With the profound development of the global economy and the continuous innovation of information technology, circulation enterprises are encountering unprecedented challenges and opportunities for digital transformation. As one of the world’s largest consumer markets, China’s circulation enterprises’ process and outcomes of digital transformation will exert a significant impact on the global business ecosystem. Revised sentence: This paper conducts a comprehensive analysis of the questionnaires collected from 356 circulation enterprises in the wholesale, retail, and logistics industries through literature review and questionnaire survey. It deeply examines the challenges faced by Chinese circulation enterprises in their digital transformation process and proposes corresponding countermeasures to provide valuable insights for the sustainable development of these enterprises. The challenges encountered in the digital transformation of circulation enterprises include low security performance, inadequate talent reserve, limited government funds, and legal support.