Express delivery rushes to the beach of large package business

"Now express companies are also starting to deliver large packages. They are faster than general logistics and can deliver them to the door." Recently, Wang Jing bought a washing machine online, but to her surprise, the delivery man was her common express brother.

In recent years, with the e-commerce of the sales of large commodities such as household appliances, agricultural products and building materials, and the continuous decline of the profits of small package business, many express companies have expanded their business scope from small packages within a few kilograms to large packages of dozens or even hundreds of kilograms. Due to more lucrative profits, huge market potential and other reasons, the large parcel business is favored by all kinds of capital. Reporter Hu Rui intern Li Yang

Big packages are popular, attracting express delivery to set foot in "our company can send big packages for a long time." On June 20, Xiao Zhuo, a courier of an express company in Changsha, called the customer to ask whether someone in the other party's home received the goods. An online shopping air conditioner arrived.

The big package mentioned by Xiaozhuo refers to some logistics express pieces with large weight. Different express logistics enterprises have different definitions of their weight, generally concentrated in 3kg-50kg, and the content transported is mainly household appliances.

According to the reporter's investigation, at present, most express companies in Changsha have opened large package business, including established logistics enterprises such as Zhongtong, deppon and Shunfeng, as well as emerging express enterprises such as Baishi express and Yousu express. "A single piece does not exceed 80kg and can be transported by air." According to a staff member of SF, when they send large packages to customers, they can not only ensure the same timeliness as small packages, but also provide door-to-door pick-up and delivery services.

The low profit of small packages brings losses. "In fact, logistics express enterprises choose to intervene in the large package business, not only because the popularity of online shopping has led to the surge in online sales of large commodities, but also because the profit of small packages is declining." A senior local express person told reporters.

In recent years, the competition of small packages in the express industry has become increasingly fierce. "Each small package has a profit of only 1 yuan or even a few cents, and large packages are much higher." The boss of a local express sub station told reporters.

Zhao Xiaomin, an investor in the express industry, said publicly that more than half of the express outlets that operate only small package businesses will lose money.

"Many express outlets often change their bosses and can't survive in a few months." According to a local insider, many express outlets belong to the franchise system. Individual bosses contract the business in a certain area and are responsible for their own profits and losses. Many outlets without large package business are difficult to support. "The profit of small package business is thinner than that of blade, and the progress made by Yousu express, Baishi express and other companies in entering the large package business also gives us the motivation to try.".

The capital market has repeatedly extended olive branches

While express companies have set foot in the large package business, their development potential is also generally favored by all capital parties. Since the beginning of this year, large parcel logistics and express delivery enterprises have continuously burst out financing news.

Baishi express, which just launched the service of "large package" of 5kg ~ 60kg in March this year, its parent company Baishi group announced on June 13 that it had completed a new round of financing and said it would provide 600 million yuan of fund support for the express network.

On June 15, Yousu express, which focuses on large package express, also heard the news that it had obtained hundreds of millions of yuan of financing in the a round. According to Yousu express, the company has negotiated with several top investment institutions in China and will start the next round of financing with a quota "several times" higher than that of round a.

Since its establishment, with 3kg ~ 50kg as the main weight segment, speed express also announced on June 6 that it had obtained joint investment shares from five institutions, including investment capital, investment wealth and Jiuding investment.

For a while, the large package business has attracted the attention of many people, and some even call it "a new continent in the Express Red Sea".

While the large package business is favored, it is also encountering a bottleneck. "Large packages are different from clothes or business documents. Take home appliances for example. Some large packages of household appliances sent by individuals may not have standardized packaging, which makes it difficult to transport; take agricultural products as an example, large packages also pose challenges to transport because of their different storage methods and different dryness and humidity." According to Zou min, a local express boss, the major challenge in developing the large package business is that it is difficult to standardize products and services.

In addition, the reporter learned from the investigation that among the local franchise outlets that have launched large packages, the weight limits of large packages are also different for different outlets of the same brand. "Each outlet is made according to its own situation."

Zou min believes that in order to solve the standardization problem of the large package industry, the industry association must intervene and formulate corresponding specifications for packaging and transportation. "This standard can not only improve the service quality of large parcels and standardize the market, but also help reduce enterprise costs, so as to promote faster business development."