Why did SF Express start doing takeout?

1. SF Express has been in logistics for many years and has natural advantages.

After more than ten years of development, SF Express has now become a "giant" in China's express delivery industry, with outlets and distribution networks covering the country. Whether it is the logistics system or the supply chain, it is Meituan Hungry. Nothing can compare to it.

2. Aim at the neglected takeout area of ??"group meals".

Different from the main direction of Meituan Ele.me, “group meals” is SF Express’s core goal, as can be seen from its slogan of “focusing on corporate meal ordering, providing collective reservations and ordering, and centralized delivery” See it.

3. Plan for the long term, not just on a whim.

In fact, in October last year, SF Express launched "Intra-city Express Delivery", extending its logistics reach to the catering industry. Its involvement in B-side takeout also seizes the need for catering companies to build their own takeout channels. .

4. Meituan Ele.me’s development is slightly sluggish, and friction with merchants has escalated. In addition, due to the impact of the epidemic, operations have been restricted, giving SF Express an excellent opportunity to disrupt the situation.

5. SF Express’s ambitions

SF Express’s current market value has exceeded 200 billion. Of course, it is not willing to just do express delivery. Although the competition in the food delivery industry is fierce, it is still profitable. In addition, maybe As SF Express claims, "I can deliver anything within three kilometers." This express delivery giant is working hard to expand its territory to satisfy its larger ambitions.

SF Express entered the food delivery industry by acquiring the supply chain of McDonald’s and began to test the waters of delivering McDonald’s, called SF Express within the city. In the early stage, it relied on this to correct internal faulty parts and express delivery operations in the same city. After the epidemic this year, the demand for meal delivery and intra-city delivery has increased. SF Express has also reserved intra-city delivery capabilities in the early stage, so it is logical to join the takeout competition.

Unexpectedly, SF Express quietly delivered the takeaway.

Recently, SF Express launched a "Fengshi" platform in the same city, focusing on meal delivery services for the corporate employee market. Whether it is a corporate group meal or an individual user, you can place an order for takeout on Fengshi. Currently, nearly a hundred well-known catering companies have settled in Fengshi, including Pizza Hut, Dicos, Real Kung Fu, Yoshinoya, Domino's, Yunhai Cuisine, Xibei, Zhou Hei Ya, etc.

At this point, SF Express has officially entered the field of food delivery. Affected by the epidemic, "dine-in" is restricted, corporate group meals have exploded, and Fengshi emerged as the times require. It is worth mentioning that although Fengshi’s delivery fee is high, it focuses on low points. Not long ago, the Guangdong Provincial Catering Service Industry Association accused Meituan of exorbitant takeout commissions that overwhelmed many catering merchants. It is self-evident that the food is delicious.

SF Express is already a giant in China’s express delivery industry, with its latest market value exceeding 200 billion. However, Wang Wei is obviously not willing to just be a "express delivery person." With a nationwide network of outlets and distribution, SF Express is ambitious. Its SF Express intra-city network has begun to deploy catering, supermarkets, medicine, fresh food, services, etc. in first- and second-tier cities.

Takeaway is just a small test of SF Express. This express delivery giant is planning a bigger blueprint - within three kilometers, I can deliver anything.

Quietly entering the world of food delivery: This time, SF Express competes head-on with Meituan and Ele.me

I thought that Meituan and Ele.me were firmly entrenched in the world of food delivery, but I didn’t expect that they would be SF Express disrupted the situation.

The “disruptor” is Fengshi, which is a corporate group meal platform launched by SF Express in the same city. It mainly provides meal delivery services for the corporate employee market. It focuses on corporate group meals, provides companies with exclusive discounts, and brings together high-quality big-name catering. , strictly controls dining safety, can provide enterprises with collective reservation and ordering, centralized distribution, and contactless safe meal delivery services, and can effectively solve the dining problem of corporate employees.

The experience of the investment community has found that on the homepage of the "Fengshi" mini program, there are listed the "Takeaway Ordering" function that has been launched and the "Dine-in Ordering" function that will be launched soon. Judging from the "Takeaway" page, Fengshi aims to cater to all types of users. Among them, enterprise users can use "Calendar Ordering" to select a specified date to reserve related meals; individual users can also place orders by themselves on the basis of meeting the delivery requirements.

Taking Shanghai as an example, the delivery fee for small-amount orders is about 5 yuan, while for cake shops (where the unit price of a single product exceeds 200 yuan), there is no delivery fee. In addition to takeout delivery, some brands also support in-store pickup.

By first grabbing merchants and then users, SF Express has even started a game of “subsidy price war”. Fengshi has launched the "Share 5 million" campaign. Users can recommend companies through the "Invite Companies to Settlement" and "I Want to Recommend Companies" pages. The rewards are very attractive - after the company successfully settles in, the recommender will receive a reward of 1 yuan. If the recommended company spends 1,000 yuan on Fengshi before June 30, the recommender will also receive an additional 500 yuan reward.

Not only that, in order for the platform and merchants to be better recognized by the public, Fengshi also launched the "Become a Distributor" activity. Users can cooperate with merchants to become distributors, and share the promotion page with friends to get Commission, commission is transferred directly to WeChat wallet.

According to the information on the mini program page, Fengshi has acquired Dicos, Pizza Hut, Chaoyixing, Boat Song Fish Dumplings, Dacheng Xiaoai, Daflan, Dao Xiaoman, Douyuexiaomeishin, Fanjie, Fenjie, etc. Nearly 100 chain brands including Shi, Fuki, Fook Selection, Unkai, Yoshinoya, Lao Niangjiu, Ajisen Ramen, Xibei, Zhen Kung Fu, and South Beauty have settled in.

Why did express delivery giant SF Express start a food delivery business? Affected by the epidemic, food-related matters have become a troublesome matter for many employees of companies that have resumed work. SF Express once told the media that it entered the catering takeout industry just to help everyone solve the problem of eating.

The epidemic has given rise to new business opportunities: in the trillion-dollar group meal market, does SF Express want to be the leader?

A sudden epidemic gave SF Express a sense of new business opportunities.

During the epidemic, eating safely and reassuringly is a major priority for companies that resume work. However, traditional offline "canteens" cannot operate, which has given rise to a new model of group meal delivery. At the same time, local governments have also proposed to actively encourage and promote group meals to provide support and guarantee for companies to resume work normally. For example, Beijing, Shanghai, Guangdong and other places have announced a list of reservation-based online meal ordering companies, advocating that catering companies should package and supply meals according to the requirements of the meal-sharing system.

This gives hope to catering companies that are teetering on the edge of life and death. For a time, corporate group meals became a hot topic that many catering companies competed for. Many catering companies, such as Zhen Kung Fu, Lao Xiang Chicken, Xibei Noodle Village, Yunhai Cuisine, and Hefu Lo Noodles, have entered the field of group meals. Some brands even rely on group meals to support more than half of their orders.

Food delivery platforms have also seen huge demand for group meal-style food delivery. As early as mid-February, Meituan, Ele.me, etc., jointly with local governments, industrial parks and other institutions, launched the "Safety Direct Supply of Work Meals" and "Safety Delivery of Corporate Group Meals" respectively, and joined hands with many leading catering brands such as Pizza Hut to Provide contactless delivery services for corporate employees after they resume work.

China’s huge group meal market is beginning to emerge. According to iiMedia Consulting statistics, China's group meal market size reached 1.5 trillion yuan in 2019, accounting for 33.23% of the entire Chinese catering market. It is expected that the size of China's group meal market will increase by 12.67% in 2020, when the total size of China's group meal market will reach 1.69 trillion yuan, and the proportion of the catering market will increase to 35.65%. A rough estimate is that the volume of group meals is about 6 times that of online takeout.

Although it is considered the "last blue ocean" for Chinese catering, the current group meal market is still in a state of "highly fragmented, with many small businesses", and giants have not yet been formed. According to data from the China Cuisine Association, 99% of the companies in the entire industry have annual revenue of less than 100 million yuan. The total operating revenue of the top ten enterprise groups in the group meal industry exceeds 55 billion yuan. The market concentration ratio of the top ten is about 5. This data Far lower than that of countries such as Europe, the United States, Japan and South Korea.

The plate is big and no one dominates it. This may be one of the reasons why SF Express is targeting group meals. A boss who can do express delivery may also be a boss who can take out group meals.

Wang Wei’s ambition, SF Express’s business territory

After more than 20 years of establishment, SF Express has become a giant in China’s express delivery industry and no longer wants to be just a “delivery company”.

Since its listing in February 2017, SF Express has changed. It is unwilling to confine itself to its existing business areas. Wang Wei once emphasized to company employees: Selling labor to move goods is not SF Express’s ultimate destiny. Therefore, it is imperative for SF Express to try new, sustainable, and more profitable value-added services.

From convenience stores, unmanned shelves, fresh food delivery, smart logistics, financial services to industrial clusters, to cross-border e-commerce "Wow wow"... repeated battles and failures, Repeated defeats and battles. Relying on its strong express network and channel capabilities, SF Express was once ambitious.

Some people in the industry once believed that Wang Wei might be able to compete with Jack Ma by leveraging his strong distribution network system and channel operation capabilities, and then connecting online and offline platforms. But contrary to expectations, SF Express could not compete with Alibaba. The "mission that must not fail" that Wang Wei insisted on ended in failure.

In April 2019, SF Express’s community fresh food supermarket brand “SF Select” announced that it would close offline stores nationwide. From the launch of the online shopping platform SF Select in 2012, to the launch of the offline physical store "Hey Store" in 2014, to the unification of online and offline stores and the name of the offline store "SF Select" in 2016, Wang Wei's dedication to new retail Stopped in 2019, SF Express’s convenience store dream has come to an end.

When SF Express was repeatedly struggling in fresh food, retail, and e-commerce, the situation in China's express delivery industry suddenly changed, and princes emerged from all directions. The three links and one expansion grew rapidly, leaving SF Express behind in terms of speed; JD Logistics also launched a personal logistics business with high profile, using the "e-commerce warehousing" model to overtake others. In the entire express delivery industry, the era known as "SF Express and others" has quietly passed away.

The fierce pursuit of its peers has doubled SF Express’s pressure and quickly entered e-commerce logistics. "SF Express is in trouble if it does e-commerce logistics now. If it doesn't do e-commerce logistics, it may be in trouble in the future." Wang Wei emphasized in an internal meeting. If you can’t build an e-commerce business yourself, you’ll have to rely on others to do it.

SF Express chose to cooperate with Vipshop and lowered its dignity to join the "price war". In May 2019, SF Express launched a new business for e-commerce customers - special discounts. In December, it teamed up with Vipshop to increase the delivery link and received more than 500 million orders from Vipshop throughout the year.

The effect is significant. Amid the epidemic, in February this year, SF Express' operating data bucked the trend, with express business volume increasing by 118.89% year-on-year. At the same time, SF Express’s cumulative market share in January and February this year surpassed Yunda, YTO and STO for the first time in five years. CICC expects that while continuing to tie up with Vipshop, SF Express may continue to expand its territory in e-commerce.

In order to stabilize the market share it finally regained, SF Express still dares not neglect and must find a differentiated path. After possessing a huge logistics system and mature channel operation capabilities, SF Express's entry into the group meal delivery business seems to be a natural progression.

Today, SF Express, with a market value of 200 billion, is no longer a simple express delivery company, and its boundaries have begun to blur. After constant "trial and error", I believe Wang Wei's ambition is not limited to group meal takeout.

This is normal. After all, the current urban population in the country is almost 860 million. Most of them choose to order takeout when eating, so the market demand is very large, and this number is still there. It’s growing rapidly, so it makes sense for SF Express to enter the food delivery industry.

After Baidu Waimai was wiped out, the two giants Meituan actually dominate the world. Are you hungry? In fact, it is not doing well. A third party will definitely appear. In China, it is impossible for two to appear. At least three. This is the Chinese model. I hope SF Express can find a way out that suits it. Come on!

Hey SF Express! Come quietly, leave quietly, and don't take away a single cloud. SF Express’s cross-border costs have been too high in recent years.

The epidemic period will not end instantly. SF Express saw business opportunities and made an instant decision to expand the takeout market. Its thinking and logic are clear and it shows good development prospects.

Why does SF Express cross-border food delivery circles?

The financial report shows that SF Express’s revenue in 2019 was 112.193 billion yuan, a year-on-year increase of 23.37%; the net profit attributable to shareholders of listed companies was 5.797 billion yuan, a year-on-year increase of 27.23%; SF Express’s express delivery volume reached 48.31% billion votes, a year-on-year increase of 25.84. The average daily express delivery volume is about 13.23 million votes.

SF Express has made outstanding achievements in the field of express delivery over the years. Why not focus on express delivery and come to the food delivery field to seize food from the tiger's mouth?

1. Competition in the express delivery industry is fierce

In the express delivery industry, there are three links and one link. Together with SF Express and BEST, the six giants account for 80% of the market share. The degree of industry concentration is relatively high. High, but the direct competition between these six giants is very fierce.

SF Express mainly occupies the high-end market, ranking first in the industry in terms of revenue, but its market share is far lower than that of other competitors, especially ZTO, which has ranked first in market share for four consecutive years.

With the ongoing price war and other competitors that may enter the market at any time, it is a reality that express delivery companies must face to be prepared for danger in times of peace and to take precautions.

SF Express also seizes the mid-to-low-end market through the acquisition of Pinjun Express. Since SF Express can enter the mid-to-low-end market, other competitors may also enter the high-end market.

During the epidemic, SF Express actively fought against the epidemic and resumed work and production. Its business was basically not affected. People did not go out, and the demand for online shopping was greater.

In the first quarter, SF Express’s performance was not surprising. SF Express’s net profit in the first quarter was 907 million yuan, a year-on-year decrease of 28.16%.

Revenue increased by 39.59%, and the express delivery business completed 1.72 billion tickets, a year-on-year increase of 77.14%, but net profit fell by nearly 30%.

Increasing revenue without increasing profits may be an important reason why SF Express seeks to cross-border.

In the capital market, SF Express’s market value is now 208.1 billion, which is still far from its peak of more than 300 billion in 2017.

2. SF Express has been trying to cross-border

SF Express has always had cross-border ideas, especially the e-commerce dream, and has also put it into practical actions.

As early as ten years ago, in August 2010, SF Express launched its first e-commerce platform, SF Express E Business District, which mainly sells food, as well as a small amount of 3C products, and also launched supporting products. Payment platform, SF Express.

I got up early and rushed to a late meeting. In less than a year, it ended in failure.

Since then, SF Express e-commerce has been trying Heike, SF Select, SF Overseas Taobao, and Fengqu Overseas Taobao, but in the end they have not been successful.

Some people say that express delivery is divided into two types, SF Express and others.

In the field of e-commerce, SF Express can be said to be "as separate as a mountain".

3. Entering related fields

After attempts at e-commerce have been unsatisfactory, SF Express began to set its sights on fields similar to express delivery.

The first is the express cabinet. Fengchao Cayman, which has been causing a stir in the past few days due to the charging incident, is a company owned by SF Express.

The shareholding entities directly or indirectly controlled by Mingde Holdings hold 36.54 shares, and Mingde Holdings holds 1.25 shares. Mingde Holdings is a company owned by Wang Wei, the founder of SF Holdings, which means that Fengchao It is still an SF Express company.

However, Fengchao’s performance is not satisfactory. In 2019, it suffered a loss of 780 million yuan. In the first quarter of this year, it continued to lose 245 million yuan.

However, there is still a lot of market space for express delivery lockers. Unlike e-commerce, it is an area related to express delivery and may be profitable in the future.

After express delivery lockers, SF Express is now beginning to test the takeout market.

SF Express has its own platform and couriers, and has always established itself in the industry with fast speed and good high-end services. This is the foundation and advantage for it to enter the food delivery circle.

Not long ago, the Guangdong Catering Association jointly complained about Meituan’s excessive commissions and alleged monopoly. The market generally believes that this is because there are two dominant companies in the food delivery market and there is a lack of competition.

Now, SF Express is here, and the first thing to test the waters is corporate group meals, so the competition is not very big.

As a consumer, I absolutely support SF Express joining the food delivery platform. At least there is one more choice.

Merchants probably also welcome it, and there is one more choice.

Conclusion: Mobile Internet has become a huge back wave and is unstoppable. The Internet's transformation of traditional enterprises is quietly happening in the process of collision and integration, and cross-border cooperation between enterprises and industries will be far-reaching.

Evergrande builds cars, Sinopec sells vegetables, Vanke raises pigs, SF Express delivers food...

If enterprises want to survive and survive better, cross-border crossing will become a new normal. .

First, the market demand is huge. During the epidemic, community delivery became a hot spot, with large and small group purchases springing up. Takeout is more deeply embedded in people’s lives. To put it simply, let’s use myself as an example. For example, recently when I asked where I wanted to go to eat, my parents would always say to order takeout. It would be safer to eat with fewer people at home. .

The second is SF Express’s brand advantage. As a leader in the express delivery industry, SF Express has obvious brand advantages. It has both hard and soft power to enter the express delivery industry.

As one of the top express delivery companies in China, SF Express has always been famous for its "fast speed and high safety". Even when it comes to sending important items, colleagues recommend "Send with SF Express", which shows that SF Express has a good reputation. Because of this, many people have imagined the scenario of SF Express “bringing its talents to the food delivery industry”.

SF Express named this takeaway product "Fengshi", which means "enough food and clothing", which can be regarded as a unique "fengshi".

According to the research information, Fengshi’s current focus is still on group meals, that is, it focuses on meal delivery services for corporate employees.

Group meals are considered by the industry to be the last blue ocean in the catering industry. Since 2018, my country’s group meal market has been growing at an annual rate of 3%. But whether it is Meituan or Ele.me, there have been few services that specialize in corporate group meals before. They provide services more for individuals and small groups. Especially during the epidemic, being able to order safe and delicious takeaways for all employees in the company is what many bosses need.

On the other hand, from the perspective of risk control: group meals have higher requirements for food safety and distribution capabilities. After all, hundreds of takeaways are delivered at the same time. This amount is not something that Meituan’s guy can fit in one takeout box.

It just so happens that the SF Express guy has rich experience in "delivering large goods" and his transportation capabilities are far superior to the average Meituan guy from Ele.me. If they don’t provide group meals, who will?

A very interesting point is that according to the person in charge of Fengshi: "Fengshi" was originally SF Express's internal ordering platform. It was only recently that SF Express CEO made a big move and decided to promote Fengshi nationwide. It can be seen that SF Express will never let go of the huge cake of group meals.

On the surface, "Fengshi" is an enterprise ordering platform created by SF Express; on a deeper level, SF Express uses its own advantages in distribution, channels, online operations, etc. to The next food and beverage traffic entrance to grab. If it fails, it will be regarded as a test of water; but once it succeeds in the field of food delivery, SF Express's size will increase by several orders of magnitude.

Since its establishment more than 20 years ago, SF Express has become a giant in China’s express delivery industry, and it no longer wants to just “deliver express delivery”. SF Express has changed since it went public in February 2017. It is unwilling to confine itself to its existing business areas.

Therefore, it is imperative for SF Express to try new, sustainable, and more profitable value-added services.

From the launch of the online shopping platform: SF Express in 2012; to the launch of the physical store "Heyke" in 2014; to the unified naming of offline supermarkets as "SF Express" in 2016, it can be said that Wang Wei has always been We are not willing to let SF Express be just a "express delivery" company.