Community group buying is a special “war”. Throughout the history of the development of the Internet, there has never been a “war”. Like community group buying, companies that have become giants are the first to start from the sinking market; at the same time, the giants have put community group buying into a strategic position. Community group buying: Liu qiangdong, founder of Jingdong, said that he would personally lead Jingdong to fight a good community group buying battle. Jingdong made a strategic investment of $700 million in community group buying head players. Didi’s orange heart optimization was in a fierce situation. The meituan optimization division was led by Chen Liang, one of the core founding team members. How can Alibaba stand idly by and invest in January 2019 In September of this year, RT mart and retail express joined hands in the establishment of HEMA optimization business unit after a round of financing by the Ten Star Group. In the internal letter of Huang Zheng, founder of pinduoduo, half of the letter was about buying more vegetables, and Huang Zheng flew to Nanchang and other places for first-line investigation. Its particularity determines that community group buying is not a single point breakthrough battle from the beginning, but a high-density and high-intensity war under the influence of flow, capital and talents. < / P > < p > it is different from the traditional e-commerce of daily excellent fresh food and meituan buying vegetables. The mode of online reservation + next day delivery + site self pick-up is adopted in community group purchase. This mode is obviously easier to promote in the third and fourth line and more sinking markets. Users here are more sensitive to price and have time to pick up their own food. < p > < p > Zhuang Shuai, founder of Bailian consulting, believes that there are two prerequisites for giants to take a fancy to community group buying. First of all, the giant has its own brand, capital, talent and brand effect. Secondly, the giant itself is cautious about the innovative business model, and the community group buying is a new business model worth investing in. The retail e-commerce industry has always had a standard: once a company can achieve 10 billion under a new business model, it shows that the business is a business The business model has the opportunity of scale. Several companies have achieved more than 10 billion in community group buying, which meets the standard of giant entry. Zhuang Shuai believes that the reason why community group buying can sustain a large-scale economy lies in the three major problems that have plagued fresh e-commerce for many years: high customer acquisition cost, high performance service cost and low customer unit price. < / P > < p > community group buying, which started from the sinking market, has found the possibility of optimizing the above three problems in its four core elements: community / physical store / team leader, sales tools (wechat group, small program), supply chain and warehousing and distribution. < / P > < p > the model of the head of the team to obtain customers reduces the cost and risk of acquiring customers – the sinking market has more stable neighborhoods than the first tier cities, and the most suitable leader can be found here. If the head of the team goes to the community to paste a QR code or push it, the cost can be transferred to the controllable head. If the team leader does not sell the goods, then the platform side does not have to pay a commission, nor does it pay any customer acquisition cost. < / P > < p > as for reducing the service cost of the supply chain, “the next day” and “self delivery” are the key points. There are many links in the storage and distribution of fresh products, and the loss is very large. At present, the average loss rate of fruits and vegetables in domestic retail industry is as high as 25%, and that of aquatic products and pork is 15% and 12% respectively. Community group buying doesn’t need to be distributed to each user in a single batch like the daily excellent fresh and beautiful group buying dishes. It only needs to be sent to the head of the team. It is equivalent to that each team leader has become the transfer warehouse of the platform. The team leader undertakes or the user provides the small batch distribution, which reduces the consumption link. As for the platform, the orders of 20 consumers are concentrated in the head’s hand, which can be seen as the rise of guest unit price. The cost is reduced, the unit price of customer increases, and the profit margin comes out. < / P > < p > specific to each giant, the demands are different. At present, pinduoduo defines “buy more vegetables” as the agricultural products business, aiming to activate the old users to buy vegetables more frequently. Therefore, it bypasses the “head of the team” link and directly raises it, making the community group buying into offline version of the group. < / P > < p > for Didi, community group buying is to create its own “Uber eats”; for meituan, it is to seek the second growth curve. Originally, meituan put the second growth curve on the business of “meituan buying vegetables”, but its strategic position was quickly replaced by meituan’s optimization. The immediate delivery mode of meituan buying vegetables has a high cost, which can only serve urban users; while “meituan optimization” of community group buying can sink the market, and they can cook more and order less takeout, which can bring more “increment” to meituan. < p > < p > from a further perspective, mass group buying radiates to the vast third and fourth tier cities and even rural areas. After taking the entrance of community group buying, the giants can “take advantage of channels to make princes” and use high-frequency shopping to play low-frequency full-range retail. Clothing, cosmetics, big household appliances, etc. can be put into it. The imagination of the whole city’s retail can be expanded from this. < / P > < p > community group buying is essentially a retail business, not an “Internet business”. The difference between the Internet business and the retail business is that the traditional offline retail business has a synchronous growth in profit rate and expense rate with the growth of scale economy. In order to increase the scale of offline physical stores, they must continue to open stores. In the digital economy, the initial cost rate is greater than the gross profit rate, so the e-commerce platform suffers serious losses in the early stage. After a certain time node, the expense rate will drop rapidly As a result, the profit margin rose rapidly, and the gap between them expanded rapidly. Amazon, Alibaba and Jingdong have all verified this model. < / P > < p > in the face of community group buying, although they choose to start from the sinking market, they still adopt the “Internet business” method that they used to when competing for the market of first tier cities in the past: traffic dumping, subsidy entrapment, two pronged approach, to circle users into their own fences. < / P > < p > the price of opening up a team leader is rising. According to 36 krypton, when they first entered Wuhan, the Commission of BD of the United States group was 120 yuan, which has now risen to 165 yuan. The cost of a head of the BD team of HEMA in Wuhan is 150 yuan, and that of orange heart is 130 yuan. In July, the head of the BDS of the ten clubs only costs about 80 yuan. < / P > < p > follow up of price war. There are lots of vegetables on the community group purchase platform “9 Mao 9”. Take December 12 as an example, orange heart has six second sales, and four fresh eggs are priced at 0.99 yuan; Chongqing station of meituan’s optimization is also killed in three periods, and vegetables of 0.99 yuan also dominate the home page. There are community group buying practitioners said that the morning online dishes, afternoon competitors will kill the price. Under the zero sum game, subsidies do not bring business and profit growth. 36 krypton reported that more than 10000 new leaders of the Ten Star Group opened in September, but the daily single volume of the Ten Star Group in Wuhan in October still maintained at 700000. Before that, the gross profit of Ten Star Group in Wuhan had been stabilized at about 19%. After several giants entered in October, they immediately dropped 4 or 5 points. < / P > < p > “if the giant still uses the way of crazy subsidies in the past, it will be full of complaints and grief.” The management of a community group buying enterprise, who did not want to be named, told pinplay. He believes that community group buying can eliminate a lot of unnecessary costs and let people buy really high-quality and low-cost things, which is also a great transformation of the supply chain. < / P > < p > before the giants came, the influence of community group buying start-up companies was limited. Relying on the leader to carry goods, the flow of local vegetable vendors would not drop sharply. After the giant entered the community group purchase, the users who had no online habits before switched to the community group purchase because of promotion and promotion, and the flow of vendors dropped sharply. Once the giant stops subsidizing and the community group buying users are back offline, the vendors may not be able to survive. However, for the sinking market, buying vegetables is not only a business, but also a matter of the old order in the most subtle parts of society. Those who have been passive to the cake have launched a counterattack, and some market regulators have begun to be vigilant. According to the daily economic news report, Cangzhou Huahai Shunda grain and oil seasoning Co., Ltd. announced that the community group purchase platforms represented by “buy more vegetables” and “meituan optimization” have suffered serious low price phenomenon, and even some products are far lower than the ex factory price, requiring dealers to prohibit the supply of products to the community group purchase platform. In addition to Huahai Shunda, other suppliers including Luohe Weilong Trading Co., Ltd. have successively issued similar notice of stopping supply. < p > < p > Nanjing market supervision bureau also issued the notice on compliance operation of e-commerce “dish community group purchase”, which includes “platform operators shall not implement low-cost dumping at a price lower than the cost, thus disrupting the market order.” Zhuang Shuai believes that the pattern of community group buying in the future will be as follows: e-commerce giants will support several community group buying rivals; regional entity chain giants will raise “local snakes”; property giants will support or strategic investment, and have the exclusive resources of the community in charge. However, due to the particularity of sinking the market, it is difficult for them to copy the previous winner take all outcome. Global Tech