What exacerbates the homogenization competition in logistics

1、 In recent years, whether it is the surplus of transportation capacity or the homogeneous competition caused by the homogenization of logistics enterprise services, the most obvious bitter fruit is excessive market competition, leading to price wars. The price war under the background of service homogenization is an important factor leading to the blind development of disorderly market competition.

When price becomes the main factor attracting goods, a vicious cycle will lead to lower shipping costs, severe profit decline, and some even operate at a loss, even maliciously lowering prices to suppress competitors.

Motivate competition and lead most enterprises into an era of low profits, severe losses, and even losses. Importantly, although the market is more selective, there are not many quality options for shippers. To some extent, homogeneous competition also constrains the improvement of service quality.

2、 The degree of industrial intensification is low. Although small and medium-sized enterprises and micro enterprises are important forces in the logistics market, due to their limited resources and service content, nearly 800000 road transportation enterprises are still in the stage of workshop management and operation, with extensive management, low efficiency, and relatively short goals.

Homogenized competition narrows the path for enterprises and affects their healthy development. Most small and medium-sized micro logistics enterprises are also fragmented, disorganized, weak in strength, difficult to develop economies of scale, with small industrial scale, low degree of intensification, and backward management, which restricts the development of the industry.

3、 Wasting resources. Focusing on exceeding quotas in the same field will inevitably lead to wastage of human, material, financial, and other resources.

What exacerbates homogeneous competition?

1、 The entry threshold is low. Compared with railway and air transportation, road transportation has a lower entry threshold, which poses hidden dangers for road transportation enterprises. Many road transportation enterprises, seeing profits, ignore their own strength and conditions, blindly enter the market, and try to share market share.

Many small and micro logistics enterprises, with only a few computers and phones in one store, have already started operating. Many truck drivers, on the other hand, blindly borrow money to purchase cars and enter the market under the joint efforts of certain financial institutions and car sales companies (such as having sources of goods and discounts).

2、 Policy changes. The impact of policy changes on economic development is beyond doubt. In the past two years, the Chinese government has attached great importance to the logistics industry and has successively introduced preferential policies to encourage and guide its development, gradually releasing dividends and creating a favorable development environment, resulting in explosive growth of the logistics industry.

Against the backdrop of vigorously developing China's logistics industry, some local governments have shown great homogeneity in preferential policies such as investment promotion, which is obviously not conducive to the healthy development of the logistics industry in the region.

3、 Driven by public opinion and funding. I don't know if we've noticed, but almost every once in a while, we come across articles that say this industry has great potential, so the future direction of development will be like this. Under similar public opinion guidance, everyone becomes a guide to future trends, often in large numbers.