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Logistics giant PickPoint is officially bankrupt
Jan 25, 2024|
View:128PickPoint, once the king of the Russian market, finally came to the closure of this step.
The Moscow Arbitration Court recently declared the bankruptcy of Russian logistics giant Network of Automated Dispensing Points LLC (PickPoint brand). It is reported that the main reason for the bankruptcy of the giant is the financial crisis caused by the decline in turnover, and it has been reported that the total debt of PickPoint logistics services to creditors exceeds 2.6 billion rubles.
In fact, as early as April 2023. the company had already stopped providing services to customers, and subsequently the Moscow Arbitration Court registered an application for logistics company PickPoint to declare bankruptcy. Before its bankruptcy, the delivery giant was one of the leading logistics operators in the Russian market, serving about 6.000 parcel terminals at the peak of its development.
Bankruptcy filing chart Source: kad.arbitr.ru
So why did the logistics giant end up shutting down its business? In fact, behind this reflects many of the current cross-border e-commerce industry and logistics industry facing complex problems.
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 markets, the construction of logistics infrastructure often fails to keep pace 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 for the cross-border logistics industry, which not only increases logistics costs, but also affects logistics efficiency. All these factors bring bad shopping experience to consumers, which in turn affects the reputation and business volume of enterprises.
The wave of bankruptcies is upon us
Under the impact of persistent high inflation, cross-border e-commerce players are having a difficult time, facing great pressure to decline in performance, and the bankruptcy tide is accelerating across the global consumer market.
Previously, data released by Standard & Poor's data showed that in November 2023. there were 591 US companies filed for bankruptcy, which is the highest number of US companies filed for bankruptcy since 2020. among which consumer retail companies ranked first in the US bankruptcy list. Retail giants like Bed Bath & Beyond are not immune.
Chart of U.S. bankruptcy filings Source: Bansari Mayur Kamdar
Even Zulily, a well-known maternal and child e-commerce company in the United States with the slogan of "the most favorable price commitment", has also fallen from a shining star, and issued an announcement at the end of December 2023 that it will end its business in an orderly manner. Unexpectedly, after several layoffs, Zulily still did not make it to 2024.
And the same thing is also being staged in the increasingly hot fast fashion e-commerce track, some people are crazy to attract money, but some people are forced to leave early. Farfetch, which has galloped into the luxury e-commerce business for many years, is unable to withstand the winter of consumption and seems to have reached the point of exhaustion. A month ago, its shares hit a record low of just 60 cents, down 98% from their peak, a straight-line decline that wiped out $22.75 billion in market value. At the same time, Farfetch is carrying a huge amount of debt, which the company does not have enough capacity to repay. If Farfetch's self-help strategy doesn't work, it may end up leaving the market altogether.
Farfetch on The brink of bankruptcy: The New York Times
A series of problems such as sluggish consumption and rising costs have made cross-border e-commerce players anxious, but there is a good saying that "opportunities and challenges coexist". Overall, the cross-border e-commerce industry is still an incremental market, many people are breaking their heads to find opportunities to enter the game, well-known anchor Xiao Yang brother turned his eyes to the huge overseas consumer market, taking advantage of TikTok to open the road to overseas goods.
Frankly speaking, in order to successfully nuggets cross-border e-commerce is not easy, in this process, sellers need to face many complex links, any natural disasters and man-made disasters may become a stumbling block on the road to sea, and these are often unpredictable. Therefore, for sellers, looking for reliable service partners, offshore platforms, target sales markets and other work is very important, do not hurry, please be sure to do a good early inspection, not to fight unprepared.
