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Debon Express's revenue for the first time in 2018 is ultra-fast, and the market competition is cont

Date: 2019-04-10
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On April 9, Debon Express recently released its annual report for 2018, which showed that in 2018, Debon Express's Large-piece express business revenue was 11.397 billion yuan, an increase of 64.50% compared with the same period last year, while its express business revenue was 11.206 billion yuan, a decrease of 13.76% compared with the same period last year. For the first time, Group Express has surpassed Express in revenue, handing in its first report card since the announcement of strategic transformation.

Looking back on the history of Debang's express delivery development, we can see that in 2013, Debang formally began to take large express delivery as the starting point of strategic layout of express business, and launched a series of express service products. In July 2018, it officially announced the change of the company's brand name 'De Bong Express' to make full use of large-scale express business. By March this year, Debon Express launched a brand new and upgraded visual image, further highlighting the large express service.

In view of the future development strategy, Debon also indicated that it should further strengthen the large express delivery, reduce costs and increase efficiency through technical integration, intelligent enabling and other measures, and constantly optimize customer experience, improve customer satisfaction and stickiness. In the era of technology-intensive transformation of the logistics industry, Debang, which is in line with Huawei, is also increasing its investment in scientific research.

At present, Debang has jointly established a number of L4-level unmanned logistics lines with the unmanned artificial intelligence company Flying Science and Technology and China Post EMS, and the unmanned freight vehicle has entered the normal joint operation stage. On 31 last month, Debon Express also officially launched the pilot operation of UAV and successfully completed its first test flight. At the same time, in terms of incentives for grass-roots employees, it has offered 23.4 million yuan worth of bricks to reward couriers.

The success of the Debon Express business has also meant that the group has formally become a company with express as its core business, and the express market competition has become increasingly fierce. Nevertheless, the development of Debon Express is not unimpeded. With the gradual growth of express delivery business, Debang may face up to the old players in the express delivery field such as Shunfeng and Tongdao Department. Compared with them, Debang's advantages are not obvious.

In addition, although Debon Express business is heading for a good trend, its once main fast-track business revenue has shrunk. The official explanation is that it is mainly due to the optimization and upgrading of the company's product structure, the vehicle business is in the period of strategic adjustment, and the business volume has been narrowed. At the same time, express companies such as Shunfeng are still making intensive cross-border layout in the field of heavy cargo and express transportation. E-commerce logistics enterprises such as Ali and Jingdong are also watching closely the field of express transportation.

Moreover, as far as the major express delivery market is concerned, the existing business volume and market share of Debon are limited. What's more, compared with small cargo, there are still many painful points to be solved in the field of large express delivery itself, such as the stereotyped 'big cargo discrimination' and high cost. According to the Group's financial report, the total cost of labor and transportation has reached 81.77% of the total operating costs in Debon in 2018. It is worth mentioning that in Debon last month, another senior executive director and deputy general manager, Han Yongyan, announced his resignation from the company and ceased to hold any position in the company.

Nowadays, in order to lay the foundation for the comprehensive competition in the future market, Debang will face more and more serious challenges if its express business does not catch up with the pace of other leading enterprises and its market share of express business falls further.

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