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Is there still a market for specialized logistics now?

Source: Feidu Logistics (Thailand) Co., Ltd. Release time: June 3, 2019

Logistics ranks first in the world in China's market, and in the coming years, the logistics industry will continue to develop. The proportion of total social logistics costs to GDP is also decreasing, and logistics will become a pillar industry of the social economy. Moreover, in today's society, there are more and more logistics platforms with different logistics brands emerging. Driven by capital, they have developed rapidly, which has had a certain impact on dedicated logistics. Nowadays, the logistics industry is a popular industry, and various capitals are competing to join the logistics industry, causing many specialized logistics companies to feel uneasy.


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There are three main reasons why dedicated logistics is difficult to develop and grow:

  

One is the intense homogenization of economic investigation, with enterprises engaging in long-term price wars and a single service model, resulting in insufficient core competitiveness.

  

Secondly, many express delivery companies and online platform enterprises coincidentally come to seize resources that originally belonged to dedicated lines. The business expansion of express delivery companies such as SF Express and ZTO Express may not seem to conflict with the theme of dedicated lines, but they have gradually eroded some of the market share of dedicated lines and formed a competitive advantage based on their strong network distribution system.

  

The third issue is that the positioning of dedicated line enterprises is not clear. Nowadays, dedicated lines handle too many things. They not only need to control the goods at the front end and be responsible for transportation at the middle end, but also have to worry about the drop off and distribution at the end. However, being large and comprehensive is not an easy task, as the cost is still there and business verticals are more competitive.


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The value of dedicated logistics lies in personalization and flexibility, and its advantages in achieving point-to-point logistics business are very obvious. If a company deepens, narrows, and refines its specialized business to provide services that other companies cannot, understands its business advantages, and shifts its mindset from a production-oriented enterprise to a brand oriented enterprise, it can drive the company's long-term development. The current customer service requirements are diverse and personalized. In addition to time requirements, service experience is also becoming increasingly important. Therefore, today's dedicated line enterprises must take customer needs as the starting point and provide overall logistics operation plans. Refine and grind towards a specific market or country, and create your own refined and beautiful specialized brand. One day, when a customer has goods to be shipped to a certain country, the first thing that comes to their mind is not the four major express delivery companies, but your company name, which proves that you already have your own industry label and self brand!

  

Special line logistics companies are not easily disrupted. They should do a solid job in all aspects, adjust their business structure according to market demand, and adapt to the changes of the times and the market. The market space for special line logistics will exist for a long time.