With the most luxurious lineup and the most money, the giants have rushed into the most difficult business in the history of the Internet.
Interview with Dong Jie, Qiao Qian, Yang Yafei, Zhang Xinyu and Yuanling
When giants decide to cut into a new battlefield quickly, how powerful can they be?
At the beginning of August this year, when pinduoduo’s “buy more vegetables” rapidly opened up in Wuhan, all the employees in a central warehouse of the community group buying giant Xingsheng were poached in just two weeks. For half a month since then, the central warehouse of Xingsheng optimization has been forced to close.
“2-3 times of salary (poaching) is not a matter. At the most exaggerated time, only the purchasing general manager who comes to Wuhan Kaicheng is left,” a person familiar with the matter told 36 krypton.
It’s not just pinduoduo who suddenly kills in. A headhunter who has cooperated with didi for a long time told 36 krypton that from the middle and high-level to the grass-roots level, from procurement to operation and even channels, Didi has dug up dozens of people from community group buying companies such as xingshengyou and shihuituan in three months, and the salary offered by didi will fluctuate by 30% at least and 2 or 3 times more.
“Meituan’s salary to the grassroots posts of community group buying and operation is even more exaggerated, up to 20 times, and it’s called from Xingsheng.” A community group buying investor told 36 krypton.
This caught the company off guard. This community group buying enterprise, which started in Changsha, was originally brilliant in this year’s epidemic. However, after the giants entered the market one after another, “in October this year, (prosperous) the month on month unit volume in Wuhan dropped by 40%, and now there are only 300000-400000 orders per day,” a person familiar with the matter told 36 krypton.
Pinduoduo, meituan, Didi The determination and fighting power of the new giants is amazing.
At the beginning of April this year, Cheng Wei called Liu Zicheng, vice president of didi on business trip, back to Beijing. In the cold air has not yet dispersed in the street, two people wearing masks a chat is two hours, the center of the topic is only one: community group buying.
Although it doesn’t match Didi’s main business, “will is determined to do it, and will do it soon.” Liu Zicheng, who once worked in Ali for 10 years, became the president of orange heart under the “coercion and inducement” of Cheng Wei.
This project is highly confidential within Didi. Liu Zicheng revealed to 36 krypton that the people involved in the project did not know at first, “all people must sign a confidentiality agreement in advance to know what they want to do.”
In April, Liu Zicheng led his team to Hunan for an inspection tour, and in early June, the company launched the optimization project, which was only one month before the project was launched. At this time, meituan, who was the first to investigate the market, was flustered. For this reason, Wang Huiwen, the second figure of meituan, was furious at the management meeting in May.
A person familiar with the matter told 36 krypton that at that time (Wang Huiwen) was very surprised to see the performance of Xingsheng optimization, “such a good business, why haven’t you started yet?” At the meeting, Wang Huiwen seriously criticized the judgment and execution of the research team.
Mr. Chen Shanliang, the senior president of the brigade, joined the company in late July, and then Mr. Chen Shanliang was in charge of the team. The rapid influx of giants makes the competitive situation tense in an instant.
In the past decade of China’s mobile Internet, there have never been so many giants participating in the same battle.
With the battle of community group buying, the stock prices of meituan and pinduoduo have also soared: meituan’s share price has risen from about 200 Hong Kong dollars before joining the board to about 300 Hong Kong dollars; pinduoduo has risen from about 90 dollars to 140 dollars today. Investors believe that community group buying can cultivate people in the sinking market and inject growth vitality into giants.
However, for the prosperous group, the Internet giants are just like “barbarians at the door”. After a short period of calm, the Internet giants once again fell into the “game of throwing money and robbing people and resources”.
What’s more, Didi, which has a valuation of tens of billions of dollars, pinduoduo with a market value of 160 billion dollars, meituan with a market value of 220 billion dollars, and perhaps Alibaba, with a market value of 700 billion dollars, are rich in financial resources and have made remarkable achievements.
“They have the same strength and similar style. No one can beat anyone down in a short time,” a community group buying investor told 36 krypton. It’s “exciting” to think of the giant scuffle.
(map: 36 krypton, data source: public information)
“A million troops” gather in Wuhan
In October, Xiao Sheng, the general manager of the Ten Star Group in Wuhan, hardly had a good night’s sleep.
They usually leave work at 8 or 9 o’clock, but now they are delayed to 12:00 p.m. or even 2:00 a.m. From two or three rounds of competition to one meeting every week. For this community group buying startup, this is not the norm, even in the fierce competition of 2019.
Uneasiness is also spreading within the company. Instead of being excited by the daily surge in single volume, the middle and high-level people are “have you heard who has been poached again? Why did today’s selection strategy fail again
Autumn is the peak season of community group buying. We all hoped that we could continue our efforts in this autumn and complete the KPI of one year. However, with the giants entering the Wuhan market, which is the city with the most serious epidemic situation, users have the highest acceptance of community group buying.
Xiao Sheng and his team haven’t felt the crisis in the first two months of the giants’ entry. “It is impossible for the giants to capture the market in a few months. The supply chain, warehousing and logistics behind this can not be built in a day.” On the contrary, he felt that some tycoons had finally taken a fancy to this business, and he would not have to worry about finding money in the future.
But in October, when the “million army” gathered in Wuhan, entrepreneurs found the situation grim.
It is the first battle of the encirclement and suppression campaign to seize the “regimental commander”.
“Everything is going up.” A developer selected by meituan told 36 krypton that when he first entered Wuhan, the Commission of meituan BD for a team leader was 120 yuan, which has now risen to 165 yuan; for HEMA in Wuhan, the fee for a head of BD in Wuhan is 150 yuan, and that of orange heart is 130 yuan. In July, the head of the BDS of the ten clubs only costs about 80 yuan.
More importantly, the new giants are just off the battlefield, and their combat effectiveness has not been reduced. A person familiar with the matter told 36 krypton that in a few days, meituan quickly formed a BD team of about 170 people in Wuhan, which was divided into two groups and competed with each other to clean the street and sign up for the small shop owner to be the “leader”. Although HEMA opened the city late, it also accumulated a BD team of 150 people in Wuhan.
“For o2o veterans who have fought big battles, it’s not difficult to recruit thousands of BD in a month.” An industry source told 36 krypton, “as long as a city manager is in place, he can form a BD team of about 10 people a week, and then he can go out to clean the streets.”
BD staff of meituan told 36 krypton that he had made the money of last year in the past two months. In order to retain these BDS, the contract signed by pinduomeituan is more than half a year, and the settlement cycle has changed from monthly settlement to weekly settlement and daily settlement. “If you want, you can follow the Kaicheng team to sweep all over the country.”.
In principle, in order to protect the interests of the head of the regiment and avoid vicious competition, a company such as the Shihui group usually arranges one or two leaders to operate in a community. But after the giants entered the game, they became radical and disorderly.
A team leader told 36 krypton that BD, who bought more vegetables, wanted to sign 4 or 5 team leaders in a community. “They used a high commission of 20% higher than that of Xingsheng to encourage partners to grab new and head leaders. At the same time, they promised to pay the service fee of 10% – 30% of the turnover of delivery flow in the form of daily settlement.”
Followed by the price war, entrepreneurs feel more shudder.
“9 Mao 9” vegetables can be seen everywhere in the shopping and orange heart optimization. In order to stimulate consumers to place orders, orange heart preferred and bought more vegetables every day, 30 kinds of products participated in the limited time seconds killing; meituan participated in 15 kinds of products in 4 time periods every day. Take November 20 as an example, there are 9 products in the orange heart optimization Changsha station, with the subsidy price of 0.69 yuan, while various fresh products with similar prices occupy the front page of orange heart optimization for a long time.
“Buy a lot of vegetables. Now they often come in for 50 yuan and sell them at 45 yuan. If you sell them, you will lose one. Many of them are negative gross profits.” Pomelo investment partner Peng Cheng told 36 krypton. Another investor told 36 krypton that market rumors of buying more vegetables are a 25% loss rate.
Buy more vegetables and orange hearts, and select some special products. Data source: wechat applet. Data processing: 36 krypton. )
According to a person familiar with the matter, the gross profit of the group has been stabilized at around 19% in Wuhan before, “as soon as several giants came in in in October, they immediately dropped 4 or 5 points.”
In order to keep up with the giant’s pace, ten star group made subsidies for some products and the head of the company in early October. “A biscuit was sold with 20% gross profit before, but now it is directly subsidized to 15%. However, they are very active. If they continue to follow up, they may only have a few points of gross profit, and even have to pay back for each order.” But you can’t do it without following.
What surprised them even more was the efficiency of the giants. “Sometimes, you can put on a 5 yuan dish in the morning, and they will kill it to 4 yuan in the afternoon. Especially in the second half of October, every time I put on a single item, pinduoduo will launch almost the same item in the afternoon, and then make the price extremely low. We are helpless. ” Said the rustle.
All this made the headquarters in Beijing also start to panic. “Now almost every day the headquarters will issue the latest instructions, requiring the Wuhan team to follow up, but sometimes it is impossible to reach the speed of the other party.”
A team leader told 36 krypton that in the first few days when Duoduo bought vegetables, the warehouse broke out every day. Almost all the goods could be delivered at 4 or 5 p.m., and even it was dark. “At that time, we also watched jokes and thought that their ability to perform the contract was too poor.” However, by the end of October, most of the time for those who bought more vegetables could be stuck before noon, which surprised the top management of the group.
In addition to meetings, most of the time now Xiao Sheng will focus on the single amount of data in the background in real time. The data jitter within a few hours will make him nervous, and immediately find out the reason for the jitter. “If you don’t adapt to it, you can’t help it. If you don’t work hard, others will knock you down.”
Behind the price war is the third front for the giants to compete for suppliers.
According to 36 krypton, several giants have given suppliers “t + 3 or even t + 1” settlement method, which was usually “t + 7-1 months” before, which is very tempting for small and medium-sized suppliers. According to Peng Cheng, partner of grapefruit investment, “in the moment of contention for minutes and seconds, even one day’s payment cycle gap is likely to determine the next trend of the situation.”
In a word, after the giants enter the arena, the whole battlefield is full of the taste of “not short of money”.
After a month’s siege, the entrepreneurs in Wuhan are already in a hurry. In October, the daily unit volume of the Ten Star Group in Wuhan maintained at 700000, without any decrease, but there was little increase. In Xiao Sheng’s opinion, “although the group opened more than 10000 new leaders last month (September), the total sales did not increase much. No growth is a decline. ”
After the outbreak of the epidemic, the headquarters of the ten Hui group issued an instruction to “grasp the gross profit and comprehensive operating cost”, but now all the indicators do not count. A person familiar with the matter disclosed to 36 krypton that in order to achieve the goal of No. 1 in Hubei market by the end of the year, the budget approved by the headquarters of the Ten Star Group to the end of the year has exceeded the original budget of the year.
Meituan, pinduoduo, Didi, who will win?
Who will win in the end? This is a comprehensive contest of will, ability and strategy.
“Pinduoduo is very fierce”, which is the common feeling of people in the industry.
Pinduoduo is also the one with the heaviest sense of crisis. Some insiders told 36 krypton that pinduoduo has found that “in places where prosperity has done better, the sales of pinduoduo’s agricultural products have obviously slowed down or even declined”, which has aroused the internal vigilance of pinduoduo.
We should know that in 2019, the turnover of pinduoduo’s agricultural (by-product) products will reach 136.4 billion yuan, accounting for more than 10% of the total Gmv, which is the category with the highest proportion of sales on pinduoduo platform. “Their most stable market was robbed, who are anxious.” In the long run, it may be selected by prosperity in the future to “hit low frequency with high frequency”. In the view of the person familiar with the matter, “this is also why pinduoduo will take the lead in choosing to fight in Central China, with the purpose of focusing on prosperity and optimizing the fight.”
A person familiar with the matter told 36 krypton that pinduoduo defined “buy more vegetables” as an agricultural product business, digging a deeper moat for its five-year agricultural products business.
This can also be seen from the way pinduoduo plays: it is not so much to attract new users as to activate old users to buy vegetables more frequently, especially local dishes that are not suitable for long-distance transportation. Therefore “(head) whether there is a wechat group in hand is not very care. As long as you settle in, you can find the nearest pick-up point at the entrance of the app to buy vegetables.” Strong binding with pinduoduo’s own app and original users is the operation logic of Duoduo’s vegetable shopping area.
Internally, pinduoduo gives Duoduo the position of the only “super one level project” to buy vegetables. It is led by “Abu” and reported to two first level supervisors. In pinduoduo, this is equivalent to the coo-1 level. According to people familiar with the matter, Abu is in power internally, “except for IR, GR and PR reporting to Huang Zheng, the business leaders are all reporting to Abu.”
According to 36 krypton, in order to encourage job transfer, pinduoduo has even changed the salary adjustment policy: the salary of technical product posts can be adjusted normally, but the operation posts will not be adjusted if they don’t buy vegetables.
An internal employee disclosed to 36 krypton that pinduoduo has devoted all its talents in the e-commerce department to blood transfusion for the vegetable buying business. “In a department, more than 30 people, half of them, have been transferred to Duoduo to buy vegetables, and the salary they offer is 30% higher than the original salary or even higher.”
The intensity of the job is obvious to all. A pinduoduo employee told 36 krypton that when considering whether to transfer to buy vegetables, they learned that the work was “very hard and hard” and “no rest all year round”. The latest news is that Duoduo will not have a holiday for the Spring Festival in 2021.
An employee who was transferred from other departments of pinduoduo to buy vegetables said that his working hours were generally from 8 a.m. to 1 or 2 a.m. because his office was in the suburbs, it was very difficult to get a taxi after work, “more difficult than hitting a ghost.”.
Despite this, there are still people coming to buy food from all over the country. This has given birth to a small wonder – pinduoduo’s Shanghai headquarters near the golden Hongqiao International Center, in recent months, low-cost housing has been transferred out, and even the saying of “buying vegetable room” has appeared. The notice on the sublease said, “no more than 5000, not more than 4000, as long as 3800”, “48 out of the door (refers to 8:48) can be stable card (pinduoduo punch time is 9:00), after moving in, no salary has been deducted.”.
For didi and meituan, this is not a battle to defend the base camp, but to find a better second growth curve.
Meituan saw community group buying first, but its action was a little late. A community group buying investor told 36 krypton that “meituan had wanted to participate in the last round of financing of Xingsheng optimization and Shihui group, but it didn’t succeed in the end.” More people familiar with the matter disclosed that before deciding to leave the court in person, meituan had sent people to select undercover agents in Xingsheng for nearly a year.
As for why it has been hesitant, the investor’s explanation is that “meituan has great advantages in the original business, and it is not so urgent to try the new incremental business. Before that, community group buying did not really prove its ability to make money to the outside world.”
Originally, meituan put the second growth curve on the business of “meituan buying vegetables”. However, the strategic position of meituan’s vegetable purchasing business was rapidly degraded after the project was selected and approved by meituan. Although both businesses are “buying vegetables”, the difference lies in the fact that the “meituan shopping” instant delivery mode has a high cost, which can only radiate urban users; while “meituan optimization” can sink the market, and these people cook more at home and order less takeout, which can bring more “increment” – and “increment” is the magic word of the Internet.
Photo caption: meituan city users account for more, pinduoduo sinks more market users.)
Previously, it was widely rumored that half of meituan’s personnel who bought vegetables were sent to meituan’s preferred products. However, according to people close to meituan, most of them were forced to transfer to the preferred business, and the two departments in the middle have been torn for a long time. Meituan doesn’t usually do things like this. It should be urgent. ”
Different sense of crisis, different needs, so that several giants play different.
A community group buying investor told 36 krypton, “buy more vegetables and choose orange heart. The initial playing method is very radical, desperately subsidizing dishes, making explosive money, and the customer price is often maintained at around 10 yuan, or even lower.”
In order to find goods, pinduoduo even contacts suppliers locally through personal cattle (only those who are most familiar with local supply are the fastest). Although the problem of these scalpers is that the settlement and billing are not in compliance, “but pinduoduo does not care”, some industry insiders close to pinduoduo disclosed to 36 krypton that pinduoduo will think of other ways to do things.
Relatively speaking, meituan should sign a contract with the company and have a formal invoice. However, the actual situation is that “all of us are fleeing goods, and there are no invoices for them. Some suppliers have signed very low prices, and they are not willing to let more upstream distributors know and sign contracts.”
In September, an investor told 36 krypton, “meituan has not a city to fight through. Pinduoduo is still very powerful in Wuhan and Nanchang.” According to the data provided by aurora to 36 krypton, from August to November this year, based on the data monitoring of the app, the “monthly average daily activity” data of pinduoduo increased more steeply.
As for Didi, Cheng Wei said at the internal staff meeting in early November that “didi has no upper limit on its investment in orange heart optimization, and has made every effort to win the first place in the market.” Then, during the double-11 period, orange heart optimization was greatly promoted, and a good news was announced: on November 11, its daily order volume had exceeded 10 million, “becoming the first in the industry”.
Summing up the giant’s initial playing methods, didi and pinduoduo are more quick, willing to spend more money in exchange for leading edge, and use radical subsidy strategy to suppress rivals in front-end team leader and terminal logistics. Meituan is more stable and pays more attention to the construction of supply chain and logistics in the early stage.
Of course, the war situation is constantly changing. A person close to meituan said that at first, meituan would have a climbing plan after it opened the city, and would not immediately demand to be the first. But now, meituan optimization is trying its best to catch up with more vegetables.
In terms of the overall expansion speed, meituan optimization has recently begun to recruit agents in the county market. Its main responsibilities are team leader recruitment, team leader operation, grid station construction, brand performance, etc., and has promised a high return of 500 + daily salary.
(screenshot source: meituan preferred developer)
According to a preferred leader of meituan in Guangdong, the takeaway riders of meituan have also recently officially joined the battle sequence of community group buying, trying to transform into a commander, and began to pilot in Guangdong.
Looking at the whole country, public data show that as of November 20, pinduoduo’s “buy more vegetables” has covered 169 cities in 25 provinces; meituan has opened 191 cities in 23 provinces; Didi’s “orange heart optimization” is nearly 50 cities in 16 provinces; Ali HEMA, due to its late layout, will gradually expand to Wuhan and other cities around Hubei Province at the end of the month.
(as of November 20, basic information of each platform. Data source: public reports. Data processing: 36 krypton.)
However, the subsidy war and the land push war are all common ways of using the Internet in the past decade, and any giant is a master. So, what is the key to winning this war?
The secret from cold to hot
Just two years ago, community group buying was still a business with extremely low gross profit and high cost of performance, which led to successive bankruptcies, which made the industry investors frustrated and fled one after another.
Squirrel collage is one of those failures that is often cited as an example. In less than half a year after the establishment of this community group buying venture, Gmv exceeded 100 million. Its founder, Yang Jun, once said with pride that it took only six months to complete meituan’s 18 month task. However, in just half a year, squirrels burned up nearly $100 million of financing on its account and went bankrupt.
Some investors told 36 krypton that it would cost 200 million RMB for every 100 million Gmv increase of squirrels at that time, and the bad model made investors headache. A community group buying practitioner also said frankly that the failure of the squirrel competition hit the industry hard. Since then, every round of financing of his own has been very difficult to talk about, “it is either slow to make money, or there are many constraints. The most common thing is to be directly rejected.”
Xiao Sheng, general manager of the ten gathering group in Wuhan, has been deeply impressed. In 2018, he was also the co-founder of you, me and you (later acquired by Shihui group), and he met with the research team of meituan. At that time, meituan gave feedback that “I can’t understand. I may do it in the future, but not now.”
A prosperous preferred investor also disclosed that he asked a strategic investor of a large factory how to view community group buying in early 2019, “internal evaluation thinks that this thing will only be a supplementary channel in the future.”
Indeed, in the frenzied money burning year of 2018, community group buying has neither proved that its UE (economic model of a single city) can work, nor has a Gmv of more than 10 billion yuan on a single platform, “this digital giant simply can’t look up to.” Xiao Sheng said.
By the second half of 2019, there are still big differences within meituan on this business. “The war and investment department is not optimistic, the evaluation is very negative, and thinks it is a long-term unprofitable business.” An industry source close to meituan told 36 krypton.
But the situation changed during the outbreak. Just as online education and online office are quickly accepted because of the epidemic, community group buying that can deliver food to the door is also quickly accepted by a large number of users because of the epidemic. “When Wuhan closed the city, every family bought vegetables in wechat,” a Wuhan head of state recalled to 36 krypton
(source: China Merchants Securities)
“Scale”, or order density, is the key to twist the door lock.
Liu Zicheng, the president of orange heart, visited Changsha in April, and the results shocked him. (prosperous) in March, the unit volume reached 4 million units. What is the concept of 4 million units? In China’s trading platforms, except for Taobao, it is very difficult for local companies in Hunan to reach this scale in a single day. “. (after 4 months, the unit quantity of Xingsheng has exceeded 8 million)
This is the reason why once the giants enter the market, they will smash the order volume: after the order density comes up, the whole model of community group buying from supply to distribution can run.
From the second reason of cold to hot, we found that community group buying can solve the sinking market.
In Liu Zicheng’s impression, fresh e-commerce has always been a city business. “But when we went into Changsha and even down to the counties, cities and towns, we found that (prosperous preferred) business had sunk to the township level and was extremely mature, which made us feel that the space was huge.” Although community group buying needs to be ordered in advance and delivered slowly, it has low cost and low price.
“More importantly, some regions have begun to make profits,” the investors said. In addition to the scale of community group buying, making profits is the last straw for giants to enter the market.
Because of this, in the round of financing in July this year, Shengsheng preferred was snapped up very fiercely. “Basically all mainstream funds are very positive, the company is very strong, like to invest not to invest.” One person close to krypton told Reuters.
After the war in Wuhan, the fire of war was rapidly pushed to Changsha, Hunan Province, where group buying was the most popular base camp. This is also considered to be the “bright top” of community group buying.
After entering Hunan, the total number of BDS selected by meituan in Hunan has exceeded 1500, while the internal planning of meituan is at least more than 2500, which is far more than the last main battlefield in Wuhan. As for Didi, “a subsidy of $100 million was introduced in the first week of entering Changsha,” an orange heart preferred supplier in Hunan told 36 krypton.
However, a partner of prosperity preferred told 36 krypton that it was “indifferent” whether it was to poach for the leader or to subsidize the war.
Moreover, according to 36 krypton, prosperity tried to set a red line for its losses in August this year. At that time, the giants had entered the market, and shareholders said they would not set a red line for losses. But until now, Shengsheng optimization does not seem to have changed this decision.
If this is a long war
Chang Yuee, the head of Wuhan, likes subsidies. The giant’s extremely low customer price has indeed attracted a lot of users to buy, and “every transaction 5 orders still has 3 yuan reward”. But compared with subsidies, she thinks the quality of dishes is more important, “otherwise, my personal reputation will be affected, and users will go to other regiments to place orders.”
As a team leader for a year and a half, Chang Yuee’s biggest experience is that as long as the dishes are stable, they can retain users. “We are willing to spend more money on good dishes.”
In the war of subsidies, companies that have experienced a lot of battles understand one truth: subsidies will eventually ebb, and survival will determine the outcome.
In the face of the threat of giants, although Xingsheng didn’t respond to subsidies and poaching, it held a small meeting with more than 300 core suppliers in early November, promising to increase the rebate by about 2% in order to maintain its product selection advantage. In the past, the price control of prosperity in purchasing was very strict.
In Chengdu base camp, after a large-scale order preparation before the national day, the optimal unit quantity of orange heart has entered a low point after the national day, “the core reason is that the subsidies for the head of the team and the dishes have not kept up, and after the subsidies are less, the problems of the head end are gradually revealed.”
At present, no matter Didi, meituan or pinduoduo, the suppliers that local fresh food can find are almost the same. Although pinduoduo has its advantages in the agricultural products collected in the whole country, most of the dishes purchased by the community depend on local products, because local products are always the cheapest.
After the subsidy ebb, how to make the low price sustainable, the key is to control the cost of logistics performance – more accurately, how to deal with the warehousing and distribution in the sinking market.
It took three years to complete the construction of the County Rural sink network. By contrast, several giants are just starting.
According to the investors of Xingsheng group, the warehouse logistics system has been iterated to the 8th Edition. “Laoyue (founder of Xingsheng optimization, Yue Lihua) knows what size of car should be used from big warehouse to grid warehouse, and what kind of car should be used from service station to user, and how much money is calculated in total. It is very detailed.”
The key point of prosperity regional profit is the optimization of performance side. According to a person familiar with the matter, the performance cost of Xingsheng preferred can be controlled at about 9%, which is generally fluctuated around 10-12% compared with the next few giants. For fresh retail with low gross profit, several points can be the difference between life and death.
In the early hundred regiment war period, meituan was good at “encircling the city from the countryside”, which tested its ability to push the ground more. “But the business of community group buying is a whole chain, from the city to the countryside, from line 2 to line 3 to line 4, but the final result may be that the fourth line is totally lost, unable to support the third line and the second line, and finally fall into the vast ocean of people’s war.” Some investors said to 36 krypton.
In order to make up the lesson, pinduoduo has planned to spend $6 billion to build a warehouse logistics system. A supplier in Hangzhou told 36 krypton that meituan preferred will invest 4 billion yuan in the supply chain and storage end, while HEMA’s investment will reach 4 billion US dollars. According to pummelo investment partner Peng Cheng, “at least in the next year, there is no upper limit on the investment of each company, and no one puts profit and loss in the consideration index.”
Not only in the logistics performance crazy make-up lessons, in other links, the giants are still “finding the way.”. An industry insider mocked a giant at 36 krypton and said: “their supply chain and market are completely independent, and how many orders must be reached in the assessment of salesmen?” But the community group buying business is closely linked, and the performance comes from the linkage of various links, so we can not only assess a single indicator.
Another agitating factor for the change of the war situation is that market rumors, not only pinduoduo and meituan, but also Jingdong are interested in buying shares or purchasing prosperous and preferred products. In 2018, Jingdong tried out the community group buying business “just buying”. Prosperity preferred to respond to this, 36 krypton said, “rumors are not true.”. Another market rumor is that byte beat also intends to enter the community group buying.
Perhaps, we should examine community group buying from the perspective of long-term war.
The business of “e-commerce shopping” may be one of the most difficult and easy to lose money in the history of the Internet.
In 2008, when Jingdong just got today’s capital investment, there were companies like “Tuotuo industrial society”;
In 2012, the e-commerce mode of urban warehouse distribution fresh food, represented by “original life” and represented by Yiguo fresh food and once joined by SF, was proved to be extremely expensive to perform the contract. SF soon withdrew, and Yiguo, invested by Alibaba, went bankrupt and restructured;
From the “front warehouse” mode of delivering vegetables created by daily Youxian in 2014 to Ding Dong’s knocking on the door of first tier urban residents, they have not proved to be able to make large-scale profits so far;
HEMA may be the sweetest attempt, but it also faces the problem of how to make a single store profit after going out of the urban core area.
In the past ten years, Ali and Jingdong have always entered and retreated again and again.
Even if it is possible to do “e-commerce shopping” with the community group purchase mode this time, it took six years to compare with the takeaway market, from the launch of meituan’s takeout business at the end of 2013 to the stage results of the takeout market last year. It can be predicted that the community group buying war will be difficult to end in a short time. It seems to be a lively fight now, but it is still in the early stage of the war.
(36 krypton authors Yang Lin and Su Jianxun also contributed to this paper. At the request of the interviewer, Xiao Sheng and Dai Yuee are pseudonyms)