Analysis of Investment and Financing of Logistics Industry in 2017 and Outlook for 2018

A valuable logistics company is inseparable from the three levels of “base layer”, “transaction layer” and “service access layer”. The basic layer is the most basic, referring to the core assets and infrastructure of logistics enterprises, including networks, parks, hubs, fleets, and co-matching. If the base layer does not have it, everything is a castle in the air. The transaction layer is located above the basic layer, mainly refers to the system platform, including providing multiple transaction links, multi-product selection and online payment, etc., and the level of informationization, digitization and technology is the key to the competitiveness of logistics enterprises in the future. The service access layer includes an online portal system and an offline entry hub to focus on the buyers and sellers. When the basic layer of the logistics enterprise is set up with the transaction layer, the establishment of the business access layer is a matter of course.

The logistics enterprises in the future must be technology-based logistics enterprises. On the one hand, they must have information systems, big data analysis and application capabilities, which determines that enterprises are technological; on the other hand, there should be hubs, parks, and fleets. And other infrastructure equipment, which also determines that it is a logistics company, not just an Internet platform. The platform can only be operated more, with barriers and control.

The author believes that the logistics industry is generally an industry with a simple model and difficult operation.

Second, the 2017 logistics industry event - policy articles

In October 2017, the General Office of the State Council issued the “Guiding Opinions on Actively Promoting Supply Chain Innovation and Application”.

With the development of information technology, the supply chain has developed into a new stage of intelligent supply chain that is deeply integrated with the Internet and the Internet of Things. This document is the first national policy for the supply chain. It proposes to accelerate supply chain innovation and application, promote industrial organization, business model and government governance innovation, and promote supply-side structural reform, which marks China's supply chain innovation and Application development has entered an accelerated phase of improvement.

In August 2017, the General Office of the State Council issued the "Opinions on Further Promoting Logistics Cost Reduction and Efficiency Promotion to Promote the Development of the Real Economy."

The logistics industry runs through the first, second and third industries, connecting production and consumption, covering a wide range of fields, with great development potential and strong driving action. The document pointed out that promoting logistics cost reduction and efficiency increase is of great significance to promoting industrial restructuring and regional coordinated development, cultivating new kinetic energy development, and improving the overall operational efficiency of the national economy.

Third, the 2017 logistics industry event - listing

In January 2017, Yunda Express was listed on the Shenzhen Stock Exchange;

In February 2017, SF Holdings was listed on the Shenzhen Stock Exchange;

In September 2017, Best Logistics was listed on the New York Stock Exchange.

In December 2017, Debon shares passed the audit meeting of the China Securities Regulatory Commission and obtained the listing qualification; currently, it has been listed on the Shanghai Stock Exchange.

In 2017, with Best Logistics going to the US to complete the listing, SF Express, “Three Links and One” and other express delivery giants all gathered in the capital market, standardized and developed their own business through listing, providing more efficient and professional services, and deepening the subdivision. Market, to achieve differentiated competition. However, fierce competition and high-quality service requirements do not mean that there will be large-scale mergers and acquisitions in the field of express delivery in the next few years. This is because the homogenization between the big courier company network and the network is too serious. It is necessary to protect the interests of partners in their own networks; while the elimination of small and medium-sized express companies is accelerating, and some valuable ones will be strategically acquired by non-delivery companies, such as Suning’s acquisition of Tiantian Express and Qinglv Logistics’s acquisition of Quanfeng Express.

On the other hand, SF, Sitong Yida, Debon and other companies are on the rise. The giants are more interested in expanding the express delivery business and transforming into integrated logistics (Express, Express, Vehicle, Warehousing, Cold Chain, Supply Chain, Financial Services). , international freight forwarding, cross-border, etc.), and this process will last for a long time.

17 years is the first year of the express industry to highlight the core competitiveness, followed by the pattern differentiation, will form a competitive environment of survival of the fittest, eating small, eating fast and slow, 2018 will be a fierce fight.

Fourth, the 2017 logistics industry event - mergers and acquisitions articles

Express

In January 2017, Suning invested RMB 4.25 billion to acquire Tiantian Express.

In April 2017, Qinglv Logistics officially announced the acquisition of Quanfeng Express and reorganized into the “Express Delivery Division”.

In May 2017, Yuantong acquired a total of 256 million shares of Xianda International in cash, accounting for 61.87% of the total issued shares of Xianda International, with a consideration of HKD 1.041 billion.

The arrival of the express delivery industry has accelerated the reshuffle of the entire industry. Small and medium-sized express delivery companies are even the “second echelon” express delivery companies. If they want to gain a place in the competition, they need to find strong capital to back up. The courier company's strategic acquisition; and the listed express delivery companies also need to expand around the express delivery business, speed up the layout, and transform to integrated logistics.

2. Logistics Real Estate

In July 2017, the Chinese consortium successfully acquired ProLogis for US$11.6 billion (S$16 billion). The Chinese consortium includes five aspects: Houpu Investment accounted for 21.3%, Vanke Group accounted for 21.4%, Gaochun Capital accounted for 21.2%, Bank of China Group Investment Co., Ltd. accounted for 15%, and ProLogis management accounted for 21.2%. With the entry of the real estate industry into the “silver era”, Vanke has taken advantage of the acquisition of ProLogis and leveraged its strengths in customer resources and industry development to help transform it from “residential providers” to “urban support providers”. It ranks among the logistics real estate giants, while ProLogis has transformed from a “logistic real estate pure landlord” to an industrial park operator.

In addition, in June 2017, the rookie network and China Life jointly established a logistics and storage fund with a scale of 8.5 billion yuan; in November 2017, Suning Logistics and Shenzhen Venture Capital jointly launched a logistics real estate fund with a total scale of 30 billion yuan.

Logistics real estate is the core resource for the long-term development of logistics enterprises. Without it, everything is in the air, it is not strong. The logistics giant's layout of logistics real estate, the intention is very obvious, is to develop high-standard warehousing in the entire logistics chain system at home and abroad, to create a comprehensive logistics service provider. Modern high-standard warehousing has realized the integration of information and resources throughout the supply chain, providing possibilities for the scale of logistics and greatly improving logistics efficiency. For example, the high-standard warehouse network layout helps to shorten the transportation radius and significantly reduces transportation costs.

3. Instant logistics

In August 2017, I was hungry and bought a Baidu takeaway. The industry pattern has been dominated by "Hummingbird Distribution", "Mei Tuan Special Delivery", "Dada Distribution" and "Baidu Knight".

Instant delivery has entered the stage of staking, entering the stage of competition quality, service and industrial penetration. “Fast” can no longer satisfy all the users' demands. “Quasi” and “Full” are increasingly important. The platform needs to expand the distribution of other categories and guide consumers to export from takeaway to fruit, fresh, supermarket, medicine and other aspects of life. , bringing more traffic and orders.

4. "Last mile"

In July 2017, Fosun joined forces with China Post and the rookie network to jointly enter the express delivery.

In September 2017, Fengchao wholly acquired CIMC e-Stack.

"The end of the world, the world", with the sharp rise in the amount of express parcels, China Post and Ali strategic investment express, easy to enter the express cabinet; Fengchao wholly-owned acquisition of CIMC e stack, market share climbed. The "bird fight" is not limited to the data field. The intelligent express cabinets and rookie who are dominated by Fengchao are also full of competition and game in the end market. In 2018, the "end of the war" is about to ignite. From the logistics layer to the commercial level, where this territory will eventually go, perhaps only time will give an answer.

V. 2017 Logistics Industry Events - Consolidation

In November 2017, the full moon and the truck help announced the marriage.

Yunmanman and the trucks were merged into a full gang, and the former rivalry announced the merger. The trillion-dollar logistics industry pattern will soon be rewritten, and the future may be expected to create a Chinese industry Internet giant. The industry boss and the second child fight, the injury is always the third child. At this time, if other small and medium-sized enterprises are not complete in the capital chain, the service products are not in place, it is difficult to escape the fate of being acquired.

Sixth, 2017 logistics industry events - independent articles

In April 2017, Jingdong Group announced the official formation of Jingdong Logistics Sub-Group. Five years later, Jingdong Logistics is expected to become a leader in China's supply chain solutions and supply chain technology, and become a logistics technology service provider with annual revenues exceeding 100 billion. .

In May 2017, Vipshop will announce the spin-off business. In the future, it will form a troika layout of “e-commerce, finance, logistics”, and Vipshop Logistics will expand through the “acquisition + self-build” model.

With Jingdong Strategic Investment Vipshop, JD Logistics and Vipshop will further coordinate the logistics business, and after opening to the society, it will inevitably intensify the competition in the e-commerce logistics market, with the e-commerce market (especially B2C business) as the main express. Enterprises will face great pressure in 2018.

Seven, 2017 logistics industry events - cross-border articles

2017 is a cross-border competition for logistics companies. One year to break the market boundary, express delivery companies have arranged for express delivery, which is a trend.

In March 2017, Yuantong Express was officially launched.

In October 2017, Yunda Express was officially launched.

In November 2017, Shentong Express and Express Express established “Shentong Yuda” to refine the products of large and small parts, and gradually transfer the market of large-sized products to the new platform.

The main battlefield of the express train is surging, and the player sequence is entering the game. When the industry develops to a certain extent, express delivery companies need to supplement their trunk lines, expand other businesses, and realize the sharing of resources between express delivery and LTL in trunk lines and transshipment centers to promote “reducing costs and increasing efficiency”. With the perfect network system and trunk transportation capacity, and the help of the capital market, the express delivery leading enterprises have the ability to become the leading company in the industry. SF Express and “Three Links and One” are expanding the original express products to the kilogram segment, improving their industrial chain and developing towards integrated logistics service providers. Take SF Express as an example. Since cutting into the LTL industry in 2014, the income of LTL Express business has risen rapidly in just three years. FedEx and UPS have repeatedly acquired logistics companies, which are also based on this consideration.

Some LTL and other LTL companies are also accelerating the layout of express delivery, enriching the product line, adapting to the rapid development of e-commerce and improving profitability.

Express delivery and LTL can achieve synergistic development, and the fusion of express delivery and express delivery is the general trend.

Eight, 2017 logistics industry events - other articles

In May 2017, following the daily delivery of the delivery fee, the five major franchise couriers including Zhongtong Express, Shentong Express, Yuantong Express, Yunda Express and Baishi Express issued the “Notice on the Adjustment of the Whole Network Fees”, 6 Large express delivery companies collectively raise the fees.

In June 2017, the dispute between the rookie and SF's logistics data broke out, and the two parties “retracted each other” on data ownership. Subsequently, various princes rushed to the team, causing widespread concern in society. However, after the emergency relocation of the State Post Bureau, the two sides fully resumed business cooperation.

In May 2017, the rookie platform released a new LOGO, and launched two strategic upgrades of smart logistics, namely, the upgrade of the open strategy and the promotion of the use of international cutting-edge smart devices in the logistics industry. In September, Alibaba announced that it will increase its stake in its rookie network and continue to invest 100 billion yuan in the next five years.

In December 2017, Jingdong Logistics advocated “new generation logistics” and proposed that under the unbounded retail, logistics will inevitably develop towards a new generation of logistics with 3S theory as the core, and present short-chain and smartness. ), the characteristics of Symbiosis.

IX. Analysis of investment and financing of logistics industry in 2017

Time dimension

According to statistics, in 2017, there were 108 investment and financing events in logistics and related industries. January, June, August and September were the peak seasons for the logistics industry, and the number of financing times was twice that of other months.