A community shop in Guangzhou posted a meituan preferred advertisement. (Photo by Huang Wanyi)
Different from the previous fresh e-commerce mode, these community shops join in the self-service point, which is the new business of community group purchase developed by internet giants.
After fresh e-commerce was hit by a wave of thunder and clearing last year, the epidemic at the beginning of this year fostered the habit of people to buy vegetables online, which inadvertently added a new round of bullish market for the industry. Now the situation of epidemic prevention and control is stable, and people resume to buy vegetables offline. Can fresh e-commerce continue to develop in the post epidemic period? At this time, the head of the Internet enterprises have increased the intensity of layout, in addition to the previous vegetable business, develop a new community group purchase mode.
Group buying in community
According to the existing public information, meituan, pinduoduo and other leading Internet enterprises have launched new community e-commerce platforms, and even Didi, a taxi Hailing software, has made cross-border layout early. In June this year, Didis online community e-commerce orange heart optimization began to operate in Chengdu, and in September it began to expand rapidly to other parts of the country. Meituan and pinduoduo launched meituan optimization and Duoduo shopping. In addition, the community group buying brand ten Hui Tuan just announced on November 30 that it had completed the C3 round of financing of $196 million, and Alibaba led investment, which was the fourth round of financing since this year.
Internet giants have already developed fresh e-commerce brands a few years ago, such as meituans meituan buy vegetables and Alibabas HEMA Xiansheng. These existing fresh food e-commerce platforms can solve the problem of timeliness of the last kilometer delivery by laying out front-end warehouses, emphasizing that the products should be delivered within 30 minutes after the order is placed and delivered home. Different from the logic of fast delivery in the past, the new community group purchase mode adopts the mode of pre-sale + self delivery, that is, placing orders on the same day and picking up the next day.
The head of an investment organization that participated in the community group buying project analyzed the logic of the new game method of fresh e-commerce to the reporter: the cost structure of the next days self-service logistics is superior, the commodity price is more user-friendly, the consumer groups are wider and deeper, and the market scale is larger.
What is community group buying? According to the Research Report of AI media consulting, community group buying is a regional, niche and localized form of group buying relying on real communities. Compared with traditional e-commerce, community group buying has a lighter operation mode. With the help of wechat and other social traffic entrance, it has the characteristics of easy communication of users, centralized management of businesses and combination of online and offline.
Group buying mode has existed in the early stage of Internet entrepreneurship. What kind of spark will be created by the combination with fresh food industry? Tang Guohao, an entrepreneur in the field of fresh food e-commerce, told reporters: the community group buying mode realizes fresh food supply directly from the source to the community, which can greatly reduce the logistics cost, and there is no need to store up goods and reduce waste when it is delivered the next day.
Jiang Yinqiu, an analyst at Ping An Securities, pointed out in the weekly report of the big consumer industry published on August 2: we believe that different from the high attention paid to the group buying mode in 2018, the investment boom in community group buying may pay more attention to the word community.
In the view of industry insiders, 30 minutes fresh home and pre-sale + self delivery are actually the specific operation modes in the same industry, which are different, but both reflect the competition of Internet giants for high-frequency fresh demand and the traffic engine behind them.
Since the second half of the year, a number of securities companies have issued community group buying research reports. Everbright Securities said on November 6 that the community group purchase has a trillion scale bonus, and pre-sale + self delivery has broken through the two-dimensional boundary of time cost of online retail. It will become one of the mainstream performance forms in the e-commerce industry in the future. Together with instant delivery and traditional express delivery, it will form a multi-level performance system to serve consumers different experience needs and mature capability of cost performance.
Hundred regiment war staged in community main battlefield
The specific implementation of the community group buying mode depends on the leaders distributed in various communities, and a hundred regiment war is being staged among the major platforms.
The person in charge of the above-mentioned investment institutions participating in the community group buying project told reporters that the recruitment mode of group buying leaders in the community is a combination of offline BD and team leader recommendation.
Mr. Chen, who lives in Shaoxing, Zhejiang Province, has worked part-time as the head of the community e-commerce squirrels and ten gathering groups. He told reporters: the head of the team is responsible for pulling the group within the community, and then sending the goods in the group for the next days pre-sale every day. If you want to buy, you can place an order directly in the wechat small program and send it to the self collection point where the head of the team is located.
According to Mr. Chen, a team leader can work on multiple platforms at the same time, but the number of community residents is limited, and generally only one or two platforms can be considered.
In the Guangzhou community visited by the reporter, many shopkeepers reported that there were many community group buying platforms to discuss with them the cooperation intention of the team leader. That is to say, as long as there is a suitable place as a self-help point, everyone has the opportunity to join as the team leader. A staff member of a local convenience store told the reporter that her neighbor had already started to do it, and her convenience store was temporarily used as his pick-up point. However, the order volume is still relatively small, and she is also considering starting to be the head of the team.
The logic of community group buying is to reach the C end through the community leader linked by acquaintances, and it is a reservation mode. The previous mode of buying vegetables is that the app reaches the C end directly, and the online order is delivered in half an hour. Cui Lili, executive director and researcher of the E-commerce Research Institute of Shanghai University of Finance and economics, said to reporters, after a lot of model trials and errors in online consumption of fresh products, community group buying should be a new round of trial and error, and this mode is expected to become the ultimate PK of fresh community.
Where to go?
For a long time, fresh food is a self-employed industry. Nowadays, the Internet giants are speeding up their pace. Whether they lay out the stock market or the incremental market, the impact on the fresh self-employed can not be ignored.
Fresh o2o business model has been explored for many years, but it is still a situation in which the real winner has not been settled. In order to seize the market, the burning money model of huge capital subsidies has been a common practice of Chinese Internet giants, and has been copied again in this community group purchase. These community group buying platforms attract users to use them through low-cost methods such as coupons. For example, opening the pinduoduo app by a reporter is a pop-up window of buy more vegetables and prompt that new people have the privilege to place an order and return in full.
Although under the rapid expansion of Internet enterprises, burning money subsidies has already become the norm, but is it reasonable and legal to place an order and return it in full at a price lower than the cost?
Liu Xu, a special researcher at the National Institute of strategic studies of Tsinghua University, told reporters: after the amendment of Chinas Anti Unfair Competition Law in 2017, the regulation that the standard of sales below cost has been deleted, but the price law still retains relevant provisions.
According to Article 14 of the price law, business operators are not allowed to engage in the following illegal price behaviors: in addition to handling fresh commodities, seasonal commodities, overstocked commodities and other commodities at a price lower than the cost, in order to exclude competitors or monopolize the market, dumping at a price lower than the cost will disrupt the normal production and operation order and damage the interests of the state or the legitimate rights and interests of other business operators.
The current subsidy model is unsustainable. After reaching a certain scale, the normal charges will still be realized. However, at that time, the traditional vegetable merchants and meat vendors may have been squeezed out of the market. This has a great impact on social employment, so law enforcement agencies should intervene. Low price promotion needs to limit the amount, time and frequency. Liu Xu said, the anti-monopoly law enforcement agencies need to establish a normalized early-warning mechanism for large-scale fund burning subsidies of platform enterprises, and require innovative business models to be explained to the anti-monopoly law enforcement authorities after the implementation, so that law enforcement officials can do a good job of supervision.
Cui Lili analyzed and said to reporters: during the scuffle of various platforms, local small businesses selling vegetables will be affected. Because the platforms have strong subsidies, attracting users with ultra-low prices is bound to have an impact on some local small businesses selling vegetables. Except for some non price sensitive customers, others may be greatly affected. The possibility of a win-win situation is that local small businesses selling vegetables, especially young ones, can become community leaders and have the opportunity to expand their operation capacity, while those traditional vegetable merchants who are not familiar with technology and do not understand customer operation may be eliminated. In addition, the interviewed experts also mentioned that the entrepreneurial phenomenon of Internet enterprises entering community group buying can be better combined with national policies. Recently, the rural cooperative economic guidance department of the Ministry of agriculture and rural areas signed a cooperation agreement with orange heart optimization to explore and innovate the cooperation mode between community e-commerce and farmer cooperatives, so as to jointly promote the products of farmers cooperatives directly to the community. Liu Xu told reporters: the platforms entry into the community for vegetable sales also indirectly reflects the problems of multiple links and high cost in the vegetable wholesale and distribution environment. The community group purchase e-commerce platform can be combined with Poverty Alleviation Policies, linking the door-to-door service of vegetables with these social policies, and helping the direct selling communities of agricultural products in poor areas. Source: editor in charge of economic report in the 21st century: Zhong Qiming_ NF5619
In addition, the interviewed experts also mentioned that the entrepreneurial phenomenon of Internet enterprises entering community group buying can be better combined with national policies. Recently, the rural cooperative economic guidance department of the Ministry of agriculture and rural areas signed a cooperation agreement with orange heart optimization to explore and innovate the cooperation mode between community e-commerce and farmer cooperatives, so as to jointly promote the products of farmers cooperatives directly to the community.
Liu Xu told reporters: the platforms entry into the community for vegetable sales also indirectly reflects the problems of multiple links and high cost in the vegetable wholesale and distribution environment. The community group purchase e-commerce platform can be combined with Poverty Alleviation Policies, linking the door-to-door service of vegetables with these social policies, and helping the direct selling communities of agricultural products in poor areas.