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Reporter Yang Xia

Positioned in cost-effective express delivery, targeting 3kg small e-commerce packages, and recruiting partners… On March 6, Zhongyou Express, a subsidiary of JD.com, released a Guangdong Province Partner Recruitment Announcement (hereinafter referred to as the “Announcement”), the first time Publicly articulate its brand positioning.

According to the announcement, Zhongyou Express is a courier company focusing on sinking markets and economical business development.

It is worth noting that Zhongyou Express clearly identified in the announcement that it is located in the small e-commerce express delivery market, and stated that it will provide express services for domestic e-commerce platforms, micro-shops and micro-stores, new e-commerce, professional markets and retail investors. The service products focus on 3KG small e-commerce parcels, and also provide value-added services such as COD (courier collection on delivery) business, cash on delivery, and goods insured.

Zhao Xiaomin, an expert in the express logistics industry, believes that Zhongyu Express directly targets ZTO, Yunda, YTO, Shentong, Best and other “Tongda” e-commerce express.

From Zhongyou Express Partner Recruitment Announcement

Zhao Xiaomin revealed that, as far as he knows, both “Zhongbao Express” and “Hongbang Tuoxian” are applying for express delivery licenses from the State Post Bureau. Among them, Guangdong Hongbang Tuoxian Logistics Technology Co., Ltd. (the main body of Zhongyou Express) has obtained Express business license issued by Guangdong Post Administration.

Previously, it has been reported that Zhongyou Express will take the lead in building a courier network from Guangdong, and then replicate it to Jiangsu, Zhejiang, Shanghai and the whole country. Jiemian reporters also noticed that in addition to Guangdong Province, the recruitment of partners in Shanghai and Jiangsu and Zhejiang provinces is also underway.

According to the announcement, Zhongyou Express, in conjunction with ecological cooperation resources, now has more than 180 distribution centers, more than 1,500 trunk lines, more than 4,700 vehicles, and 10,000 tripartite cooperation outlets, achieving 99% of the country’s four-level address coverage, providing strong Network platform support and stable timeliness service quality assurance.

According to Zhao Xiaomin’s analysis, this ecological cooperation resource may include some integrated third-party resources in addition to the existing resources of the JD Express network. For the future development of Zhongyou Express, we also need to see how much JD.com supports it in the future and how much its resources are integrated. At this stage, the significance of Zhongyou Express may be more to provide a new story for the IPO of Jingdong Logistics.

The emergence of Zhongyou Express has attracted the attention of the industry, especially in some prefecture-level cities and counties. The operators of express outlets often represent multiple express and express brands at the same time. Many people have expressed interest in this new brand, and some are still wait and see.

A courier practitioner from a prefecture-level city in Hunan told Jiemian reporters that choosing to join a courier brand first depends on whether its network system is complete and whether the headquarters has support policies for franchisees. After seeing the announcement of Zhongyou’s partner recruitment, he intends to learn more, but he is also a little worried: “I’m afraid it will be difficult to do, after all, the existing express delivery is difficult to survive.”

A senior industry expert told reporters bluntly “not optimistic”. “Now the express delivery industry has entered the stage of a few oligarchs. As far as the national express delivery network is concerned, it is difficult for newly established express delivery brands to survive and develop. There will be some development space for local delivery networks and regional express delivery brands in the future.” He said .

As of January 2020, the CR8 (the ratio of the market share of the top 8 companies in the industry to the total market share) index, which reflects the concentration of the express delivery industry, was 84.8%, an increase of 2.3 percentage points from the previous year and a year-on-year increase of 3.6 percentage points. This also means that the concentration of the express delivery industry is further increasing.

In 2019, not only the second- and third-tier express brands such as Guotong Express, Fengda Express, and Quanfeng Express have been out of the market, but also the new express brand “Promise Da Express” launched by the parent company of Yuantong Express, which has also stagnated after testing the water for a year. .