789 Global Express (1/2)
Jiang Chen's words didn't make Wang Wei feel discouraged. He clearly knew that since Jiang Chen agreed to meet with him, there must be room for negotiation.
After collecting his train of thought, Wang Wei responded, ”I don't know if Mr. Jiang studied the case of FedEx's failure in Hua.”
The hotel waiter served the two people black tea and pastries. Although it was close to dinner time and past time for afternoon tea at the Peninsula Hotel, distinguished guests always received extra privileges.
Taking a sip of the black tea to soothe his throat, Jiang Chen said, ”Of course.”
”There are many reasons behind FedEx' operations failure in the country. Even though they had a considerable advantage in price and made efforts in localization, they struggled to enter the market. My operating team studied this case and we came to a conclusion. Do you know what it is?” Wang Wei locked his eyes onto Jiang Chen.
”Is this a test?” Jiang Chen grinned.
”Not at all.” Wang Wei laughed and held up one finger. ”In the end, there's only one reason. They suffered a Google-style failure.”
”Google-style failure - this concept is rather interesting. This is my first time hearing this.” Jiang Chen looked at Wang Wei with interest. ”So, do you think our Global Expresswill suffer a Google-style failure?”
Wang Wei didn't directly answer Jiang Chen's question but he used the art of negotiation to blur the issue.
”New trade protectionism. Starting in the 1980s, with non-tariff barrier measures such as environmental barriers, technical barriers, anti-dumping and intellectual property protection, the policy has protected local companies and excluded foreign companies from entering the market. Although Hua started in this area quite late, with the trades frictions with the UA after 2000, we also learned a lot. I personally concluded that there's an interesting law; all products that can be replaced are domestically protected by policies. The logistics industry is obviously one of them.”
”Even if you have a drone logistics network that's convenient and quick, that's not irreplaceable enough. After all, our companies that rely on human resources can also send packages to customers' homes; at most, we'll be slower by a few hours in the dispatching process.”
After listening to the explanation, Jiang Chen looked at Wang Wei with surprise.
What he said was also Jiang Chen's biggest concern.
Global Express had a complete set of localized operation plans. At the same time, it also recruited former senior executives of many renowned delivery companies from headhunters. However, taking Hua as the first leg of the international market meant Global Express would have tough obstacles to overcome.
However, although the obstacles weren't small, Jiang Chen already had plans in mind.
”So, we plan to divide the business into two parts.” Jiang Chen looked at the confident Wang Wei with a grin.
”Two parts?”
”Yes.” With his fingers crossed on the table, Jiang Chen began, ”Global Express will split the business into two parts. The first is to build a drone logistics network and the other is to contract delivery services from other courier companies.”
”What do you mean?” Wang Wei furrowed his brows.
”Taking Xiangjiang as an example, we'll establish the drone logistic systems of Penglai City as a pilot project for Xiangjiang. No matter whether it's SF Express or YTO, they can deliver packages to our warehouse and provide customers with drone delivery service. Our services don't target the customer receiving packages but rather, our target is courier companies. Do you understand what I mean?”
Delivery companies? Franchises?
Wang Wei instantly understood the intention behind Jiang Chen's plan.
This was equivalent to saying that they would contract all delivery services from courier companies.