Eastday News on 28 June: Recently, the State Post Bureau again rectifies express market, and 56 unlicensed enterprises providing the express delivery service was banned, involving Zhongtong, Shentong Express and others. However, before this, the State Post Bureau has just released Guiding Opinions on Express Delivery Enterprise Mergers and Reorganizations, and proposed to encourage mergers and reorganizations in and across the express industry, the region and ownership, prompting to cultivate a group of large express leading enterprises with year income exceeding 10 billion and strong international competitiveness.

Many problems in the join system of industry

Reportedly, at present, China's express delivery industry has 3 models, namely, direct run, join and agent. Mainly EMS, ShunFeng, etc., take the direct mode, which is invested directly by the headquarters. In recent years with rapid growth of the express delivery business, in order to rapidly expand the service network, most express companies chose to the joining way, who joined the contracting divisions, then contracted to individuals. Xu Yong, chief advisor of China Express and Logistics Consulting said, “These outlets banned are mostly non-direct franchise outlets. The franchising system has a lot of problems, and the deep reason is that each franchisee is a profit center, and all safeguards their own interests. This runs counter to the integration, standardization and normalization spirit of the express industry. "

China express industry association deputy secretary-general Shao Zhonglin also pointed out that:" there exist some problems in the joining model and license obtaining, this kind of banning will be more."

Encourage mergers and reorganization of express enterprises

For disorder in the express industry, the State Post Bureau recently issued Guiding Opinions on Express Delivery Enterprise Mergers and Reorganizations. The opinion pointed out, the merger and reorganization of express enterprises was an inevitable requirement for optimizing industrial layout, transforming the mode of development, improving the quality and efficiency of development, promoting the transformation and upgrading and spanning development of express delivery industry. Mergers and reorganizations of different kinds of enterprises encourage types of express, the franchising model, express related industries and enterprises of different ownership should be encouraged.

In fact, as early as before the" opinions" was issued, domestic express delivery industry integration has embarked on the fast track. Last year, Star Express successfully obtained investment from Alibaba. As a private express company, TTK Express was formally incorporated into the HNA Group, and BEST logistics made acquisition of Huitong Express ranking sixth in the express industry. There are more enterprises negotiating with institutional investors such as IDG, Lenovo, Fosun, CDHFund, Warburg Pincus, New Horizon and others. In the future more express mergers will surface.

"Express delivery enterprises are small in scale, weak in strength, scattered in management. Industry concentration is low, and the operation and management capacity lags. These problems as well as price war, delay, frequent losing letters have raised the concern of the state. The ultimate goal for promoting express enterprise merger and reorganization is to optimize the industrial structure, transform the mode of development and promote industrial upgrading and crossing development." Ma Junsheng, Director of the State Post Bureau said.

International express giants are optimistic about the Chinese market.

CI Consulting recently released 2011 - 2015 China Logistics Industry Investment Analysis and Forecast Report, pointing out, during the “Twelfth Five-Year Plan" period, the domestic logistics industry will enter a higher stage of development, and scale of the industry will continue to expand quickly. Industry concentration will be further enhanced, fine division of labor will increase, and market order and environmental conditions will also be further optimized. Experts said, as long as the positioning is accurate and good service to the target group is made, national, civilian and foreign capital can share "a cup of thick soup" from the growth of the industry.

As the wholly-owned company under China Post, EMS is the earliest Chinese express service provider, is currently the largest operator and leader of China's express delivery industry. Zhang Xiaopan, analyst of Central China Securities said," In sub-industry in the logistics industry, it can be said with certainty that EMS is the most influential in China. In addition, because EMS entered into this industry at the earliest time, and it is led by the government, so EMS has superiority over other courier companies in the network and fixed customer advantages."

And for the private express delivery companies, in addition to accelerate integration, many companies are planning to move upstream to seek new profit expansion. The well-known domestic private express delivery enterprises such as Shunfeng, Yuantong, Shentong, Yunda are planning to step into e-commerce area, constructing electronic mall.

Although foreign express enterprises stumbled on China's domestic business road, international express giants are aimed at the Chinese express market has great potential, FedEx, DHL, UPS and TNT increased investment one after another in Shanghai, Guangzhou and other cities to construct large transit centers. Industry experts said, as China's express delivery industry develops rapidly, there are great markets in China for the international express delivery companies, mainly with high-end electronic commerce, handicraft industry service and others involved.