For large logistics companies, such as UPS and DHL, it is difficult to simply define their attributes as express delivery, freight forwarding, warehousing or finance. Domestic companies engaged in cross-border logistics cannot have such comprehensive capabilities in the short term and must pass Flexible “local integration, global adaptation” to gain comparative advantage. Domestic express delivery has gone through many difficulties to survive. With the help of e-commerce, it has gained a foothold and cross-border e-commerce has taken another step forward. Finally, it has reached the point where it can look up to the international express giants in the nearest distance.
In physical goods network, private express delivery has basically gone through the process of “point-to-point routes → regional network → national network → multi-level integrated network → overseas routes/overseas warehouses”. Large e-commerce companies such as JD.com have also established Its own vertically integrated logistics system covers the entire process of supply chain management. Not only does the channel sink to form full distribution coverage, it also has super-large warehousing and tens of millions of SKU inventory management capabilities, and has extensive overseas import warehouses.
In the 2016 “Double 11”, YTO received 60 million items in a single day, and its processing throughput exceeded UPS’s 20 million units, which has a far-reaching impact. The real gap between domestic express delivery and the four major DUFT companies is the international network. Relying on rapid investment, warehousing is relatively easy to copy, while the international network and terminal distribution are almost impossible to take shape in a short period of time.
China Express’s international network has not been able to shake the international pricing system of several giants. Among the entities responsible for international express delivery, except for DUFT and Postal EMS, other express delivery companies mostly participate through agencies and transfer express shipments to partners. Party charges agency fees. Recently, almost every express delivery company has set its sights on cross-border e-commerce, taking this opportunity to penetrate into the global network and advance to the next level.
At present, in the international business involved in domestic express delivery, it is easier first than difficult to start the construction of overseas points and then lay out routes. Relying on overseas branches, the export destination is: commercial express agency, overseas cooperation dedicated line logistics and a few overseas warehouses, the import destination is: purchasing agency and online sales, cargo collection and transfer logistics (bonded area pickup is not included).
SF Express was established in 1993 and is headquartered in Shenzhen. It started with China-Hong Kong shipments and gradually seized the market by leveraging the rapidly developing mainland trade in Hong Kong. It converted to a direct operation model in 2002 and expanded to a nationwide network. Currently, SF Express has nearly 340,000 employees, 19 self-owned all-cargo aircraft and more than 12,000 business outlets.
SF Express is progressing rapidly in internationalization and attaches great importance to cross-border opportunities. Since 2010, it has established business outlets in many countries. Currently, it has opened branches in the United States, Japan, South Korea, Singapore, Malaysia, Thailand, Vietnam, For express delivery services in neighboring countries such as Australia and Mongolia, “Global Express” is its main international express delivery product.
In September 2013, the SFBuy overseas shopping transshipment service platform was launched; in 2014 during “Double 11”, SF Express’s “Select International” was launched, focusing on the imported food field; in 2015, self-operated The cross-border B2C e-commerce website “Fengqu Haitao” was launched, with fast bonded and cross-border direct mail dual-line services; in 2016, it joined hands with local Russian e-commerce Ulmart to launch Rumall, an export e-commerce platform from China to Russia. SF Express’s persistence in cross-border e-commerce may be related to its history of starting from Hong Kong, China. Today, 80% of inbound and outbound goods are still transited through the Hong Kong China platform.
YTO was founded in 2000 and is headquartered in Shanghai. Its current business volume is the largest in China. The overseas business department was established in 2006 and has successively operated international express mail in Southeast Asia, the Middle East, and North America. In 2014, it cooperated with CJ Korean Express, promoted dedicated line products with the Russian DCD Sinotrans Group, and established transshipment in Germany.
Express express lines have been opened for Hong Kong, Macao, Taiwan, Southeast Asia, Central Asia, Europe and the United States. In 2015, YTO officially launched the global express delivery project, and joined hands with express delivery companies in Asia, the United States, Europe and other countries and regions to launch a “Global Parcel Alliance” network covering major markets around the world. Members of the alliance will abide by the standard information basis and Operation process, hoping to quickly open the international market through this method.
At the end of 2014, its online shopping e-commerce platform “One City One Product” officially launched its overseas direct purchase business, providing consumers with direct supply from the country of origin and local specialties, and launched its Australian pavilion and Japanese pavilion. It adopts the method of overseas direct mail and mainly sells maternal and infant products, dairy products, toiletries and other products. YTO Airlines is also preparing an application for international supplementary operation certification. It plans to introduce a large wide-body all-cargo aircraft in 2018 and put it into operation on intercontinental routes to prepare for cross-border logistics.
STO was founded in 1993. In 2013, it established an overseas business department. “STO International” is the first brand of STO Express. In 2014, it established the first overseas logistics processing center in Okinawa and established STO Russia Far East. The company has reached cooperation with Russian Yima Express, Dutch Post, etc., and established express mail exchanges with foreign countries through cooperation with foreign businessmen.
The existing service scope has covered more than 60 countries and regions around the world, including Japan, South Korea, the United States, and Europe, and has opened 11 export dedicated lines for China and the United Kingdom, China and the United States, China and Thailand, and China and Canada, providing international We provide sellers or buyers of items with integrated cross-border logistics services including collection, transshipment warehousing, export customs declaration, international transportation, destination country import customs clearance, order management, and door-to-door delivery.
ZTO Express was founded in 2002 and is headquartered in Shanghai. At the end of 2013, Zhongtong Express acquired 20% of the equity of Russia Express and began to get involved in Sino-Russian cross-border logistics. The full name of “Zhongtong International” is “Dayu International Logistics Co., Ltd.”. It was launched in March 2015 and specializes in International logistics, international parcel business, cross-border e-commerce export or import business, currently includes China-Russia, China-Europe and other dedicated line services.
BEST, formerly known as Huitong Express, was established in Shanghai in 2003 and is headquartered in Hangzhou. It is the first private express company in China to use information technology to explore the transformation and upgrading of the express delivery industry. In March 2014, Best Huitong officially entered overseas markets and launched global international express business. Best Huitong’s international express business is operated by the Aviation Department of Best Huitong’s headquarters. Express shipments to Hong Kong, China, and Taiwan, China are mainly dedicated lines, and express mail to other international regions Cooperate with international express delivery companies and open dedicated line services on some lines.
Yunda was founded in 1999 and is headquartered in Shanghai. Since 2013, Yunda has embarked on the pace of internationalization, successively carrying out international express business cooperation with Japan, South Korea, the United States, Germany, Australia, India and other countries and regions, and gradually going abroad.
In September 2014, Yunda launched the overseas shopping purchasing website “Yigouda”, which was later upgraded to Yunda’s cross-border direct mail website “UDA Youdi Love Mall”, which is positioned to integrate high-quality domestic and foreign products. Resources’ global cross-border brand retail e-commerce platform has been launched on the official website of the U.S. service center and has begun to provide U.S. warehousing, transshipment and cross-border logistics and transportation inquiry services to domestic overseas online shopping customers and global Chinese. The European Service Center has branches in Frankfurt, Germany, South Korea, Japan, Australia and other places.
So far, the seven major express delivery companies, which account for 80% of the domestic express delivery market share, have started cross-border logistics business. Although they are still in their infancy, cross-border logistics is in line with international standards. There are more opportunities. Comparing large-scale international express delivery companies with extensive global business distribution, and learning from their development history, or leveraging their strengths and avoiding weaknesses, you will find that mergers and acquisitions are a shortcut for giants to quickly expand their networks.
International logistics mergers and acquisitions are mainly horizontal mergers and acquisitions. In the past two years, among the dozens of mergers and acquisitions cases in the international logistics market, 8 cases have a merger value of more than 1 billion US dollars. Fedex is the largest buyer of mergers and acquisitions. Through mergers and acquisitions, the gap with its main competitors DHL and UPS has been further narrowed. However, it is difficult to directly merge with logistics companies, and the risks of integration capabilities and cultural integration cannot be ignored. Only by wearing the shoes can you know whether they fit, so you must rely on your own advantages to find expansion momentum.