In recent years, the global drive toward achieving carbon neutrality has ignited intensified low-carbon competition among fast-moving consumer goods (FMCG) manufacturers. This competition not only influences supply chain transformation but also necessitates sophisticated coordination strategies under the ambitious “dual-carbon” framework, targeting peak carbon emissions and carbon neutrality. Pioneering research by Zhang, Xie, and colleagues delves into the multifaceted dynamics of low-carbon competition and cooperation, providing novel insights that challenge traditional market paradigms and redefine sustainability in supply chains.
At the core of this transformative momentum lies the market advantage afforded by dual-channel sales strategies. Green manufacturers who adeptly integrate online direct sales with traditional retail channels gain a distinct competitive edge. Unlike mere advertising sprees that often fall prey to skepticism and accusations of “greenwashing,” companies are now channeling significant portions of their promotional budgets into verifiable carbon mitigation efforts such as eco-design and recyclable packaging innovation. For instance, collaborations similar to those between giants like P&G and Cainiao exemplify how investment in biodegradable packaging technologies not only enhances environmental impact but simultaneously drives cost efficiencies and brand loyalty.
Beyond product innovation, balancing volatile market demand emerges as a critical strategic concern in the low-carbon FMCG landscape. This necessitates dynamic coordination mechanisms within the supply chain, especially when discrepancies arise between manufacturer output and retailer consumption. The study highlights the efficacy of the CSG-D contract model — a centralized decision-making framework which emphasizes fluid market share adjustments in energy-intensive segments like beverages and snacks. Conversely, in low energy-consuming sectors, contract models pivot towards equitable benefit distribution, demonstrating the imperative for supply chain actors to tailor coordination protocols to industrial specifics and fluctuating demand curves.
Government subsidies, frequently perceived as mere financial relief, reveal their intricate role in expanding profit margins when synergized with well-designed cooperative contracts. The research rigorously underscores the heterogeneous subsidy schemes deployed across varying industry scales and company sizes. Large FMCG firms leverage these incentives to optimize low-carbon manufacturing capabilities, thus cementing their market dominance, while small and medium-sized enterprises harness subsidies to fortify their green transformation journeys and gradually penetrate mainstream consumer markets. Simultaneously, strategic alliances upstream and downstream within the supply chain expedite cost-sharing and risk mitigation, enabling mutually beneficial profit maximization amid intense promotional rivalry.
Crucially, the delicate balance between competition and cooperation informs low-carbon promotional intensity. An inverse relationship emerges wherein heightened advertising competition diminishes willingness to share benefits or cooperate effectively. Market leaders often capitalize on their dominance to prioritize unilateral gains; however, the introduction of cooperative game contracts, particularly CSG-D, significantly bolsters retailer engagement and joint efforts. This requires nuanced cooperation strategies based on market position: industry titans can spearhead collective sustainability drives, while smaller players must tactically ally with larger retailers or fellow manufacturers to foster reciprocal value creation within the supply chain.
Navigating the labyrinth of contract preferences reveals intricate interplay between competitive intensity and cost-sharing agreements. When competition intensity wanes, manufacturers gravitate toward two-way contracts that bolster mutual support and access to resources, while retailers may opt for one-way contracts to safeguard against downside risks. Conversely, heightened competition reshuffles these preferences, necessitating FMCG companies to keenly evaluate market threats such as emerging entrants or substitute products. Rational contract selection, grounded in thorough understanding of market dynamics and self-assessment of brand influence, emerges as a pivotal lever for optimizing supply chain effectiveness and fortifying market positioning in the low-carbon era.
Despite these compelling insights, the researchers acknowledge the study’s limitations. By focusing narrowly on select coordination frameworks, it does not fully capture the complex mosaic of low-carbon policies currently in play globally. Key policy instruments such as carbon taxes and carbon trading markets—each wielding distinct incentives and constraints on supply chain decisions—remain underexplored. Moreover, the underlying assumption of rational economic actors neglects the variable influences of cultural values, managerial risk appetites, and internal information asymmetry that markedly shape real-world low-carbon strategy implementation.
Furthermore, the intricate web of competition among multiple supply chain actors, especially within multi-tiered and multi-chain market ecosystems, demands deeper analysis. The study concedes that the dynamic relationships, competitive tactics, and cooperation mechanisms among numerous stakeholders have yet to be fully elucidated. In high-complexity markets where interactions extend beyond dyadic manufacturer-retailer relationships, emergent phenomena and strategic maneuvering patterns could profoundly recalibrate low-carbon transition trajectories and economic outcomes.
Looking ahead, the research charts fertile directions for future inquiry. Central among these is the extension into multi-competitor supply chain dynamic games, dissecting how bilateral or multilateral competitive pressures influence investments in low-carbon innovations, pricing strategies, and market equilibria. Empirical validation through real-world case studies will amplify theoretical robustness and practical applicability. Integration of corporate social responsibility (CSR) dimensions into low-carbon frameworks further enriches this discourse, exploring how CSR engagements harmonize with carbon policies to enhance sustainable competitiveness and social acceptance.
Additionally, unpacking the structural complexity of supply chain networks is paramount. Developing representative, flexible models that capture cooperative-competitive synergies across fluctuating policy landscapes and market conditions can illuminate pathways for balancing carbon reduction ambitions with economic viability. Understanding how actors in these networked configurations negotiate risk-sharing, innovation diffusion, and strategic alignment will be critical for enabling scalable, resilient low-carbon supply chains.
The urgency of global climate objectives presses firms to transcend zero-sum competition and embrace collaborative frameworks that convert environmental responsibility into profitable opportunity. This research not only crystallizes the strategic and contractual levers at the disposal of FMCG manufacturers under the dual-carbon mandate but also opens new vistas into mechanisms that could accelerate holistic supply chain decarbonization. As governmental policies evolve and market ecosystems grow ever more complex, the alignment of economic incentives with sustainability imperatives will define the frontier of competitive advantage.
In summation, the dual impact of low-carbon competition heralds both challenges and unprecedented opportunities for supply chain transformation. Through insightful coordination strategies—rooted in adaptive contracts, targeted subsidies, and robust cooperation—FMCG firms can navigate the intricate terrain between market demands and environmental stewardship. The onus lies in harmonizing these forces within a strategic architecture coherent enough to withstand competitive shocks yet flexible enough to capitalize on emerging green innovations. As this evolving research domain matures, it promises to reshape global supply chains into engines of sustainable value creation in the low-carbon century.
Subject of Research: Low-carbon competition and supply chain coordination strategies within the FMCG industry under dual-carbon policy objectives.
Article Title: Research on whether low-carbon competition accelerates low-carbon transition and coordination strategies in the context of “dual carbon”.
Article References:
Zhang, H., Xie, D., Xie, J. et al. Research on whether low-carbon competition accelerates low-carbon transition and coordination strategies in the context of “dual carbon”.
Humanit Soc Sci Commun 12, 933 (2025). https://doi.org/10.1057/s41599-025-05188-x
Image Credits: AI Generated
