Analysis of the characteristics of competition in the logistics market

After fifteen years of unremitting efforts, China has finally become a member of the World Trade Organization as desired. After joining the WTO, our country will further integrate into economic globalization, participate in a wider range of international affairs, and unconditionally enjoy the most-favored-nation treatment, which will inject new vitality and vitality into economic development. However, accession to the WTO is a double-edged sword, on the one hand, will promote the overall social and economic development, to bring a broad space for development of enterprises; on the other hand, open the door to foreign enterprises will be a large number of influx of foreign-funded enterprises, the market competition will be more intense. Therefore, after joining the WTO opportunities and challenges co-exist. The impact on China's logistics service industry is also the same.

China's logistics service industry started late, the level is low. Many enterprises are traditional storage and transportation enterprises transformed, single function, service consciousness is weak, backward technical facilities, network system is not sound, has not formed a stable supply chain. In recent years, with the logistics heat heating up, logistics services industry has been the rapid development of logistics enterprises such as spring, in 2001 only the Beijing Municipality registered as a "logistics" enterprises have more than 120, this number than the sum of the previous years doubled; the Shanghai Municipality as of the end of last year to hang "Logistics By the end of last year, there were more than 1,000 enterprises with the name of "logistics" in Shanghai. The formation of a number of domestic reputation, the benefits of a number of professional logistics companies, such as Shenzhen Hai Fu company, Zhuhai Jiu Chuan logistics, etc.. At the same time, the composition of the logistics business has changed significantly, in addition to the transformation of traditional enterprises, there are foreign-funded enterprises, such as Shenzhen's Newco Anda, has a good level of management, but higher labor costs; there are also private economy, such as Bao供物流, the system has a unique advantage in the management and cost of their own characteristics; there are also from large enterprises separated from the logistics company, such as the United States from the Group shunts out of the There are also logistics companies separated from large enterprises, such as the diversion of the Midea Group from the Ande Logistics Company. This has laid a solid foundation for the future development of the logistics service industry, but compared with the logistics service industry is very developed in Japan, Europe and the United States and other countries, the gap is still very large.

China's logistics market in China after China's accession to the WTO competition has intensified. 2001 China's accession to the WTO, in China's logistics market, not only the express delivery, retail field all of a sudden appeared such as UPS, FedEx, Wal-Mart, Carrefour and other international giants, in the traditional dock and shipping field, Maersk, Singapore Port, Hutchison Whampoa and so on, heavyweight international enterprises to speed up the beach! Boutique, intended to China's total amount of huge, annual growth rate of more than 30% of the logistics market.

At present, the domestic logistics industry, the boss of the COSCO Group is perfecting the layout of the logistics industry, according to the COSCO President Wei Jiafu recently revealed that China's "global container liner-based unit, the domestic logistics unit for the shippers to provide door-to-door logistics solutions based on the completion of the leadership team has also been established. After the approval of the State Council, COSCO's logistics company has also been registered, the end of this year will be able to hang, the name is called China COSCO Logistics Company." In the global logistics industry, Maersk is deservedly the first, while COSCO ranks third. In mainland China's modern logistics market, Maersk on China's local logistics enterprises to form the impact is very fierce. 2001 was allowed to enter China, Maersk has been distributed in China 11 branches, business covers almost all of China's key cargo circulation area. Before the restructuring of COSCO, China Shipping and Sinotrans, they have been lacking the structure of a modern logistics enterprise. In this sense, COSCO has already suffered a "losing battle" in the domestic logistics competition.

1, the expansion of the scope of competition.

(1) Diversification of competition subjects. Economic globalization to promote the deepening of the social division of labor, the development of information technology for the professional division of labor in logistics to provide the necessary technical basis for logistics activities from the commercial and industrial enterprises in the separation of business, third-party, fourth-party and fifth-party logistics and the emergence and development of logistics means that the storage and transportation enterprises as a synonym for the logistics of the end of the formation of multi-party logistics and industrial and commercial enterprises to compete with the diversified pattern.

(2) The globalization of competition. The internationalization of production leads to the globalization of logistics, multinational corporations in the global allocation of production and marketing resources, the establishment of a global supply chain, is bound to put forward the requirements of globalization of logistics services. Economic integration and trade liberalization has reduced the logistics activities of the country or regional restrictions, promote the logistics industry competition in the direction of globalization.

(3) Diversification of competition. Competition in the logistics industry is not only reflected in the transportation, warehousing or packaging and other different functions of the separate competition, but is reflected in a variety of functions of the integrated competition; not only in the process of the logistics activities of the competition, but into the quality of logistics services, level, means and procedures of three-dimensional competition; not only in the competition for markets and customers, and further expansion to technology, information, talent and even strategic partners. Multi-level competition.

2. Changes in the mode of competition.

(1) The purpose of competition from the pursuit of market share to compete for customer loyalty. With the intensification of competition in the logistics industry, market share is difficult to sustain, customer loyalty has become the goal of competition. Pareto's "20:80" law still applies to the logistics industry, a small number of customers constitute the main source of profit, cultivate and maintain the loyalty of these customers is directly related to the survival and development of logistics enterprises.

(2) The focus of competition from functional competition to process competition, from link competition to system competition. The globalization of the logistics competition and the informationization of the competition means make the traditional competition thinking that focuses on a certain logistics function or link, it is difficult to form and maintain the competitive advantage, and also unable to adapt to the transformation of the competition goal. Focus on the whole process of logistics activities, coordination of logistics activities between different links, improve the operational efficiency of the logistics system, build the logistics system and the overall advantage of the supply chain has become the focus of the competition of logistics enterprises.

(3) Competition from price competition to non-price competition. The traditional price competition is difficult to adapt to this change. Information technology reduces customer search and transaction costs, economic globalization has narrowed the price of logistics services, country-specific differences in price competition tends to decline in effectiveness and role of service quality, service efficiency and service innovation and other non-price competition has become the main means of competition.

(4) the competitive relationship from you and I live and die of competition to the development of both competition and cooperation against the joint relationship. The diversification, complexity and globalization of logistics service demand for logistics enterprises' scale of operation, service capacity, marketing experience and risk tolerance and other resources and ability to put forward higher requirements, the diversification of the main body of the competition, the competition level of integration and the diversification of the content of the competition has led to the intertwined pattern of competition between the logistics enterprises, the only way is to establish a strategic alliance with competitors, the formation of both competition and cooperation, the interactive relationship. The pursuit of "win-win" competition effect, in order to better meet customer needs, effective response to the competitive environment, to achieve the competitive goals of enterprises.

3. Innovation of competitive means.

(1) from tangible to intangible conversion. The traditional logistics competition focuses on the function or link of the competition, the dispersion of logistics information and blockage of the competitive means of logistics facilities, transportation tools, warehousing equipment and packaging technology and other tangible parts. With the development of logistics technology and logistics facilities to improve the competition of logistics enterprises to how to use modern information technology, integration of logistics processes, reorganization of logistics functions and coordination of logistics links, thereby improving the efficiency of the logistics system in the field of operational efficiency, information technology and coordination of intangible factors such as management capacity to become the main means of competition.

(2) from a single competition to compound competition. International logistics market competition is fierce, a single means of competition is difficult to obtain and maintain a competitive advantage, but also unable to meet the customer diversity and complexity of the logistics service needs, showing a variety of promotional methods and use, service, price and promotion of a variety of competitive means of combining the composite competitive situation.

(3) From relying on internal advantages to internal advantages and external resources. Under the traditional competitive conditions, logistics enterprises rely on internal advantages, through the combination of their own resources and capabilities to compete. But in the face of all kinds of trade barriers and market access restrictions, logistics enterprises rely only on their own resource advantages is difficult to launch effective competition, only the comprehensive use of economic, psychological, political and public relations and other factors, with the help of the government, associations, the media and the public and other forces, the formation of the internal advantages and the external power of the combined forces, in order to play the market and win in the fierce competition.

Logistics enterprises to intensification and synergistic development. Mainly in two aspects:

One is the construction of logistics parks. Logistics park is a new type of logistics business carrier with a certain scale and a variety of service functions, in accordance with the principles of specialization and scale organization of logistics activities. The main business entities in the park through *** enjoy the relevant infrastructure and supporting service facilities, to give full play to the overall advantages and complementary advantages, and thus realize the intensification of logistics concentration, scale and promote the sustainable development of the carrier city. Logistics parks have the organization and management of transportation and distribution, centralized storage, packaging and circulation processing, conversion and distribution, multimodal transport, information services, integrated services and other auxiliary services, such as eight major business services.

The second is the merger and cooperation of logistics enterprises. European logistics association experts believe that the world's industries and enterprises between the international union and mergers and acquisitions, inevitably drive the international logistics industry to accelerate the direction of globalization, and logistics globalization of the development trend, but also inevitably promote and facilitate the joint and merger and acquisition activities of logistics enterprises in various countries. Newly formed logistics joint ventures, multinational corporations will give full play to the advantages of the Internet timely and accurate grasp of the global logistics dynamic information, mobilize their own logistics outlets around the world, constructed a globally integrated logistics network, saving time and cost, will be compressed to the lowest rate of empty loads to overcome competitors, to provide quality services for the owner.

Quality and globalization of logistics services. With the arrival of the era of diversified consumption, flexible production and efficient circulation, the society and customers have higher and higher requirements for logistics services, and the quality of logistics services is an important trend in the future development of logistics.

December 11, for China and the world logistics industry will be an extraordinary day, it is China's accession to the WTO is another milestone, marking the foreign logistics companies can set up wholly owned branches in China, China's logistics industry will open the door to face the challenges of the world logistics industry and competition. It is believed that after the opening of China's logistics market competition will be very fierce, Chinese and foreign logistics companies will stage a peak battle, the war has the following three main points:

Points of view after the opening of China's logistics market size

Jpmorgan Stanley Asia Pacific Investment Research Group said in its report that China's logistics market is expected to grow at an average annual rate of 1.5 billion tons per year. Stanley Asia Pacific Investment Research Group in October 2001 launched the "China Logistics Report," pointed out that China's annual logistics costs more than 200 billion U.S. dollars, and is expected in the next 10 years and logistics-related service revenues will grow by 20% per year. However, the 3PL market accounts for only 2% of all logistics spending, or about $4 billion. That is to say, of all the $200 billion spent on logistics costs, about $4 billion is used to procure logistics services from 3PL companies in the market. This can be analyzed from two aspects: first, China's logistics market has great potential. In fact, the real logistics market should only be the 3PL market, the total logistics cost is the sum of the logistics market and the potential market, because only the 3PL market occurs in the transaction. The annual logistics cost is about 200 billion dollars, and this is all a market that 3PL or even later 4PL companies can fight over. Moreover, logistics costs accounted for 20% of GDP, significantly higher than developed countries, such as the United States, 4-10%, indicating that China's logistics is at a lower level, there is huge room for development. Secondly, the current logistics market in China is relatively small. China's 3PL market is only about 1 / 10 of the United States, 3PL companies in China to improve the level of logistics to save logistics costs at the same time, can win a huge market, China's logistics market has broad prospects. After the opening up of China's logistics level, logistics costs accounted for the ratio of GDP will gradually decline until close to the level of developed countries, but the logistics market accounted for the proportion of logistics costs will be significantly increased, so the size of the logistics market will be larger. In addition, with the opening of China's market as a whole, the economy will have better growth, and increased commodity flows with foreign countries, logistics demand is greater, further expanding China's logistics market.

Watch Point 2: the existing strength and characteristics of Chinese and foreign logistics enterprises

With the logistics boom in China in the past two years, all walks of life to logistics, have set up logistics enterprises. But really have a certain scale is very little, market share of more than 2% of almost nothing. China's logistics enterprises are small in scale, large in number, lack of competitive advantage. Moreover, China's logistics enterprises with low technological content, most can only provide transportation and warehousing and other traditional services, can provide a package of logistics solutions for very few enterprises. But we can also be pleased to see that there are a small number of domestic enterprises are gradually approaching the modern logistics, to provide high value-added services, not long ago released in 2005 China's top 500 enterprises, China COSCO, China Shipping, Sinotrans and other mega-logistics enterprises ranked steadily, and the number of large and medium-sized logistics enterprises to increase.

Foreign logistics giant enterprises, after the baptism of the market, advanced technology, abundant capital, strong, with a worldwide network, have a greater advantage in the international logistics market. With the overall opening of the Chinese market, the old customers of foreign logistics companies - foreign manufacturers will still cooperate with them, which will give them more market share. Currently, the Chinese market has nearly 510,000 logistics companies, of which foreign companies account for 0.13 percent, or 680, but they have a market share of up to 8 percent.

Watch Point 3: the dynamics of Chinese and foreign logistics enterprises

With the gradual approach of China's logistics industry to lift the ban on the footsteps of the domestic logistics enterprises to feel the enormous pressure, have to change to cope with the impact of foreign logistics giants. In the domestic logistics enterprises to actively prepare for the same time, foreign logistics giants to speed up the pace of entry into China, TNT, UPS and many other foreign companies are in the opportunity to adjust their strategies in China. In the recently held summit forum of Chinese and foreign logistics industry, the person in charge of UPS said that it will increase its investment in China and will expand its new business in China's emerging port cities. Not long ago, TNT's China headquarters was officially moved from Beijing to Shanghai, and plans to increase investment in China in the next three to five years, 250 million euros, used to increase logistics facilities and staff training, in order to make China its largest market outside of Europe. In addition, DHL's parent company, Deutsche Post, the board of directors has decided to invest another 2.15 billion euros in China over the past five years to expand and improve the four port operation centers in China, an additional 14 branches, the construction of three express logistics centers and 16 strategic spare parts centers.

After the opening of China's logistics market will be very active, is an open and orderly competition in the market. Chinese and foreign logistics enterprises **** exist with this market, foreign logistics companies have a certain advantage, with a slightly larger market share, but the domestic logistics companies will never show weakness, will take advantage of the advantages of the geographical location and people and the advantages of the maintenance of the logistics market competition rather than monopoly of the war goes on. Although the current stage of China's logistics level is still at a relatively low level, but as China becomes a manufacturing power, economic power at the same time will become a logistics power, after the opening of China's logistics will rapidly approach the world's advanced level. For some domestic enterprises with large scale and strength, they should utilize the advanced management concepts and technologies brought by foreign logistics enterprises, combine with their own network advantages, expand the scope and content of services, and strive to become an outstanding local logistics enterprises; for some other enterprises with a certain scale but focusing on a certain field of logistics, they should utilize their own advantages in a certain area, and complement the advantages of foreign-funded enterprises to **** the same! Winning the market; and for most of the small and medium-sized logistics enterprises, to find out the gap in the market to differentiate their business is their best way to survive.