Courier Industry Dilemma

Since last year, several renowned¹ domestic courier companies have been publicly expressing their dissatisfaction regarding rising cost due to hikes in fuel prices and labor² costs, including Shunfeng Express, ZTO Express Service Co. and Yuantong Express. They have claimed to rise their price to balance their sheets. However, few of these companies have charged more, in order to keep their customers while dacing fierce competition in the courier industry. What is the way out for these courier companies?

Zhang Wan³ has more.

 
There is a saying about the dilemma⁴ in the courier industry: being the first to increase prices is equal to suicide, but keeping prices low is just waiting for death. These aren't particularly attractive options, so they they claim that there have been dramatic price increases.

However, customers say they expect better service for higher prices.

"If the service worth the price, I don't mind paying for that."

Ms. He is a small business owner with Taobao.com, one of China's e-commerce platforms. In a choice between good prices and good service, she prefers good service.

"I expect better service, as when there is any problem with the delivered packages, it would be easy to check."

However, one expert says the service provided by those courier companies is still far from customers' expectations. This is Xu Yong from the China Communications and Transportation Association.

"Currently, there are surplus low-end service providers in the domestic market, but the middle and high end services are insufficient⁵ to meet demand. Customers always say they want better service with lower prices, but there are few courier companies that can meet those expectations."

The rapid development of the courier industry in China has been spurred by the explosion of e-commerce in recent years. As these courier companies have yet to adequately prepare for a period of rapid development, the only way they compete with each other is through price wars. Therefore, supporting services and information systems are ignored by these companies, who are striving to walk with quicker steps to catch up with the booming e-commerce industry.

Alamusi from the China Electronic Commerce Association says higher prices won't necessarily bring higher quality of services. High standard services will be the only way out to strengthen the competitiveness of courier companies. And the future trend of the courier industry's development is to provide standardized⁶ improved services that are well adapted to transport networks.

Some experts also suggest that the government set up an industry association, like the Express Delivery and Logistics Association which was established in the US in 1976, which has brought good regulation to a sector⁷ that has developed global leading express delivery groups like UPS and Federal Express. They believe this industry association should play a dual⁸ role as a regulator and a communication platform.

For CRI, I am Zhang Wan.

1 renowned   

adj.著名的，有名望的，声誉鹊起的

参考例句：

• He is one of the world's renowned writers.他是世界上知名的作家之一。
• She is renowned for her advocacy of human rights.她以提倡人权而闻名。

2 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

3 wan   

(wide area network)广域网

参考例句：

• The shared connection can be an Ethernet,wireless LAN,or wireless WAN connection.提供共享的网络连接可以是以太网、无线局域网或无线广域网。

4 dilemma   

n.困境，进退两难的局面

参考例句：

• I am on the horns of a dilemma about the matter.这件事使我进退两难。
• He was thrown into a dilemma.他陷入困境。

5 insufficient   

adj.(for，of)不足的，不够的

参考例句：

• There was insufficient evidence to convict him.没有足够证据给他定罪。
• In their day scientific knowledge was insufficient to settle the matter.在他们的时代，科学知识还不能足以解决这些问题。

6 standardized   

adj.标准化的

参考例句：

• We use standardized tests to measure scholastic achievement. 我们用标准化考试来衡量学生的学业成绩。
• The parts of an automobile are standardized. 汽车零件是标准化了的。

7 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

8 dual   

adj.双的；二重的，二元的

参考例句：

• The people's Republic of China does not recognize dual nationality for any Chinese national.中华人民共和国不承认中国公民具有双重国籍。
• He has dual role as composer and conductor.他兼作曲家及指挥的双重身分。