Recently, many people find that the yellow green Fengchao express cabinet has become a red Jingdong express cabinet. This also makes a lot of users who have just experienced the Fengchao charging storm to doubt that Jingdong will not charge more “management fees”. When it comes to “management fee”, we have to start with the charging storm of Fengchao.
in 2015, SF, together with Shentong, Zhongtong, Yunda and pros group, invested 500 million yuan to establish Shenzhen Fengchao Technology Co., Ltd., to develop and operate a 24-hour self-service open platform “Fengchao” intelligent express cabinet for all express companies and e-commerce logistics. Among them, Shunfeng accounted for 35%, Shentong, Zhongtong and Yunda each accounted for 20%, and pulos accounted for 5%.
the intelligent express cabinet was initially given the mission of “the last mile of logistics problem terminator”, which is the most effective solution to solve the end delivery of express delivery, and finally becomes the landing bearing facility of online and offline integration in the community. If we take a longer-term view, the intelligent express cabinet will become an important entrance of the intelligent Internet of things and one of the community service entrances.
in this environment of wanton development of e-commerce, the use of express cabinets seems to become an important part of our daily life. Since the express cabinet entered the terminal market, it has been recognized by a large number of consumers with the advantages of flexibility, safety and convenience. Users feel the convenience and practicality of the express cabinet, and the express company also reduces the burden of delivery.
at present, the capital market’s recognition of express cabinets can also be seen from the financing amount of Fengchao. According to Tianyan information, since its establishment, Fengchao has obtained more than 5.5 billion yuan in four rounds of financing.
in May this year, SF holdings announced that China Post smart delivery will become a wholly-owned subsidiary of Fengchao network. This means that Fengchao and China Post smart delivery will join hands to seize the last kilometer of express delivery, and they are also the “combination” of top players in the domestic intelligent express cabinet industry.
as early as 2017, CIMC e stack, with the largest coverage in Shenzhen and the top five in China, also sold 78.24% of Fengchao’s shares at a price of 630 million yuan. According to Tianfeng Securities Research Report data, as of the first quarter of 2020, Fengchao’s cabinet machines accounted for about 44%, and China Post Express e-mail accounted for about 25%. After the acquisition, Fengchao’s market share will reach 69%.
the large-scale expansion of Fengchao is to use market share to suppress rivals and obtain the final discourse power. In the early stage of development, in order to attract customers, enterprises have launched a large number of preferential policies, so that the express cabinet has been in the state of free use for a long time.
according to the disclosed financial data of Fengchao, in 2016, Fengchao had a net loss of 250 million yuan; in 2017, it had a net loss of 385 million yuan; in 2019, it had a loss of 781 million yuan, more than twice that of 2017; in the first quarter of 2020, Fengchao had a loss of 245 million yuan.
the express cabinet is characterized by capital intensive, heavy assets and high cost. Including the cost of equipment, access to the site, maintenance and update, these are not small expenses. Only relying on the payment and advertising of express enterprises to ease the expenses is only a drop in the bucket, which can not achieve the substantive effect.
in the past two years, express cabinets have also begun to explore the profit model, gradually from free to charge. But in fact, last year, Fengchao has been trying to charge users, but the form is more euphemistic. It appears as a “reward” page and can be skipped.
not long ago, Fengchao express box operator Shenzhen Fengchao Technology Co., Ltd. announced the implementation of membership system, and charged for Express items stored in Fengchao express cabinet for more than 12 hours. Once the system was released, it immediately attracted users’ dissatisfaction and raised the banner of resistance. Some owners even combined with the property to expel Fengchao and refuse it to enter the community.
at that time, the epidemic situation was not over. In the case of non-contact distribution, the demand for express cabinets was still great. However, Fengchao’s untimely charging behavior brings users’ doubts and distrust to the whole logistics industry.
while the ebb and flow, Jingdong and rookies took advantage of the opportunity to make an article on the “last mile”. First, the Jingdong express cabinet is free of charge, and then the rookie immediately said that the sites all over the country will continue to provide free custody services for consumers, and will not induce or force consumers to pay.
in such a sharp contrast, Fengchao’s charging behavior after monopolizing the market has led to users’ unwillingness to pay. Jingdong and rookie also continue to develop their own logistics terminal industry, eating into the advantages of Fengchao in express cabinets. Users are more willing to take “no money” express delivery, imperceptibly resist, no doubt make the loss of Fengchao worse.
after realizing the resistance to the crisis, Fengchao apologized and made a clear adjustment. One is to change the 12 hour charge to 18 hours, which extends the time for overtime collection; the other is to force the courier to seek the user’s consent before the express is put into the cabinet.
in addition, the membership system remains unchanged, with unlimited storage times and 7-day long storage. However, for all users who have paid a single payment, as well as monthly and quarterly card users, one month’s membership will be given. In terms of service refinement, members will also have corresponding rights and interests, such as sending coupons.
Fengchao also cooperates with express delivery companies to encourage everyone to pick up the items as soon as possible. Among them, SF will take the lead in launching early pick-up and win red packets. Any SF package that is taken out within 2 hours will get a 2 yuan red packet, and within 4 hours will get a 1 yuan red packet.
although it seems that a lot of adjustments have been made, the ultimate goal is still to charge fees, but to make them more humane. Under the free attack of Jingdong and rookie, Fengchao didn’t let users buy after adjusting the policy. The 50 cents became the last straw that killed the camel.
as a result, Fengchao express cabinets in many communities have disappeared, replaced by Jingdong express cabinets. In addition, people are willing to pick up items at the rookie post station where the service is in place.
although it has been suppressed by peers and boycotted by users, will Fengchao stop here and gradually be buried in the historical stage? The answer is No. As far as the amount of Fengchao charges is concerned, most people don’t care about the mere 50 cents. In addition, for many migrant workers and school workers, Fengchao and all kinds of collection points are just needed.
although Fengchao still dominates the market at present, with Jingdong Logistics speeding up the offline layout and gradually improving the business ecology of rookie logistics, Fengchao needs to make more changes in the future market to satisfy users and benefit itself.
first of all, we should change our positioning in nature. Fengchao express cabinet is an all inclusive and convenient service facility. Its essence is service industry, not an accessory of express delivery industry. In the early stage, a lot of capital has been invested and a great deal of free services have been launched, which is to gain the trust of users while facilitating users, so as to stabilize their user groups.
secondly, the overtime charging time will be extended to more respect the needs of users. If you change the charge for overtime from 18 hours to 24 hours, users will be more adaptable. In fact, most people can accept its charging mechanism, but they don’t pay much for 18 hours.
once again, community business can be further developed. It’s old rival rookie station, now also began to develop laundry, group buying, recycling and other businesses. If Fengchao learns the model of rookie post station and builds community life service business, it can not only relieve the pressure of loss, but also shorten the distance with users and increase the sense of trust.
Finally, Fengchao should also give users higher discounts in the delivery service. Mail and pick-up integration, which will provide more convenient services for consumers, but also improve the stickiness of users. After all, sending mail can also benefit, and this Bofeng nest is not a loss.
in fact, what users reject is not Fengchao, but Fengchao’s charging behavior. From reward to charge, it is testing the bottom line of users step by step. And if a company initially liked to poke at the edge of the ball, then it may continue to do so in the future.
on the whole, Fengchao has indeed facilitated consumers and brought quality improvement to the whole industry. However, under the pressure of peer cannibalism, it is necessary to improve and optimize their own services. Whether we can keep the name of “the first brother of intelligent express cabinet” depends on its own development.