The globally recognized definition of "logistics" by the Council of Supply Chain Management Professionals (CSCMP, formerly CLM) states:
"Logistics is the process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to meet customer requirements."

China’s National Standard Logistics Terms defines it as:
"The physical flow of goods from supply locations to receiving destinations, integrating transportation, storage, loading/unloading, handling, packaging, distribution processing, delivery, and information management based on practical needs."

1. Industry Profile: Extensive Coverage with Diverse Participants

Industrial Chain Structure

• Upstream: Infrastructure providers (road/rail networks, warehouse real estate, logistics equipment manufacturers)

• Midstream: Transportation, warehousing, and logistics management service providers

• Downstream: End-users (manufacturing sectors like steel, coal, automotive, and individual consumers)

Key Players

• Upstream: Infrastructure investors, hardware/software manufacturers

• Midstream: Transport-focused firms, warehousing specialists, integrated logistics service providers

• Downstream: Industrial manufacturers requiring supply chain solutions

2. China’s Market Outlook: Growth with Efficiency Gains

Total Social Logistics Value

• 2019: ¥298 trillion (5.9% YoY growth, 90.5% from industrial goods)

• 2020: ¥300.1 trillion (3.5% YoY), with industrial logistics dominating (¥269.9 trillion, 2.8% growth)

Cost Reduction Progress

• 2019 Logistics Costs: ¥14.6 trillion (14.7% of GDP, ↓0.1pp YoY)

• 2020 Q1–Q3: Costs fell to 14.4% of GDP (↓0.3pp YoY), driven by policy reforms and operational optimizations.

  • Breakdown: Transport (52.7%), storage (34.3%), management (13%).

3. Regional and Competitive Landscape

Geographical Imbalance

• Policy: *Medium- & Long-Term Logistics Development Plan (2014–2020)* prioritized regional coordination.

• Demonstration Logistics Parks: 56 national pilot parks (39% in East China, reflecting industrial demand disparities).

Market Pyramid

• Top Tier: Large-scale integrated players (e.g., COSCO Shipping, Xiamen Xiangyu)

• Mid-Tier: Specialized medium-sized firms

• Base Tier: SMEs offering single-function services

4. Competitive Dynamics: SOEs Lead, Private Firms Rise

Top 50 Logistics Firms (2019)

• Revenue: ¥9.8 trillion (+16.9% YoY), threshold: ¥3.26 billion.

  • Tier 1: COSCO Shipping (¥221.2B), Xiamen Xiangyu (¥140.4B)

  • Tier 2: SF Holdings, Sinotrans (¥50B+ each)

  • Tier 3–5: JD Logistics, ZTO Express, etc.

Private Sector Growth

• E-commerce boom propelled firms like SF, JD, YTO, and Deppon into the top 10, challenging SOE dominance.

5. COVID-19 Impact (2020): Polarized Performance

• Revenue Leaders: Xiamen Xiangyu, SF Holdings (¥100B+), while 22 firms saw declines (worst: -62.9%).

• Profitability: 25 firms grew profits (3 with 100%+ surges), but 18 faced drops (6 in net loss, worst: -258.1%).

• Challenges: Labor/capital pressures persisted despite Q3 recovery signs.

6. Future Trends: Smart Logistics Dominates

• Tech-Driven Transformation: Autonomous vehicles, IoT, and big data to enhance decision-making.

• Goals:

  • Upgrade connectivity and data analytics.

  • Innovate business models (e.g., new retail integration).

• Outlook: Smart logistics will revolutionize efficiency, enabling industry-wide upgrades.

Key Drivers:

• National "cost-cutting & efficiency" policies

• Automation scaling (drones/robotics)

• Cross-sector synergies (e.g., e-commerce, manufacturing)

Note: All data sourced from China Federation of Logistics & Purchasing (CFLP), National Bureau of Statistics, and corporate disclosures. Figures adjusted for comparability.