On Friday (3 December), China’s State Post Bureau (SPB), the regulator for postal services in China, summoned key express delivery companies for a dialogue.
The meeting, chaired by SPB Director General Ma Junsheng, saw the participation of chairmen or CEO of six companies: SF Express, STO Express, ZTO Express, Yunda Express, YTO Express, and J&T Express. They collectively represent more than 80% of China’s express delivery market, according to Momentum Works’s latest “Who is J&T” report.
In our opinion, these are the few key messages of the dialogue:
- “The industry is huge in scale but the quality is not high; it is fast in growth but does not have structural advantages.”
- Express delivery companies need to put more emphasis on the quality of growth, focus on structural optimisation, and fix the weaknesses/shortcomings.
- The market participants need to serve the economy, the businesses and consumers. They need to better serve the flow of the economy.
- The market participants need to be able to provide customised, integrated and global services – and transition into full fledged, integrated logistics providers.
- The market participants need to ensure the stability of their agent/branch network, and protect the legal rights of delivery couriers.
- The market participants need to resolutely oppose excessive competition as well as any activity that damages the interests of employees and the industry.
- The market participants need to strengthen their rural networks, penetrate into manufacturing supply chain, and explore global markets with RCEP.