Chapter 119 The Sheng Yun Countermeasures

May 31st, Thursday.

Magic City, Sheng Yun Express Group Headquarters.

Sheng Yun Express Group is currently the leading enterprise in the domestic express delivery industry, occupying half of the express delivery business.

It basically covers all cities above the prefecture level and developed areas above the county level nationwide. Especially in the areas surrounding Magic City, it has basically achieved the goal of no blind spots in delivery and has even begun internal testing of overseas shopping transfer services.

However, Sheng Yun Express's reputation is not very good.

The company has been established for nearly twenty years. Its rapid development and growth are mainly due to its franchise strategy. When the growth rate of the entire express delivery industry remains high, this has great advantages for quickly acquiring market share.

However, as the industry's growth slows down and the company's development stage advances, after the era of extensive growth ends and the era of refined management arrives, the drawbacks of this franchise system gradually become prominent.

On the one hand, there are many network levels and management is difficult. Many franchisees have strong influence, and headquarters instructions are difficult to effectively implement. Uneven service quality may affect terminal service evaluations.

On the other hand, the low proportion of self-operated transit centers will also reduce efficiency to a certain extent and extend the delivery time of express parcels.

Sheng Yun Express Group is a behemoth. Even within the company, it is divided into three or four different express delivery business brands, and there is a certain degree of competition among them.

How to solve these problems is the most troublesome thing for Sheng Yun Express in recent years.

At this time, several senior executives of Sheng Yun Express are holding a meeting to discuss some issues regarding the development plan of Sheng Yun Express.

The chairman of Sheng Yun Express is Nie Yunsheng, but he cannot completely control the entire group. Several major shareholders and several senior company executives who are his fellow villagers and friends will support him in most cases, but they will often have some different opinions.

Therefore, if he wants the entire group company to develop in the direction he expects, he needs a lot of meetings to unify internal thinking.

At this time, the meeting has entered the final stage, and the major proposals have basically been discussed.

A company vice president said, "President Nie, everyone, regarding Tenda's Nifeng Logistics preparing to build an air transport route, I have compiled a document and distributed it to everyone."

"President Nie, how should we respond to this matter?"

Although Nifeng Logistics will not officially prepare for the air transport route until two months later, Lü Mingliang is already carrying out some simple preparations and publicity.

For example, distributing flyers when delivering express parcels, and arranging some exhibition boards in Nifeng Yizhan for publicity, etc.

Because express delivery business is not like other businesses, time waits for no one. If we wait until the air transport business is fully prepared before publicizing and guiding customers to use it, it will be too late. The first few flights will definitely not be able to carry much cargo.

We must publicize in advance in the areas covered by Nifeng Yizhan, so that we can receive a large number of orders when the cross-city express delivery business is launched.

Therefore, this news naturally reached Sheng Yun Express.

The vice president has summarized all the relevant information into a report.

Nifeng Logistics currently focuses on undertaking the "last mile" express delivery business, and Sheng Yun Express has always maintained close cooperative relationship with it.

At present, Nifeng Yizhan is rapidly expanding in the four cities of Jingzhou, Dijing, Magic City, and Yangcheng and surrounding areas, and the number of stores is growing rapidly.

Although in terms of overall scale, it is still not comparable to Sheng Yun Express, the leading enterprise in the industry, after Nifeng Logistics launches its cross-city express delivery business, it will inevitably pose a certain threat to Sheng Yun Express.

Therefore, Sheng Yun Express must respond as soon as possible and consider countermeasures.

Nie Yunsheng has read the report, and his expression is slightly solemn: "This is completely within our expectations. Nifeng Logistics has been losing huge amounts of money, doing dirty and tiring work for us. It is impossible to say that they have no other plans."

"Now that they want to do cross-city logistics, it is also a matter of course."

"Backed by Tenda Group, their goal must be to take these four cities as the center, and use the advantages of Nifeng Yizhan to open up the market from the high-end population in big cities with high-quality services, and form a differentiated competition with us."

"I have to say, this business model is still a certain threat to us."

"Moreover, we don't have many solutions. Nifeng Yizhan has a very high density in these cities, and the delivery experience is completely better than ours. This is burned out with real money, and it is unlikely that we will adopt a similar model."

"What are your thoughts?"

A vice president said, "Should we unite with other express delivery companies to block it? Just like Chilu Express back then."

Obviously, this is the simplest, most brutal, and most effective method.

Sheng Yun Express had done this kind of thing a long time ago, and it was successful.

A year ago, an express delivery company called "Chilu Express" developed rapidly, aiming at the sinking market in the central and western regions. With its good relationship with e-commerce platforms and a price of 1~1.5 yuan cheaper per order than Sheng Yun Express, it became a spoiler backed by a big tree.

Chilu Express attached great importance to the sinking market and printed earthy slogans such as "No matter how high the mountain or how far the road is, Chilu Express will not be perfunctory" on the walls of thousands of towns, and declared that it was ready to lose money for two consecutive years, coming on strong.

Therefore, Sheng Yun Express issued the "Notice on Prohibiting the Agency of Chilu Business on the Entire Network" and the "Penalty Announcement on the Agency of Chilu Business", requiring the group company not to act as an agent for Chilu Express business in any form or for any reason at both the pick-up and delivery ends, and fined the branches that violated the regulations.

Under this heavy pressure, Chilu Express quickly declined due to its low profit margin and chaotic internal management, lost the trust of investors, and quickly left the market sadly, and is currently in a semi-dead state.

Therefore, when facing the threat of Nifeng Logistics, the first reaction of this senior executive of Sheng Yun Express was also to block it.

But another vice president immediately objected.

"That's not very good. The nature of Nifeng Logistics is still somewhat different from that of Chilu Express."

"Chilu Express is completely in a competitive relationship with us, while Nifeng Logistics has maintained close cooperation with us before. Even in the four regions of Jingzhou, Dijing, Magic City, and Yangcheng, Nifeng Yizhan has actually become the last link in our delivery."

"Although we will give Nifeng Yizhan some profits for each express parcel, we have saved a lot of labor costs because we no longer need to deliver the express parcels to the door. The delivery efficiency and revenue have increased significantly."

"If we comprehensively ban Nifeng Logistics, then Nifeng Logistics will inevitably ban our express parcels in turn. Once the two sides break face, it will also be a huge loss for our daily business."

"What's more, Nifeng Logistics's cross-city express delivery business has not yet been fully launched. Even if it is launched, it will focus on the high-end market of cross-city air transport, which is somewhat differentiated from our business."

"It's a bit of an overreaction to directly block it now. I don't think it's appropriate."

Another senior executive also agreed: "I think so too."

"Another important point is that Nifeng Logistics is different from Chilu Express. Their actual risk tolerance is completely different."

"The rise of Chilu Express was favored by some big capital, but after we blocked it, their express delivery business development stagnated, and these big capital lost confidence in Chilu Express, so Chilu Express quickly declined."

"But Nifeng Logistics completely relies on Tenda. It has been losing money for more than a year since its establishment, but the stores are still opening continuously. This shows that the senior management of Tenda Group attaches great importance to the business of Nifeng Yizhan."

"It was already losing money, and being blocked is just continuing to lose money. Coupled with the support of Tenda's senior management, this cannot hurt Nifeng Logistics at all."

"On the contrary, it will make them put all their energy into their own express delivery business, and fight us to the death with the advantage of a large number of stores. It's really not worth the loss."

"To put it simply, the barefoot are not afraid of those who wear shoes."

"Adopting a blocking approach is not a wise move."

Everyone was talking at once, and their opinions could not be unified at all.

Because after such a long period of development, Nifeng Logistics is actually not in an absolute competitive relationship with these traditional express delivery companies, but a dual relationship of cooperation and competition.

In many areas, Sheng Yun Express couriers have become accustomed to throwing express parcels into Nifeng Yizhan and leaving, and the delivery efficiency has increased many times as a result. Many outlets have adjusted their personnel in order to save costs and laid off some unnecessary courier personnel.

If Nifeng Logistics is rashly blocked, then these express parcels will either be delivered directly to the door, or a large number of new collection points will be found.

The former is obviously unrealistic due to insufficient personnel, and the latter cannot be completed in the short term.

Seeing that everyone had discussed enough, Nie Yunsheng tapped the table lightly.

"Okay, let me say a few words."

"It is within our expectations that Nifeng Logistics has started to do its own express delivery business. There is nothing to be surprised about."

"Of course, as a potential competitor, Nifeng Logistics is a new model and must be guarded against."

"But to say that we should block it immediately is obviously a bit of an overreaction. Even if we want to block it, we have to find an alternative solution to Nifeng Yizhan before we can break face."

"It seems that the solution we have been planning to solve the 'last mile' problem must be implemented as soon as possible."

"Especially in the areas covered by Nifeng Yizhan, we must get rid of our dependence on Nifeng Yizhan as soon as possible!"

As the leading enterprise in the express delivery industry, Sheng Yun Express has obviously thought about how to solve the last mile problem for a long time.

And no matter how you think about it, the most economical solutions are nothing more than two: either make express parcel lockers, or make stores in the form of stations.

But they can't do door-to-door delivery like Nifeng Yizhan, because the labor costs required are too high.

It's not that they can't afford this cost, but they must ensure profits.

This kind of unprofitable, or even money-losing thing, not to mention the senior management of Sheng Yun Express disagreeing, those big franchisees will definitely try to oppose it and will not fully cooperate.

In the end, forcibly learning Nifeng Yizhan's plan is mostly impossible to implement.

And express parcel lockers and stations that don't deliver to the door are definitely not as good as Nifeng Yizhan in terms of experience, but Sheng Yun Express also has its own advantages: cheaper express delivery fees and more stations covering cities.

Cheaper express delivery fees mean that many e-commerce merchants will default to sending Sheng Yun Express in order to reduce costs, and many customers who are more sensitive to prices will also sacrifice some experience and choose Sheng Yun Express.

Moreover, the express parcel locker solution is profitable, and with a large amount of money invested, the progress will be very fast.

After these two solutions are implemented, Sheng Yun Express can gradually get rid of its dependence on Nifeng Yizhan in certain specific cities, and then take measures depending on the situation, and it will be more confident.

Most of the senior executives present basically agreed with this view.

Nie Yunsheng finally made a decision: "Okay, let's do it this way. Don't alarm Nifeng Logistics for the time being, and carry out normal business cooperation."

"At the same time, we must also invest a large number of express parcel lockers all over the country, especially in areas with a high coverage rate of Nifeng Yizhan, and gradually establish our own 'last mile' solution."

"Of course, in the early stage, we can first establish some pilot projects, and observe the actual customer feedback in places with and without Nifeng Yizhan."

"We must attach great importance to this matter!"