Specialist
Former divisional leader at Shanghai J&T Express Co Ltd
Agenda
- J&T’s revenue per delivery and profit dynamics, breakeven outlook and order volume growth potential
- Cost control measures and future cost reduction
- Operating model and efficiency of package pick-up, transit, line-haul transportation and delivery
- Competition among new players in the lower-tier logistics market
Questions
1.
What are J&T’s core competitive advantages? Its charge per order is lower than that of other mainstream delivery service companies. Does that mean it is better at cost control? Do you think J&T can further expand relying on BBK Electronics’ distributor network considering that it is backed by the company? Is it one of J&T’s advantages to be backed by BBK Electronics?
2.
Did the “Tong Da” express companies also build general distribution centres on their own and require their franchisees to build tier 2 distribution centres?
3.
Do J&T and the “Tong Da” express companies generate notably different costs in building distribution centres?
4.
It will take more time for J&T to reach the breakeven point. What distinctive cost control methods have J&T adopted?
5.
Could you talk about J&T’s current revenue, cost and profitability per delivery?
6.
Industry participants haven’t reached an agreement on the general break-even point of delivery service companies and some previous conclusions have been changed. How do you anticipate J&T’s break-even point and its order volume at the time of the break-even point? What is the logic behind your assumption?
7.
How is J&T’s capability to increase its prices? When will J&T increase its prices on a large scale? How much can J&T enhance its prices?
8.
As a later entrant of the industry, J&T isn’t very efficient and mature in operations. What challenges does J&T face specifically in operations? What about the comparison between J&T and other players in terms of package pick-up and delivery?
9.
When J&T finally breaks even, how much revenue and cost per delivery will it have?
10.
Does Pinduoduo designate delivery service companies for its merchants? Are merchants free to choose logistics platforms? Why do they choose J&T?
11.
Can you specify what’s driving J&T’s order volume? How does J&T evaluate Pinduoduo and some non mainstream businesses contribution to its order volume growth?
12.
Does live-streaming e-commerce bring substantial growth to delivery service companies? Given the prevalence of fake orders in live-streaming e-commerce, what can be expected from its sales volume?
13.
When will J&T obtain a good order volume from community group buying? When could J&T take advantage of Pinduoduo’s boom? How’s the profitability of community group buying deliveries compared with standard delivery services?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary 48 hour week trial
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
