Analysis Report on the Competitive Strategy of Debang Logistics Co., Ltd.'s Express Freight Business

Based on in-depth research on the less-than-truckload (LTL) express freight industry and major enterprises, I will systematically analyze the strategies of Debang Logistics Co., Ltd. in the express freight business to compete with SF Express and Aneng Logistics.

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According to data jointly released by Logistics Evolution and Yulian Think Tank, the national LTL market scale in 2024 was approximately

, a year-on-year decrease of 5.26%, reflecting market clearing caused by macroeconomic pressure in the post-pandemic era [1][2]. However, national network express freight has become the among various business formats in the LTL market. In 2024, the total cargo volume of the top 10 national network express freight enterprises reached , maintaining double-digit year-on-year growth [1][2].

The competitive landscape of the LTL market is accelerating its concentration. In 2024, the total revenue of the top 30 LTL enterprises increased by 15.1% year-on-year to 175.9 billion yuan, with the revenue share of the top 10 players reaching as high as

, and the CR10 concentration ratio stabilized around 90% [2][3]. The proportion of the express freight network market in the overall LTL market increased from 3.72% in 2018 to in 2024, indicating that the national network express freight model is accelerating the integration of small and medium-sized cargo markets [1][2].

The current LTL express freight industry has formed a competitive landscape of confrontation between

:

Group	Affiliated Enterprises	Annual Business Volume	Market Positioning
SF Group	SF Express Freight + Shunxin Jieda + Dekun Logistics	Approximately 30 million metric tons/year	Direct-operated High-end
JD Group	JD Express Freight + Debang Express + Kuayue Express	Approximately 30 million metric tons/year	Direct-operated High-end

SF Express Freight, with

of annual cargo volume, became the first enterprise to break the 10 million metric tons mark in individual scale, ranking first in both revenue and cargo volume [1][2]. In 2025, Debang Express ranks first in the national network express freight market with an [3].

The

mainly includes enterprises such as Aneng Logistics, ZTO Express Freight, and Yimi Dida, with unit prices usually ranging from , significantly lower than the 2-2.6 yuan per kilogram of direct-operated enterprises [1][2].

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Relying on the brand advantages and resource synergy accumulated by its parent company in the express delivery field, SF Express Freight occupies a leading position in the direct-operated express freight market. Its core competitive advantages include:

• Network Coverage Advantage
  : It has more than 14,000 franchise outlets and 3,292 trunk lines, leading Debang in quantity [4]
• Brand Premium Capability
  : The unit price of high-end express freight products can reach
  2.5-3.5 yuan per kilogram
  , enjoying a significant service premium [4]
• Comprehensive Logistics Synergy
  : Through the synergistic effect with the SF Express network, it can provide integrated express delivery + express freight services

In recent years, SF has adopted the strategy of

. In the first half of 2022, the average revenue per waybill of its express logistics business achieved a year-on-year positive growth of 3.3%, leading to a moderation in industry price wars [4][5].

As a representative franchise-based express freight enterprise, Aneng Logistics has actively promoted its transformation from the “scale-first” to “quality-profit” route in recent years. In May 2024, Aneng launched the upgrade of its

, exempting all special surcharges for cargo under 300 kilograms, which significantly improved end-to-end service capabilities [1].

Data from the first half of 2025 shows that Aneng Logistics’ cargo volume for shipments under 300 kilograms increased by 18.2% year-on-year, with mini small-waybill cargo (under 70 kilograms) growing by

, and the average waybill duration shortened by year-on-year [1]. Aneng’s strategy focuses on improving service quality and customer satisfaction, and it is penetrating the mid-to-high-end market dominated by Debang.

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Debang Logistics Co., Ltd. adopts a differentiated competitive strategy of

, rather than competing with rivals across all weight segments [4][5].

:

• “1”
  : Standardized express freight products, providing stable and reliable basic services
• “n”
  : Provide differentiated solutions based on standardization to meet the needs of customers in specific industries
• Customer Stratification
  : Focus on serving large group clients to establish brand benchmarks, accelerate the expansion of top and mid-tier clients to contribute high-quality revenue, and tap into small and medium-sized clients to generate profits [4]

This focused strategy enables Debang to build a deep moat in the large-piece express delivery niche market, rather than engaging in price wars with franchise-based enterprises such as Aneng on low-margin products.

Debang adheres to a business model dominated by a

. Although the early capital investment was large, it ensures strong control over the entire service process [4][6]. Its service quality advantages are reflected in:

Dimension	Debang’s Performance	Industry Status
Damage Rate Control	Independently developed an intelligent anti-violent sorting system, with cargo damage rate decreasing by 22.4% year-on-year	Industry-leading
Timeliness Improvement	Gives full play to the advantages of the direct-operated network, continuously shortening the entire link duration	Top-tier Level
Cainiao Index	Ranks among the top in industry service indicators, with comprehensive ranking rising from 6th in 2017 to 2nd in 2022	Continuous Improvement

In 2022, according to the Cainiao Index, among 11 major express delivery companies in the industry, Debang Express ranked among the top in service indicators [4]. This high-quality service has earned Debang a

, with the unit price of high-end express freight products reaching 2.5-3.5 yuan per kilogram, significantly higher than the 0.5-1.5 yuan per kilogram of mid-to-low-end products [4].

In 2022, JD.com completed the acquisition of 62.5932% of Debang’s controlling shares. In the fourth quarter of 2025, after JD Zhuofeng increased its holdings, the shareholding ratio reached

[6][7]. This capital integration has brought significant synergistic effects to Debang:

: JD.com’s platform is focusing on large-piece e-commerce business. In the 2024 “Double 11” shopping festival, JD.com’s home appliance sales led major e-commerce platforms. With the steady advancement of JD.com’s business flow empowerment, the daily related transaction volume between Debang and JD Group has gradually increased. The company expects the related transaction volume in 2024 to reach , an increase of 7.78 billion yuan compared to 2022 and 2023 respectively [1][6].

: In 2023, Debang launched the network integration with JD Logistics’ express freight business, achieving cost optimization and efficiency improvement through resource integration. In March 2025, JD.com completed the acquisition of the remaining 36.43% of Kuayue Express’ shares, achieving 100% holding, and forming a direct-operated express freight group with a scale comparable to SF Group [1].

Debang continues to optimize its cost structure through technology investment and refined operations:

• Intelligent Sorting System
  : Independently developed an intelligent anti-violent sorting system, significantly reducing cargo damage rate
• Digital Management
  : Standardized operations for stores, management, processes, and data, enabling rapid replication of outlets
• Cost Control
  : Promote network integration projects to optimize costs and expenses from a marginal perspective [1][5]

In 2024, Debang achieved operating revenue of

, a year-on-year increase of 11.26%; net profit attributable to parent company was 860 million yuan, a year-on-year increase of 15.41% [7]. Although the company recorded a loss in the first three quarters of 2025 (mainly due to active price plan adjustments and increased resource investment), it is laying the foundation for long-term competitiveness through product structure optimization and service capability building [7].

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Dimension	Content
Strengths	① Strong end-to-end control of the direct-operated network; ② 28 years of in-depth experience in large-piece express delivery; ③ Leading brand reputation and service quality; ④ JD.com business flow synergistic effects
Weaknesses	① High capital expenditure pressure; ② Network expansion speed is restricted by the direct-operated model; ③ Loss in performance in 2025
Opportunities	① Continuous increase in online penetration rate of large-piece e-commerce; ② Upward trend in penetration rate of national network express freight; ③ Moderation of industry price wars, profitability recovery of leading enterprises; ④ Green logistics and intelligent upgrading
Threats	① Scale pressure from SF Group; ② Quality upgrading penetration of franchise-based enterprises such as Aneng; ③ Macroeconomic fluctuations affecting upstream demand; ④ Pattern reshaping brought by accelerated industry integration

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According to data from iResearch Consulting, the proportion of national network express freight in the LTL market is expected to increase to

in 2027, corresponding to a scale of 179.81 billion yuan, with a compound annual growth rate of approximately from 2022 to 2027 [6]. The direct-operated express freight market is expected to reach in 2027, with a compound annual growth rate of approximately from 2024 to 2027 [6].

The industry will present the following trends:

1. Accelerated Integration
   : Market share of leading enterprises continues to expand, and the trend of grouping becomes more obvious
2. Specialized Division of Labor
   : Direct-operated enterprises strengthen labels of timeliness, service, and quality; franchise-based enterprises adhere to the quality-profit route
3. Technology-driven
   : Intelligence and digitalization become core competitiveness
4. Service Upgrading
   : Shift from price competition to quality competition, with high-margin products becoming the focus of competition

(1-2 years):

• Continue to deepen network integration with JD.com to achieve cost synergy
• Promote product structure optimization, focusing on high-margin products
• Increase technology investment to consolidate leading advantages in service quality

(3-5 years):

• Leverage JD.com’s business flow to expand the large-piece e-commerce market and increase market share
• Improve cross-border logistics network to expand international business growth
• Build differentiated industry solutions to enhance customer stickiness

:

• Consolidate the leading position in direct-operated express freight and establish irreplaceability in the high-end market
• Explore value-added services such as supply chain finance and logistics technology
• Seize industry integration opportunities to expand scale through mergers and acquisitions and other methods

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In response to competition from SF Express and Aneng Logistics, Debang Logistics Co., Ltd. adopts a three-in-one competitive strategy of

. Facing scale pressure from SF Express, Debang chooses to focus on the large-piece express delivery niche market rather than competing across the board; facing quality upgrading penetration from Aneng, Debang builds a moat with 28 years of direct-operated network accumulation and service reputation.

In 2025, Debang ranks first in the national network express freight market with an 18.3% market share [3], proving that its competitive strategy has achieved certain results at the current stage. However, the loss in the first three quarters of 2025 also indicates that the company needs to find a better balance between scale growth and profitability. With the deepening integration with JD.com and the rationalization of the industry competitive landscape, Debang is expected to consolidate its leading position in the high-end direct-operated express freight market and achieve sustainable growth.

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[1] Logi Research, 2024-2025 Logi Logistics Industry Annual Report (https://news.qq.com/rain/a/20251021A07A6700)
[2] China Federation of Logistics and Purchasing, 2025 China LTL Logistics Rankings (http://www.clpma.cn/news_d.php?id=4049)
[3] Sina Finance, Debang Express Leads LTL Logistics with Strength, Ranks First in 2025 National Network Express Freight (https://finance.sina.com.cn/roll/2025-06-09/doc-ineznhpe6594673.shtml)
[4] Guosen Securities, In-depth Research Report on Debang Co., Ltd. (603056.SH) (https://pdf.dfcfw.com/pdf/H3_AP202311301612756947_1.pdf)
[5] Huafu Securities, In-depth Company Research on Debang Co., Ltd. (603056.SH) (https://pdf.dfcfw.com/pdf/H3_AP202301091581815976_1.pdf)
[6] Huayuan Securities, Investment Value Analysis Report on Debang Co., Ltd. (603056.SH) (https://pdf.dfcfw.com/pdf/H3_AP202502141643073144_1.pdf)
[7] Baidu Encyclopedia, Debang Logistics Co., Ltd. (https://baike.baidu.com/item/德邦物流股份有限公司/3323074)