3% to 1.63 yuan. Rhyme September express service single ticket revenue was 3.13 yuan, an increase of 84.12% over the same period. Although rink reached an increase in single ticket income in September, it was still at a low level.

Several major mainstream express logistics enterprises continue to decline in single ticket income, and there is still a downward trend, which is directly related to the industry's "price war". In 2005, the average price of each package in the express delivery industry was as high as 27.7 yuan. In 2012, it was 18.6 yuan, 15.69 yuan in 2013, and 14.65 yuan in 2014. By August of this year, the average single ticket income of the express listed companies dropped to 11.63 yuan, down 2.4% compared to the same period last year.

With the listing of major brand express companies, the battle for market share is becoming more and more intense. In the process of grabbing the market, lowering the express price has become a strategy for express delivery companies.

The long-lasting price war is also the battle for the survival of express logistics enterprises. Some smaller express companies want to make big market share, often fall into the whirlpool of fierce competition, and can only lower prices one step at a time. This situation often can not be sustained, low prices will cause the courier enterprises to be unable to make profits, or even continuous losses, and finally can only feel gloomy.

Feng Da, full peak express, express express, express express, Asian express and so on are all important enterprises in the logistics market, but they have been eliminated in the market shock. Over the past two years, with the full peak, express and other two or three line express companies have been released, the industry concentration has been rising again and again, the industry structure is becoming clearer. Several courier companies with similar sections have begun to scramble for qualifying, which makes the price war more intense and falling into a vicious circle.

There is no winner in the price war. The head of the express logistics department should focus on improving the service quality. This is also a feasible way to solve the dilemma of single ticket income. At the same time, changing the existing franchise mode is very important. Domestic express companies rely mostly on the development of franchisee mode, and Shun Feng is a typical direct operation mode, which can control service quality. This is also the main reason for its single ticket income.