A new round of competition for supply chain of e-commerce giants in city retail?

category:Finance
 A new round of competition for supply chain of e-commerce giants in city retail?


The retail field tests the platforms traffic, performance and supply chain. Who can win?

Target local retail

On June 16, nearly 100000 offline stores and many brands of Jingdong home linkage platform launched the 618 promotion. This year, the number of physical retailers participating in the promotion is significantly higher than last year, and covers more third and fourth tier cities. Data shows that from June 6 to June 14, Jingdongs home sales increased by 138.8% year-on-year, and the cumulative distribution orders of dada express increased by 73.4% year-on-year.

Under the epidemic situation, instant retail in the same city plays an indispensable role in maintaining the stability of the consumer market and meeting the rigid needs of residents.

The arrival of the epidemic has also accelerated the digital process of offline retail industry. A person from the investment industry told the 21st century economic report that at present, most of the retail sales in the same city are concentrated on fresh food, drugs and supermarket categories. The vegetable market is a high-frequency transaction, but no better profit model has been found. The drugs are just needed at night and have no impact on consumers consumption habits. Therefore, the focus of the platform is to pry off-line super market. Chain store super is a strong side. As a platform, neither JD home nor meituan can get higher commission.

According to the prospectus of dada group, from the perspective of business, related businesses of JD are still the main net income of dada. From 2017 to 2019, JD contributed 56.7%, 49.1% and 50.5% of dadas net income respectively, while Wal Mart brought 4.6%, 13.0% and 14.9% of its net income.

However, while e-commerce giants are aiming at offline, many businesses are also turning to online, accelerating their own digital and e-commerce transformation. The novel coronavirus pneumonia affected the global retail industry in the first half of this year. E-commerce, live broadcast and other digital economic platforms, to some extent, have promoted the recovery of retail industry. According to the data released by the National Bureau of statistics, in May this year, the total retail sales of social consumer goods reached 3197.3 billion yuan, down 2.8% year-on-year, 4.7 percentage points lower than last month. From January to may, the national online retail sales reached 401.76 billion yuan, an increase of 4.5% year on year, 2.8 percentage points higher than that from January to April.

Master the voice of quality control and SKU

It can be said that dada Jingdong familys dependence on Jingdong and Wal Mart has laid the foundation of its supply chain in the past six years. At present, both meituan and Alibaba are in off-line shopping malls and supermarkets, but it is very difficult to break through, because the e-commerce platform needs to form a voice in quality control and SKU (the unit of inventory in and out measurement). According to 21st century economic news, RT mart, a retail giant with 414 stores nationwide, will take over the management right to Lin Xiaohai, vice president of Alibaba group and general manager of retail channel. Lin Xiaohai will be CEO of RT mart and report directly to Alibaba CEO Zhang Yong. Huang mingduan remains CEO of Gaoxin retail and chairman of RT Mart China. According to the financial report, in 2019, Gaoxins online business accounted for 15%, an increase of nearly 90% compared with 2018, which is enough to see the changes brought by new retail. Huang mingduan, CEO of Gaoxin retail, said that it is expected to exceed 20% in 2020. After the senior management adjustment, it may further accelerate the coordination and connection with Alibaba.

According to the analysis of CICC, Gaoxin retail is constantly expanding the cooperation with ALI, developing projects such as Maochao shared inventory and community group purchase, which is expected to form a retail service network system covering all channels and multiple scenes, and continuously improving market share. With the continuous strengthening of Alibabas strategic position in the citys retail business, the possibility of further cooperation between the two sides will not be ruled out in the future.

At present, offline supermarket is also starting to sell its own apps and small programs online outside the platform. According to Yonghui supermarkets financial report, in 2019, the sales of Yonghui supermarkets home business reached 3.51 billion yuan, a year-on-year increase of 108%. By the end of 2019, Yonghui life app and small programs had covered 24 provinces, with a monthly life of 5.06 million yuan; in the first quarter of 2020, Yonghui supermarkets home business realized sales of 2.09 billion yuan, a year-on-year increase of 2.3 times. However, due to the expansion of super species, Yonghui yunchuang once lost money.

At present, even with the participation of Alibaba, meituan and other giants, how to run through the profit model and how to further upgrade and improve the service of local retail is still the biggest problem for the platform and businesses.