From last year to this year, almost all Internet giants involved in e-commerce have entered the Bureau.
Last year, Suning took the lead in launching the suxiaotuan community group buying business. Since this year, starting from didi in June, not only new companies have entered this track. In June, Didis community group buying brand orange heart optimization was launched and has successively settled in Chengdu, Chongqing, Mianyang, Neijiang and other cities. On November 10, orange heart announced that daily orders exceeded 7 million.
In August, pinduoduos community group purchase project buy more vegetables was launched, and a small program called buy more vegetables was launched.
In September, Ali announced the establishment of HEMA optimization division to enter the community group buying track. In addition, Jingdong also recently heard that it will enter the community group purchase.
In addition to launching the community group buying business directly, Ali also invested in platforms such as the Ten Star Group, and Tencent also invested in Xingsheng optimization to enter this field with capital.
The giant enters this market, first of all, because the market scale is huge. According to the special research report on Chinas community group buying industry in the first half of 2020, the scale of domestic community group buying market is expected to reach 72 billion yuan in 2020. By 2022, the scale of domestic community group buying market is expected to reach 100 billion level.
On November 30, meituans third quarter financial report conference call, Wang Xing, founder of meituan, said that meituan preferred could help us penetrate into cities and markets of lower level, especially in the fourth, fifth and sixth tier cities.
All entrants are currently in the third and fourth tier cities. Taking didi as an example, when orange heart optimization was launched in June, Didis first choice was Sichuan, and then expanded to Chongqing, Xian and other cities.
However, entering the sinking market means that a careful penetration strategy is needed, not through a quick price war. According to the industry insiders, from the perspective of regional promotion strategy, many platforms adopt the strategy of radiating from provincial capital cities to prefecture level cities, and then to counties, towns and villages, gradually infiltrating and reaching the sinking market.
The strategy of subsidizing price war is still an important strategy of Internet giants, but if the subsidy is not carried out, the order quantity may decline rapidly.
Numerous pits in offline operation
Internet giants enter the community group buying, from the strength and technology point of view, has a certain advantage. Previously, when didi CEO Cheng Wei mentioned the attitude of community group buying business, Didi said that there was no upper limit for Didis investment in orange heart optimization and made every effort to win the first place in the market.
In this regard, Mo daiqing, a senior analyst at the e-commerce research center of Netcom, told the first finance and economics reporter that didi values the development of community group buying and hopes to further obtain new users and realize transformation through community group buying. For Didi, the advantage of cutting into this track is that it has strong financial and technical support.
These problems will be converted into costs, which are borne by the platform or supplier. If the supplier assumes this responsibility, these losses are likely to be made up for by increasing the price of the goods in the next purchase. At the same time, there is no way to return fresh products, once there is a problem, a direct loss.
More importantly, the person in charge believes that the bigger the stall is and the longer the chain is, these small problems will become more and more serious.
In addition, the construction of the supply chain, street sweepers, logistics distribution and other links need to pay attention to. For example, first-class suppliers (i.e. source suppliers, which can connect with the supply base) are the most ideal cooperative suppliers. Such suppliers have the control ability, pricing power and de inventory ability of the source. However, such suppliers need to run in for a long time. They will not only consider the order quantity of the platform, but also consider the performance ability and division of labor of the platform. For example, when cooperating with suppliers, Xingsheng will contract the sorting and packing work.
The chiefs distress
Wechat group is the core resource of the team leader. It can not only communicate with users through wechat group, but also push some products through wechat. On the platform, a leaders wechat group has seven to eight hundred people, and at least three to four hundred people, because the head needs point-to-point service, it wont cover too much. For the user, the team leaders responsibilities include pulling new products, operating wechat groups, recommending products, processing orders and after-sales. Facing the platform end, the team leader needs to receive and sort out the goods and dock with the platform.
These store managers who are constantly pouring into the industry become the head of the team and the focus of the platform competition. Only a small number of leaders focus on one platform, and most of them are part-time.
Although it is the object of contention, the commanders are also troubled. One phenomenon is that some team leaders will withdraw from individual platforms after operating several platforms. The reason is that the other partys performance ability affects the user experience, and then affects his source of customers. According to a screenshot provided by a team leader in Handan, Hebei Province, a store manager joined a community group buying platform owned by an Internet company, but the order could not be completed due to the delayed delivery of the platform. The head said, there may be two reasons for not delivering goods. There are problems with the distribution or the supply of goods. But in the end, we learned that the supplier was not willing to deliver the goods because they wanted to subsidize less.
The industry insiders said, in the price war between social group purchase and group purchase, subsidies may not come from the platform completely, and suppliers may also bear part of it. If the quantity is large, the supplier is not willing to lose so much money. For example, a store owner in one city, Yuelu, Changsha City, has taken into account the head of three platforms at the same time. He said, one day, I received more than 1000 orders from a new platform for activities, but 80% of the orders were not received. The after-sales work was carried out from 9:00 a.m. to 2:00 p.m., and the opinions of users in the group were very big. Not only that, but also the team leader is worried that after the giant is familiar with the playing method, whether he will bypass himself to reach the user directly, thus overhead the head. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931
The industry insiders said, in the price war between social group purchase and group purchase, subsidies may not come from the platform completely, and suppliers may also bear part of it. If the quantity is large, the supplier is not willing to lose so much money.
Not only that, but also the team leader is worried that after the giant is familiar with the playing method, whether he will bypass himself to reach the user directly, thus overhead the head.