Perspective · Logistics industry

Logistics: when customers only ask for prices, branding is the escape route

The price trap in logistics is not due to the market, but because the business has not given customers any other reason to choose them.

Quick summary

In logistics, price competition occurs when customers do not see differences between units. A clear brand, meaning specific positioning, consistent identity, and transparent trust signals, creates reasons to choose beyond shipping costs. When customers trust you to deliver on time and not lose goods, they are willing to pay more to avoid risk.

Logistics costs in Vietnam are around 16 to 17% of GDP, nearly double the global average of about 8 to 10%, according to the Vietnam Logistics Business Association (VLA). In an industry where operational costs are already high, the pressure to lower prices from customers is relentless. This cycle is not imposed by the market. It occurs because most logistics companies have not given customers any reason to choose them beyond the numbers on the quote.

The lowest rates are not a competitive advantage

There is a common misconception in the industry: thinking that price competition is a strategy. In fact, it is a consequence of lacking a brand strategy. When customers do not see differences between you and competitors, they use price as the only tool to decide. At that point, negotiations are no longer about value but about who can endure the pain more.

The delivery industry in Vietnam is clearly becoming polarized. According to data from Tuổi Trẻ and Vnexpress, market share is concentrated among a few large players, with Viettel Post holding about 17 to 22%, GHTK around 14.5%, and J&T approximately 10.6%. These companies do not just compete on price. They build identities, measurable operational commitments, and have teams large enough to create consistent physical presence. Their brand is operational proof, not just a logo.

16 to 17% of GDPLogistics costs in Vietnam compared to the global average are about 8 to 10%. Source: Vietnam Logistics Service Enterprise Association (VLA), industry report 2024.

A brand in logistics is evidence, not a promise

The nature of the logistics industry means that branding plays a different role than in consumer goods. Customers cannot try the service before purchasing. They cannot see, touch, or assess quality before the goods are delivered. The only thing they can do is bet on the signals. And that signal is your brand.

Trust signals in logistics are expressed through multiple layers: whether the fleet has consistent uniforms, whether the website displays real-time order status, whether delivery staff behave consistently with the company's image, and whether the post office looks like a reliable place to entrust your assets. Each touchpoint is a sentence in the essay about trustworthiness. Inconsistency anywhere erases what you have built elsewhere.

A brand is not a logo. A brand is the gut feeling customers have about you.

Marty Neumeier, The Brand Gap

In logistics, that "gut feeling" is: if I hand over this package to them, can I sleep soundly tonight? The answer does not come from brochures or advertising banners. It comes from the entire experience that customers have accumulated through every touchpoint with you.

Narrow positioning, in-depth

One of the most common mistakes small and medium logistics companies make is trying to serve everyone. Domestic shipping, international shipping, cold goods, heavy goods, express delivery, e-commerce fulfillment. A service portfolio that is too broad without a clear anchor point leads to one outcome: customers do not know what you excel at, and when they do not know, they compare prices.

Deep positioning does not mean rejecting customers. It means choosing a segment to become the obvious choice, rather than being one of ten similar units on the comparison table. Specializing in a specific route, a type of goods, or a customer model such as B2C e-commerce or B2B import-export creates a foundation for building deep credibility.

38%The willingness of customers to pay more for brands classified as "meaningful and different." Source: Kantar BrandZ.

Identity covers physical touchpoints

Logistics is one of the few industries with large-scale mobile brand touchpoints. Each truck is a billboard running throughout the city every day. Each delivery staff member is a brand representative appearing at customers' doorsteps. This is a competitive advantage that many logistics companies are wasting.

Brand identity in logistics needs to be designed to function well across four main touchpoint groups. The first is vehicles and personnel: trucks, uniforms, employee badges. The second is physical spaces: warehouses, post offices, pickup and delivery points. The third is digital systems: websites, order tracking apps, confirmation emails. The fourth is communication documents: contracts, invoices, delay notifications. These four groups must tell the same story. When they are inconsistent, customers can sense it immediately, even if they do not articulate it.

+32 percentage pointsRevenue growth over 5 years for companies in the highest design quartile compared to the lowest quartile, surveyed across 300 companies. Source: McKinsey, The Business Value of Design, 2018.

Trust signals replace words

In the B2B environment, the decision to choose a logistics partner often comes from supply chain managers or operations directors. These are the individuals personally responsible if goods are delayed or lost. They do not choose the cheapest option. They choose the one with the least risk.

Trust signals are not statements like "we deliver on time." They are visible evidence: publicly available on-time delivery rates, functioning tracking systems, support teams responding within committed timeframes, case studies with real customer names. A clear brand does not need to say "trust us." It provides customers with enough evidence to conclude for themselves.

This also explains why an outdated, unupdated website is a branding issue far more serious than many think. B2B customers often check the website before making the first call. An interface from a decade ago, inconsistent contact information, or a lack of a capabilities introduction page sends a single signal: this company does not invest in itself. So, will they invest in my order?

Note: The 38% figure from Kantar BrandZ and +32 percentage points from McKinsey are drawn from cross-industry research, not specific to logistics. They illustrate the general principle of the correlation between brand and financial results. Specific application to each logistics company depends on positioning, segmentation, and operational consistency.

Start with the clearest point

Building a logistics brand does not start with redesigning the logo or renaming the company. It begins with a question: What are we best at, with which customers, in what circumstances? The answer to that question is the foundation of positioning. From positioning comes identity. From identity comes the consistency needed to accumulate trust over time.

Customers are not loyal to the cheapest provider. They are loyal to the provider they trust. And trust, once built consistently, is the hardest thing for competitors to replicate, even if they can copy the rates in an afternoon.

References

Kantar BrandZ. McKinsey, The Business Value of Design, 2018. Vietnam Logistics Service Enterprise Association (VLA), industry report 2024. Tuổi Trẻ, Vnexpress (market share data for express delivery). ScienceDirect, B2B logistics brand equity study.

Frequently asked questions

Is branding really important in the logistics service industry?

More important than many other industries, because the product of logistics is trust, which cannot be seen before purchase. B2B customers particularly rely on brand signals to assess risk before signing long-term contracts. A weak brand means customers have to ask for prices to have something to compare.

What touchpoints should logistics brand identity cover?

At least four groups: transportation vehicles and delivery staff uniforms, digital systems including the website and tracking apps, physical spaces like warehouses and post offices, and all customer communication documents such as contracts and invoices. Inconsistency at any point erodes the sense of trust that the company has built at other points.

Can a small logistics company position itself differently, or is it only the big players who can do that?

On the contrary, small businesses with a deep positioning are more likely to succeed because they do not need to compete across the board. Specializing in one type of product, one route, or a specific customer segment allows you to build deep credibility instead of diluted. Narrow and clear positioning is better than broad and vague.

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