Review: The 2021 reshuffle and transformative overhaul of the logistics industry—what trends are paving the way for the future?

In the blink of an eye, 2021 has come to a close. Looking back on the year, China’s logistics sector has experienced a mixed bag of fortunes.

On the one hand, Best Inc. has sold its domestic express delivery business, while companies such as Suer Express, Sutong Express, and Yunniao Urban Delivery have successively declared bankruptcy, leaving the entire industry awash with negative news.
Meanwhile, China’s annual express delivery volume has surpassed 100 billion for the first time, and companies such as JD Logistics, Manbang Group, SF REIT, and ANENG Logistics have gone public one after another, heralding new prospects.
In addition, as Cainiao and other express logistics companies have successively… “Stepping up” on technology, the deployment of advanced logistics equipment such as drones and autonomous vehicles may usher in transformative changes for the industry in the new year.
At the turn of the year, we took stock of… In 2021, the logistics industry witnessed numerous transformative developments; by looking back on the past, we can look ahead to the new landscape of logistics in 2022.

01 Business volume exceeds 100 billion, and the industry is undergoing intensified restructuring.

In 2021, two major developments in the logistics industry deserve attention. One occurred on December 8, China’s annual express delivery volume has surpassed 100 billion for the first time. , average daily service 700 million visits. From 50.71 billion parcels in 2018 to now surpassing the 100-billion‑parcel milestone, China’s express delivery sector has maintained its position as the world’s largest for eight consecutive years.

Another thing happened in December 6, China’s first company named after the nation and possessing industry-specific characteristics has been established; the company is named… China Logistics Group. Its emergence may well break down competitive barriers and serve as a pivotal opportunity to forge a new landscape.

In In 2021, the survival-of-the-fittest trend among logistics companies became increasingly pronounced: for example, Best Express was sold to J&T Express, Tiantian Express announced a comprehensive transformation and upgrade, and Sutong Express suspended operations across its entire network due to insufficient funding. All of this signaled that, The industry’s “the strong get stronger” competitive landscape is intensifying, leaving small and medium-sized enterprises struggling to break free from their predicament.

Of course, In 2021, the industry also saw a wave of encouraging developments. For instance, logistics companies such as JD Logistics, Manbang Group, SF Real Estate Investment Trust, and Aneng Logistics went public one after another. In addition, firms like Fuyou Truck, Kuagou, Huolala, and Ririshun have already filed for IPOs.

Industry insiders have pointed out in comparison that, Logistics companies that went public in 2021 or are poised to do so have increasingly diversified their business models, unlike the previous wave, which was dominated by express delivery firms and largely comprised capital‑intensive companies that had secured multiple rounds of funding. Through Seeking financing for growth and creating exit opportunities for early investors has become a defining feature of the express delivery industry’s development in 2021.

02 Last-mile delivery price hikes: from price to value

This year In July, seven government departments jointly issued the “Opinions on Safeguarding the Legitimate Rights and Interests of Delivery Couriers,” setting out the key objectives for protecting couriers’ rights. With this policy support, raising delivery fees has become a major and significant initiative.

Enter In September, several major courier companies—including ZTO, STO, YTO, and Yunda—announced that they would increase the per‑package delivery fee by RMB 0.1 across their entire network. Based on a daily dispatch volume of 300 packages, couriers who work nonstop throughout the month could see an additional monthly income of RMB 900.

In fact, as early as In 2019, the express delivery industry launched a “price war,” driving rates in Yiwu and other regions down to as low as 1.2 yuan for nationwide shipments. In response, companies quickly adjusted their pricing, with many slashing delivery fees below the one-yuan threshold… This move, which kills eight hundred enemies while inflicting a thousand casualties on oneself, has plunged the entire express delivery industry into… The vicious cycle of “increased revenue but stagnant profits” is compounded by razor‑thin margins and grueling workloads, leading to persistently high turnover rates among delivery couriers at the last‑mile network level and frequent difficulties in recruiting new staff.

“However, with the streamlining of market order, the safeguarding of couriers’ legitimate rights and interests, and the introduction of policies promoting environmental sustainability in the express delivery sector, the industry can no longer sustain a purely price‑driven competitive model; the strategy of capturing market share through low prices is becoming untenable.” An industry insider commented.

In 2021, the express delivery industry took a pivotal step in its transformation from “price‑driven” to “value‑oriented,” signaling that the era of cutthroat price wars and chaotic internal competition may be coming to an end. This also serves as a crucial indicator of the industry’s accelerated restructuring and refined development.

03 Technology can reduce logistics costs. 30%

Since 2021, as global industrial policies have intensified government intervention, ensuring the security and stability of industrial and supply chains has become a key objective for China’s logistics sector. In this context, the digital transformation and upgrading of traditional manufacturing supply chains have also been accelerating.

At present, China has a total of More than 3 million manufacturing factories are scattered across over 2,000 industrial clusters.

Previously, the movement of materials and the sharing of resources among manufacturing plants located across different industrial clusters typically relied on conventional logistics and transportation methods. These approaches were not only inefficient and time‑consuming but also suffered from opaque pricing and challenging management and operations. With the adoption of digital and intelligent technologies, along with automated equipment, in the logistics sector, information gaps and service disparities between factories within these industrial clusters have been significantly narrowed, while logistics providers have enhanced their ability to manage and optimize supply chains more effectively. According to a Cainiao representative, C2M digital‑intelligent supply chain logistics services enable merchants to pre‑allocate inventory across nationwide warehouses, seamlessly integrate multiple e‑commerce platforms with brick‑and‑mortar stores, and consolidate online and offline stock. They also facilitate precise order fulfillment and restocking, achieving unified “single‑inventory” operations. Under this C2M model, products directly from the factory’s production line can be sold and shipped straight to consumers, eliminating intermediate links and reducing logistics costs by nearly 30%. Moreover, product offerings align seamlessly with front‑end marketing efforts, driving both cost reduction and operational efficiency while ensuring faster delivery.
Rookie CEO Wan Lin also mentioned that, We are currently pursuing a dual‑engine strategy that leverages the strengths of digital technology and physical logistics operations, embodying the dual attributes of the internet and the real economy. Looking ahead, we will remain committed to a long‑term perspective and harness our digital capabilities to build a robust logistics business.

In addition, companies such as Ririshun and Ande are steadily strengthening their backbone networks in sectors like fast-moving consumer goods and white goods. By developing industry‑specific, end-to-end solutions, they are further embedding themselves deep within the supply chain ecosystem, thereby enhancing supply chain resilience and security.

04 Delivery services are embracing the largest-ever deployment of autonomous vehicles for last-mile delivery.

Looking back on the year that is about to pass In 2021, the pandemic’s impact on work and daily life persisted, accelerating the logistics industry’s shift toward intelligent and automated transformation—led by technologies such as drones and autonomous vehicles.

In September 2020, Zhang Jianfeng, Dean of the DAMO Academy, unveiled the Xiaomanlv logistics robot at the Yunqi Conference, stating his hope to leverage autonomous driving technology to provide solutions for last-mile delivery. According to reports, this year’s Double 11 shopping festival has deployed 350 autonomous delivery vehicles, covering more than 200 universities across over 70 cities nationwide, and has established the largest fleet of autonomous delivery vehicles in China’s last-mile logistics sector.

And this year In September, the SF Changzhou Smart Logistics Park project officially broke ground, with a planned construction area of 133,000 square meters on a 200-mu site and a total planned investment of RMB 1.1 billion. Upon completion, it is expected to generate an additional annual output value of RMB 2 billion.
From this, it can be seen that, As the transformative and upgrading effects of digital, intelligent, and automated technologies and equipment on the traditional logistics sector continue to become increasingly evident, an growing number of companies are steadily ramping up their investment and strategic deployments in this field.

05 Green logistics has become a priority for businesses. “New Responsibility”

In 2021, the “dual carbon” policy was implemented with tangible results, and China’s express delivery and logistics industry, after 13 years of enduring the “Double 11” shopping festival… Subsequently, it also began to focus on factors beyond scale and timeliness. “Green” new issues and the race to become a carbon‑reduction testing ground.

Take Cainiao as an example: by promoting electronic waybills, packing algorithms, intelligent route planning, eco-friendly bags, reusable containers, green recycling bins, and solar-powered logistics parks, In 2021, Cainiao established an end-to-end green logistics solution spanning the entire supply chain—from order placement to package delivery—while collaborating extensively with merchants and consumers to help reduce carbon emissions across society.
And as early as At the 2021 Global Smart Logistics Summit, Cainiao Network CEO Wan Lin stated that making logistics more environmentally friendly is one of the “new responsibilities” borne by logistics companies, adding, “Cainiao will continue to pursue green initiatives to support carbon peak and carbon neutrality goals.”

This year In October, JD Logistics announced an investment of RMB 1 billion to strengthen the development of a green, low-carbon, integrated supply chain ecosystem, with goals including a 35% improvement in its own carbon efficiency over the next five years.

“Dual Carbon” is far more than just a concept; it is the defining theme of the next decade and beyond, and it represents a critical contest not only among nations but also among individual enterprises.

“Carbon tariffs” will be phased in starting in 2023, making it imperative to explore how green logistics can foster green trade.

06 Conclusion

About to pass In 2021, several once‑familiar courier brands faded from the scene, while autonomous delivery vehicles began to capture public attention. Perhaps this marks yet another fresh chapter in the logistics industry—a period of renewal and consolidation, driven by efficient evolution and continuous adaptation.

As 2022 approaches, we hope that in the new year, digitalization will free more frontline workers from price‑driven competition and tedious, repetitive tasks, paving the way for the express delivery and logistics industry to achieve high‑quality development.