In recent years, China's less-than-truckload (LTL) logistics industry has encountered new development opportunities as three major logistics giants have adopted franchise models that are drawing widespread attention. TNT Hoau, Deppon Logistics, and Jiaji Express have all begun implementing franchise strategies to adapt to evolving market conditions and growing customer demands. This article provides an in-depth analysis of these three companies, examining their development strategies under the franchise model and the impact this approach is having on the entire logistics industry.
1. Industry Background
Less-than-truckload logistics refers to the transportation model where shipments from multiple shippers are consolidated when no single shipper provides enough cargo to fill an entire truck. In recent years, with the rapid development of e-commerce, market demand for efficient and flexible logistics services has increased significantly. The advantages of LTL logistics have become particularly evident in cross-border e-commerce, cold chain logistics, and customized services. Meanwhile, consumption upgrades and the rise of rural markets have created demand for more logistics services, presenting substantial challenges to traditional logistics models.
2. TNT Hoau's Franchise Strategy
As a pioneer in China's LTL logistics sector, TNT Hoau traces its origins to 1995. The company gained stronger support in financing, management, and marketing after introducing CITIC Private Equity as an investor. Today, TNT Hoau has established an extensive transportation network covering over 600 cities with more than 2,000 service outlets nationwide. Its newly announced plan calls for adding 3,000 new stores within three years. The core of this strategy lies in leveraging local franchisees' market familiarity to expand business coverage and enhance service capabilities.
Under the franchise model, TNT Hoau has established mutually beneficial partnerships with franchisees who function more as "business partners" than mere "agents." These partners can utilize their local resources, market connections, and operational experience to quickly launch services, improving market responsiveness and service quality. Meanwhile, TNT Hoau provides training, technical support, and marketing assistance to help franchisees improve operational capabilities, creating win-win outcomes for both platform and partners.
TNT Hoau's success relies not only on its unique franchise model but also on its emphasis on technology and customer service. For instance, by establishing visual information platforms and transportation management systems, the company can monitor every link in the transportation process in real time, improving transparency and safety. These measures prove crucial for enhancing customer satisfaction and brand image.
3. Deppon Logistics' Business Partner Program
Since its founding in 1996, Deppon Logistics has focused on developing diversified businesses including LTL, express delivery, full truckload, and warehousing services. In the current market environment, Deppon recognized that traditional business models alone could no longer meet rapidly changing market demands. This realization led to the launch of its Business Partner Program, representing a significant step in exploring new business models.
The Business Partner Program aims to expand express and LTL services into uncovered regions. By co-venturing with social partners, Deppon fundamentally enhances its market competitiveness. Through risk-sharing and profit-sharing arrangements with partners, Deppon can leverage local expertise to enter new markets.
Additionally, Deppon provides comprehensive support to partners including financing, training, and store decoration services. This inclusive development strategy has attracted participation from numerous small and medium enterprises while injecting new vitality into Deppon's own growth.
As Deppon continues expanding in the market, its Business Partner Program may achieve broader geographical coverage and elevate operations to higher levels. This model not only strengthens Deppon's logistics network but also deepens customer relationships, enhances customer stickiness, and drives sustained brand growth.
4. Jiaji Express' Franchise Approach
Jiaji Express similarly began opening franchises this year, actively recruiting partners in multiple core cities. By expanding market share, Jiaji aims to strengthen its competitiveness in this intense market. This model will help Jiaji quickly deploy nationwide and achieve economies of scale.
To ensure smooth and stable cooperation, Jiaji established clear franchise entry rules. This transparent and standardized mechanism provides potential franchisees with definite standards and expectations. During cooperation, both parties can collaborate deeply in operations management, marketing, customer service and other areas to achieve mutual benefits.
Jiaji also emphasizes technology and process optimization in its franchise operations. By establishing unified information management platforms, the company improves overall operational efficiency. Simultaneously, Jiaji actively expands its product and service portfolio to meet diverse customer needs. For e-commerce businesses, for instance, Jiaji introduced more flexible delivery solutions to provide fast and reliable logistics services.
5. Overall Impact of Franchise Models
While TNT Hoau, Deppon Logistics, and Jiaji Express implement franchise models with different details, this approach is undoubtedly transforming the entire industry. First, franchise models provide enterprises with more market expansion opportunities. By partnering with local franchisees, logistics companies can quickly enter new markets, improve coverage, and enhance market influence.
Second, franchising significantly promotes small and medium enterprise development. Many local SMEs can leverage large logistics companies' brand effects and management experience to improve their own competitiveness. Meanwhile, franchising offers entrepreneurs more opportunities to pursue independent ventures in logistics.
Finally, franchise models may accelerate digital transformation across the logistics industry chain. During franchising, companies typically emphasize information technology applications, using modern IT systems to share information, optimize processes, and analyze data—thereby improving overall operational efficiency. These measures not only enhance customer experience but also support companies' long-term market development.
6. Future Outlook
With e-commerce's rapid development and rural market growth, traditional logistics models face significant challenges. Through diversified business models like franchising, these logistics giants are actively responding to external changes while improving their own competitiveness.
Looking ahead, franchising may become a major development trend in China's LTL logistics industry. Companies will flexibly adjust strategies according to market and customer needs to adapt to rapid changes. Meanwhile, as logistics technology continues innovating and applying, LTL logistics will achieve greater efficiency, transparency, and safety.
With various emerging services continuously appearing, China's LTL logistics industry will develop toward greater diversification and specialization. Overall, as a flexible business model, franchising will occupy an increasingly important position in future logistics markets. This approach not only meets market demands but also provides companies with new growth momentum, positively promoting overall industry development. By continuously strengthening cooperation with franchisees and innovating together, logistics enterprises can advance steadily amid intense competition and achieve sustainable development.
