Leifeng.com exclusively learned that J&T is negotiating a new cooperation with Temu in the near future, and will no longer provide Temu with an "end-to-end" full-link solution, but will focus on the final service, and the specific details of the cooperation are still being discussed.
According to people familiar with the matter, as early as the end of October 2023, J&T almost ended its end-to-end small package cooperation with Temu. At the same time, J&T established a cross-border company in Singapore to carry out other forms of cooperation with temu.
From the order data, we can also find some clues.
In the order statistics in May 2023, J&T's order share on the Temu platform reached 20%, ranking first with 100,000 orders per day. However, by November, J&T's ranking had slipped to third place, and the number of daily orders had dropped to less than 100,000.
Leifeng.com learned that Temu is not only for J&T, but also cooperates with all logistics service providers.
A logistics service provider said that many logistics providers previously provided end-to-end full-link services for Temu, and a certain link was also to find third-party logistics. The cooperation of TEMU can not only reduce the intermediate price difference, but also help to diversify risks and strengthen the performance efficiency.
This change is also good for J&T.
Before the launch of TEMU, J&T carried out a large number of asset mergers and acquisitions in the European and American markets, including assets in overseas warehouses, trucks, terminal delivery, etc., and launched the cross-border small package service of European and American special lines, thus becoming a member of TEMU's full-link logistics service provider.
The advantage of J&T is terminal delivery, which no longer provides full-link services for TEMU, which can better play the advantages of terminal delivery.
According to another industry analyst, J&T has advanced at least 800 million yuan in cooperation with temu so far. Now, this cooperation change is conducive to J&T to improve profits and consolidate valuation.
Before J&T successfully went to Hong Kong for IPO, the company had made a series of internal adjustments to reduce costs and increase efficiency.
Since March 2023, J&T has adjusted its strategy and contracted its international business, and the headquarters of J&T International has moved from Shenzhen to Shanghai. Eventually, J&T's China business was spun off and operated independently.
After this series of adjustments, J&T began to increase its localization layout in the Middle East and South America to serve platforms such as Temu. Leifeng.com will reveal more details in the follow-up article, and industry insiders are welcome to add the author's WeChatydinitialheart