community group buying price war is Didi ’s orange-hearted choice. Who would have thought that one year’s time would be to “beat” oneself out...
In 2020, the community group buying has undergone earth-shaking changes. The originally loose track suddenly flooded into multiple e-commerce giants, subverting people's perception of grocery shopping. In the past, the vegetables and fruits that were very expensive in the vegetable farm can be bought in the community group, and you can carry a few large bags with only a few dollars.
In this market grabbing battle, Didi Orange Heart Optimization has started a consistent cash-burning routine, just like when competing for the online car-hailing cake, using platform subsidies and ultra-low-priced products to attract Pay attention to surrounding residents.
Orange Heart's preferred low-price selling vegetables make the community buy all the brands on the track and are forced to fight a price war. In this war, many companies without capital support have to withdraw from the race track and even go bankrupt because they cannot afford to burn so much money.
Qixinbao shows that Tongcheng Life, which declared bankruptcy in July this year, has received nearly 3 billion yuan in financing since participating in community group purchases, and none of them can stand the burn.
The community group buying veteran Ten Hui Group has been led by Ali to obtain more than 10 billion yuan in financing, although the money can withstand the burn, but because of the operating model It was impossible to make a profit and it was difficult to make a profit. The founders withdrew, executives resigned, and group buying in many communities was shut down.
The staff of Didi Orange Heart Optimal revealed that starting from mid-September, Orange Heart Optimal will shut down 60% of the city's business in the country, and it will close the business in November at the latest. Shut down all Orange Heart's optimization business. So far, Orange Heart’s preferred product R&D positions,Half of the employees have been laid off.
Community group buying has not developed, the people do not allow it, and the country does not allow it.
If community group buying develops into a monopoly, forming a complete model of "production-transportation-platform sales-community distribution-customers", traditional vegetable stall vendors will lose their jobs in large numbers, and this group of people will generally be older Without professional skills, if they are unemployed, it is not as easy as changing jobs for migrant workers. Their unemployment may result in the fragmentation of one family after another.
In December 2020, the People’s Daily issued a letter approving community group purchases: “Don’t just worry about the flow of a few bundles of cabbage and a few kilograms of fruit. The star sea of technological innovation and the infinite possibilities of the future are actually even more so People are surging.”
According to Qixinbao, in March 2021, the General Administration of Market Supervision imposed a maximum fine of 1.5 million on five community group buying companies including Orange Heart Optimal Group. The reason is: “ Through huge subsidies, enterprises dumped goods at prices below the market price and disrupted the market order.”
So far, the community group buying and burning money shop market led by Didi Orange Heart Optimum has come to an end. The community Group buying has also ushered in a long winter.
Capital ebbs, regulation tightens, subsidies are stopped, community group buying development is pressed to stop blindly expanding the scale, thinking about how to focus on long-term development, should be the choice.
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