Alibaba And Jingdong Replay Game: Who Can Laugh Until The Battle Of Online Supermarket?

Between September 1st and 9, Wen Jie, a 48 year old courier, doubled his workload recently. He worked longer hours every day from the original 8 hours to nearly 14 hours, so as to complete the delivery volume of Shanghai Siping Road area.

This is

On the day of "half discount" promotion in Beijing and Shanghai, the amount of orders sent by Wen Jie daily is more than 100.

According to the data of Tmall supermarket, the activity grew obviously in September 2nd and started less than two hours, and the expected 100 thousand single discount goods were exhausted.

The "Yongxing grocery store" 113, Tieling Road, Yangpu District, has been cooperating with rookie Inn in the distribution scope of Wen Jie, and can collect parcels.

The last few days have been full, and large and small packages have been stacked from the store to the sidewalk.

There are many kinds of goods, such as rice, oil, toiletries, etc., which are relatively large and the quality of goods is heavy. The surge in orders has brought trouble to Liu Gan, a grocer.

One of his daily tasks is to urge users to rush to get express.

In the early September, Tmall supermarket and

The supermarket has been firing "live in arms", and the first line couriers and collection points like Wen Jie and Liu Gan felt the pressure first.

The joking scene is that in the subway stations of Beijing or Shanghai, Jingdong, shop 1 and cat's big ads are always closely linked. It seems that consumers must make choices.

The two sides also began to frequent "empty call", the next battle: first, Tmall supermarket announced that three years to reach 100 billion scale, will invest 2 billion yuan to build supply chain; Jingdong supermarket should also unite 1 stores, WAL-MART, Yonghui "attack" cat super, 1 shop "3 months to invest 1 billion yuan."

The grain and grass have not moved yet, but the "war of words" between the two sides has already started.

Apart from the big promotion season such as double 10 and 618, we seldom seem to see such a fierce confrontation in the electricity supplier market.

Both sides firmly believe that "online supermarket" is a battleground for the military. It means not only the growth of GMV, the stickiness of new users, the traffic bonus from high-frequency consumption, but also the future of Ali and Jingdong, and the game of many interests.

Branding ahead of brands

In this war,

They are caught in a slightly embarrassing situation.

In September 3rd, the media reported that Fulin edible oil met with the Jingdong's handling of the event, because the Jingdong asked Fuling to withdraw from the half price activity of the cat super high (now back to normal).

The problem is not unusual, each large platform will be struggling with suppliers, and will compromise to a certain extent. Any one of them has a relatively excessive demand and may eventually be unable to cooperate.

Li Yong, the head of a liquor brand, (former Weifang Department Store procurement director) believes that the online merchants are still in the early stages of development, and there will not be a situation of large-scale scramble for brands.

"Like the axis countries and the allies, they all have their own war system."

Li Yong means that both Ali and Jingdong have their own brand of "hitch", all with their own weight brand battlefield, and each brand is also very clear that they should focus on that platform.

"Manufacturers and brands will not be easily changed. They will interrupt the online increments that have been operating for many years, and they will not be familiar with the battlefield.

This is illogical and incoherent.

Li Yong told the interface reporter, "manufacturers have their own choices, and Ali Jingdong has its own consideration, so it has not yet reached the so-called" fierce competition "stage.

Different brand weights mean that the platform can give different promotional positions, marketing support and traffic help.

And this is directly related to the sales figures for brand dealers.

The online super war has different effects on different brands. The brand appeal is mainly divided into the following four categories:

1., the exposure rate, such as the former brilliant old brand, big brand, niche brand new brand.

2., we must increase production costs, high fixed costs, insufficient start-up rate and manufacturers / brands that need orders.

3., online consumer big data.

4., goods must be spread all over the world.

Li Yong believes that if the "battlefield" of different platforms is taken into account, the effective selling time of enterprises will be pferred.

For most brand manufacturers, they take things for granted.

Heilongjiang's "Wuchang rice" has been praised by Ci Xi as "no rice can not be eaten," which shows that its quality is excellent.

However, due to the recent excessive counterfeit and shoddy products, in August 2016, the Heilongjiang Wuchang municipal government took the lead, the "Wuchang rice" brand signed a contract with Tmall, followed up the source code, and opened the official flagship store of Tmall.

Even so, when the online sale of Wuyang rice belongs to the ocean grain and oil company, it chose the whole channel - the unified pricing of the whole network, and the Tmall supermarket, Jingdong supermarket and No. 1 store are on sale.

Li Weizheng, manager of ocean grain and oil operations, said in an interview that he had been on a wait-and-see attitude.

The mechanism of competition will not necessarily change. There will be a game in the middle of the brand.

Jingdong has been working with Tencent to make up for its disadvantages; Tmall will make efforts to build platforms.

All of these must be taken into account. "

At present, the mentality of Wuchang rice also reflects the attitude of most businessmen -- wait and see, do not stand in line.

Which activities to get on, first get the support of the platform resources.

But according to Li Weizheng analysis, both sides have their own advantages and disadvantages.

Jingdong supermarket resources are not flexible, activities are few, businesses can operate little; Tmall has the replacement resources, the maneuverability is strong, but because the brand is numerous, the competition intensifies, means that wants to highlight the tight encirclement may need the higher cost.

"How much is the amount of flowers under the line, it is realistic; and online, is a window, a location, money spent out of touch.

And you can't see or catch customers. "

Li Weizheng expressed his confusion in this way.

Brands even have to take into account the interests of the traditional channel providers. Distributors are most afraid of price pparency, and they have been robbed of their jobs by online channels.

A supplier who does not want to be named complained that "now the price of electricity suppliers is very chaotic, and it is very difficult for agents to pick up new products.

When consumers scan the code, they know that online prices are low and the prices of community stores are high.

We can not do it, manufacturers should pay attention to online and offline prices. "

The practice of Wuchang rice is "online special supply", and the specifications of goods are different. Of course, there is no possibility of "goods in stock".

More than 10 kilograms and 25 kilograms of large packages are used under the line, and the small packages of 2.5 kilograms and 5 kilograms are supplied on the line.

More brands look at the ecology of the group.

In September 8, 2016, the food reality show "passing through the kitchen" was launched in Youku. The first quarter of the online season achieved 16 million of the volume and went on the micro-blog hot list.

As one of the joint names, good shop is very satisfied with this result.

"These are the resources that Ali gives."

Liang Yali, a good shop marketing department, told reporters that cooperation with ALI will get the naming right of Youku's homemade drama, and it will also be held in October.

Ali great entertainment ecology in the electricity supplier channel advantage.

In June 15th, the Alibaba officially established the Department of entertainment and entertainment. Its jurisdiction includes Ali pictures, Youku potatoes, Ali music, Ali sports and UC.

Youku can provide brand awareness and improve conversion rate. Micro-blog can create topics.

In this ecosystem, brand has unlimited imagination.

But similar to Wuchang rice, the good shop has just been online, Jingdong supermarket and Jingdong come home. "We do not want to spend money purely on buying traffic," Liang Yali said. "Different platforms have different demands for cooperation."

Holding, acquisition and cooperation: Jingdong's pressing efforts

Many people describe this online super war as "Jingdong carrying WAL-MART, Yong Hui and No. 1 shop, beating cat hyper".

In the category of O2O and supermarkets, Jingdong really acts very frequently.

In August 2015, Jingdong invested 4 billion 310 million yuan in Yonghui supermarket, holding 10%; in April 2016, in order to create the basic logistics and the last 1 kilometers, Jingdong group merged with the crowdsourcing logistics platform "dada" until recently, the layout of Jingdong and WAL-MART, 1 shop, Jingdong online Shang Shang Chao appeared.

But Jingdong rarely disclose business integration to the outside world.

The holding of Yonghui, the acquisition of shop No. 1 and cooperation with WAL-MART are three completely different formats.

The details behind it are inextricably linked.

Deng Xiangchao, partner of Yonghui supermarket project, worked in shop No. 1 and WAL-MART respectively.

He told the interface reporter, in 2012, he had represented WAL-MART online department to WAL-MART headquarters in the United States.

At that time, WAL-MART's position on shop No. 1 was "to maintain the market share of the existing category", meaning that within WAL-MART, the expectations for No. 1 store were not so high. It was not expected that the 1 shop would cut more market cakes, and of course, it was not allowed to be separated by others.

The negotiation between Jingdong and shop No. 1 began in 2014, and was led by the investor of Jingdong today and completed in 2015.

WAL-MART hopes to add number 1 to Jingdong, and WAL-MART's vision is to add WAL-MART's own Sam club to open up four channels: online, offline, community store and O2O.

At present, the way of cooperation that the public can see is that Sam's member stores have opened flagship stores on Jingdong.

The cooperation between Jingdong and WAL-MART is far from the degree of cooperation in warehousing or backstage data.

The integration of Jingdong and shop No. 1 has progressed to the integration of stores and personnel.

Yang Weisheng, a staff member of the Jingdong in Southern China, told reporters that in the case of Southern China District, Jingdong retained the brand of shop No. 1, but if there is a coincidence store in the area, the 1 shop will be cut off, which will inevitably involve the abolition of personnel.

From the Southern China area, we can see the whole picture of the Jingdong group integrating the 1 shop.

"From within, resources can not be wasted.

Shop 1 has 150 spots in Southern China, and the door to door must be demolished.

Jingdong unified takeover of pport and distribution business, before the 1 shop also used a large number of third party logistics.

We plan to cut off the third party of shop No. 1 at the end of September, and turn it into a self run Jingdong.

Yang Weisheng said.

In the future, Jingdong will carry out system docking with shop No. 1, that is to say, although the brand of store No. 1 is retained on the surface, it is already the core of Jingdong in logistics, database and other key channels.

At a media conference in September this year, Song Chunlei, senior vice president of sales and marketing department of No. 1 shop, revealed that in 2015, the number of resale SKU of shop 1 exceeded 8 million, covering more than 300 cities nationwide, and the proportion of self distribution was 68%.

"Shop No. 1 has great advantages in East China and the Yangtze River Delta region, and the growth rate is fast in Southern China.

The Jingdong is strong in the whole country, and relatively likely to be stronger in the north. The two companies will have complementary advantages in the region. "

Song Chunlei evaluated the two party's complementary situation.

Zhong Hao, senior vice president of technology platform of No. 1 shop, interviewed by an interface reporter, said: "at present, the account system of No. 1 store and Jingdong has not been opened up.

At present, we are doing some feasible cooperation to exchange and exchange data. "

The cooperation between Jingdong and Yonghui is mainly related to supply chain.

Although it is a partnership of 10%, we have not seen more details of cooperation between Jingdong and Yonghui since our cooperation.

Yonghui started from the fresh supply chain and joined Jingdong's home business.

Deng Xiangchao said in an interview that the to B terminal procurement business will be more emphasized in the future.

He also admitted that "Yonghui and Jingdong cooperation has not yet reached a very clear vision.

But in the fresh this piece will be strengthened, put the fresh Department of the store on the Jingdong.

Fresh classification is always a drainage classification, not a gross profit classification.

In fact, if Jingdong wants to fight the online business super war, how to integrate various resources will be a challenge for Jingdong.

Jingdong still maintained 46% of its proprietary business growth in the last quarter. The high-speed, fast moving train still needs to complete docking and business integration with its surrounding vehicles.

The unbearable weight of logistics

The demand for logistics is one of the key factors that determine the direction of the war.

Tmall supermarket uses rookie network, from warehousing to sorting to logistics, which requires different companies and sites to subcontract. Efficiency and controllability are not as strong as those of Jingdong.

This will directly affect consumers' shopping experience.

This has also emerged in its own experience.

Even in the Shanghai area before 11 a.m., there was a second day.

In an interview with reporters, Jiang Po, head of Tmall supermarket, said, "rookies will specifically open the store for cats.

Last year, 8 went up to 12 this year.

We only invested 1 hundred million of the funds in the third phase of the Guangzhou cat's super warehouse.

In order to improve the logistics efficiency of the cat, the investment will continue to increase.

The data provided by the riverside is that in the next two months, the Tmall supermarket and rookie network will also open a new batch of warehouses, so that the Tmall supermarket special warehouse will be upgraded from the current 12 sub warehouse to 19 large warehouses, upgrading the 11 city localization operation to 31 city localization operation.

In September, Tmall supermarket will officially start the "night delivery" service.

According to the calculation results, the construction cost of 10 thousand square meters of ordinary warehouse is about 5 million yuan, and the construction of fresh and cold storage is not included.

The early cost investment of Jiancang is huge.

Xiao Bangyu, assistant director of Da Yun FA, thinks Jingdong needs to optimize its warehousing and category.

"Especially non trash products such as trash cans, brooms, cookers, slippers, etc., which occupy the space, can not be judged on the needs of customers, and the days of inventory turnover can not be judged.

Such data and experience need to be accumulated.

Both Jingdong supermarkets and cat supermarkets are set up separately.

Take the Jingdong Southern China warehouse as an example, covering an area of 16 thousand square meters, including Guangzhou, Shenzhen and Dongguan, including Fujian, Hainan, Guangxi and other provinces.

According to Yang Weisheng, in order to achieve efficient production, Jingdong is divided according to the category of commodities.

For example, food mother and baby, books, 3C digital, small household appliances, clothing are stored according to different categories of silos.

The most intuitive embodiment is that you buy an Apple phone and a book in the Jingdong, the system will split into different sub orders, deliver goods from different warehouses, and finally unite to the site collection, and send them to the customers.

In other words, the operation mode of Jingdong supermarket is somewhat like a miniature version of "Jingdong mall". Besides purchasing goods, it is more meticulous and self oriented. Its delivery channels and distribution logic are exactly the same as B2C Jingdong mall's proprietary business.

Even in search orientation, if it can not be found in Jingdong supermarket, it will display some Jingdong mall pages.

Perhaps even Jingdong itself did not particularly want to distinguish the boundaries between supermarkets and shopping malls.

Jingdong supermarket operator Xiaoli explained to reporters that this phenomenon does exist because it does not leave users with a bad experience of "empty search results".

This explanation also reflects that Jingdong supermarkets do not realize the importance of one-stop shopping experience, and online supermarkets need to be separated from the mall. Otherwise, what is the significance of establishing online supermarkets?

Yun Yang Zi, deputy director of the joint business and retail research center of the joint venture, believes that the Jingdong must get the "surgical pformation" of logistics in 2007.

Warehousing has become one of the most important assets of Jingdong.

Poor sales, it is easy to overcapacity, in the Jingdong, for Liu Qiangdong's logistics policy also has doubts.

Business super class is exactly the index to verify Liu Qiangdong's logistics mode.

"To say big, the victory of the super war is related to whether Liu Qiangdong is suitable for CEO."

Yunyang son said.

Can the Internet be faster and faster than the convenience store at home?

There are also some small and medium-sized stores in the market, and analysts hold different opinions on the war of online Shang Chao.

The retail industry is most concerned about the issue of accounts. Accounts are known as the basis for making money in the retail industry.

Li Yong, director of a liquor industry brand, mentioned on the basis of practical experience, revealed to reporters a set of data: "Tmall supermarket's settlement cycle is only 10 days, the physical shopping mall's account is generally 45 days -60 days, and the actual 90 day accounts also exist.

Jingdong supermarket different categories of checkout period is different, overall, it is more than 30 days.

This may be one of the considerations for businesses to enter the platform.

Now Wan Mingzhi, the general manager of the 100 supermarkets and the former Carrefour regional manager, interviewed him. He questioned the online business super model. "For fast food products, the Internet is faster and faster than the convenience stores at home." the FMCG itself is low in price, large in volume and heavy in weight. For the online distribution, the cost is high and the gross profit is very low.

The characteristics of fast moving products determine their WYSIWYG.

Physical retail is the future of convenience stores and community supermarkets. There is no need for supermarkets to undertake such products as washing, daily chemicals, general merchandise and so on.

If the users are accustomed to the Internet in the future, Tmall and Jingdong will be able to get more voice from manufacturers and suppliers with more purchases.

For retailers, the standardization of products such as washing, daily chemical, mother and infant products is very high, and the market can also be taken away by the electricity supplier.

But fresh, food and beverages are the advantages of physical retail. Jingdong, Tmall and other electricity providers can not take away, because the cost is too high.

Xiao Bangyu, assistant director of Da Yun FA, carried out a cost analysis of the cat.

Cats spend more than 100 million yuan in the two cities of Beijing and Shanghai on -9 September 1st.

The logic of spending is as follows:

"One day, Beijing, Shanghai, each 100 thousand single, a person subsidies to 100 yuan, minus the address, telephone number is the same lead to the same user will be removed (if not to do so, a bunch of small shopkeepers will come wholesale, three to five lines), a city about 60 thousand -7 million a day is a valid order.

Subsidize 100 yuan with one person, if the consumption is less than 200 yuan, the subsidy is half, so the subsidy cost may be 5 million yuan, the subsidy in the two cities is 10 million yuan up and down, 9 days altogether burn 180 million yuan.

According to the observation, from September 1st to September 3rd, the open screen ads for Tmall's supermarket advertising, plus media, video and other ads.

The cost of diversion is over 500 thousand, if it hits 10 days, it will be 5 million, plus the early warm-up (usually a total of two weeks), as well as the advertising of other platforms.

He helped reporters calculate an account, "the cat said that it burned 2 billion yuan, divided by 12 months, and burned 150 million yuan a month."

In fact, the cost of a real subsidy to consumers is about 100 million -1.2 billion a month, and the remaining 30 million is diversion costs.

In the past few days, neither the big fat nor the flying bull will enter the battlefield.

"Entering is cannon fodder."

The intention of Da RFA is that the frequency of FMCG is about two weeks. When the Mid Autumn Festival comes again, it will catch up with the second wave.

Future

Even if "catch up with the second wave rush to enter the peak," as the representative of Da Yun FA, Shang Chao also has no ability to compete in the online competition.

According to the data released by the joint venture network in September 2016, 13 super listed companies achieved a revenue of 141 billion 370 million yuan, accounting for 16% of total revenue, net profit of 2 billion 385 million yuan, accounting for 11% of total net profit, and net profit margin of only 1.68%, below 0.72 percentage points of the average level.

As the main retail business, the profitability of supermarkets and large supermarkets has been deteriorating.

In the first half of 2016, "Gao Xin retail", which owns the two benchmark enterprises of big RFA and Auchan, although the net profit ranked first in the supermarket industry, up to 1 billion 461 million yuan, but net profit also dropped by 3.4%.

According to the conclusion, "department stores, shopping centers and supermarkets have been defeated in the rush of e-commerce.

This shows that the overall decline of physical retailers solely based on commodity sales has become an industry trend.

The retail industry is bound to face pformation in the era of e-commerce. The future of Jingdong supermarket and cat Chao is winding up in the comprehensive game, subsidy war and market exploration.

Both sides are trying to go further in the upper and lower reaches of Shang Chao.

The cat has been mentioned as the fourth largest platform after Ali Tmall, Taobao and Juhuasuan "three carriages". The riverside reported directly to CEO Zhang Yong.

Ali hopes to enhance the user's stickiness with the help of fast recovery products.

Next, the new community e-commerce platform "hand Tao convenience store" will also be officially launched, and part of its operation will be responsible for the purchase of lightning.

Jingdong is trying to go deeper in the field of enterprise services, including enterprise procurement and supply to small shops.

At the Jingdong annual meeting in January 2016, Liu Qiangdong proposed Jingdong's new access to Jingdong's annual major innovation project.

According to the interface reporters, Jingdong mall's new access will be the company's "locomotive No. 1" status, with the aim of supplying three to six line cities.

The application of the new channel in Shang Chao is that we want to take the rural canteen and the wife and wife store as the pivot.

This coincides with Yonghui supermarket's focus on the development of supply chain.

Yonghui supermarket Deng Xiangchao told reporters that Yonghui the next step to do "B2B trading support platform."

"If Jingdong cooperate with Yonghui and WAL-MART in the future, if cooperative purchasing is actually in the future, the future consumer habits will be blogger, and future consumers will live on the Internet. Although Jingdong and Tmall can't earn money now, they hope to make profits in the future."

Wan Mingzhi said.

Offline supermarkets attract customers with low Maori fresh food, but most of the profits are daily chemicals, and these categories are gradually pparent after the reshuffle of the e-commerce channel, and no longer have the advantage of profit.

Hu Chuncai, general manager of Shanghai Shangyi consulting, told reporters that Jingdong has only 6 points of cost in the digital appliances and other products (that is, the profit and loss balance can be increased by 6%). Even if 8 points are sold, there will be a profit of 2%, but the shop must sell more than ten points to make profits.

That is to say, the cost of Jingdong in digital products is lower, while Taobao has the same advantage in clothing, footwear and other categories. If it goes to the field of fast moving products, its value will be greatly reduced.

"For example, Jingdong now has 26 points to do with Procter & Gamble, and large retailers may need 12 -13 points.

When you have a natural disadvantage, it is very difficult to move. "

Hu Chuncai said.

In the final analysis, the embarrassment of online supermarkets lies in the fact that domestic stores are always at a low profit stage. After all kinds of subsidies are stopped, the consumers who have been trained have to remain and earn profits.

The future depends on who burns to the last and who can burn more money.