Ten Years of New Economy|Interview with Cainiao CEO Wan Lin: Express delivery is difficult, but we must face it

  Editor’s note: The boundary between the new economy and traditional industries is gradually melting. In the past ten years, how have new economic enterprises established new rules of the game? How can traditional industries be transformed by the new economy? What new tracks and new outlets will emerge in the future? Sino-Singapore Jingwei launched a special report on “The Decade of the New Economy”, recording typical stories of the new economy and new business formats, so as to reflect the magnificent process of China’s economic transformation and development.

  Sino-Singapore Jingwei, October 30th (Chang Tao) “The difficulty of express delivery is an industry problem, but it is also a key problem that has to be solved. From focusing on business volume to focusing on service quality, it is one of the manifestations of the express delivery industry’s shift to high-quality development. “Cainiao CEO Wan Lin said in an exclusive interview with Sino-Singapore Jingwei recently.

  Double 11 in 2022 has already started. Cainiao announced on October 27 that it has recruited 100,000 additional short-term full-time capacity to ensure that even under the peak of double 11 packages, door-to-door delivery can be the same as usual.

  Regarding home delivery, Wan Lin’s attitude revealed that “go all out, and do what consumers need no matter how difficult it is.” It is understood that within Cainiao, home delivery is the “highest priority” task this year. one.

  Photo courtesy of Cainiao CEO Wan Lin interviewees

  Home delivery is becoming the key to high-quality service competition

  Failure to deliver to your door is a “side effect” brought about by the rapid development of the express delivery industry and full market competition, and the causes are complex. In this regard, consumers, couriers and outlets have their own complaints. In addition to being affected by the epidemic in the past three years, the most direct reason for the failure of express delivery is that the industry has developed too fast, and the number of couriers has not increased much.

  Data show that in 2021 alone, China’s express delivery business volume has exceeded 100 billion pieces. In ten years, China’s express delivery business volume has increased by 19 times, but the number of employees has not increased much. Moreover, due to the competition in the express delivery market in recent years, in many practical situations, the courier brother can only guarantee the income by the amount of delivery orders. Coupled with personalized reasons such as consumers being away from home and phone calls. Taken together, it becomes a difficult task for the courier to climb the stairs to the door.

  Wan Lin explained the problem with a set of numbers: a courier in a big city delivers more than 200 parcels a day, and if he works 16 hours a day, he may have to deliver a courier every 5 minutes. “It’s hard to imagine how difficult it is to deliver a courier into the community, upstairs, and into the hands of consumers in five minutes,” Wan Lin said.

  Based on this, Wan Lin said frankly that the difficulty of express delivery is an industry problem, but it is also a key problem that consumers are very concerned about and have to solve. From focusing on business volume to focusing on service quality, it is one of the manifestations of the express delivery industry’s shift to high-quality development.

  Wan Lin said that Cainiao’s goal is to be an Internet company in the logistics industry. With the advantages of Internet technology, it will go deep into the logistics industry, directly carry out logistics operations, and create new experiences and new values. It is impossible to simply repeat the scale-based approach in the past. Rapid growth. Wan Lin said, “Home delivery is a difficult and correct thing for a rookie. Adhere to long-termism, really calm down to make home delivery solid, and do simple things right and in place, which is competitiveness and difference. change.”

  Compared with the measurement standard of delivering more and faster in previous years, Wanlin has set home delivery as the primary quality service for this year’s Double 11 logistics. It is understood that Cainiao and Tmall Taobao have launched a door-to-door service for Tmall and Taobao parcel delivery. Through various methods such as Cainiao Station, Cainiao Direct, and United Express, it provides consumers with strong demand with certain door-to-door services. Serve.

  Digital intelligence opens up “Ren and Du two veins”

  According to data from the State Post Bureau, in the past ten years, the operating income of China’s postal express delivery industry has increased from 198.09 billion yuan to 1,264.23 billion yuan, with an average annual growth rate of 22.9%, and its share of GDP has increased from 0.37% to 1.11%. The volume of express delivery business has ranked first in the world for 8 consecutive years.

  Wan Lin said that logistics is a very large and very traditional industry. Using digital intelligence to improve logistics efficiency is the original intention of Cainiao. Globalization and digital intelligence are the significant advantages of Cainiao different from other logistics companies. “However, it is difficult to promote sustainable and long-term changes in the industry only by digitization. Digital intelligence and the logistics industry must be deeply integrated from the underlying logic to produce continuous optimization and changes.” Wan Lin said.

  Wan Lin said that 2012 was the first year of rapid development of China’s express delivery industry. That year, more than 800,000 couriers across the country delivered 80 million packages on Double 11. When Cainiao was established in 2013, the volume of express parcels in China reached 20 million per day, and it continued to grow at a rate of more than 100%.

  ”There are a large number of goods in the warehouse that need to be picked and transported, and a large number of truck drivers are transporting back and forth. Innovative tools are urgently needed to improve productivity. However, before 2014, the domestic express logistics industry lacked technical support, and manual sorting made the industry difficult. Efficiency is limited.” Wan Lin said that at that time, Cainiao proposed to improve logistics efficiency through digital intelligence.

  In April 2014, the first Cainiao electronic face sheet was launched, and each express package has a unique electronic ID card, which can make express information transparent and links traceable, just like opening up the “Ren and Du two veins” of logistics, Automatic sorting equipment, intelligent order distribution, and intelligent logistics are all developed on this basis. “This is a major milestone in the digitalization of the logistics industry.”

  The “14th Five-Year” Postal Industry Development Plan released in 2021 proposes that by 2025, China’s postal industry will serve more than 900 million users on an average day, and the express delivery business will exceed 150 billion pieces.

  Wan Lin observed that China’s express logistics industry is facing opportunities and challenges such as profound changes in the global supply chain, rapid business fission, industry green transformation and intelligent upgrading. The global marketing of Chinese manufacturing requires supply chain capabilities that match the industrial chain. At the same time, business forms are rapidly changing, and supply chain needs are becoming more and more complex, requiring more professional solutions. Cainiao is constantly innovating in the direction of industrialization, digitalization and globalization, bringing new value to merchants and consumers. (For more reporting clues, please contact Chang Tao, the author of this article: [email protected] ) (Sino-Singapore Jingwei APP)

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Responsible editor: Wei Wei