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SF Express high-end service fuels growth

By Eva Yoo

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China’s leading courier service company SF Express announced the first annual report after listing on March 11, 2017. Their annual report shows that they have achieved a net profit of RMB4.18 billion yuan in 2016, increasing by 112.51% year on year. They are making a good start just like their name Shunfeng’s meaning “bon voyage”, thanks to their high-end focus strategy. (Chinese source)

According to earnings data in 2016, SF Express processed about 2.8 billion deliveries, an increase of 31.00% and operating income of RMB 57.483 billion, an increase of 19.50% YoY. The net profit after deducting non-recurring gains and losses was RMB 2.6 billion.

SF Express courier center near Hanzhonglu station in Shanghai (Image Credit: TechNode)

To differentiate from other courier services and set the long-term plan, the company strategically targeted the high-end market. SF Express started heavy cargo express, which helped their operating income in 2016 to 2.34 billion yuan, taking the 96% of the market share in that area. Using self-owned aviation resources, SF Express makes time-specific delivery to satisfy customer’s demands.

Leveraging its position as a logistics leader in China, SF Express started an offline shopping center Heike (黑客, a play on “black,” the main brand color and “customer”), offering pre-order and try-on services as well as dry cleaning and air ticket booking.

SF Express is now pushing its cold chain business as part company’s future strategy. The current cold transport network covers 56 cities and surrounding areas. The company is also testing drones that can fly as high as 100m to reach remote areas with poor roads.

Source:: SF Express high-end service fuels growth

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