In the spring of 2018, kyoto continued its no-closing policy, which was welcomed by consumers. What is insufficient in the united states is that basic freight costs are again rising without warning, not only causing strong dissatisfaction among kyoto plus members and stating that they do not comply with the contract。
The vice-president of suning logistics, yao kai, argued that kyoto had changed the rules of service for his own benefit with a monopolistic attitude, saying symbiotic life, while doing it to the detriment of symbiotic life; and that the founder of the box, qui xian, had pointed out with blood that the cause of the increase in the cost of freight in kyoto was cost, and that the collapse of the centralized logistics system in kyoto could be ruthlessly abandoned by the world。
Given the relationship between suning and kyoto as an old rival, you may think that yao kai’s point of view is not objective, but suning’s logistics base has been kept at a constant price of $5, and prompt service is free of charges of $15 per month compared to kyoto’s small order, which is highly competitive. As the former head of kyoto logistics, hu yi has a say and has a strong voice. Why, then, did kyoto question the repeated increases in freight charges, knowing that the user was averse
The logic of thinking about the rising freight costs in kyoto
In recent years, the freight rate has been rising upwards and the threshold for chartered mail has been rising steadily, from $39 to $39, $59 to $79, $99, or even three months, the most recent adjustment being on 14 february, when under $49 was charged 15 dollars for shopping, a 2. 5-fold increase compared with previous policies, which left kyoto plus members with complaints that under $49 would require the use of three derelict stamps to exempt them, contrary to the original intent of consumers to open up and launch members。
In december 2017, kyoto plus members'services were significantly increased, and high membership fees were not replaced by high-level services, but by extra costs in order to benefit from freight-free entitlements. At the same time, ordinary users do not buy, and the bulk of the supply of goods in kyoto is in the vicinity of a warehouse in the province, where the freight cost of $15 is more expensive than the cost of $13 worth of mail。
In fact, in the light of the current state of logistics development in kyoto, rising freight costs are an inevitable trend, but each increase and consumer acceptance is likely to be preceded by a deliberate and repeated decision to insist on the price hike being carried out, without retreating from the consumer rebound, with three main reasons for thinking:
I. The capital of kyoto is full of gas. Mr. Liu jiandong, chairman of the board of directors, had stated that the three-year exemption threshold had been raised in kyoto and that the user had not been lost or that the overall impact was “low”。
According to a long-term study of the manufacturer's strategy analyst, li sungdong, the order affected was around 3 per cent. The increase in the size of kyoto users, the gmv, and the limited impact of the increase in freight costs have been confirmed from the background of distribution services above the industry average. Logistics is the core competitive brand of kyoto, and its expansion complements the upgrading of logistics services。
For sustainable development. The freight-free threshold was raised not only by the kyoto family, but also by sunin and amazon, and the overall cost increase for electrician logistics has become the industry consensus in response to the rising cost of logistics. This state of affairs also bodes well for the end of the era of subsidies for electric power platforms, whether in the early stages of their development, where user-network buying habits or competition among electric power stations are so intense, and where large players set lower thresholds and even complete exemption from freight charges, which is no different from the anti-market practices of o2o subsidies。
This, however, is not a long-term solution and cannot produce a healthy business model. In other words, it is a sign of the willingness of users to pay for quality services and of the fact that up-to-date freight costs in kyoto are not difficult to understand and are intended to be consistent with what is expected。
Iii. Compressed distribution costs. Although kyoto logistics announced a profit in december 2017, it could not become a normal situation, as the growth of its revenues did not cover large inputs。
With regard to inputs, the kyoto plan to invest $10 billion in xi'an, build a modern smart logistics infrastructure of over 2 million square metres, and the $10 billion kyoto unmanned vehicle smart industrial base project, the cost of which, together with the kyoto plan to build its own logistics in indonesia and thailand, is far more incalculable。
In order to achieve a normalized profit, kyoto must work on the open source and on the cutting edge. The next five years have seen progress towards a trillion battalions, with high-growth exterior (non-kingdong orders) being a major breakthrough. Given that the kyoto heavy asset model is difficult to reduce costs and is not easy to implement, despite its continued growth in intelligent logistics, the number of kyoto logistics practitioners has not been reversed and human costs have been reduced in the short term, so only efforts have been made to reduce the inherent cost of logistics distribution, namely by raising the freight threshold。
The cost of freight in kyoto went up
As can be seen, the successive increases in freight costs in kyoto are more of a desperate move towards long-term development, with the result that users are victims. However, in the light of consumer reactions, the logic of consumer thinking about kyoto's “self-centred” approach is not a buy-in, but a mere endorsement of the concept of “value-setting”。
However, yao kai has clearly identified kyoto's ills. “i. User first, the interests of the user cannot be compromised for profit. As a platform, the rules of service cannot be changed at will for their own benefit with a monopolistic mentality. Thirdly, the creation of a co-existence environment for electricians begins with mutual trust with users. There can be no symbioticism, but symbiotic harm.”
The huge investment in kyoto logistics has served mainly its own strategy, building domestic logistics processing and distribution capacity commensurate with business development, and countering the “triple-sum” of suning logistics and rookie support externally, but should not justify the transfer of high freight costs to consumers, who would not pay for kyoto strategy, but only for value, and the quality of kyoto logistics services would not have made the qualitative leap as much as freight costs had risen。
In fact, when business interests are in conflict with user interests, the firm's will is put to the test, and those who are not have the strength to come to terms with business interests, abandoning previously honest commitments; and those who have the strength to put user interests first, to overcome difficulties and to find ways to find new breakthroughs in the opening and cutting streams. The former belongs to kyoto, which customarily increases freight costs, while the latter belongs to suning, which insists on price increases。
It is undeniable that, given the grim fact that logistics costs are rising, no enterprise can be a fugitive, but the price of base freight remains high, not just as an expression of attitudes towards consumers, but as an expression of its own strength. Kyodong and suning are self-built logistics, and their strength is as follows:
Throughout the market industry, in view of the partial non-disclosure of the latest data, for example, reference was made to publicly available information at the time of the acquisition of sunin logistics day-to-day delivery a year ago. The data show that suning is less than kyoto at the end of the grid, that there is a slight improvement in logistics centres and district coverage, and that “suning + days” outnumbers kyoto and has the basis to create the largest self-owned logistics enterprise in the country。
In terms of revenue generation, logistics is an important business infrastructure, and the trend towards openness to society as a whole can shift from a cost centre to a profit centre. Sunin logistics is on the road to openness two years earlier than kyoto logistics, which grew by 321 per cent and 136 per cent in 2016 and 2017, while the latter's income (socialized income + revenue from kyoto business city) is close to $30 billion. Therefore, only qualitative analysis of both socialized income trends can be made。
