The market in Hong Kong, China, is unprecedentedly popular this year.From the boom in catering retail in the first half of the year to the recent intensification of competition in instant delivery following the entry of Meituan, competition and busyness are returning to this hot spot.
Nowadays, the popularity in Hong Kong has spread to another field - logistics. 淘宝菜鸟集运
Recently, Cainiao said that it has taken the lead in launching the "next-day delivery, late arrival will be compensated" service in Hong Kong.This means that in the future, packages sent from the Cainiao container warehouse in the mainland can be delivered to Hong Kong's pick-up points or users the next day at the latest; if they cannot be delivered within the promised time limit, Cainiao will also take the initiative to compensate each order up to 60 yuan.
This express delivery service, which residents in first- and second-tier cities in mainland China have long enjoyed, has finally benefited Hong Kong residents this time.
In addition to Cainiao, several other express delivery companies are also targeting Hong Kong as an international hub.SF Express, which started in the Pearl River Delta urban agglomeration and Hong Kong's cargo and mail exchanges, has successively launched cold freight distribution, pet supplies specialization, airport luggage check-in, campus logistics solutions and other shipping services in Hong Kong this year to improve the logistics experience in response to user needs; and relying on JD.com Jingdong Logistics, an e-commerce platform, established a warehouse in Hong Kong in 2014; express delivery dark horse Jitu is not willing to be left alone, joining the competition and launching consolidated transportation for Hong Kong users in 2022 (concentrated transportation refers to the centralized transportation of an item from mainland China) to serve other overseas regions).
It is no exaggeration to say that Hong Kong is setting off a logistics war.
On the one hand, due to the slow development of the e-commerce market in the past ten years, Hong Kong's logistics industry has not yet entered the fast lane of development. The service mechanism is far behind that of the mainland. Hong Kong's logistics industry urgently needs to speed up its development; on the other hand, gradually this year The resurgent consumer market and economic vitality have also made Hong Kong increasingly an important gateway for many mainland companies to open up the road to globalization. The continuous strengthening of economic exchanges between the two places has also boosted the rapid improvement of China-Hong Kong logistics.
Therefore, this logistics competition seems to be a competition of services between different logistics companies; in the long run, it is actually an accelerated upgrade of Hong Kong's logistics market.
In Hong Kong, a highly prosperous free port and international metropolis, the e-commerce market is booming day by day and its scale is becoming increasingly impressive.
According to Statista, Hong Kong's e-commerce market revenue is expected to reach US$20.32 billion in 2023, with a user penetration rate as high as 80.9%; about 52.4% of Hong Kong citizens purchase services or products online every week.
Among them, Taobao platform is the mainstream choice for Hong Kong users.Data shows that in the first half of this year, Cainiao’s consolidated parcel volume in Hong Kong increased by more than 20% compared with the same period last year."Reverse overseas shopping" is widely favored in Hong Kong. More and more Hong Kong citizens are beginning to focus on high-quality and low-priced mainland products when purchasing daily necessities.
The rise of e-commerce naturally relies on the transportation capabilities of logistics.In fact, some logistics service providers have also gained insight into the needs of Hong Kong residents and have begun to provide convenient services such as consolidated shipping orders and self-pickup stores. They have even designed targeted policies for returns and exchanges arising from cross-border "overseas shopping". Serve.
The so-called "consolidation transportation" is a transportation method commonly chosen by Hong Kong e-commerce users when using mainland platforms to shop online.Users purchase multiple different products from multiple platforms and merchants, and can transport multiple small batches of products together through consolidated shipping.In this process, logistics needs to complete the entire relay process of "first-leg collection-delivering goods to the container warehouse-consolidation and packaging-customs clearance-end delivery", which not only reduces logistics costs, but also improves logistics timeliness.
However, irregular container shipping services are continuing to harm the interests of Hong Kong users.
Expensive delivery fees and irregular charging standards are a major pain point for Hong Kong’s container shipping.Luna, an international student studying in Hong Kong, buys daily necessities from e-commerce platforms on a daily basis. One time she browsed Xiaohongshu and discovered that a container shipping company used "regardless of volume" as a promotional selling point, and the cost was low.So she chose this company for delivery.
But after using it, she discovered that when she actually placed an order, the first-load billing standard was completely different from what was advertised; and the door-to-door delivery fee was charged by default. Even if she chose a delivery point to pick up, the delivery fee was not reduced. ."The most deceptive thing is that it's not 'volume-based' as they advertise. Not only does it charge a volume fee, but the calculation of this fee is not clear and transparent. In short, it gives you the feeling that it is very cheap but is actually full of traps. ." Luna said.
In addition to false propaganda, unclear charging standards also make many Hong Kong consumers passively accept high shipping costs.
Mr. Chen, a Hong Kong citizen, purchased a table on an e-commerce platform, but when he placed the order, the platform did not tell him how much shipping he would need to pay.After the table was shipped to the shipping warehouse, Mr. Chen discovered that the shipping cost was far higher than what he had previously paid for the same volume of products on Taobao.And if he chooses to return the goods, he will also have to refund the first-way shipping fee for the goods in the mainland.In a situation where he was "riding a tiger but couldn't get off", he was forced to pay unreasonable fees.
In addition, slow delivery is also a major drawback that affects the shopping experience of Hong Kong consumers.When Zhang Chang, an international student in Hong Kong, was shopping on e-commerce, he chose a shipping platform that offered "three-day delivery".But after actually paying for the order, he discovered that it took the logistics company two days to deliver the goods to the container warehouse. Then the logistics status was updated slowly, and there was only a vague word "arrived" and no delivery phone number to contact.In the end, Zhang Chang waited for two weeks to receive the consolidated package.
Moreover, the so-called "now and now" in Hong Kong's container shipping industry usually refers to the arrival of warehouse-delivered packages in Hong Kong; however, for consumers, the contract is not fulfilled until the package reaches their hands or the pick-up point.Only the Cainiao family has achieved "next-day delivery" in the true sense.
In addition, damaged and frequently lost items in consolidated packages are also extremely troublesome to Hong Kong e-commerce consumers.
Linda, who lives in Hong Kong, once received a consolidated package and found that important items were missing. After contacting the customer service staff, she found that the other party asked for a list of items and values when placing the order, or a video of the sender packing the items. Prove that the items in the consolidated package are indeed lost, otherwise no compensation will be paid.Because Linda did not fill out the item list, thousands of dollars worth of lost goods were in vain.
There are also many consumers who find that the goods they purchased were completely damaged during the transportation, or even bitten by rats. However, when applying for compensation, the shipping company always blames other reasons such as poor e-commerce packaging, force majeure, etc. Very few consumers can Obtain corresponding compensation.
Hong Kong consumers who have been suffering from container shipping for a long time have even formed a "Hong Kong Container Shipping Sufferers Group" on Facebook to share their bad container shipping experience, rights protection strategies and lightning protection experiences in the group.
Industry insiders analyze that over the long term, the container shipping industry has been a mixed bag, with many problems such as uneven service quality, irregular charging standards, lost and damaged packages, etc., which have become bottlenecks in the development of the container shipping industry.
Pain points represent needs and the decisive link in the competition.Whoever can provide Hong Kong consumers with better and safer services and more convenient and faster delivery will be able to win unexpectedly in Hong Kong's logistics melee.
In response to this market pain point for Hong Kong consumers, many logistics companies of different sizes and services have launched China-Hong Kong container shipping services.
SF Express, founded in Shunde, Guangdong in 1993, has taken advantage of the "Southern Tour Speech" and the acceleration of reform and opening up to develop and grow through the increasingly frequent exchange of letters and goods between the mainland and Hong Kong.From its inception, Hong Kong has become SF Express’s home base.So far, SF Express has launched multiple services for local, mainland and international shipping in Hong Kong.
In terms of logistics infrastructure, SF Express has built an Asian logistics center in Tsing Yi Island, Hong Kong, and is equipped with comprehensive warehousing and distribution facilities.Asia Logistics Center is adjacent to Container Terminal 9 and Stonecutters Bridge, connected to major arterial roads, and can reach major commercial areas within 30 minutes.In addition, SF Express has deployed more than 800 SF self-service lockers throughout Hong Kong, located on the outlying islands of the Kowloon and New Territories, major hut villages, housing estates, shopping malls and industrial buildings, etc., making it convenient for Hong Kong citizens to send and pick up goods at any time.In terms of delivery, SF Express has also established a local delivery fleet in Hong Kong, covering the entire territory of Hong Kong including outlying islands.
However, the consolidation service provided by SF Express in Hong Kong also faces an insurmountable dilemma: Since SF Express is an independent third-party logistics platform, when shopping, Hong Kong e-commerce users need to first pay the freight for mailing the goods to the SF Express container warehouse, and then pay for the shipment from the container. Shipping fee from warehouse to Hong Kong.
Compared with Taobao e-commerce official Cainiao Consolidation, which allows one-click ordering and one-time payment, SF Container Service not only has a relatively higher price, but also has a longer time cycle.In terms of after-sales services such as cross-border returns, the operation of using SF Express is also more cumbersome and complicated.
JD Logistics, which also provides container shipping services in Hong Kong, although it is backed by an e-commerce platform, does not yet have end-to-end full-link coverage capabilities in Hong Kong. It still needs the support of partners and suppliers to deliver packages. into the hands of users.This makes it difficult to control the service quality of last-mile delivery.And judging from the number of self-pickup points in Hong Kong, there is still a big gap between JD.com and Cainiao and SF Express, and it is far from fully covering Hong Kong’s central business district and core residential areas.
Compared with the SF Express model and the JD model, Cainiao chose to be deeply rooted in the local market in Hong Kong. It not only cooperates with Alibaba's business flow to invest year by year and long-term layout, but can also undertake container logistics orders from other e-commerce platforms.Since 2018, Cainiao has built a self-operated logistics network covering the entire territory of Hong Kong to provide Hong Kong residents with full-link container logistics services.
This self-operated logistics network includes 4 container warehouses in Guangdong, 11 distribution centers in Hong Kong, more than 300 sets of self-pickup lockers, more than 450 rookie self-pickup points, as well as China-Hong Kong trunk lines and local self-operated fleets.The full-link consolidation service allows Hong Kong consumers to purchase a wide range of e-commerce products from the mainland with peace of mind.
Moreover, Cainiao’s express delivery network covering the entire Hong Kong is flexible and suitable for sudden package peaks during e-commerce sales.During the Double 11 and 618 promotions, Cainiao can aggregate resources in a short period of time and dispatch more warehouse space and operating personnel to cope with the peak volume of the promotion. After the promotion, it can quickly release these production capacity resources and effectively control cost.
For example, on 618 this year, Cainiao sent out logistics red envelopes worth more than 7 million yuan to Hong Kong users, which was the largest promotional event in Hong Kong history.During the first wave of the “618” Shopping Festival (from May 31 to June 10), Cainiao’s user growth and order volume in Hong Kong increased by double digits compared with May’s daily average.
The person in charge of Cainiao Container Line's Hong Kong station said in an interview with Hong Kong media that Cainiao is determined to enhance its brand image in Hong Kong this year. All front-line Cainiao employees have changed into the latest Cainiao uniforms, and container bag packaging and tape are painted in Rookie blue to create a clearer Cainiao image. The brand presentation hopes to bring a more comfortable and secure user experience to Hong Kong users and display a more professional and tidy image.
With the upgrading of business flow and services, Cainiao Container Line has also continued to recruit troops and expand its scale in Hong Kong.
Hong Kong actor Kaiyu Ho, who has been in the Hong Kong entertainment industry for more than 20 years and has appeared in more than 40 TVB dramas, chose to join Rookie in March 2022 after gradually withdrawing from the entertainment industry.In just over a year, He Kaiyu opened 4 rookie pick-up points in a row.During this year’s 618 promotion, the average daily package volume at the self-pickup points joined by He Kaiyu was three times higher than usual.
For some elderly people who are unfamiliar with e-commerce shopping, He Kaiyu will also teach them how to place orders and pay. Her enthusiasm and the convenience of newbies have gradually changed the "indifference" and "poor service" of the surrounding neighbors towards the self-pickup points. inherent impression."He Kaiyu Men" allows more Hong Kong citizens to experience more comfortable and secure logistics services.
Rookies who insist on long-termism challenge SF Express, which has been operating in Hong Kong for more than 20 years, and catch up, gradually rewriting Hong Kong's logistics landscape.
Cainiao's self-built and self-operated operation model in Hong Kong with deep local roots can provide end-to-end one-stop cross-border supply chain services.
For Hong Kong consumers, this model can save transportation costs, shorten logistics time, ensure logistics quality, penetrate the physical distance between China and Hong Kong, and achieve the ultimate service that is basically the same as shopping in Hong Kong and in the mainland.
The reason why Cainiao is able to launch the "next-day delivery, late arrival will be compensated" service in Hong Kong stems from its confidence in its own logistics system and absolute strength.
In order to achieve this, Cainiao, on the one hand, uses digital intelligence "soft power" to empower the construction of logistics channels: In 2022, Cainiao launched the CAINIAO APP in Hong Kong to provide consumers with cross-platform order combinations, exclusive customer service and other services. Currently, it has been downloaded Over 200,000, the proportion of non-Taobao orders is increasing month by month; Cainiao has deployed software and hardware capabilities such as smart order consolidation, smart distribution systems, and digital supply chain systems at core nodes such as container warehouses and distribution centers. It can effectively shorten the logistics timeliness and improve the delivery rate.
On the other hand, Cainiao continues to invest in infrastructure "hard power" to open up the entire logistics link between China and Hong Kong: the four container warehouses in Guangdong have intelligent logistics equipment including digital assembly lines, gantry racks, cross-belt sorters, PTL, IoT and other intelligent logistics equipment; 300 Multiple self-pickup lockers and more than 450 rookie self-pickup points penetrate the streets and alleys of Hong Kong; China-Hong Kong trunk lines and local self-operated fleets can ensure the timeliness and safety of the last mile of delivery.
This logistics network that combines strength and softness has allowed Cainiao, the "Volume King", to not only "rectify" China-Hong Kong Container Lines. In the future, Cainiao's development blueprint in Hong Kong will also expand to other business sectors.Currently, Cainiao is already piloting local B2C merchant delivery in Hong Kong.
Although the business world is constantly changing, its underlying logic and operating rules remain unbreakable.Only with more solid investment and more extreme services can we ensure that we will come out on top in the fierce competition.
In this sense, Cainiao, who was the first to launch the "next day delivery, late arrival will be compensated" service in Hong Kong's container shipping industry, is becoming a new leader in Hong Kong's logistics industry.
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