When I am reborn, I just want to be a top student

Xinghuo Express's sudden price reduction caught major express delivery companies like STO Express, YTO Express, ZTO Express, and Yunda Express off guard.

Although they were mentally prepared, knowing that the emergence of Xinghuo Express would inevitably squeeze their business volume.

After all, Xinghuo Express didn't hide anything. As a wholly-owned subsidiary of Galaxy Technology, there was no reason for them to entrust the delivery business of Pin Yidao to them.

To be honest, Galaxy Technology's entry into the express delivery industry only now has surprised them quite a bit.

In this timeline, the development speed of Pin Yi Dao is actually not as fast as in the previous life.

Although many people criticize the "If you're a friend, come and stab me" mentality of those fake red envelopes and marketing tactics, these fancy fake red envelopes and tactics are indeed effective.

In this life, Wang Donglai abandoned this approach in his design and instead used intelligent algorithms to improve the platform's accurate customer targeting and product recommendations.

In addition, there is a significant investment in agricultural support.

While this may have affected PinYiDao's expansion to some extent, it has significantly improved its reputation among consumers.

Unlike in his previous life, he was not universally hated.

As the third largest e-commerce platform in China, Tmall Group, which ranks first, has seen its growth rate slow down and its business space limited, while JD.com, which ranks second, is limited by its platform genes and focuses on 3C electronics.

Although Pin Yi Dao (拼一刀) takes a downmarket approach, the majority of people in China are from the lower classes.

In addition, Pinduoduo mainly connects with factories, selling directly from them. This reduces intermediate costs, which translates to lower prices for consumers at the same price.

In this way, although Pinduoduo did not use those viral marketing methods, it still became one of the leading e-commerce platforms in China in a very short period of time.

To date, PinYiDao's daily orders have exceeded 23 million.

Such a huge number of orders have also supported a large number of express delivery companies.

Therefore, when Galaxy Technology Group founded Xinghuo Express, the express delivery industry remained silent.

When Xinghuo Express offered such generous benefits, even though other express delivery companies like STO Express, YTO Express, ZTO Express, and Yunda Express were unhappy, they didn't resort to underhanded tactics.

Even now, when Xinghuo Express has lowered its prices to as low as three yuan for delivery, the owners of companies like STO Express, YTO Express, ZTO Express, and Yunda Express are thinking of just tolerating it.

In their view, this was a marketing tactic by Xinghuo Express, a newcomer to the market, to quickly establish its reputation.

After gaining a certain market share, they will gradually raise prices.

They just need to be patient for a while.

Besides, a fee of three yuan is barely enough to make Xinghuo Express a profit, especially considering it's a discount offered to a major customer; they're definitely going to lose money.

Profitable businesses are eagerly pursued, while loss-making businesses are ignored.

Xinghuo Express is a company that operates to make money, not to do charity and lose money.

With this in mind, many domestic express delivery companies did not respond to Xinghuo Express's offer of a low price of three yuan.

However, the station owners below were getting anxious.

Because they are all franchisees, aiming to make money through express delivery, the more business they handle, the more money they earn.

Now, Xinghuo Express has set a price of three yuan, which has directly impacted their business.

With fewer packages being picked up, the number of express deliveries will naturally decrease as well.

All of these will directly affect their business profits.

So, seeing their business volume steadily decreasing, these site owners couldn't take it anymore after just one week.

I called headquarters directly to complain and asked them to find a solution.

These station owners aren't fools; they naturally know that Xinghuo Express is backed by Yinhe Technology, and that Pin Yidao is one of their own.

Such potentially offensive tasks should naturally be handled by headquarters.

If all else fails, they can transform themselves and join Spark Express.

This puts express delivery companies like STO Express, YTO Express, ZTO Express, and Yunda Express in a difficult position.

I originally thought I'd just ignore it and let Xinghuo Express get off to a good start.

As a result, a week has passed, and Xinghuo Express is still sticking to this price.

The site owners below are only looking at things from their own perspective.

However, the headquarters of express delivery companies can obtain more accurate industry data.

In just one week, Xinghuo Express captured 10% of the industry's business volume.

This is still due to the fact that Xinghuo Express is too small in scale, with insufficient delivery personnel, vehicles, and space.

However, these problems were also resolved thanks to Xinghuo Express's generous spending.

Introduce a courier to the company, and you'll receive 200 yuan as soon as you join, 500 yuan after a month, and another 1,000 yuan after three months.

Newly hired deliverymen receive uniforms, vehicles, and various subsidies.

More importantly, Xinghuo Express clearly stipulates that a working day is only eight hours long, and all other time is considered overtime.

Based on this calculation, Xinghuo Express couriers can easily earn over 10,000 yuan per month.

By 2018, many industries in China had already stabilized, transforming from growth markets to existing markets.

Xinghuo Express has invested heavily, so building its logistics system is naturally a simple matter. They have whatever equipment they need, which fully demonstrates what "China speed" means.

Just like logistics vehicles, given the scale of Xinghuo Express, the number of cars it needs to purchase is definitely not small.

This order has attracted the attention of countless car companies.

The same principle applies to other supporting equipment.

It can be said that, apart from the express delivery industry, other industries are applauding and hoping that Xinghuo Express will grow as large as possible so that they can make money and benefit from it.

The owners of STO Express, YTO Express, ZTO Express, and Yunda Express, who were in a difficult situation, gathered together once again.

They had previously gathered together because of Xinghuo Express's entry into the market, but they failed to reach any consensus.

This time, everyone quickly reached a consensus in the face of Xinghuo Express's price reduction strategy.

That means finding a middleman to pass on the message to Xinghuo Express.

We are willing to accept Xinghuo Express, and together we can grow the industry.

However, Xu Zhibin decisively rejected their overtures.

Those who were rejected were angry, but they didn't dare to really retaliate.

After all, there were still orders with a 50% discount keeping them on the edge of their seats.

The order volume of "Pin Yi Dao" (拼一刀) has almost accounted for one-fifth of the total number of express delivery orders nationwide.

With over 20 million orders every day, even if each order only earns 50 cents, the daily profit would still be over 10 million.

Not to mention that the data for Pin Yi Dao is still rising rapidly, and the number of business orders is still soaring.

If everyone works together to resist Spark Express and put pressure on Pin Yidao, then no one will object.

However, the relationships between the people were already poor, and there was almost no basis for trust.

It's simply impossible for them to work together on something like this.

If that were to happen, they would likely reach an agreement one day and then immediately turn on each other, betraying one another in exchange for support.

Therefore, no one even considered any way to resist the pressure.

They made a promise on the spot to bring down the price together, just like with Xinghuo Express.

This decision differs from previous ones. Everyone is lowering prices; whoever doesn't will lose market share, so there's no fear of anyone resorting to underhanded tactics. As for Xinghuo Express, they've already given them a week to develop, which is quite generous.

Now, it's up to each person to rely on their own abilities.

That evening, the national stations of express delivery companies such as STO Express, YTO Express, ZTO Express, and Yunda Express immediately received the notification.

For customers with more than 100 orders per day, the minimum order price is reduced to three yuan. For customers with more than a certain number of orders, there are other preferential agreements.

……

Galaxy Technology.

"I never expected that Mr. Wang would actually consider entering the express delivery industry."

The boatman spoke up, slightly surprised.

Since Galaxy Technology launched the Xuanwu Battery, Boatman has frequently visited Tangdu City.

It's as if they're treating Tangdu City as their second headquarters, which aligns with what Brother Boatman said earlier.

The Tangdu City Energy Battery Industrial Park houses BYD's R&D center and manufacturing plant, with a projected investment of 100 billion yuan.

In addition to the car factory and battery factory that BYD previously invested in Tangdu City, it is not an exaggeration for Brother Chuanfu to regard Tangdu City as BYD's second headquarters.

"Galaxy Technology has too much cash in its accounts. It should diversify its operations by expanding into more industries!"

Wang Donglai replied with a smile.

A simple, honest statement dealt a direct and devastating blow.

The boatman didn't know what to say for a long time.

Despite BYD's continuous expansion, its new energy vehicle business has benefited from the booming development of Galaxy Technology.

However, the amount of money remaining in BYD's accounts is not much.

This is partly because the boatman is laying out the upstream and downstream industrial chains, doing everything he can himself.

Research and development, design, production, factory construction, marketing, after-sales service, etc.

When it comes to running a real business, no amount of money is ever enough.

On the other hand, BYD hasn't reached the point where it can truly make money yet.

While sales of new energy vehicles appear to be soaring, profit margins are actually very low.

For a car, other brands might make 50,000 to 60,000 yuan, or even 20,000 to 30,000 yuan in profit, but for BYD, it might only be a little over 10,000 yuan, or even less.

Such profits are naturally insufficient to support BYD's rapid expansion.

Pressuring suppliers to extend payment terms and engaging in supply chain finance have become inevitable practices.

Even the money invested in Tangdu City was largely borrowed from banks.

The bank is being so generous because BYD has already reached a cooperation agreement with Galaxy Technology on Xuanwu batteries, and knows that the new energy vehicle business will accelerate in the future, so it dares to lend so much money.

It's easy to imagine how complicated Boatman's feelings were when he heard Wang Dong say that his company had too much money in its accounts, so he chose to spend it all in the express delivery industry.

However, the boatman quickly composed himself.

"Mr. Wang is truly honest."

"With your company already having the Pinduoduo e-commerce platform, it's only right that you enter the express delivery industry as well."

"Owning the business reduces operating costs, increases profits, and also improves the quality of express delivery services, which is a win-win situation."

Although the boatman didn't actually run this business, doing business is all about understanding the fundamentals.

They know this basic common sense.

Unexpectedly, after listening, Wang Donglai shook his head and said, "You're wrong about that."

"Although both PinYiDao and Xinghuo Express are subsidiaries of Galaxy Technology, they operate separately and have independent finances."

"Just because they are from the same parent company doesn't mean they'll be treated the same. At most, they might be slightly favored in terms of orders."

"However, the quality of express delivery services will be even more stringent."

"My reason for entering the express delivery industry is actually very simple. The primary reason is that Galaxy Technology is very wealthy, and I don't want to keep a large amount of funds in my account or use them for investment and financial management."

"Money only has value when it circulates; cold, hard numbers are meaningless."

"The second reason is that the express delivery industry serves as a reservoir of employment in China, capable of accommodating more than three million people, and is still growing at a rate of two hundred thousand per year."

"In such a huge industry, I haven't seen much protection for delivery workers."

"In the early years, when the express delivery industry was just emerging, it was fine."

"But now it's a mature industry, yet the protection of delivery workers is still inadequate."

"Only the couriers from SF Express and Daqiangzi are better off, with higher pay."

"Employees of express delivery companies such as STO Express, YTO Express, ZTO Express, and Yunda Express have low salaries and poor service quality."

"They say they deliver to your door, but they just take it to the courier station, and you have to pick it up yourself, which adds an extra step to the process."

"To be honest, I personally can't stand these things."

"I want to see if I can change these things. In an increasingly stable market, if a catfish suddenly appears, will it stimulate the market's activity?"

"Obviously, that's possible."

"If Xinghuo Express hadn't announced a minimum delivery fee of three yuan, the three major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) would probably still be sticking to their previous prices and making steady profits."

"Next, Xinghuo Express will further improve delivery time and service quality."

"I want to see whether STO Express, YTO Express, ZTO Express, and Yunda Express will follow suit or not, and whether they can actually do it."

"As for employee benefits, Xinghuo Express's business is growing and it will absorb more employees. If they are interested, they will naturally join. Whether it can go bankrupt and improve employee benefits depends on their decision."

Wang Donglai spoke casually, but the boatman felt a chill in his heart.

After listening, he had only one thought.

Wang Donglai was a pure idealist.

Idealists are not scary; what's scary is that they have the ability and the financial resources to put their ideas into practice.

Take Xinghuo Express as an example. The three major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) were managing their businesses well, making billions of yuan a year comfortably.

However, Wang Dong was dissatisfied with the service quality of the three major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) and their treatment of their employees, so he decided to enter the market himself.

This reason is so compelling that probably no one would believe it if I told them.

But the boatman believed it to be true.

Because he had already witnessed Galaxy Technology's style when he first started working with them.

They were asked to improve the treatment and benefits of the factory's employees.

This has never happened before in China.

To compensate for the losses they incurred in improving employee benefits and welfare, Galaxy Technology proactively released more profits, unlike other competitors who, relying on their position as clients, ruthlessly squeezed their profits, wishing they could work for free.

Even if problems arise during production, Galaxy Technology will provide technical assistance to help with production line adjustments and technology upgrades.

This practice has only been seen in foreign companies.

For example, Apple does this for its supply chain. (End of Chapter)