Lighting industry rose a lot and business pressure increased. However, the price of logistics in Chongqing has continued to lower prices recently, triggering industry shocks.
Event playback
On March 16, 2008, the Chongqing branch of Zhongshan Qinyue Logistics Co., Ltd. opened its business. The freight price is priced at 130 yuan per cubic meter. Immediately afterwards, the logistics companies in Chongqing, Shunda, Wanmei, and Shunlian, all fell from the previous 150 yuan per cubic meter to 130 yuan per cubic meter.
Two days later, Qin Yue Logistics once again reported a low price of 110 yuan per cubic meter. This move caused a big uproar in Chongqing. Many of Shunda, Wanmei, and Shunlian's old customers turned to Qin and Yue. In the ten days after the opening of the business, the freight volume of Qin and Yue increased from a dozen square meters on the first day to nearly two hundred square meters a day, which accounted for a quarter of Chongqing's total cargo volume.
According to relevant sources, the price of 130 yuan per cubic meter is already low profit, and the price of 110 yuan per cubic meter is already lower than the cost price. Qin Yue's measures to develop the market with low-price policies have caused many industry disputes.
Related cases
Case 1: Chengdu. On March 16th, 2006, Qin Yue successfully entered Chengdu with a lower price than other logistics companies and established a firm foothold. After the customer's stability, although it increased a certain price, it remained below the advantage of five to ten dollars for other logistics companies. It is now splitting Chengdu’s shares with Shunda and Sichuan and Guangdong. This case was used as one of the successful cases of Qin and Yue.
Case 2: Lanzhou. Qin Yue's strength in the northwest almost monopolized the Lanzhou market. In the absence of competitors, Qin and Yue increased the price from 130 yuan per cubic meter to 190 yuan per cubic meter in one move.
Market echo
Lights Mart brand chain chairman Wang Shunbo: First of all congratulations on Qin Yue logistics! Qin Yue Logistics opened a Chongqing special line, which is a good thing for our dealers. More logistics companies to join the Chongqing market to promote competition, making logistics companies better services, better prices, send and receive goods is also more convenient and quick.
Wei Jiejing, a Chongqing-based construction company, is a relatively large logistics company in Chongqing, but the price advantage between them is not obvious. The addition of new logistics providers will definitely bring fresh blood and input new activities for the industry. However, after the new logistics companies entered, whether their management was standardized, whether the prices were reasonable, and whether the arrival was punctual was a matter of concern to our distributors. I haven’t contacted Qin’s logistics. I have to work with them before I know. I hope more and more logistics providers can bring convenience to our distributors.
Good light and many boutique lighting city dealers: Competition is a good thing, because the reduction of logistics prices directly lead to lower dealer operating costs, can be said to bring real benefits for the dealer. However, if the competition is excessive, it will develop into an unreasonable state, and even hurt the logistics and transportation industry in Chongqing, which is not worth the loss for the entire industry.
A home brand logistics provider: As a logistics provider, my freight volume is quite large. With a savings of 20 yuan per cubic meter, it can save nearly 100,000 yuan in a year, which is certainly not a small sum. Although we have cooperated with Shunda Logistics for many years, and their staff are also very good friends, in the business process, we still need to open up our own personal feelings and focus on corporate development. And it is precisely because of this kind of good personal relationship formed through many years of friendly cooperation. Sometimes there are some minor damages, delays, etc., and it is not easy for them to solve them. The relatively unfamiliar Qin and Yue are better in accordance with the system. In this case I chose Qin Yue. However, I also clearly stated to both parties that the current cooperation is only a running-in phase between the two parties. If Qin and Yue services are not in place, or if the products do not arrive in time, I will re-select Shunda Logistics.
Qixiang Wholesale Market: A logistics company: I have been one of Shunda's major clients for many years and the cooperation is very enjoyable. Until now, most of my products are still sent through Shunda Logistics. In fact, we all understand that in doing business, doing business in price increases is much better than doing business in price cuts. Therefore, entering into Chongqing by Qin and Yue is an impact on Shunda, Wanmei and Shunlian. In such a situation, these large logistics companies should calm down and calmly treat them. In particular, Shunda, Wanmei and Shunlian, in the face of a sudden decrease in their share of shares, it is wise to stick to their own line and do a good job of service.
The main character responds
Chen Feng, Head of Qinyu Logistics Chongqing Branch: Qin Yu was fortunate to have local distributors' support after entering Chongqing, which made our work go smoothly. Now Chongqing branch has three taxis in place, with more than 20 employees. These more than 20 people are all old employees drawn from other branches. They are skilled and experienced. There are two cars to be deployed in the plan. The Chongqing market is still a new market for us. Therefore, we first adopt price cuts to form an impact on the market and attract customers. Of course, this is only an early special measure. Service is the ultimate competitiveness. We must do better than others regardless of whether others have done a good job.
Zeng Kangliang, head of Shunda Logistics Chongqing Branch: Qin Yue Logistics entered Chongqing. We respect them very much. However, they did not dare to agree to this approach. Everyone is well aware that as oil prices rise, the wages of workers are also rising sharply. Each worker's cost per cubic meter increases by more than one piece of money. With many hidden costs, profits have been continuously reduced. Faced with the price reduction measures of Qin and Yue, we will not continue to follow, because “three thousand killing the enemy and losing eight hundred†will not benefit everyone. What we can do is to strengthen internal integration and improve service quality. Qin and Yue entered Chongqing. For us, this is pressure and power. In this competition, we are very confident.
Shunda Logistics Chengdu Branch Chief Zou Changming: Shunda Logistics Chengdu Branch has been in Chengdu for ten years. When a reporter asked about the competition two years ago, Zou Changming said with a smile: “In fact, I am very grateful to Qin Yue Logistics! He told reporters that the original six logistics companies in Chengdu, Qin and Yue logistics into the future, through a series of measures, making several logistics companies withdraw from the Chengdu market, and ultimately only Shunda, Sichuan and Guangdong, Qin and Yue three to stay. After this reshuffle, Qin Yue has gained a firm foothold in the Chengdu market, and Shunda has also expanded its share of the Chengdu market. Zou Changming also said that they are thankful not only for the fact that Shunda has increased its market share, but also because the pressure brought by Qin and Yue caused them to transform themselves and improve their services, further improve themselves, and receive more customer support and trust.
forecast result
At the time of the reporter's deadline for writing, Qin Yue had already entered Chongqing for 12 days. How will this incident develop?
Huang Shangfang, general manager of Chongqing Oriental Lighting Plaza, said that the implementation of the price of 110 yuan per cubic meter of Qin and Yue logistics and still adhere to 130 yuan per cubic meter of Shunda, Wanmei, Shunlian is divided into two parts, this event may have three The results: First, the party that insists on 130 yuan per cubic meter exits, the one party with 110 yuan per cubic meter stays, the party is monopolized, has monopoly status, and controls the price at will, as in case 2 above; second, most of the merchants support 130 Yuan per cubic metre, making logistics providers appreciate and prepare for business, strengthen services, maintain the balance of the past, and 110 yuan per cubic meter of one side withdraw from the Chongqing market; third is 110 yuan per cubic meter of the party and 130 yuan per cubic meter One side survives at the same time, each exerts its advantages, forms a balance, and waits until the new competitors enter the Chongqing market to break the balance and reshuffle the cards, as in Case 1. Three kinds of results have both advantages and disadvantages. The best result depends on the joint efforts of merchants and logistics companies.
Reporter's notes: The discussion on this incident continues. Regardless of the method adopted by Qin Yue Logistics, this is only part of the competition. Currently, it is an extremely special period for all logistics companies in Chongqing.
Qin and Yue can repeatedly enter the markets that others have already entered for many years, relying on not only his price strategy. As Cai Jianzhong, General Manager of Huatai Chengdu Operations Center, said: “I have been very happy since I cooperated with Qin and Yue, because their services are impeccable. Only the services they provide for direct delivery to warehouses have reduced me a labor cost. ."
It seems that who wins in this competition will depend on service. In the interview, the reporter saw that, regardless of the positions of logistics companies such as Qin Yue, Shunda, Wanmei, and Shunlian, the attitude towards service is strikingly consistent. Next, see who can do better.
Editor's Comments: Why can Qin-Yue Logistics have repeatedly entered the inherent market of others for many years and repeatedly "got it"? Is it only his price strategy? If the market is impeccable, the price is bound to be weak.