Sadly, logistics giant PickPoint officially goes bankrupt
Recently, the Moscow Arbitration Court declared the bankruptcy of Russian logistics giant Network of Automated Dispensing Points LLC (PickPoint brand). It is reported that the main reason for the giant’s bankruptcy is the financial crisis caused by declining sales. It has been reported that PickPoint Logistics Services’ total debt to creditors exceeds 2.6 billion rubles.
In fact, as early as April 2023, the company had stopped providing services to customers, and then the Moscow Arbitration Court registered the application of logistics company PickPoint to declare bankruptcy. Before bankruptcy, the express delivery giant was one of the major logistics operators leading the Russian market, providing services to approximately 6,000 parcel terminals at the peak of its development.
So why did the logistics giant end up in bankruptcy and shut down its business? Behind this actually reflects many of the complex problems faced by the current cross-border e-commerce industry and logistics industry.
First of all, the lag of logistics infrastructure is one of the main factors restricting the development of cross-border e-commerce and logistics industry. Especially in emerging market countries, the construction of logistics infrastructure often cannot keep up with the development of e-commerce, resulting in high logistics costs and low transportation efficiency. Secondly, the existence of various trade barriers is also a major challenge faced by the cross-border logistics industry, which not only increases logistics costs, but also affects logistics efficiency. Various factors bring bad shopping experience to consumers, which in turn affects corporate reputation and business volume.
Under the impact of persistent high inflation, cross-border e-commerce players are not having an easy time. They are facing tremendous pressure from declining performance, and the wave of bankruptcies is accelerating across the global consumer market.
Previously, data from S&P Data showed that in November 2023, 591 U.S. companies had filed for bankruptcy. This is the highest number of U.S. companies filing for bankruptcy since 2020. Among them, consumer retail companies ranked first The top of the U.S. bankruptcy list, including retail giants like Bed Bath & Beyond, have not escaped the impact.
Even Zulily, a well-known American maternal and child e-commerce company with the slogan “Best Price Promise”, has fallen from its former shining star. At the end of December 2023, it issued an announcement that it would end its business in an orderly manner. Unexpectedly, after multiple layoffs, Zulily still failed to survive until 2024.
The same thing is happening in the increasingly hot fast fashion e-commerce track. Some people are making money crazily, but others are forced to leave early. Farfetch, which has been in the luxury e-commerce industry for many years, is unable to offset the cold winter and seems to be at the end of its rope. A month ago, its stock price reached a record low of only 60 cents, a 98% drop from its peak. It could be described as a linear decline, and its market value evaporated by US$22.75 billion. At the same time, Farfetch is also burdened with huge debts, and the company currently does not have sufficient repayment capabilities. If Farfetch’s self-rescue strategy fails to bear fruit, what awaits it in the end may be to bid farewell to the market completely.
A series of problems such as sluggish consumption and rising costs have left cross-border e-commerce players struggling, but as a saying goes, “opportunities and challenges coexist.” Overall, the cross-border e-commerce industry is still an incremental market, and many people are struggling to find opportunities to get involved. The well-known anchor Xiao Yang has turned his attention to the huge overseas consumer market, taking advantage of TikTok to start overseas sales. cargo route.
Frankly speaking, it is not easy to successfully develop cross-border e-commerce. In this process, sellers need to face many complex links. Any natural disasters and man-made disasters may become stumbling blocks on the way to sea, and these are often unpredictable. of. Therefore, it is very important for sellers to find reliable service partners, overseas platforms, target sales markets, etc. Don’t be impatient. Please do a preliminary inspection and don’t fight an unprepared battle.
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