Fangzheng Securities: The seasonal price competition in the express delivery industry has come to an end, and the anticipated consistent price increase in the peak season has been realized ahead of schedule.

Jinshi data news on September 20th, Fangzheng Securities research report pointed out that the seasonal price competition is coming to an end, and the expected price increase in the peak season is being realized in advance. Starting from September, as the peak season approaches, many express delivery companies in Zhejiang, Guangdong and other places have announced price increases, especially for key grain-producing areas such as Chaoshan/Yiwu, the price increase is more obvious; and some grain-producing areas’ merch cities have also begun to follow the pump. Under the background of industry regulation’s initiative to “anti-internal competition” and the leader’s pursuit of balanced development in terms of quantity, quality, and profit, the probability of a sustained, relatively intense price war in the future may decrease, and it is expected to trend towards a phase-wise, locally controllable, moderate price competition state. The future competition and pattern changes in the express delivery industry will be a “marathon” process of competing for the entire chain to reduce costs and increase efficiency, benefit distribution mechanisms, and service quality.