Discussion Duoduo Grocery and Meituan Preferred, the battle for profitability in the community group

Mondo Technology Updated on 2024-01-30

After several rounds of market reshuffle, there are now only two companies left in the competition, Duoduo Grocery under Pinduoduo and Meituan Optimal under Meituan.

Duoduo Grocery and Meituan have become enterprises that can truly have a huge impact on the community market across the country.

Enterprises that need to understand the community** system and development plan can click to get it.

Now, however, profitability issues are also starting to surface. On the one hand, reduced competition helps to achieve profitability, and the community ** industry has now formed a "double giant" situation. But at the same time, if you want to make a profit, can Meituan accept it?

In terms of whether there is a profit plan for next year, some market participants have asked Pinduoduo and Duoduo to buy food, and have received a "uncertain" reply.

Those market participants who believe that Duoduo can make a profit next year believes: "Meituan's efficiency is lower than that of Duoduo Buy, the investment subsidy is larger than that of Duoduo Buy, and the loss is more than that of Duoduo (annual loss of 10 billion yuan), and the efficiency gap between the two is very large, which is enough to support the profitability of Duoduo Buy." ”

Market participants who do not believe that Duoduo can make a profit said: "It is impossible to make a profit next year." If Duoduo Grocery wants to be profitable, it needs to increase its gross profit, but once it does, Meituan will take action, Duoduo Food's market share will decline, and the top merchants will leave. The reason these market participants believe that Meituan will do this is that "Meituan has no way out."

The community** market is located in the transition zone between planned consumption scenarios and immediate consumption scenarios, and is also the intersection of origin retail and local retail.

Although community** is a planned consumption, its unit value is low, and consumers often do not buy more than one product at a time.

In some sinking markets where shopping is inconvenient, the community** has brought a lot of convenience and time to consumers. On the other hand, the community** has the characteristics of instant consumption, and its operation mode belongs to "pre-sale", after online collection, the goods will be delivered the next day or picked up by consumers.

While communities have a lower advantage and can save consumers money, they can't meet consumers' demand for instant shopping.

It is precisely because the community** is at the intersection of planned consumption scenarios and immediate consumption scenarios that it has triggered the competition between the two giants of Pinduoduo and Meituan.

Meituan is the representative of China's immediate consumption scene, while Pinduoduo is the representative of China's planned consumption scenario.

This also explains why the community market ends up with only these two companies, which are closer to the market scene, have more resources, infrastructure and determination, and have no way back.

If Pinduoduo wins the competition in the community market, it will be able to extend its tentacles to local merchants and then invade Meituan's territory.

On the other hand, if Meituan succeeds in occupying the community ** market, it is possible to expand the industrial chain of fresh supermarkets, get involved in the operation of production areas, and then challenge Pinduoduo. At present, it seems that Duoduo is a popular market in the community, with the highest market share and low cost.

The basis for this achievement is that Pinduoduo has the advantage of scale, has a larger flow (large number of orders), and has more advantages in the scale and operating costs of the business network. In the field of fresh food, Pinduoduo's sales scale has reached 100 billion.

At the same time, Meituan Optimal still has a great demand in the current market. Some market participants regularly find through user surveys that more and more consumers think Meituan's preferred products "seem to be a little better".

This also illustrates that some consumers are more willing to buy better quality goods. On the issue of efficiency, some market participants have a different view: "In the case of a small difference in scale, there will not be much difference in efficiency in the end."

It's only a matter of time before Meituan can do what you can do when you buy more groceries. "They think that if Duoduo buys groceries to be profitable, Meituan will seize the opportunity.

In general, the community market is still in a constant game, and the smoke of gunpowder is pervasive. Duoduo and Meituan Preferred are competing fiercely over profitability.

As the community market has both planned and immediate consumption scenarios, Pinduoduo and Meituan are competing for market share.

The future direction and which company will ultimately win still needs to be further revealed by market developments.

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