Community group buying is completely popular. Many platforms are vying to enter. Is it a fake outlet for new retail or a new opportunity?

Last month, my friend recommended Duoduo to buy food and said it was very useful. I didn't care too much about it at the time. I didn't expect it to be so popular after a while. The community group buying exploded overnight. This is another big buzzword in the Internet industry recently following the live broadcast of e-commerce. In 2020, the outbreak of the new crown pneumonia outbreak has caused many industries to be hit hard, and the retail industry is no exception. Everyone dared not even go out, which also helped promote the rise of community group buying. In the days at home, more and more people began to develop the habit of online consumption, which further promoted the development of the community group buying industry. Last week, when I saw Meituan’s grocery shopping, I ordered it. I don’t need to go out to buy food and go shopping directly to my home. I deeply appreciate the convenience. In addition to Meituan Shopping, what attracts more attention is the community group shopping arena where platforms such as Meituan Optimal, Xingsheng Optimal, and Duoduomai gather. Meituan Zhuangyou has seen a newcomer’s one-off purchase event on Meituan, and the items in it are also very discounted. In this game, the pace of the giants seems to be calculated by the sky. Recently, the pace of each company is faster and the movements are more frequent. Burning subsidies can quickly seize the market, and the quality of the supply chain still needs more time to polish.

Many platforms are vying to enter the community group buying fierce competition

where there is demand, there is a market, this is true at all. Community group buying is a good example. While more and more people tend to shop online, merchants seem to see business opportunities. Meituan, Pinduoduo, JD.com are vying to enter the community group buying, and no one is willing to slow down for a minute. This is not Taobao but also closely following everyone's pace. On December 1, mobile Taobao and Alipay launched the "Taobao Shopping" business in Hubei, using the community group buying model. This is the first time Alibaba has opened core traffic resources to community group buying business. According to relevant channels, this business is operated by the Hema Bazaar and is also cooperating with the local community group buying platform Shihui Tuan. Ali also led a new round of financing for Shihui Group. In previous rounds of financing of the Shihui Group, Ali has also participated in many times. In addition to Taobao, JD also announced new moves. On November 30th, Liu Qiangdong proposed at the executive morning meeting that he would personally lead the team and lead JD to fight a community group buying battle. At present, JD.com has integrated its community group buying business Youjia shop, cricket shopping and Jingdong district shopping, and has set up a community group buying business department under the omni-channel business group of JD Supermarket.

In fact, community group buying is not only limited to grocery shopping, nor is it just coming out recently. As early as June this year, Didi launched the community group buying small program "Orange Heart Optimal"; in July, Meituan established the Optimal Business Ministry, plans to enter 20 provinces before the end of the year to achieve "thousand cities" coverage; in August, Pinduoduo began to pilot Duoduo grocery shopping in Nanchang and Wuhan cities, and quickly expanded to most provinces across the country. The influx of a number of platform giants, first of all, is the big cake of fresh food e-commerce. "The online penetration rate of the entire fresh food sector is currently only about 5%. The main channels are still the farmer's market (56%) and supermarkets (39%), and this market is very large, about 2.5 trillion yuan. Level." The future development potential in this area is very large, so giants are rushing to join, but the pressure of competition in community group buying is also relatively high.

Community group buying opportunities and risks coexist

Community group buying is a new e-commerce model that has emerged in recent years. It focuses on shops in a community and radiates outwards. It can provide community residents within the radiation range with group buying preferential activities . "With the community as the center, the'group leader' (usually held by enthusiastic residents in the community, convenience store operators, etc.) as the distribution node, and WeChat groups and small programs as trading tools to establish a group buying platform. Consumers can Buying fresh food, daily chemicals and other daily necessities in the group is a new form of shopping. Community group buying is indeed very convenient and has won praise from many people. However, behind the seemingly hot community group buying, there are still some hidden concerns. In first- and second-tier cities, shopping is actually very convenient for residents. Whether it is supermarkets, vegetable markets, or retail stores around the community, they can provide fresh food business, and their service radius is often only a few kilometers. In addition to existing fresh food e-commerce In recent years, some traditional large supermarkets have also launched new services such as "ordering food online, delivering food to your door". For users, this is not much different from the service form of community group buying. This means that many users choose community group buying , May be mainly attracted by the current low-price promotion. However, the subsidy effect cannot be maintained for a long time. Once the subsidy scale is subsequently reduced, these price-sensitive users may be lost.The grid, the quality of fresh vegetables, service costs, and wastage rates will all become unavoidable tests for the community group buying business. Another test is that in addition to low-price promotions, the community group buying model currently does not have many advantages over the residents' traditional buying methods and fresh food e-commerce models. Therefore, whether community group buying will become a "pseudo-outcome", I believe the answer will become obvious over time. Finally, I remind investors to be cautious when choosing stocks of listed companies related to community group purchases to avoid unnecessary losses to themselves.

This report was produced by Hexin Securities Investment Consulting Co., Ltd. The company has the qualifications for securities investment consulting business approved by the China Securities Regulatory Commission. This report is a market analysis report. The information in the report comes from the public information that we believe to be reliable, but our company does not make any comments on the accuracy and completeness of this information. Guarantee. Investment is risky and you must be cautious when entering the market. The information and opinions in this report are for reference only and do not constitute the supporting evidence.

(this content is produced by the megatrend team, please indicate the source for reprinting, editor in charge: megatrend 0001)