Can the scale effect of community group purchase track financing exceeding 10 billion break the curse of loss?

category:Finance
 Can the scale effect of community group purchase track financing exceeding 10 billion break the curse of loss?


Novel coronavirus pneumonia general manager Liu Yarong believes that the new round of community group purchase fever is mainly caused by two reasons: first, the new crown pneumonia epidemic heat the fresh electricity supplier, the entire fresh industry from oversupply to demand exceeds supply, online penetration has increased significantly. Second, the substantial increase of orders during the epidemic period improved the unit economic model of fresh food companies, and demonstrated the profitability of community group buying once again.

In his opinion, the reason why investors and Internet giants pay so much attention to community group buying track is that it is the last market that has not been completely commercialized, and it is expected to create a market scale of several trillion yuan in the future. At the same time, the number and frequency of orders in the field of fresh food are very high. For Internet companies, the advantages of user volume, order quantity or order frequency have great potential energy.

The convenience and efficiency of community group buying, which connects consumers more closely, makes the giant companies start to panic. Now Internet companies are struggling to get new users and new traffic. It is a threat for Internet companies to have better traffic channels. Wang Daoping said. He believes that the giants have entered the community group buying field one after another, and the promotion efforts are very strong. For start-up companies, it will cause great pressure in terms of independent development and survival, but the advantage is that it can accelerate the development of the whole market.

Whole pot end-to-end digger kills innovation

With the influx of Internet giants into the community group buying industry, a new round of people grabbing war has begun, and the salaries of ground push, operation and backstage technicians are rising rapidly. According to the information on the recruitment platform, pinduoduos Duoduo shopping has offered a monthly salary of 45000-70000 yuan for front-end engineers, while Alibabas monthly salary for community group buying managers is also basically between 30000 and 60000 yuan.

In view of the phenomenon of high salary in community group buying and continuous poaching of the whole business group, Zhu Xiaohu, executive partner of Jinshajiang venture capital, lamented on social media that Chinas Internet really needs anti-monopoly law to regulate the way of reasonable competition. The new generation of giants relying on the power of capital with 5 times salary is very ugly and evil, and it is a complete strangulation of Chinas innovation!

The fighting of community group buying is not only reflected in digging people, but also invested a lot of money in the subsidy of single product. 1 cent salt, 1 cent oranges and oranges, as well as various gift certificate packages and cash back orders have become the standard configuration of major platforms. Liu Yarong believes that the first step of the giants future is to make a single volume. After the scale effect is generated, there will be enough suppliers and logistics system to support, so as to share the cost of the middle and back office.

The demand of rapid growth makes price war inevitable. Large scale price subsidies have broken the price system of the original dealers, resulting in price disorder and cross regional fleeing. The subsidy war may change the situation of dealers and suppliers in certain categories and regions, and reshape the supply chain system. Liu said.

It is worth noting that recently, the community group buying head start-up companies are booming, and the selection has opened a new round of financing. The admission of giants has completely changed the competitive environment of start-up companies. According to many investors, there is not much room for start-ups to choose at present. No matter in terms of capital scale or money burning speed, start-up companies need capital transfusion to ensure their survival. Liu Yarong thinks that community group buying is a business integrating fresh supply chain, flow acquisition, logistics and performance, refined operation and loss control. Even if it is a giant, it is difficult to say that it can defeat the enemy with one move. Giants value offline traffic entry, hoping to reduce costs through scale effect. But in fact, the whole cost of scale, including manpower, rent, supply chain and system, is far from covered by single point profit. Source: editor in charge of Finance and Economics: Zhong Qiming_ NF5619

It is worth noting that recently, the community group buying head start-up companies are booming, and the selection has opened a new round of financing. The admission of giants has completely changed the competitive environment of start-up companies. According to many investors, there is not much room for start-ups to choose at present. No matter in terms of capital scale or money burning speed, start-up companies need capital transfusion to ensure their survival.

Liu Yarong thinks that community group buying is a business integrating fresh supply chain, flow acquisition, logistics and performance, refined operation and loss control. Even if it is a giant, it is difficult to say that it can defeat the enemy with one move. Giants value offline traffic entry, hoping to reduce costs through scale effect. But in fact, the whole cost of scale, including manpower, rent, supply chain and system, is far from covered by single point profit.