Internet giants enter the community to buy food stalls in front of their homes will be “played” bad?


Original title: the vegetable stall in front of the house will be “played” by the community group buying?
What kind of existence is community group buying? Will it become the next “drop” or “eggshell”? Is the argument that group buying by internet giants is bound to monopolize the community is tenable? What are the real anxieties behind the community group buying dispute?
In recent week, public opinion on community group buying continued to be hot. Related topics with the key word “community group buying” frequently hit microblogs and hot searches. Among them, “will community group buying take away the livelihood of vegetable vendors” read more than 247 million.
Compared with the previous taxi fight, takeout war and bicycle war, some public opinion worried that the Internet giant would repeat its old trick: first, it would take a low-cost dumping strategy to occupy the market, and then “hijack the flow to make the market” squeeze the survival space of the middlemen “vegetable sellers”, and then deprive the terminal consumers of the “freedom to buy vegetables”.
What kind of existence is community group buying? Will it become the next “drop” or “eggshell”? Is the argument that group buying by internet giants is bound to monopolize the community is tenable? What are the real anxieties behind the community group buying dispute? With these questions, Xinhua Daily Telecom visited the new and old vegetable markets, vegetable buyers and industry insiders to carry out a multi-dimensional analysis, trying to uncover the true face of the community group buying behind the dispute.
“Community group buying” in reality
Li Meng, a young mother born in the 1990s, works overtime until 7 o’clock every day, gets out of the subway, and has to travel two kilometers to the vegetable market to buy vegetables. Now that she has a community group purchase, she only needs to place an order from the “head” and take her ordered dishes home in the convenience store at the entrance of the community.
“I saved two kilometers of energy and time to and from.” Li Meng said that the dishes purchased by the community are relatively fixed, but she really doesn’t want to walk 2 kilometers more every day to eat one or two more dishes.
In Li Meng’s opinion, group buying in the community is very convenient, and the richness is the place that impresses her most in a vegetable market. “I’ll go shopping in the market on weekends.”
Maigaoqiao old street fair is an old vegetable market in the north of Nanjing. Near the end of the year, the meat shop business here is very hot. Every morning, shops are crowded with residents who come to irrigate sausage. At a glance, almost all of them are elderly people. It seems that the wave of community group buying has nothing to do with them.
The reporter visited several shops in this vegetable market randomly, and they also said that the business has not been impacted by the community group purchase. “You have to buy it or not. The price of vegetables has not fluctuated during this period.” Zhang Meng’s vegetable shop is at the entrance of the vegetable market. According to her observation, there are many young people in the market.
“It mainly depends on the time period. During the day, young people have to go to work and have no time to go to the vegetable market. In the evening, many young people buy vegetables here after work.” Zhang Meng told reporters.
“Group buying in the community is to help you pick out the dishes. It’s certainly not as good as picking your own dishes.” During the interview, a delivery man in yellow meituan takeout overalls came to pick the dishes. At first, the reporter thought that he was delivering vegetables for customers, but after talking to him, he turned out to be a regular customer of this stall. He came to buy two or three times a week.
“Food is the most important thing for people, and the most important thing is fresh food.” Before the delivery, Zheng Shiqiang was a restaurant chef. He thought that young people would not pay special attention to the discount of a few cents, but more care about the food they bought. At present, he shares the rent with two other people. He usually cooks together. He buys vegetables and cooks.
“Community group buying doesn’t necessarily replace the offline market, because the consumer groups are different.” Zheng Shiqiang said that the majority of group buying groups are young people. Some office workers go home at night and want to fry a dish. As soon as they open the refrigerator and find it is empty, they will place orders with their mobile phones. If the elderly don’t live on the top of the staircase, the demand for group buying is not urgent. Shopping in the vegetable market is a way of leisure and entertainment for them.
“Many of our stall owners also engage in community group buying, selling vegetables from their own shops and helping customers” run errands “to buy vegetables in other shops In order to attract customers, some of them will be responsible for attracting customers.
Good neighborhood Huimin food market is the first “smart food market” in Nanjing. This farmer’s market, which was born in the night market stalls, is now decorated as a commercial complex. It is a “five-star” vegetable market for local residents, covering 120000 people in the surrounding area.
There are advertising banners around the food market, which are uniformly marked with the words “search the neighborhood food market, save time for life” and some witty words: “what’s the disadvantage of half stir frying dishes, all orders are delivered by mobile phone.” “grandfather taught me to stew kelp, I taught my grandfather to buy vegetables in cloud”, “my grandson is too young to walk, mobile phone to buy vegetables” “These banners are very popular with young people. They will take pictures specially.” Wu Dianchang said.
On December 15, the reporter came to Nanjing yaohuamen good neighborhood Huimin vegetable market, which was transformed by digital technology. There were banners of “cloud buying vegetables” everywhere. Photo by Pan ye, our reporter
“A month ago, we started to cooperate with” hungry “to put all the dishes online and make digital transformation of the offline vegetable market. The popularity of our food market is high, and “hungry” will come to promote sales from time to time. ” Wu Dianchang said.
He told reporters that such a large platform to do sales promotion, the discount is very strong, to some merchants impact is not small. “Some merchants came to complain to me, saying that big platforms” rob “their business. Even if they are hungry, they will not come to other platforms. Sales promotion is only temporary. The important thing is whether the food is good or not, and whether the environment of the vegetable market is good, and whether anyone is willing to come. ” Wu Dianchang said.
“Community group buying” in capital
Community group buying is not a new thing, its sprout comes from community e-commerce. As early as 2014 and 2015, a variety of community e-commerce services have sprung up everywhere, such as “Gula e-commerce”, which cooperates with sports color stores to build a community o2o service platform; another example is “buy Baite”, which aims at the blank of China’s community chain convenience stores; and “aizhujia”, which is based on the real estate industry and is positioned as a smart community service.

At this time, capital also “stares” on these new forces of intensive farming community flow. Enterprise survey statistics show that: in 2014, the products represented by “Xingsheng optimization”, “aixianfeng” and “Zhongshang Huimin” opened a precedent for investment and financing of community group purchase “racetrack”. The “injection” of various types of capital ushered in the peak in 2018, with 23 public financing events, and the disclosed financing amount was 1.67 billion yuan.
Community group buying has been on fire for a short time around 2018. However, due to the low order density, the platform has been closed down one after another. Since the outbreak, many users began to accept the pre-sale system of community group buying. The surge in order density has made several Internet giants see the value and Prospect of community group buying again, and have accelerated the layout, followed by burning money subsidies.
The data from enterprise investigation shows that: since this year, there have been 19 public financing incidents of community group purchase, slightly lower than that in 2018; however, the amount of publicly disclosed financing reached 17.17 billion yuan, a year-on-year increase of 356.3%, which reached a record high. Among them, Tongcheng life, shihuituan, xingshengyou and aixianfeng, which are backed by internet giants, have the most financing times.
Looking at the investors of community group buying track in 2020, Alibaba, Tencent, Tongcheng, didi and Jingdong, these internet giants appear frequently, and a competitive pattern with huge potential and competing for the best is taking shape.
“Didi and meituan have raised the strategic position of community group buying to a high level, but this does not match the inherent advantages of their main business. Relying on the subsidy of throwing money, there is no cost advantage; Jingdong is backward, but warehousing logistics has advantages; pinduoduo layout is very early and fast, and also has the natural advantages of agricultural product supply chain; Ali’s fresh supply chain mainly connects with the local living business department, mainly HEMA And hungry? In the layout. ” Lei Ying, assistant professor of marketing department of Guanghua School of management, Peking University, analyzes the strategic position of community group buying in major platforms.
Lei Ying believes that “buying vegetables” is just needed, high frequency and price sensitive. For Jingdong, pinduoduo, Taobao and other platforms that already have fresh e-commerce layout, if they don’t enter the community group purchase and others do it, consumers will not buy online. For didi and meituan, it is more out of the development of new business and revenue sources.
“At present, the regional characteristics of the community group buying market are obvious, but there is no national leader. Community group buying is very attractive to Internet giants, and giants are competing for the entrance of sinking market flow According to the Research Report of CSC, the scale of China’s fresh food retail market will reach 5.1 trillion yuan in 2019, and the fresh e-commerce market will reach 279.62 billion yuan, with a penetration rate of only 5.48%.
Under the stimulation of the epidemic situation, the community group purchase market will develop rapidly in 2020. The market scale is expected to reach more than 89 billion yuan, accounting for 21.9% of fresh e-commerce. The epidemic situation has cultivated the habit of community group buying and is expected to promote the rapid growth of community group buying market.
We can’t beat them to death with one stick or let them go
The community group buying war with capital intervention is regarded as the most fierce scuffle among Internet giants after takeout, online car hailing and bike sharing. With low-cost models such as 50 cents a kilo of potatoes and 30 cents an egg, Internet giants crush the community vendors. Some vendors have closed down or become offline employees of Internet giants, so that public opinion is beginning to worry that Internet giants are taking away the livelihood of vegetable vendors.
“I also want to join the community group buying, but there is no such channel and no one comes to me.” Zhao Wenfeng, a merchant of Baochuan vegetable market in Nanjing, has 10 mu of land in Banqiao. He goes out early and returns late every day. The price of vegetables sold is higher than that of wholesale dishes. She is more welcome to buy and distribute vegetables like Jingdong, but the group buying in the community, which goes directly to the source, has a great impact on them.
“Affected by the epidemic in the first half of the year, business is not good. After the second half of the year, many places are used to online distribution, and the traditional business is still not good.” Sheng Liqin, vice president of Nanjing farmers’ Market Association and chairman of Nanjing lvheng Market Service Co., Ltd., said, “we also encourage merchants to join the community group buying, but the dishes on the group buying are so cheap that they can’t compare with each other.
“We advise the merchants to bear with it and wait for a while. After all, they can’t burn money for long. At the same time, we also encourage businesses to adapt to this change as soon as possible and find a way to survive. ” Sheng Liqin said.
“When e-commerce giants enter the community group buying, they hope to win customers through high-frequency consumption scenarios. Their low-cost competition strategy will impact the market supply of traditional agricultural products, which is not conducive to the production and sales of high-quality agricultural products.” Eric Agricultural Internet Chairman Sun Tong said.
Sun Tong believes that with a large variety of agricultural products, long supply chain and heavy assets, it is possible to increase prices and kill cooked vegetables after the local monopoly is formed. But at present, it is very difficult for e-commerce giants to completely control so many categories and form a monopoly. If we only do one or two categories, there will be no economies of scale. If we fail to achieve competitiveness, the price war will end in half a year at most.
On November 10, the State Administration of market supervision and administration of the people’s Republic of China on anti monopoly guidelines in the field of platform economy (Draft for comments) proposed that it is not allowed to “sell goods at a price lower than the cost without reasonable reasons, so as to exclude and restrict market competition”. However, the guide also points out that “platform operators may have the following justifiable reasons for selling below cost: (1) to develop other businesses within the platform within a reasonable period of time; (2) to promote the entry of new products into the market within a reasonable period of time.”.
On December 9, Nanjing municipal market supervision and Administration Bureau took the lead in issuing the notice on compliance operation of e-commerce “dish community group purchase”, requiring the “head” (person in charge) of the group purchase of dishes community to register the corresponding market entities as the case may be, and the platform operators shall not implement low-cost dumping at a price lower than the cost, crowd out competitors to monopolize the market and disrupt the normal business order 。
On the same day, the relevant responsible persons of Alibaba, meituan, Didi, Suning and other e-commerce community group buying leaders signed the letter of notification, promising to operate in good faith according to law, carry out orderly and benign competition, and create a good market order.

“All of them are subsidiaries, and some are branches of branch companies. They can’t make decisions. They have to listen to the unified orders of the headquarters.” According to people close to the forum, the headquarters of meituan, pinduoduo and other platforms, and even the center of East China, are not in Nanjing. The purpose of issuing the notice and holding the symposium is to remind timely when there are signs of low-price dumping. The reporter noted that there is no case of administrative punishment on community group buying in Nanjing.
Around the middle of December, some suppliers such as Huahai Shunda, Weilong and Xiangpiao sent a notice to the channel dealers, saying that they were not allowed to operate the community group purchase platform without authorization; they were not allowed to sell single products at ultra low prices.
“The current community group buying war is still in the primary stage nationwide, but it has entered the stage of fierce competition in Changsha and other places. Why did the giants spend so much money to participate? As we all can see, this is the embryonic form of the future e-commerce model, not just a matter of the 100 billion level market. ” Xiao Zhilong, senior partner of Tongcheng life, said that the future e-commerce will have social attributes, and the previous subsidy model of burning money is not feasible. We must have a complete scene and performance to achieve break even.
“Competition in the industry is becoming more intense today.” “Happy little pig Bao”, head of a community in Jianye District, Nanjing, admitted to reporters that “head” is becoming more and more difficult. In such word-of-mouth consumption scenarios such as communities, it is impossible for the platform to make money easily. “The platform can’t guarantee that every batch of goods is good. People have to go to see them before they dare to push them. A regiment of 2000 yuan can earn less than 200 yuan. I can’t run alone, and I have to share with others. ”
“The epidemic situation has given the community group buying opportunities for development, and its explosive power and potential are being further explored.” Mo daiqing, senior analyst of ecommerce Research Center, also believes that if community group buying wants to break through by cost performance or service delivery, it will ultimately depend on the scale effect brought by a strong supply chain. It can be said that community group buying is a supply chain business. Only all-round service to consumers, good quality control, can be long-term.
Lei Ying pointed out that different from the previous online car hailing and bike sharing, the advantages and disadvantages of the major platforms in the community group purchase business are quite different, so it will not become a price war like the homogeneous competition. In the later stage, through the optimization of the supply chain and warehousing logistics, the gap in cost advantage will be widened.
“For the value of the community group buying mode itself can not be completely denied, the positive should be affirmed.” Lei said that the community group buying has met the needs of consumers in some aspects, and the capital has seen this part of the business potential. Whether this road can go through, we may as well give this new Internet format some growth space.
“The food basket is related to the basic people’s livelihood. It is the basic bottom line to avoid artificial drastic market fluctuations. At the same time, we can’t “kill” the community group buying, nor “let it go.” Tian Boping, a researcher at Jiangsu Academy of Social Sciences, said.
What will community group buying bring? Experts believe that we can’t simply make a qualitative judgment, neither can we turn the community group buying into a negative case, which will affect the enthusiasm of capital to invest in people’s livelihood, nor can we allow the uncontrolled expansion of capital, leaving “chicken feathers in one place.”.
This kind of new mode should be explored according to the local conditions. Taking the grassroots community as the focus and the residents’ demand as the center, we should explore the boundaries of government, capital and society, and form an effective mode of economic governance. (reporters: Pan ye, Zheng Shengzhu, Zhu Cheng, Yang Shaogong)