The volume of business has dropped significantly, and the reduction in business has caused many operators of moving companies to frown. The moving industry in Shenzhen has already reached a certain scale. It is a private enterprise specializing in moving, transportation, and services. There are more than 50 vehicles and over 300 staff members. Even such a large-scale moving company is facing operational difficulties.
Mr. Cheng of Jiazhi Fu Moving Company in Shenzhen introduced to reporters that the moving market generally has two off-seasons: from after the Spring Festival to May, and from November to just before the Spring Festival. Now, the company can receive an average of 3-4 orders per day, whereas at this time last year, they would receive at least 7-8 orders daily. The order volume has decreased by about 35%. The company's four moving trucks, sometimes in the Futian area of Shenzhen, now occasionally don't get a single business deal in a day.
Mr. Cheng analyzed that the difficulty in doing business mainly stems from the sluggish real estate market. Many citizens who want to buy houses are waiting and observing; with fewer people buying houses, naturally there are fewer people moving. Additionally, there are many moving companies in Taiyuan, with over a hundred of various sizes, and about seven or eight larger ones. The level of competition has increased compared to previous years. Fewer orders, more moving companies, are also reasons for the sluggishness in the moving market.
Besides registered moving companies, some "guerrilla" moving trucks also participate in the competition. These "guerrillas" sometimes don't even have storefronts, relying solely on a phone to solicit business. Mr. Cheng believes that their ability to grow bigger relies on offering lower prices.
Competitors sharing the market with moving companies not only come from within the moving industry but also from the rapidly developing "logistics industry." Due to their large scale, convenience, speed, and low prices, logistics enterprises have had a significant impact on moving companies in the provincial capital.
Avoiding price wars and expanding business
Mr. Cheng told reporters that for moving companies to survive now, there are essentially two paths: one is to reduce costs, and the other is to increase income. From the current situation, costs have not decreased but instead continue to rise. Under these circumstances, it's difficult for legitimate moving companies in Shenzhen to compete on price with the "guerrilla" moving trucks.
Mr. Cheng revealed that after discussions among several bosses operating Shenzhen moving companies, they unanimously believe that given the current situation, moving companies must focus on standardizing services and expanding their business scope. They must fully demonstrate the advantage of service quality and reduce customers' sole focus on price to find new ways out.