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Dingdong Shopping, Daily Fresh Food and Fresh Fresh Food E-commerce on the same day, or usher in the ultimate “big battle”_previous

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Original title: Dingdong Shopping, Daily Fresh Food and Fresh Food E-commerce Application on the Same Day, or Usher in the Ultimate “Great Battle”

The traffic dividend during the COVID-19 pandemic solves the long-standing problems of fresh food e-commerce such as per customer unit price and low repurchase rate, and also provides an opportunity for fresh food e-commerce to explore a viable profit model. Xinhua News Agency map

Tomatoes, potatoes, pork, rice, noodles, grains and oils… a series of commodities that can be seen in the vegetable market are placed on the shelves. According to the different attributes of the commodities, the warehouse with an area of ā€‹ā€‹more than 400 square meters is divided into department stores and cold shops. Zone, freezing zone, etc. Unlike the vegetable market, there are no consumers here to buy groceries, and the delivery guys in green overalls come in and out. This is a front warehouse of Dingdong Maicai located in a community in Pudong, Shanghai.

“The normal order quantity per day is 1,700 to 1,800 orders, and it will rise to around 2,000 orders on weekends. The delivery range is residential areas, office buildings, etc., within 3 kilometers of the surrounding area.” A person in charge of Dingdong Maicai’s front warehouse told China Business News. Reporter, his site has more than 30 employees, roughly divided into sorters and delivery workers. The basic salary of a delivery person is 3,000 yuan, and the commission is based on the weight of the order, ranging from 3 yuan to 15 yuan. The monthly salary of most delivery employees can reach more than 10,000 yuan.

This kind of consumer does not need to go to the vegetable market in person. The model of online ordering and home delivery first started in 2016 and gradually spread from Changsha to the whole country. However, the development of the industry has not been smooth sailing. In 2019, the cash flow of projects and the leader of the project continued to be broken. With negative information such as large-scale hacking and poor product quality, a large number of small and medium-sized players withdrew from the market, and the entire industry has undergone a major reshuffle. The traffic dividend during the COVID-19 pandemic solves the long-standing problems of fresh food e-commerce such as per customer unit price and low repurchase rate, and also provides an opportunity for fresh food e-commerce to explore a viable profit model.

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On June 9, Dingdong Maicai and Daily Youxian both submitted their IPO prospectus to the US Securities and Exchange Commission (SEC), which will be listed on the New York Stock Exchange and Nasdaq respectively. In this listing, the stock code of Dingdong Maicai is “DDL”, and the underwriters include Morgan Stanley, Bank of America Securities, and Credit Suisse. Daily Youxianā€™s stock code is “MF”, and its underwriters include JPMorgan Chase, Citigroup, CICC, and China Renaissance Capital.

Pay more attention to the ability under the iceberg

From the performance point of view, Daily Youxian’s operating income from 2018 to 2020 was 3.5467 billion yuan, 6.0014 billion yuan, and 6.13304 billion yuan; in the first quarter of 2021, it was 1.5302 billion yuan, compared with 1.689.8 billion yuan in the same period of the previous year. Dingdong Maicai’s operating income in 2019 and 2020 will be 3.881 billion yuan and 11.33358 billion yuan respectively; in the first quarter of 2021, the company achieved operating income of 3.802 billion yuan, compared with 2.603.8 billion yuan in the same period last year.

From 2018 to 2020, the daily net losses of Youxian were 2.231.6 billion yuan, 2.909.4 billion yuan, and 1.649 billion yuan. In the first quarter of 2021, the company’s net loss was 610.3 million yuan, compared with 194.7 million in the same period last year. yuan. From 2019 to 2020, Dingdong Maicai’s net losses were 1.873.4 billion yuan and 3.176.9 billion yuan respectively; in the first quarter of 2021, the company’s net loss was 1.384.7 billion yuan, compared with a loss of 244.5 million yuan in the same period last year.

The main reason for the losses of the two companies is that the performance costs are too high. Daily Youxian’s performance costs from 2018 to 2020 are 1.239.3 billion yuan, 1.833 billion yuan, and 1.5769 billion yuan, accounting for 34.9%, 30.5%, and 25.7% of the company’s current operating income, respectively. Dingdong Maicai’s performance costs from 2019 to 2020 are 1.936.9 billion yuan and 4.0442 billion yuan, accounting for 49.9% and 35.7% of the company’s current operating income, respectively.

The performance cost is mainly composed of factors such as warehouse rent and distribution staff. In the community retail track, both adopt the pre-warehouse model. As of March 31, 2021, Daily Youxian has established 631 pre-warehouses in 16 cities in China; Dingdong Maicai has established more than 950 pre-warehouses in 29 cities.

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Liang Changlin, the founder of Dingdong Maicai, believes: “If you compare the competitiveness of fresh food e-commerce to an iceberg, what you see on the sea level is scale, below it is the supply chain capability, and the deeper level is the organizational capability, financial capability, Data algorithm capabilities, Ding Dong Mai Cai pays more attention to the ability under the iceberg.”

While doing a good job in the supply chain, the two also need to acquire users to make purchases on the platform.

From 2018 to 2020 and the 12 months ending March 31, 2021, Daily Youxian has 5.1 million, 7.2 million, 8.7 million and 7.9 million active users, respectively. In the first quarter of 2021, the average monthly number of transaction users of Dingdong Maicai reached 6.9 million.

The huge number of users benefited from the support of advertising, marketing and promotion expenses. From 2018 to 2020 and the first quarter of 2021, the daily sales expenses of Youxian were 795.5 million yuan, 740 million yuan, 589.2 million yuan, and 167.6 million yuan, respectively, accounting for 22.4% of the current operating income. 12.3%, 9.6% and 10.9%. From 2019 to 2020 and the first quarter of 2021, Dingdong Maicaiā€™s sales expenses were RMB 260.4 million, RMB 568.7 million, and RMB 318.3 million, accounting for 6.7%, 5%, and 8.4% of current operating income, respectively. %.

Self-operated VS platform type

Since last year, Internet giants have increased the fresh food e-commerce track. In June last year, Didiā€™s community group buying brand “Orange Heart Optimal” went online; in July, Meituan announced the establishment of the “Optimal Business Unit”; in August, Pinduoduoā€™s community group buying project “Duo Duo Mai Cai” went online; in October, Suning The Caichang community group buying platform was launched in Beijing; in December, Jingdong Group stated that it would invest 700 million US dollars in the community group buying platform Xingsheng.

At present, players in the fresh food business are mainly divided into two types: self-operated type and platform type. The self-operated model is divided into pre-warehouse (such as daily fresh food, Meituan grocery shopping, Dingdong grocery shopping) and warehouse store integration (box Ma, Yonghui), and Pinduoduo is a platform type.

The core difference between the pre-warehouse and warehouse-store integrated model is that the former completely abandons offline drainage and balances the high cost of acquiring customers online by compressing land rent costs; the latter bears higher land rent costs, and stores have offline channels. The function of attracting traffic, attracting customers online and offline at the same time.

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However, the pros and cons between the front-end warehouse and warehouse-store integrated model continue to be disputed. At present, the main source of customer acquisition for Dingdong Shopping and Daily Fresh Food is still social, such as online advertising in WeChat Moments through strategic cooperation with Tencent. As the opponent of Daily Fresh Food, Hema tried the pre-warehouse model in 2018. Hou Yi, the founder and CEO of Hema, concluded that the pre-warehouse model is not the ultimate format of future fresh food e-commerce. In March 2020, Hou Yi announced that the existing front-end warehouses will be partially withdrawn, and will fully promote the small store (Hema mini) format that is cheaper and faster than large stores.

As a platform player, Pinduoduoā€™s advantage lies in the huge traffic on the platform, but it is difficult to control product quality comparable to the self-operated model. At the same time, judging from the delivery time of Duoduo, it does not have an advantage in the field of fresh food, and Pinduoduo may be able to exert its strength in the category.

“Platform players can only operate some categories with a long shelf life, such as fruits and root vegetables; self-employed players can also operate some categories with a short shelf life, such as fresh meat and leaf vegetables, in addition to categories with a long shelf life.” Yunyangzi told China Business News that the current fresh food e-commerce has become a battleground for Internet giants.

Regardless of the model, they all need to solve the most basic problems of flow, supply, and distribution. In order to obtain a stable supply, Hema, Daily Youxian, Dingdong Maicai, etc. have cooperated with various vegetable production bases. In terms of logistics and distribution, each company uses smart supply chains to open up multiple intermediate links in the traditional fresh food industry to minimize the circulation from the field to the table and redistribute value. Return to Sohu to see more

Editor:

Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.

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