The first stage of “war” after the giants enter the arena will come to an end. On December 11, JD released an announcement announcing the prosperity of US $700 million strategic investment. Xingsheng optimization is the benchmark player in the current community group buying, and it is the first to run through the business model of community group buying. Another leading racetrack company, Shihui group, has completed four rounds of financing in 2020, and Alibaba has led the investment in the last two times. So far, the first and second place of the community group buying track completed the “standing in line” of the e-commerce giants. < p > < p > Chen Ying, CEO of the Ten Star Group, predicts that in the next year to a year and a half, three to five companies will survive in the whole track. He believes that the goal of community group buying is not fresh products, but the whole Chinese consumer market, including online and offline, and “the entire e-commerce market from urban to rural areas”. < / P > < p > this scale is about 35 trillion yuan, which is several times larger than the market scale represented by Alibaba, Jingdong and pinduoduo. Therefore, Liu qiangdong had to choose “comeback” and lead the team in person. < p > < p > but Jingdong, which has just “won” Meijia’s food with 200 million US dollars, has invested a huge sum of $700 million into prosperity and optimization. What will it get and what will it do? Liao Jianwen, Chief Strategic Officer of Jingdong group, said that the cooperation with Xingsheng group is to “help store owners in low-end market eliminate information asymmetry, reduce circulation costs, improve operational efficiency, achieve better selection and operation, and reach and serve consumers through them, rather than replace them.” < p > < p > in fact, in the past, it was very difficult for Jingdong to really sink into a low-level city. Even if it is the “Jingdong convenience store” that Jingdong focuses on promoting, the achievements are not good. The addition of “foreign aid” such as Xingsheng optimization and Meijia shopping will help Jingdong to make up for the weakness of the sinking market. < p > < p > the founder of Xingsheng optimization, Yue Lihua, entered the field of large supermarkets in 2001. In an interview with, he recalled that “in terms of capital, strength, management and experience, we could not compare with Wal Mart, xinyijia and other large supermarkets. But I found that although the large supermarket has a complete range of products, it is very inconvenient to go there, and the convenience supermarket in the community has become the first choice of the public. Small scale operation, good control and good management. I expect that the future will be a two-level differentiated market, either bigger or smaller. In this case, I’d better be small. ” < p > < p > as a result, Furong Xingsheng brand, which is positioned as a “community supermarket”, began to expand in Hunan Province. This year, Ma Yun and Liu qiangdong just started e-commerce business. < p > < p > 12 years later, the situation reversed. Online shopping has become a new habit of consumers, and the community convenience store represented by Hibiscus prosperity has suffered for the first time from e-commerce giants. Yue Lihua had to decide to incubate the e-commerce brand “Xingsheng optimization” to empower its offline stores to reduce the impact of e-commerce. < / P > < p > from 2013, after continuous trial and error, Xingsheng optimized the “pre-sale + self delivery” business model, and finally achieved success in 2017. The products offered by Xingsheng online are usually fruits and vegetables, which can avoid duplication and competition with offline stores. At the same time, it can drain offline stores. On the other hand, it can increase the income of shop owners through online sales. < p > < p > after more than 20 years of industry cultivation, Xingsheng has its own logistics system and loyal supplier system. This provides a guarantee for them to control the quality of goods, distribution and other user experience, which is similar to the self built logistics concept advocated by Jingdong. < / P > < p > the person in charge of a logistics supply chain enterprise told geek park that the implementation method of community group purchase can reduce the cost of warehouse allocation and logistics by 3-4 times compared with the traditional mode, and even 20 times in fresh products. < p > < p > at that time, Yue Lihua might not have thought that the community group buying mode proposed by Xingsheng optimization would be far better than the concept of “new retail” promoted by Ma Yun and Liu qiangdong in terms of efficiency, and was imitated in a few years later. < / P > < p > how powerful is the business model of community group buying in the penetration of the sinking market? Users reported that in the suburbs and rural areas where there is no market for meituan takeout and didi taxi service, a large number of self collection points for community group buying can be found on mobile phones. Currently, Xingsheng has covered 14 provinces, 163 prefecture level cities, 938 county-level cities, 4777 townships and 31405 villages, with 300000 + stores and at least 10000 new stores per week. It is reported that most of the orders of Xingsheng are from villages and towns and rural areas. It can be seen that it has really completed the coverage from urban to rural areas. < p > < p > in the process of confronting the giants, Shengsheng optimization has its own advantages, but it also has its own limitations. According to the “late” report, almost all the core positions selected by Xingsheng are from Hunan Province, and outsiders at the same level lack a sense of belonging. In the process of expansion outside Hunan, there are many difficulties, especially the hunting of giants. < / P > < p > however, the management of large Internet factories has almost gathered talents from all over the world. From this perspective, prosperity and optimization also needs more diversified external talents. < p > < p > Liao Jianwen said that Jingdong will further explore the sinking market with the help of Xingsheng optimization and Jingxi brand. Therefore, Jingdong has specially established Jingxi business group, a strategic emerging business facing the sinking market, with its independent brand Jingxi. Previously, Jingxi was a social e-commerce platform launched by Jingdong to “imitate” pinduoduo, and officially opened in 2019. After the adjustment of community group purchase business, the new Jingxi brand includes four types of business: Jingxi app, which focuses on social e-commerce; Jingxi, which focuses on community group buying; jingxitong, which provides goods and services for offline stores in the sinking market (the former Jingdong new channel, which belongs to Jingdong convenience store), and Jingxi express, which provides logistics services. < p > < p > among them, Jingxi Pinpin should be a new platform for integrating its internal friends shop, Jingdong District purchase, cricket purchase, and Meijia shopping. In summary, the newly established Jingxi brand is a brand new brand independent of Jingdong Mall, integrating online and offline business, and has a larger geographical penetration area. < p > < p > in the past year, JD has been emphasizing transformation. Because in the face of fragmented shopping scenes, the cost of Jingdong’s self operated mode is increased, and it is no longer the optimal solution of efficiency. As a result, Taobao began to follow the model, trying to use marketing, logistics and other services to improve profit margins. However, the revenue basis of self operated business accounts for nearly 90% of the total, and the transformation progress is relatively slow. < p > < p > therefore, focus on community group buying. Tong Shihao, managing partner of Jiyuan capital, said in an interview with Chuangye bang that in order to run through the business model of community group buying, we should not only integrate user demand like pinduoduo, but also integrate the commodity supply chain like Meicai, and then integrate warehouse allocation capability through logistics innovation. < / P > < p > in the community group purchase business, the weak links of JD compared with its competitors lie in the coverage of front-end small programs and apps, which will be filled by Xingsheng optimization and new Jingxi; in addition, in terms of warehouse distribution and logistics of low-level cities and farms, Xingsheng optimization and Meijia shopping will also provide great help. < / P > < p > now, the pattern of community group buying track is basically clear. The main players are pinduoduo, Didi, Ali, meituan, and Jingdong, the “latecomer”. With Liu qiangdong’s “comeback”, and the addition of foreign aid such as prosperity and optimization, and Meijia’s purchase of vegetables, it seems more logical for JD to place its new growth hopes on Jingxi’s business. However, on the same day of December 11, the Political Bureau meeting of the CPC Central Committee proposed: strengthening anti-monopoly and preventing disorderly expansion of capital. Global Tech