Express Delivery Market 2021: Efforts on the New Normal

17:00 | 22/12/2021 Companies

From the period of social distancing in many major provinces and cities in Vietnam owing to the raging COVID-19 pandemic to this "new normal", it can be clearly seen the vital role of the postal and express delivery sector in the operation and development of socio-economic life in the country. In that situation, J&T Express, in particular, is gradually becoming a courier company preferred and trusted by many online and e-commerce businesses in Vietnam.

Affirming its position in difficulties

In 2021, Q2 and Q3 were considered to be the peak times of the pandemic in Vietnam. Most socio-economic activities were severely affected, including businesses providing courier services. According to the draft assessment report of state management in the third quarter and tasks in the fourth quarter of 2021 of the Ministry of Information and Communications, the accumulated number of postal enterprises by September 2021 is 650, an increase of 67 enterprises compared to the end of 2020(1). However, postal revenue in the third quarter of 2021 was only 5.000 trillion (a 50% decrease from the second quarter). Revenue stood at 25.000 trillion in the first nine months of 2021, a 3% decrease from the same period last year.

The third quarter's revenue decreased by 50% compared to the second quarter due to the serious impact of the pandemic in July-August. At that time, the postal enterprises faced many difficulties in operation, especially in Hanoi, Ho Chi Minh City, as well as the Western and Southeast region. For example, trucks were stranded at the entry points into the province, causing congestion and affecting transit time; in some districts, postmen/shippers had difficulty passing through the checkpoints; post offices/warehouses in quarantine and locked down areas were forced to close; the number of postmen/shippers decreased due to being F0, 1, 2 or living in quarantine areas…

On the one hand, new recruitment to make up for the deficiency is not feasible because the QR code is not issued to operate. The workforce is reduced at the request of the local government, causing the postal enterprises to lack resources to exploit and operate (most businesses only have about 20 percent of employees in Ho Chi Minh City or 50 percent in Hanoi). On the other hand, the cost of PCR testing for postmen/shippers when delivering goods has incurred great costs and put a heavy burden on postal businesses.

express delivery market 2021 efforts on the new normal

However, in these difficult circumstances, delivery businesses have affirmed their important role in the economy, especially in the social security situation. When all other activities have to stand still - except for anti-pandemic work - postal and delivery services are the "blood vessels" to help the economy stay "alive" and the social security situation remains stable. Therefore, despite a sharp decline in revenue, the number of businesses in the field continues to increase.

Adversity brings wisdom

The current "new normal" and in 2022 both require postal and delivery businesses to constantly change and adapt to increase their competitiveness and conquer the market. From the beginning of 2021, many businesses have actively increased investment, applied digital technology, and made a difference. In particular, the international express delivery company - J&T Express is considered an emerging business and brings many opportunities to customers, constantly making many impressions in the Vietnam market with cooperation with many "big men” in e-commerce. J&T Express not only operates within the country but also in over 200 countries and territories, allowing customers to deliver goods all over the world.

In Vietnam, J&T Express has more than 1,000 post offices across 63 provinces and cities, which has doubled compared to the first year of operation (2018). This business currently has 36 operating centers with a strong team of more than 250,000 dynamic and experienced employees. J&T Express is also building the 37th transit hub, expected to go into operation in early 2022. This is the largest and most modern transit hub in the country, with an area of up to 60,000 square meters, applying modern technologies such as the DWS intelligent classification system, automatic handling based on Smart Logistics standards, and automatic matrix conveyor system. It is estimated that the center can handle up to two million large and small packages per day with high accuracy in a short time.

Mr. Phan Binh – Brand Director of J&T Express Vietnam, said: “One of the strengths of J&T Express is the application of information technology and modern equipment in the shipping process, as well as constantly promoting cooperation, association and integration of courier services with sales management software, e-commerce floors or shipping trading floors to optimize convenience and best support for online businesses”. For example, from the beginning of 2021, J&T cooperated with Haravan to help online businesses not only save up to 50% on shipping costs, but also double the work efficiency of employees in stores and businesses. The combination of two "big guys" in the field of express delivery and technology brings perfect utilities to help retail businesses and online businesses sell and manage their businesses more effectively in the digital age.

Besides investing in system development, J&T Express also continuously organizes many incentive programs that both stimulate customers to use the service and share difficulties with them. One of J&T's outstanding programs in 2021 is "Red Tuesday" - a series of special offers for all customers, taking place on the third day of the week. “Red Tuesday" provides customers the opportunity to receive even more attractive offers when sending goods such as refunds, discounts, gifts...

Thu Thuy