It will take time for Shunfeng to set up an express company with a capital of 50 million to seize market share

 It will take time for Shunfeng to set up an express company with a capital of 50 million to seize market share

Spending 50 million to set up express company

According to industry and Commerce information, the business scope of Shunfeng Express mainly includes domestic and international freight forwarding, handling and handling business, supply chain management, logistics scheme design, economic and technological consultation, technical information consultation, business activities in the form of franchise, import and export business, business services and business agents. Logistics; transit cargo transport agent (international multimodal transport); general cargo transport; warehousing services; urban distribution, inter-city distribution, etc.

It is no surprise that Shunfeng Holdings invested to set up an express company. In recent years, Shunfeng Holdings has paid more and more attention to the layout of express business. Since its launch in 2015, Shunfeng Holdings, relying on its strong network layout capabilities, has continuously built and improved its express network to meet more customer needs. In March 2018, Shunfeng Holdings acquired the business of Guangdong Xinbang Logistics Co., Ltd. and established an independent brand of Shunfeng Jetta Express Business, hoping to lay a network foundation and capability advantage for the company to rapidly expand its express business layout. After more than a year, it seems not difficult to understand that Shunfeng Holdings chooses the opportunity to set up an express company.

Competition for market share by express business?

As the leading enterprise in the industry, Shunfeng Holdings has formed a certain industry advantage by virtue of years of intensive cultivation and accumulation in the industry, so it is inevitable to join the market competition to seize the share. According to the 2008 earnings data of Shunfeng Holdings, the business of Shunfeng Holdings maintained a good growth in 2018, thanks to the rapid growth of new business. The business income of Shunfeng Holdings was 90.943 billion yuan, an increase of 27.68% over the same period of last year. Among them, the revenue of express logistics was 89.677 billion yuan, and the average revenue of express tickets was 23.18 yuan. The overall level of the industry.

However, Shunfeng Holdings, which has good revenue performance, does not have an advantage in market share. According to the annual report of Shunfeng Holdings in 2018, the business volume of Shunfeng Holdings reached 3.869 billion pieces in 2018, an increase of 26.77% over the previous year. Looking at the business volume of Shunfeng Holdings alone, it shows an upward trend. However, according to the data of the State Post Office, in 2018, the total business volume of express service enterprises in China completed 50.71 billion pieces. The business volume of Shunfeng Holdings only accounted for 7.62% in the market, which was much lower than 13.77% of Yunda shares in the same industry, 10.1% of Shentong Express and 13.14% of Yuantong Express.

As the first express company to adopt the direct operation mode, Shunfeng Holdings covers the whole country, the number of network points is significantly lower than that of other companies in the same industry. According to public data, Shunfeng Holdings has nearly 156,600 self-operated outlets and 0.26 million franchise outlets of Shunfeng Express in China. Meanwhile, Yunda, Shentong and Yuantong, which are also listed in A shares, have 26.1 million, 27.2 million and 73.5 million network sites nationwide, respectively.

Nowadays, the market sawing campaign of express logistics industry has started. Shunfeng Holdings has a long way to seize the market. Whether it can win the final victory is unclear.

Source: Responsible Editor of Investor Network: Han Yukun_NBJ11142