J&T Express opens a new battlefield for the Spring Festival** Logistics Finger (ID: wuliuzhiwen).
Written by You Xin.
The Spring Festival is approaching, and many express companies have announced that "the Spring Festival will not close". The latest name on this list is J&T Express, which went public in Hong Kong in October last year. On January 26, J&T Express issued an announcement, saying that it would continue to implement the service concept of "all year round".From February 8, 2024 (the 29th day of the lunar month) to February 14, 2024 (the fifth day of the first lunar month), the "Spring Festival will not close" service, and the rest of the time will provide normal express delivery services; Except for some remote areas where express delivery services are suspended, other areas can provide normal collection and delivery services. According to the data, this is the fourth consecutive year that J&T Express has provided the "Spring Festival does not close" service after J&T Express entered the Chinese market in 2019. The express delivery industry's "Spring Festival does not close" activity is nothing new. According to data from the State Post Bureau, the national express delivery business volume increased by 260% during the Spring Festival in 2021; During the Spring Festival holiday in 2023, the national express delivery industry will attract more than 700 million investments. With the continuous improvement of the delivery capacity of the express delivery industry during the Spring Festival, the Spring Festival has also become a point of contention for domestic e-commerce and even the entire retail industry, and it has played an important role in the e-commerce industry in recent yearsDouyin and Kuaishou also participated in the "Spring Festival does not close" for the first time through the platform this year. It is worth mentioningBoth platforms have chosen J&T Express as a special express partner during this year's Spring Festival. Some industry insiders said that there are two main reasons why e-commerce platforms choose J&TFirst of all, the distribution demand during the Spring Festival is relatively scattered and sudden, which requires express companies to have relatively flexible distribution capabilities; Secondly, the demand for fresh snacks in the New Year's goods is extremely high, which has certain requirements for the layout of express companies in the sinking market. These two points happen to be the strengths of J&T. 
Flexible capacity, sinking market,J&T solves the problem of the Spring FestivalLiquidation and suspension of operations, many years ago, it was almost the norm for e-commerce and even the entire retail industry to crash during the Spring Festival. For the e-commerce industry, the Spring Festival is a dilemma, not only to meet the needs of consumers, but also to consider the operating costs of logistics security. For e-commerce platforms such as Pinduoduo, Douyin, and Kuaishou that do not have self-built logistics, the services provided by the express delivery industry during the Spring Festival can be called a real "send" in the snow. Recently, Pinduoduo, Douyin, and Kuaishou have officially announced that they will not close the Spring Festival Express special partners, and J&T is on the list. In the case of Pinduoduo, for example, the merchants on the platform will be from February 2, 2024 to February 22, 2024If the use of J&T Express for delivery, due to non-merchant reasons such as logistics track and express delivery timeliness, the corresponding consumer compensation will be borne by the express company, and the merchant can enjoy the corresponding traffic processing exemption. Industry insiders saidDuring the Spring Festival, the e-commerce platform chose J&T Express in addition to its strong distribution capacity, and the sinking market is an important factor"In this year's Spring Festival gift-giving scene, consumers' demand for fresh food, preparation of New Year's goods, and family dinners is more prominent, which means that fresh products from rural areas will be very important. In addition, a large number of migrant workers will return to their hometowns during the Spring Festival, and the purchasing capacity of villages and towns will also be greatly improved. Since 2020, J&T Express has opened up a special line for special products to deliver high-quality and low-cost agricultural products to thousands of households. Up to now, the J&T Express specialty line has covered 247 districts and counties across the country, involving 265 types of agricultural products, including Shaanxi Yan'an apples, Jiangxi Gannan navel oranges, Fujian Pinghe pomelo, etc. 
It is worth paying attention to,J&T Express has always maintained a good cooperative relationship with emerging live broadcast e-commerce. Compared with traditional e-commerce, live streaming e-commerce has a smaller package volume and a larger order volume, which requires higher flexible service capabilities of logistics providers. The data shows that during the New Year Festival, orders for snack brands soared on platforms such as Douyin and Kuaishou, and some brands even exceeded 800,000 orders per day. In the face of the traffic of "pouring wealth and wealth" during the Spring Festival, J&T Express has prepared in advance. According to industry insiders, at present, J&T has increased couriers and vehicles in advance in many cities, and increased the budget to motivate and subsidize front-line employees to ensure that the operation does not close during the Spring Festival.
High-quality service, rapid development,J&T may usher in a profitIn March 2020, J&T Express officially entered the Chinese market, where the express competition has become white-hot, and laid a solid foundation. At the end of 2021, J&T Express acquired the veteran franchise express delivery company Best Express. In the eyes of the outside world, this acquisition has allowed J&T Express to successfully complete the network layout of domestic express delivery, break through the Tongda system, and gain a firm foothold in the e-commerce express delivery industry. In the year after the acquisition, J&T Express had a market share of more than 10% in China, and its average daily business volume broke through and stabilized at more than 40 million pieces, becoming the leading express brand. At the same time, the proportion of J&T Express's revenue from China also jumped to 564%, more than the original base camp Southeast Asian market. 
Subsequently, J&T Express ushered in a year of rapid development in 2023. In May 2023, J&T Express completed the last major acquisition before listing, acquiring Fengwang, a sub-brand of SF Express, in exchange for 1,671 franchise outlets covering 27 provinces and cities across the country. According to data published by the State Post Bureau of China,In the first half of 2023, J&T ranked first among major domestic express delivery operators in terms of the comprehensive index of grievance handlingIn the first half of the year, the loss rate of one million orders was 023 cases, million complaints rate of 058 cases, million effective complaint rate of 0015 pieces, lower than the industry average of 1 million orders in the same period90 pieces, million orders 668 pieces, 1 million orders83 pcs. In terms of timeliness, it also showed good results, and the State Post Bureau conducted a survey on the punctuality rate of major express delivery operators in the first half of 2023. According to the survey, the industry's average 72-hour punctuality rate is 7981%, J&T ranks in the top three. Running fast and steady, on October 27, J&T Express was officially listed on the Hong Kong Stock Exchange, **1519". After the listing, the stock price has repeatedly hit new highs, and with the market value rising sharply on December 20, J&T Express has become the top company in the market value of the franchise express company. In the eyes of industry insiders,The core reason for the sharp rise in the market value of J&T Express is that the business performance at home and abroad is extremely good, and the domestic promotion is to the camp of the head express company; Overseas, it has benefited from the rapid development of overseas enterprises such as Pinduoduo, Temu and SHEIN. 
What's more noteworthy is that the prospectus shows that J&T Express, which has completed its initial strategic goals, is moving towards a new goal of profitability. According to the data, in the first half of June 30, 2023, J&T's adjusted net profit loss decreased significantly to 2$6.4 billion, up from $4.4 billion in the year-ago quarter$200 million, down 37% year-on-year. Industry insiders said that J&T has achieved remarkable results in optimizing operations, improving efficiency and controlling costs, and perhaps the profit point will come soon. The continuous improvement of service quality and the deep cultivation of the sinking market are the confidence of J&T to continuously open the Spring Festival without closing, and it is also an important reason why many partners choose J&T Express. ** Logistics Finger (ID: wuliuzhiwen).
Written by You Xin.