Abstract:The principal contradiction in Chinese society has evolved into the contradiction between the peo.ple ’'s growing need for a better life and the uncoordinated and insuflicient development. As a leading industry ofthe national economy, the commercial circulation industry is closely related to people's lives and must adapt tothe transformation of the principal social contradiction through continuous innovation to better meet people’sneeds. 'Through a review of relevant literature in the field of the commercial cireulation industry , it is found thatfactors such as technological innovation level, informatization level, circulation costs , infrastructure for transpor-tation , urbanization rate, and residents’disposable income are critical triggers for innovation in this sector. Bycomparing the impact of traditional multi-factors on commercial circulation innovation and the interaction be-tween these factors with the significant changes brought by digital technology, it is discovered that the changesbrought by digital technology to commercial circulation innovation are much greater than those brought by traditional factors. Based on this, effective policy measures to stimulate innovation in circulation are proposed, aiming to further promote the development of the commercial circulation industry.