Why is “involution” so hard to address? And where lies the way forward for logistics and supply-chain enterprises?

As a vital pillar supporting the operation of the national economy, the logistics industry’s development trajectory directly influences the overall economic efficiency and competitiveness of society. However, in recent years, the logistics sector has witnessed a… The phenomenon of “involutionary” competition has generally fallen into… “ Price competition - Profit compression - Service degradation ” A vicious cycle. This It has not only undermined the industry’s sound development but has also disrupted the broader economic order of society.

When discussing the challenges facing China’s logistics industry, “Involution” is a topic that cannot be avoided. Overall, The main challenges fall into the following four areas. Urgently in need of a fundamental cure 。

First, Prices have become razor‑thin. The most conspicuous manifestation of “involutionary” competition in the logistics industry is price wars. Over the years The situation is becoming increasingly intense. In the race for market share, logistics companies are slashing prices and even offering services below cost. And This kind of behavior Also further It undermines the legitimate interests of enterprises, leaving some small and medium-sized businesses unable to withstand operational pressures and ultimately forcing them to exit the market.

Second, Disorderly competition. In Driven by “involutionary” competition, some logistics enterprises have engaged in reckless, unregulated expansion, recklessly increasing their transport capacity and network of service points without regard for their own capabilities or market demand. This disorderly expansion not only results in the wastage of resources but also exacerbates chaotic competition in the market. Meanwhile, such unfair competition manifests itself in mutual defamation and false advertising among firms, seriously undermining the fair‑competition order of the market.

Third is Quality degradation. Due to the intensification of price wars and the impact of disorderly expansion, Further spread The service quality and efficiency of logistics enterprises are often compromised. Specifically, this manifests as delayed deliveries and longer customer wait times; frequent incidents of cargo damage or loss; opaque logistics information that prevents customers from tracking their shipments in real time; and inadequate after-sales support, with complaints being addressed untimely. These issues erode customer satisfaction and tarnish the industry’s overall image and reputation.

Fourth is Resource waste. In In “involutionary” competition, some logistics companies, in an effort to cut costs, often neglect the rational use of resources and environmental protection. For example, to attract customers and ensure cargo safety, they may overuse packaging materials and devise inefficient transportation routes, resulting in reduced transport efficiency and a higher rate of empty‑truck runs. This not only leads to resource waste, but also… also It has affected sustainable development.

The emergence of “involutionary” competition in the logistics industry is the result of the intertwined effects of multiple factors—like a complex web of threads, they are entwined and mutually influential, thereby constraining the sector’s move toward high-quality development.

First, the industrial structure is suboptimal. Homogeneous competition is pronounced, with 78% of China’s logistics enterprises concentrated in basic services such as transportation and warehousing. Moreover, regional distribution is highly uneven: the density of logistics firms in the Yangtze River Delta is 5.6 times that of the western region. This market structure fosters exceptionally fierce competition among firms; in their quest for market share, companies are compelled to resort to price wars and other tactics, driving down industry-wide profit margins and perpetuating a vicious cycle.

Second, Information coordination capabilities are weak. With the advancement of technology, informationization has become a defining feature of the modern logistics industry. However, in many logistics enterprises, the level of information technology adoption remains low, and investment in IT is insufficient. IT spending by small and medium-sized logistics enterprises accounts for only 0.8% of their revenue. Data silos are a significant issue, with less than 15% of data being shared among the top ten logistics platforms, preventing effective information sharing and integration. This results in high logistics costs and low operational efficiency. Moreover, lacking robust digital tools, companies struggle to accurately track market demand and emerging trends, making it difficult to formulate sound business strategies and forcing them to compete for market share primarily through price wars.

Third is Policy and regulatory frameworks remain incomplete. Although the government has introduced a series of policies and measures to support the development of the logistics sector, certain shortcomings persist in their implementation. For instance, some policies are inadequately enforced, and oversight is lax, leading to non-compliant practices by certain enterprises. Moreover, deficiencies in tax policies and transportation‑related regulations further hinder the industry, making it difficult for companies to operate in a level playing field.

Fourth is A lack of cultural values. In many logistics enterprises, there is a dearth of a clear corporate culture and set of core values, leaving employees without a sense of belonging or accountability and making it difficult to foster a collaborative and cohesive work environment. Meanwhile, some companies prioritize short-term gains at the expense of long-term development and social responsibility, resulting in competition that lacks integrity and fairness.

First, Strengthen industry self-regulation and standardize market order. Enhancing industry self-discipline is essential to curb the logistics sector’s… The key to curbing “involutionary” vicious competition lies in establishing industry self-regulatory bodies, formulating and enforcing industry standards, guiding enterprises to adhere to market principles, and standardizing pricing practices to prevent harmful competitive behavior. Furthermore, regulatory oversight of the industry should be strengthened, with penalties imposed on firms that violate industry norms, thereby safeguarding market order.

Secondly, enhancing service quality to meet market demands. Improving service quality is key to boosting the logistics industry’s competitiveness. Companies should strengthen employee training to raise service standards and ensure timely, high‑quality delivery; proactively adopt advanced technologies and management practices to streamline delivery processes and increase transportation efficiency; and remain attuned to consumer needs, offering personalized, differentiated services that cater to diverse customer preferences.

Third, advance Green logistics , to achieve sustainable development. Green logistics is a key direction for the logistics industry’s evolution. Enterprises should proactively implement environmentally friendly measures to reduce energy consumption and emissions, thereby advancing green logistics; they should also strengthen resource recycling and enhance resource-use efficiency to promote sustainable development. Governments, in turn, should introduce relevant policies to encourage businesses to adopt eco‑friendly vehicles and equipment, thus driving the growth of green logistics.

Fourth, strengthen information infrastructure and elevate the level of information technology. Informationization is a key driver of competitiveness in the logistics sector. Enterprises should increase investment in information technology to enhance their digital capabilities; by establishing robust information systems, they can facilitate information sharing and resource integration, thereby improving operational efficiency; and they should proactively adopt advanced technologies such as big data and artificial intelligence to raise the intelligence of their logistics services.

Fifth, Expand business domains to achieve diversified growth. Broadening into new areas is an effective strategy for fostering diversification in the logistics sector. Enterprises should, based on market demand and their own capabilities, venture into complementary business lines; through diversified expansion, they can enhance overall competitiveness and reduce reliance on any single line of business. At the same time, companies should keep a close eye on international markets, actively engage in global cooperation and exchanges, and strengthen their international competitiveness.

In summary, To eradicate completely “ Involution ” Issue, requires construction A three-dimensional governance framework of “policy guidance–market regulation–technology-driven innovation” ， Comprehensive measures ， Only then can Promote the sound development of the logistics industry and the stable operation of the socio‑economic system. 。