Ignoring People’s Daily’s warning that Ali will go its own way, increase community group buying and continue to grab the vegetable vendor’s business

Community group buying

The rise of the Internet has undoubtedly changed our lives, especially since the emergence of e-commerce, food delivery, and online ride-hailing services, it has greatly improved the living standards of ordinary people. It is undoubtedly a huge improvement to solve all the needs of food, clothing, housing and transportation with just a mobile phone.

With the continuous promotion of the " Internet + " idea, more and more real economies have begun to take advantage of the power of the Internet to take off. However, one of the many emerging industries has brought convenience to consumers while also causing A huge controversy-that is community group buying. The impact of the epidemic has prevented some users from going out to buy vegetables, and supermarkets can only deliver fruits and vegetables to the community. This special situation also caused the community group buying born in 2016 to suddenly start explosive growth, including Meituan, Pinduoduo, Didi, Alibaba and other Internet giants are all involved in this. In the new Internet racetrack.

People's Daily criticized by name

In order to snatch this emerging market, many Internet giants have used their previous housekeeping skills, that is, "burning money." "One cent to buy eggs, 1 cent to buy fruits" and other promotional actions that were significantly lower than the market value began to appear in large numbers. Although many consumers have received short-term discounts, in the long run, this kind of abnormal low-price dumping will crush a large number of small businesses and hawkers. Therefore, the People's Daily also criticized "Don't just worry about the flow of a few bundles of cabbage and a few kilograms of fruit. The stars and the sea of ​​technological innovation and the infinite possibilities of the future are actually even more exciting."

Community group buying has taken away the business of small merchants and hawkers

This also shows that the country has seen the harm of disorderly competition by Internet companies using subsidies. Once Internet companies have driven out all competitors, it was once cheap The community group buying will inevitably make a profit through price increases, and what is waiting for us is probably 10 yuan a catty of cabbage. Therefore, in March 2021, the State Administration of Market Supervision made a total of 6.5 million improper price behaviors of five community group buying companies, including Orange Heart Optimum, Duoduo Food, Meituan Optimum, 十汇团, 食享会, etc. Yuan penalty.

Alibaba overweight community group buying

I thought it would let the major Internet giants learn their lessons, but I didn’t expect that Alibaba would still choose to go against the trend. First, it announced the establishment of a community group buying business group and stated that “there is no upper limit on investment "Recently, on September 14th, "Hema Bazaar" and "Taobao Shopping" were integrated into " 淘菜菜" and continued to increase community group purchases. And Daishan , one of the "Alibaba Eighteen Arhats", became the direct person in charge of "Taocaicai", which also shows how much Alibaba attaches importance to community group buying.

Why does Ali continue to increase community group buying despite the advice of the People's Daily? The first is that community group buying will bring new traffic growth points to Ali. Why did Pinduoduo suddenly rise and threaten Taobao's dominance? The huge amount of traffic support from WeChat is indispensable. For today's Internet competition, whoever can get more traffic will be in a leading position in this competition.

Taocaicai

On the other hand, the huge benefits brought by the sinking market are hard to ignore. Currently, the top two community group buying giants Meituan and Pinduoduo are Ali’s direct competitors. No matter which of these two becomes the ultimate king, it will have a huge impact on Ali’s existing business system.

If Meituan wins, then the local life field will no longer have a foothold; if Pinduoduo wins, then through community group buying to expand and extend the e-commerce business, Pinduoduo will completely Taobao is under her weight. Therefore, community group buying has become a battle that Ali cannot lose.

Community group buying is likely to be the winner of the Internet industry in the next ten years. Therefore, Ali is determined to develop community group buying despite the warnings of the People's Daily. Do you recognize Ali's behavior? Welcome to leave a message to discuss.