Zhou Yi, special correspondent of time weekly
In a short period of 180 days, the “red orange yellow war” of community group buying moved the main battlefield from Hubei to Hunan.
As the first prosperous and preferred base camp to carry out community group buying business in China, Hunan community group buying market entered into a state of scuffle instantly due to the entry of giants.
Didi’s community e-commerce platform, orange heart, launched its first shot.
“It feels like orange posters have been put up in supermarkets near the residential area overnight.” Zhou Tong, a Hunan citizen, found that after November, there were suddenly many more orange heart preferred posters around the neighborhood. Not only orange heart, meituan optimization and pinduoduo’s duomaicai also pasted their own posters all over the streets.
In order to compete for the market in Changsha, orange heart and buy more vegetables at the same time chose to open warehouse and go online on November 6. Meituan optimization began to investigate Changsha from May, and finally chose to enter the formal operation stage on November 11.
Although it has not yet been launched in Hengyang City, the posters selected by meituan have already been pasted on the doors of local supermarkets and convenience stores. According to the times weekly, meituan originally planned to launch in Hengyang on November 13. However, due to insufficient preparation, the company finally postponed the launch of its business to after November 20.
The supply chain of Hunan local community group purchase platform was the first to smell the smell of gunpowder on the eve of the war.
“Pinduoduo, meituan and orange heart have come to Hunan with the same goal of attacking Xingsheng optimization and winning the first place in the market.” A purchaser of a small and medium-sized community group purchase platform in Changsha said, “in order to keep more than 300 core suppliers, Xingsheng optimization held a small meeting for these people in early November, increasing the rebate by about 2%. Prior to this, Xingsheng has never had a relevant incentive mechanism. Now all platforms are attracting these core suppliers. Some suppliers are afraid of prosperity and dare not stand in the line too obviously. ”
Meituan, didi and pinduoduo did not make such a decision rashly in the face of the golden arena which has been dominated by prosperous and preferred for two years. After occupying the market in more than 20 major provinces, such as Hubei, Guangzhou, Jiangxi and Shandong, Duoduo and meituan have formed a leading group, led by key figures of each platform.
The reporter of time weekly learned that Abu, the project leader of pinduoduo’s “buy more vegetables” project, frequently goes to Hunan Province. The former Yingjun (Huaming, one of pinduoduo’s first-class supervisors) will be responsible for the main battle field of Changsha City. A pinduoduo insider revealed that handsome was the core member of the early spell goods.
At the same time, Chen Liang, head of meituan optimization division, member of the core founding team of meituan and member of S-Team, the top management decision-making body, is directly responsible for the jurisdiction of Hunan Province; Liu Zicheng, President of orange heart optimization, also led a large number of business line leaders from the headquarters a week ago to participate in the orange heart optimization kick-off meeting. In addition, Liu Zicheng also participated in the kick-off meeting of Hubei Province.
In the face of the challenge from the three Internet giants, a prosperous and preferred middle-level manager said bluntly, “this battle cannot be avoided, and we also expect that the final result may be that each company carves up the market.”
A person close to Xingsheng optimization disclosed that the Gmv of Hunan Xingsheng optimization group this year can reach 40 billion yuan, which can not be underestimated. It has become a competitor that Didi, meituan and pinduoduo can no longer ignore.
“Outsider” in the city
Hunan community group buying war began in November this year. The change of transport capacity distribution closely related to community group buying may be the earliest sign.
In November, the once deserted Second Ring Road of Changsha suddenly became lively, and there was a strange phenomenon that the transport capacity of “Freight Lala” in urban areas was polarized: the freight carrying capacity within the second ring road was almost half quickly pulled out, while the number of vans with the “Freight Lala” logo outside the second ring road suddenly increased, and concentrated in the logistics park of wanwei Yuhua District, Xiangjiang North Road of Kaifu District and Wangjiang district Wangcheng Baowan logistics park and other three places.
“Outside the second ring road belongs to the suburbs in the suburbs. We don’t usually go to this place.” A Changsha citizen said.
Wang Li, as one of the drivers of this group, can’t remember how many times he went to the three logistics parks and how many goods he pulled. Through the chat and exchange between the staff in the warehouse, he learned that several Wanping warehouses in the three logistics parks were contracted by Duoduo, meituan and didi respectively. The standard products and fresh products sent by him and his colleagues to these three platforms, after sorting and logistics distribution by warehouse management personnel, are sent to the grid station in the second ring road or in the hands of major leaders, and finally appear on the dining table of Changsha citizens.
As a component of transportation resources, freight drivers like Wang Li directly run through all scenes, categories and formats. Therefore, only the balance between transport capacity and demand can promote the final landing of trading closed-loop. Transportation resources become the focus of the platform’s fight.
A number of Changsha suppliers said that on the day meituan launched in Changsha on November 11, orange heart preferred directly adopted the heavy subsidy method of “no matter how much the freight drivers deliver on the same day, as long as they deliver the goods to the warehouse, there will be a reward for the amount of money”, which has taken away most of the drivers, resulting in the tension of the opponent’s transport capacity.
Competing for capacity means competing for arrival time. The logistics system directly determines the team leader’s performance rate and affects the team leader’s promotion intention – which platform has a mature logistics system, a high performance rate, and an earlier arrival time, can win the trust of the local team leader first.
Hunan is the area with the most mature community group buying mode and the longest application time. Time weekly reporters found that the group leader of the prosperous group also had high performance requirements and bargaining power on the platform.
According to several chief leaders of Changsha Xingsheng’s selection, although there are relatively few SKUs (inventory units) to buy more vegetables, they can be delivered to the pick-up point at 7:00 a.m. (the promised time is before 16:00 a.m.), which is the earliest platform for arrival.
This may be related to the distribution mode of buying more vegetables.
An informed person close to Duoduo said that after the opening of Changsha and Hengyang, duomaicai mainly adopts the three-level distribution mode of full direct matching, big warehouse grid station and self pick-up point. Orders close to the big warehouse will directly send the goods from the warehouse to the pick-up point. Generally, the goods will be delivered from the warehouse at 2:00 a.m. and delivered to the head of the team at 6:00 a.m. In addition, the greatly compressed delivery time is the core factor.
“One word, cruel”. Liu Wei, a supplier who preferred to buy more vegetables and orange heart, obviously felt that the high performance requirements of duomaicai were different from those of other platforms. “The storage time control of Duoduo vegetables is very strict, and the standard products must be put into storage before 5:00 p.m. some peers were fined 2000 yuan for half an hour overtime. Other platforms did not formulate overtime punishment, and duomai vegetables were never implemented in other provinces Not only that, but also “if fresh products are mislabelled, they will be fined.”.
The arrival time, in essence, involves a series of b-end business links such as market operation ability, logistics system, category procurement and channel management, which greatly tests the front-end and back-end coordination capabilities of each platform. Especially in the face of this special position in Hunan, the platforms also imitate each other in the competition and readjust their strategies.
The reporter of time weekly learned that all the local promotion teams that opened Wuhan Kaicheng for more vegetables also followed the team to Hunan. They employed and guided the local part-time local promotion. In less than two weeks, Changsha’s team leaders were increased to more than 6000, including a large number of prosperous and preferred ones. The expansion speed was much faster than that of Wuhan (more than 8000 in a month) ）。
In order to increase the volume quickly, meituan has also readjusted its strategy of expanding the team leader in Hunan by adopting the mode of self operated BD post + outsourcing BD post.
Time weekly reporter learned that outsourcing BD received remuneration in the form of base salary plus performance. In addition, an effective team leader (receiving 5 orders within 7 days) will receive an additional reward ranging from 50 yuan to 100 yuan, and 100 effective team leaders will be given 10000 yuan in one month.
A person close to meituan disclosed that up to now, the total number of BDS selected by meituan in Hunan has exceeded 1500, while the number of BDS in meituan’s internal planning is at least more than 2500, which is far more than that in Wuhan, the last main battlefield.
“Compared with other platforms, meituan’s proprietary BD has always been the largest, with Didi’s proprietary BD accounting for about 10%.” A city manager of meituan is in charge of at least 10 BDMs, and each BDM is responsible for managing more than 10 self operated BDS. Therefore, the number of self operated BDS in each city can reach more than 100. Meituan has selected at least 10000 self operated BD nationwide. ”
“According to the internal planning of meituan, the self operated BD will be transferred to the operation post in the later stage.” The person familiar with the matter said.
An internal employee of meituan explained to the times weekly that “the huge self operated BD team conforms to the tone of meituan. During the takeout war, meituan was mainly in the form of direct marketing, supplemented by franchisees in some cities. Because in the early stage of business development, the use of direct marketing can enable employees to go deep into the front line to understand the operation rules of the battlefield and business, ensure the unity of the upper and lower levels, and improve the execution efficiency.
Prosperous Hunan defense war
Recently, a recruitment advertisement to buy more vegetables has been posted near the headquarters of Xingsheng optimization on Qingshan Road, Yuelu District, Changsha City: the general workers of Xingsheng group will get a salary increase of 500-800 yuan per month, and the entry salary of employees of Xingsheng optimization supervisor and above will increase by 30% – 50%.
An internal employee of Xingsheng optimization told the times weekly that since June, meituan, pinduoduo and other large factories have been poaching people with 3 or 4 times the high salary, and a considerable number of talents have been lost in the company. What’s more, what makes the management headache is that the company’s internal employees have a sense of crisis due to the attack of big internet factories.
Since the beginning of November, the community group purchase business of various Internet companies has been launched in Changsha. They have launched various regional drainage schemes, such as app open-screen posters, inviting new people to subsidize, and Didi’s subsidy is the largest.
A Hunan supplier of orange heart revealed that as early as the trial operation stage in early November, orange heart decided to launch a subsidy of $100 million after it was officially launched on November 18. According to the vertical media Kaiman 4000 public report, orange heart preferred three kinds of subsidies, including category subsidies, discounts and coupons, and incentive for team leaders to place orders on the 18th, and the final daily order volume exceeded 1.7 million.
In the face of the siege of Internet giants, how big is the chance of success for the group buying head company from the couch home?
Different from the first mock exam group, such as drop, group, and many other competitors, after the failure of the best attempt to store the store, distribution station and the hour, the community group purchase model was finally determined in 2017, and the supply chain and stores of Hunan chain convenience store brand “Hibiscus prosperity” were rapidly rising. According to public reports, at present, Xingsheng’s business covers 13 provinces, 161 prefecture level cities, 938 county-level cities, 4777 townships and 31405 villages, with an average daily order of 8 million.
“The key success factors of community group buying are the head of the front end, the middle supply chain and the end logistics. In Changsha, the Internet giants can’t compete with the prosperity and Optimization in these three aspects temporarily.” Weber, a senior journalist in the community, analyzes the situation.
“At the head end, Xingsheng has a set of five level system of leader, Commissioner, director, manager and director. The more orders are made, the more sales the subordinates earn, the greater the achievement. As the core of Xingsheng optimization team, marketing director, marketing manager and marketing director have special support policies, such as 2000 yuan, 5000 yuan and 7000 yuan, respectively. The maximum salary of marketing director can reach 130000 yuan. Therefore, based on this management system, even if the leader of Xingsheng optimization group who has a lot of resources can also be the head of the Internet platform, he will not betray at will. ” Weber points out.
(scale drawing of Xingsheng preferred group leader)
“Almost all Hunan people have the experience of placing an order to buy vegetables in Xingsheng, and his family’s after-sales service is very good. For the problem goods, the head of Xingsheng pays the compensation first, so the relationship between the neighborhood and the head of the neighborhood is relatively good.” Even though he had known the three “new entrants” of meituan, duocai and AoXin, Zhou Tong did not quite agree with him, “the group leaders of the new platform that I entered generally only sent links to commodities, and the leaders did not speak actively in the group. Therefore, if the price difference is not big, they will still choose to prosper.”
“Xingsheng optimization is the only player whose logistics system extends to the village at present, and it is also the next day’s arrival. At present, it can only sink to villages and towns, such as buying more vegetables.” Chen Kai (pseudonym), a former employee who bought more vegetables, said frankly that “Xingsheng preferred to establish its own logistics system, link upstream suppliers through the platform, and then transport the products to five service outlets of provinces, cities, counties, towns and villages through its own logistics team.”
Liu Huiyu, the co-founder of Xingsheng optimization, has also publicly declared that “in Hunan, almost every township, town and village can buy things through Xingsheng. The order will be placed at 11 o’clock tonight and will arrive at 11 o’clock tomorrow morning. ”
“Prosperity has a strong appeal in Hunan. After buying more vegetables, choosing meituan and selecting orange heart, it has not been smooth whether it is expanding the group or attracting investment.” A staff member of meituan preferred Changsha said helplessly, “the core suppliers of prosperity have a very good relationship with purchasing, and they generally reject other platforms.”
According to the statistics of time weekly, as of November 20, meituan opened Changsha, Yueyang and Zhuzhou, bought more vegetables to open Changsha and Hengyang, and orange heart preferred to open six cities of Changsha, Hengyang, Yueyang, Changde, Yiyang and Zhuzhou.
“Meituan preferred to open the city at a slow speed. Even those who had always been quick to open the city at a high speed and quickly occupied the market bought more vegetables, but also slowed down the pace in the Hunan market. The reasons behind this are really worth studying. On the contrary, orange heart is preferred in rapid lifting Changsha community group buying industry senior person Cao Wei (pseudonym) analysis.
Why do giants value positional warfare
Community group buying has become a strategic project of Internet giants.
According to the incomplete statistics of time weekly, as of November 20, meituan optimization has opened services in 189 cities in 24 provinces (municipalities or autonomous regions), and the scale of buying more vegetables is even better. The service scope covers 25 provinces (municipalities or autonomous regions) and 178 cities. According to tech planet, on October 20, meituan opened its service in only 20 cities, and now it has surpassed the speed of buying more vegetables.
(as of November 20, buy more vegetables and open the city)
(as of November 20, meituan preferred to open cities) time weekly
An internal employee close to pinduoduo’s senior management disclosed that Duoduo and meituan preferred each other as the main competitors and competed with the national average daily order volume.
According to the exclusive information of time weekly, pinduoduo’s internal senior management first set the target of 10 million orders per day, and meituan also made the same plan. Due to the constant increase of the other party, the data has now been raised to 20 million orders. According to incomplete statistics, up to now, the average daily order volume of meituan and pinduoduo has exceeded 7 million.
Didi, as the only player who has no retail gene among the giants, has also expressed a clear intention to compete for group buying in the community. In the internal meeting in November, Didi called out that “there is no upper limit on investment, and we should win the first place in the market.” The slogan.
Why do the three Internet giants attack the community group buying market?
Didi, the first entrant of travel business, not only wants to prove his strength to the capital market through the new business of community group purchase, but also has the purpose of trying to strengthen industry barriers through new business.
After six years of takeout war, meituan has already established a 70% share of the takeout market, mainly covering young people. However, with the growth of its scale, the growth space brought by takeout to meituan is gradually restricted.
In 2019, the year-on-year growth rate of meituan’s takeout revenue is 38.9%. By the second quarter of this year, the growth rate of revenue has dropped to 16.9%. Meituan has always regarded fresh food and offline scenes as its basic dish, and community group buying may be the best and last opportunity for it to enter the field of e-commerce and fresh food. Through meituan’s optimization focusing on sinking market and meituan’s “two legs” of shopping for first tier cities, it can accurately reach new users with high consumption potential, such as housewives, middle-aged and elderly people, and drain into the app.
In the face of the fact that meituan and didi split up their own traffic through community group purchase, pinduoduo, which takes agricultural products as one of its business characteristics, was finally forced to fight hand in hand.
“In the long run, the main online traffic has many advantages. If through the intermediate circulation of the head of public resources, the platform will eventually share the flow pool. If meituan makes efforts in the later stage and completes the operation of the team leader through the offline team, the users of pinduoduo and didi will become the users of the head of the regiment, and in the end, the meituan will seize the initiative. ” According to Cao Wei.
“To be sure, the regional and SKU based community group buying is only a primary form. After the guidance and education of the head of the team in the early stage, users can form a stable e-commerce consumption habit. In the later stage, it is possible to cancel the role of the team leader and expand the E-commerce business directly through the influence of the platform, forming an e-commerce mode similar to the next day delivery of Jingdong daily necessities department stores.” Cao Wei said.
From didikai’s first city to now, the community group buying revival competition has lasted about 180 days, and the intensity of the scuffle can also be felt by observing the front-end small programs of each company.
Compared with the software portals of several giants, the interface design of the small program for buying more vegetables is simple, and the cost of capturing user information is low, but it lacks the product search function. Meituan has revised the version again to reduce the high return logistics cost caused by the user’s random cancellation of orders. The authority of “order cancellation” is handed over to the team leader and background customer service. Compared with the other two platforms which directly display the opening city address, orange heart preferred uses the search location method to find the pick-up point.
What’s more, meituan, pinduoduo and didi have different ways to count the sales of goods. Taking red bull as an example, both duomaicai and meituan preferred use one box (24 bottles) as one sales volume, while orange heart preferred chose to split up and take one bottle as a sales volume and sell them separately. In this way, if a box of Red Bull is sold, the sales volume of orange heart will be 24 times higher than that of pinduoduo and meituan, and there are still a lot of goods that are sold separately like this.
(the top is to buy more vegetables, while the bottom is orange heart)
From the collapse of small and medium-sized community group purchase platforms two years ago to group merger, the community group buying industry has experienced a round of reshuffle.
In order to continue to maintain the status of the largest player in this track, Shengsheng preferred or need to fight hard. According to the above-mentioned insiders close to Xingsheng optimization, the decision-making level of Xingsheng optimization has begun to be more inclined to deepen in the existing market, put forward the slogan of “sacrifice one’s life and run wild, user experience”, try to build a moat with better experience, and plan to gradually transform the expanded users of large factories into their own users.
In the future, there will be multi player coexistence in the community e-commerce field for a long time. According to the times weekly, the shimui group has recently obtained a new round of financing of $200 million from Alibaba. After that, the Taobao app traffic port will be connected with the Shihui group. A former employee of the community group buying platform “you, I, you” revealed that Tongcheng life is talking with Jingdong about merger and acquisition. Byte beat also began to test water in Shandong Province.
In the view of industry insiders, with the market entry of community group buying constantly opening and more giants pouring in, the mode will continue to evolve, which may pose challenges to the traditional e-commerce business represented by Alibaba and Jingdong in the future.