Baishi Tries To Change: Baishi Express Wants To Be Reborn

Wang Xiaoqing, the new vice president of Baishi group and general manager of Baishi express, has to face a Baishi express that wants to be reborn.

From the general manager of Jiangsu Branch of Baishi group to the head of express business of the group, after the role change, Wang Xiaoqing's pressure can be imagined. However, Baishi group has been faced with greater business pressure in the past, so its attitude has to be lowered to face the essential problems of express business development.

"Now we have to go back to do something and do solid work on common sense, efficiency and cost related technical work in the industry." In an interview with the 21st century economic reporter, Wang Xiaoqing said that Baishi Express's primary task now is to "lay the foundation and make up for the lessons".

In recent years, Baishi express is facing the problems such as the market volume being squeezed and the terminal network instability, which needs to be changed.

The first step in seeking change is to "make an internal peace". In March this year, Zhou Shaoning, chairman, President and CEO of Baishi group, successively visited outlets in Shaanxi, Zhejiang and Guangdong, and repeatedly stated that "stability at the end is the foundation of everything". In the 2021 national network work conference of Baishi express, Wang Xiaoqing also released the signal of starting from the end and doing well, "the network is our partner for mutual achievement and common development, which needs joint efforts, joint decision-making and benefit sharing."

"We're going back to the nature of the industry." Wang Xiaoqing told the 21st century economic reporter.

Change is coming

November 16, 2020 is enough to record the development history of Baishi.

In addition to announcing Wang Xiaoqing's new appointment, Baishi's another move attracted much attention from the outside world: it withdrew from the "store plus" business and concentrated its resources into its main business including express delivery, express delivery and supply chain.

"Baishi needs to emphasize fighting with" fists "rather than attacking with" palms. " According to Zhao Xiaomin, an expert in the express industry, this plan adjustment and strategic change convey the company's clear positioning and expectations to the market, which is expected to strengthen the confidence of investors.

Business pressure is great, is a big label on the body of the past hundred generations. In 2020, Baishi's annual operating revenue will reach 30 billion yuan, a year-on-year decrease of 7.3%. Due to the impact of the epidemic, Baishi's profitability has been tested and its losses have increased.

Under the heavy difficulties, "in the fourth quarter of 2020, Baishi timely adjusted the strategy and operation of each business sector." Zhou Shaoning admitted that although the market competition in the fourth quarter of last year was still fierce, and the overall performance of Baishi in that quarter was relatively flat, the trend of improvement continued to show.

The 21st century economic report reporter noted that since the strategic adjustment plan was announced in November last year, the logistics business of Baishi has achieved phased results: the net profit of Baishi express was turned to profit again in December; the freight volume of Baishi express increased by 25.1% year on year in this quarter, and the gross profit rate returned to the pre epidemic level; the cross-border logistics and Southeast Asian local products under the international business of Baishi were also included Streaming services maintained a strong growth momentum, and the number of packages in Southeast Asia increased by more than four times in the fourth quarter.

Express delivery is the core of Baishi group's logistics business. In 2020, Baishi's express business revenue will reach 19.418 billion yuan, accounting for nearly 65%. This ratio means that Baishi will change, and express business is the first.

Since the implementation of the strategic adjustment plan last year, Baishi's express business reform has focused on improving product structure and developing terminal outlets.

"There must be pressure." Wang told 21st century business reporter that most of the work he and his team have done since last year has been invisible.

Although "invisible", the core content can still be summed up: Baishi should first maintain network stability, and secondly, it will make up for the "homework" of cost control.

For franchise express enterprises, outlets are the lifeblood. In recent years, "Tongda system" enterprises have repeatedly reported the news of network explosion and bankruptcy. Maintaining the stability of outlets has become the key work of all "Tongda" express enterprises.

In 2020, the domestic express industry will break the inherent stability due to the epidemic situation. Under the "catfish effect" of new entrants, the express industry has started fierce price competition since the second quarter of last year, and the strategy of "exchanging price for quantity" has been recognized by head express companies.

But under the "price war", the production status of outlets is more difficult. Price competition will directly lead to the decrease of distribution fee, which will bring certain pressure to the network contractor.

A person in the express industry who did not want to be named told the 21st century economic report that "the sensitivity of payment and the various penalty rules formulated by the headquarters of express companies are the main pressure faced by outlets. And outlets tend to transfer these pressures to couriers, which is easy to cause the situation of great liquidity of couriers. "

In January of this year, Baishi carried out reform on payment. "We will guarantee the minimum income that small piece workers in different places can get." Wang Xiaoqing told reporters in the 21st century economic report that the distribution fees of various local outlets of Baishi express will be determined according to the local market situation. "We are currently making some grading and classification scoring systems, which will be distinguished by the timeliness and quality of delivery by couriers, and the positive rate of communication with users on the user interface. For those who meet the standards and do well, we will get some extra money Kim came out to inspire them. "

"Low key" Century

When asked about this year's market target, Wang Xiaoqing responded to the reporter of the 21st century economic report, "don't fall behind."

According to the data released by the State Post Office, in 2020, the total business volume of express service enterprises in China will reach 83.36 billion, with a year-on-year increase of 31.2%; and the total business income will reach 879.54 billion yuan, with a year-on-year growth of 17.3%. Compared with the industry, Baishi's express business volume and business income growth is insufficient. "The goals set by Baishi this year are very practical," Wang said

According to the fiscal year 2020 report released by Baishi, the Group expects to achieve revenue of 34 billion yuan to 36 billion yuan this year, with a year-on-year growth of 13% to 20%.

In Wang Xiaoqing's opinion, the domestic express market is big enough and develops fast enough. In the case that there is no big difference in the structure of competitors, it is the most pragmatic mentality of Baishi to keep pace with the development of the industry.

It is worth mentioning that at present, the express industry is changing from the leading competition to the oligopoly competition. On the one hand, the business volume gap between the head enterprises has been widened, and the industry concentration has been continuously improved; on the other hand, the capital strength and financing capacity competition and upgrading between the head enterprises have led to the continuous increase of capital expenditure.

However, Wang Xiaoqing believes that Baishi needs to improve its internal skills at present. "What we want to build is a sustainable development network with fair and clean environment, healthy structure and efficiency as the king."

The 21st century economic reporter learned that in addition to the fee distribution reform, Baishi also plans to develop terminal outlets through policies, operations, funds, training and other measures. It plans to provide 400 million yuan of periodic rebate for franchisees as support funds, and provide about 1 billion yuan loan support to alleviate the operating pressure of franchisees and revitalize network funds.

In fact, fierce price competition will not fade in the short term. Baishi also needs to do more basic work to realize the qualitative change of product structure and cost.

"The competition at this stage is who can do the basic work more solidly and who can focus the team's attention on the right thing." Wang Xiaoqing told the 21st century economic report that Baishi classifies customers and outlets and establishes tools to accurately distinguish existing and future business, customers, product structure and flow direction. This refined management will help to reduce the cost space. In addition, Baishi also does some technical work for cost reduction, such as establishing corresponding development standards and controlling the proportion of special-shaped parts according to the production capacity and mode of each local network.

The above-mentioned reform measures have made some positive signals appear in succession. In December 2020, the weight of Express single ticket of Baishi in the same month will be reduced by 14% month on month, and the cost of single ticket will be reduced by 8.4% month on month.

However, Baishi did not give up the exploration of forward-looking business. For a long time, in the impression of the outside world, Baishi has been making layout in multiple tracks. Although some businesses bring performance drag, it still highlights the industrial value of diversified layout to a certain extent.

In the new retail era, emphasis is placed on the re combination of "people's goods yard" and the transfer of power center of supply chain. To achieve this goal, the essence is to shorten the distance between goods and consumers, and "cloud warehouse" becomes the link point.

In July 2020, Baishi group announced that it plans to complete the cloud warehouse network coverage of the third and fourth tier cities within three years. By then, the total number of cloud warehouses in China will reach 600, covering 80% of prefecture level cities. It will fully open up the whole link logistics information of the sinking market and realize the effect of connecting warehouses and networking.

"Cloud warehouse, in a sense, is on the upper level of express delivery." Wang Xiaoqing told the 21st century economic report that yuncang is one of the future work of Baishi Express's "card point". We will cooperate with the supply chain to make some plans for upstream industrialization, which will be the direction of future differentiation of express enterprises