Although it is already 2022, the story of expansion by "burning money" is still playing out.
Recently, some media reported that The community of Pinduoduo began to seize the express delivery market with high subsidies. According to a courier boss in Anhui, he now runs a courier outlet, and now the people who sell more vegetables have contacted him, "as long as you use Pinduoduoduoduoduo's multi-food purchase system, you will give a thousand subsidies for 30 days, give 3,000 yuan for 90 days, and also give away hardware equipment such as PAD and printers." ”
In addition, the author also noticed that the advertising poster of Duoduo buying vegetables shows that the service system of Duoduo buying vegetables has been connected with express delivery companies such as Zhongtong, Yunda, Yuantong, Jitu, Shentong, Baishi, fengwang express and so on.
The content of the poster also shows that the station can enjoy multiple rights and interests such as increasing the income of more food dumplings and online drainage of return shipments.
Obviously, buying more vegetables in the community group purchase is not satisfactory, and the war is burning to the express delivery industry, intending to use subsidies to the B-end to induce price wars and expand a larger territory.
From the beginning of the yellow, blue and red takeaway war, to the later sharing bicycle war, burning money subsidies to smash the market has become the usual means of seizing market share by head enterprises.
In particular, after enjoying the sweetness brought by low prices and sinking, the "rising star" Pinduoduo began to invest in subsidies in different business areas in exchange for the market, and the most representative of which is to buy more vegetables.
It's just that the good times are not long, low-price dumping, disorderly expansion, unlicensed driving and other hats have been buckled to the head of duo, and duoduoduo has to change the means in order to continue to expand.
"Tranquilizer" before take-off
Since August 2020, Pinduoduo has vigorously recruited community store leaders for Duoduo with "1 billion subsidies", and at the same time adopted the "three highs" tactics of high subsidies, high frequency visits, and efficient settlement.
It is also by relying on this short and fast playing style that the competitors who did not have enough capital strength at that time were directly cleared out of the market and stood firm themselves.
However, this practice of relying on capital to rob the "small traders and hawkers" of the vegetable business has aroused the dissatisfaction of the relevant departments.
The Central Economic Work Conference has long pointed out clearly that it is necessary to correctly understand and grasp the characteristics and laws of behavior of capital. It is necessary to set up "traffic lights" for capital, strengthen effective supervision of capital according to law, prevent the barbaric growth of capital, prevent disorderly expansion of capital, and promote high-quality economic development.
In the field of community group buying, the giant should not worry about the three melons and two dates in the pockets of the masses, but complement the traditional fresh retail, better meet people's yearning for a better life, and actively comply with the requirements of national policies.
A number of community group buying platforms, including Duoduo, have not followed the policy. In March 2021, five community group buying companies, such as Duoduo Buy, Orange Heart Preferred, and Meituan Preferred, became a typical case handled by the State Administration for Market Regulation, and the State Administration for Market Regulation imposed an administrative penalty of 1.5 million yuan on the five community group buying companies for improper price behavior such as low-price dumping.
Shortly thereafter, the Shanghai Municipal Consumer Protection Commission, the Wuhan Market Supervision and Administration Bureau, the Haikou Market Supervision and Administration Bureau and other urban regulatory departments have successively interviewed community group buying platforms, including Duoduo buying vegetables, requiring them to abandon traffic thinking, clearly mark prices, operate legally, and strengthen self-discipline.
Obviously, in the field of community e-commerce, relying on low-price subsidies, forming a monopoly, and then using big data to kill and make profits has not been able to run, at least in the field of community retail stores, the regulatory authorities do not want capital to form a monopoly.
For the giant who buys more vegetables, the most important thing is funds, but now not allowing subsidies is equivalent to directly confiscating the competition killer in his hand. This also gives a shot of tranquilizer to the community group buying platform that will take off.
However, less than a year after being fined, Duoduo seems to have moved the mind of taking the capital route again, and is holding high the banner of subsidies and killing another battlefield.
Express price war started again?
In 2020, Jitu Express, which is rumored to be closely related to Pinduoduo, took the lead in Yiwu to launch the "eight hairs nationwide" policy for merchants, dragging the express delivery market into the quagmire of price war, and SF and Tongda have entered the game.
Under the fierce and cruel price war, Best Express fell violently, and Jitu Express spent 6.8 billion yuan to acquire the China express delivery business of Best Group, becoming the winner at that time.
But for the entire express delivery industry, the strength of the pole rabbit has not brought any substantial changes to the industry, on the contrary, due to the decline in costs, the pressure on couriers has gradually risen, and the consumer experience has gradually declined, and finally ushered in the attention of supervision.
Starting in July 2021, a series of provisions were issued and adopted by the relevant departments. Including the "Opinions on Doing a Good Job in Protecting the Legitimate Rights and Interests of Courier Groups" and "Regulations on the Promotion of The Express Delivery Industry in Zhejiang Province".
In December 2021, the State Post Bureau held a symposium for the heads of express delivery companies. Ma Junsheng, director of the State Post Bureau, stressed that "it is necessary to take a clear stand against 'internal volumes', prevent unfair competition, and oppose acts that harm the interests of the industry and the interests of employees." It is necessary to take a clear-cut stand to maintain market order, seriously investigate and deal with violations of regulations, and constantly purify a healthy and orderly development environment. ”
It is worth mentioning that at that time, Pinduoduo wanted to try to clear the relationship with Jitu, but whether from the business level or management level, there seems to be an indescribable relationship between Jitu and Pinduoduo.
At the business level, according to the official cooperation page of Jitu, Pinduoduo, Dangdang, Suning Tesco, Mushroom Street Douyin, and Kuaishou are prominently listed, but the largest number of orders is still Pinduoduo; at the management level, Huang Zheng and Li Jie, the founders of Pinduoduo and Jitu, are under Duan Yongping, and the relationship between the two is also extraordinary.
Nowadays, more food to buy into the express delivery industry, perhaps also jealous of the previous punishment, this time more to buy food chose to subsidize the business outlets crazy.
"It is understandable that more groceries to buy vegetables into the last kilometer of express delivery based on business needs, but at present it is driven by capital rather than business, this way is a challenge to the express delivery industry, the last kilometer of express delivery is a very typical traditional business model, heavy efficiency, heavy service, community group buying enterprises in a high subsidy way to strongly intervene, will have an impact on the stability and service quality of express outlets, may trigger a new round of price competition." Some industry insiders said.
In addition, this subsidy model has been staged in industries such as online car-hailing and catering takeaway, but whether it is a subsidy for drivers or catering businesses, the underlying logic of the essence is no different: the platform uses subsidies to occupy the market, and after obtaining certain advantages, it also has a higher bargaining power, and with bargaining power, it can naturally earn profits.
It is undeniable that the essence of this model is to "dump" to destroy the market, buy more vegetables to rely on the subsidy model to compete for express outlets, express prices will reappear at a new low, the dispatch fee will also drop again and again, a new round of price war in the express delivery industry may rise again, and the entire industry will also leave a chicken feather after the final war.
Buy more vegetables on the road without a license
In addition, as mentioned above, Pinduoduo and the express delivery industry seem to have an inextricable relationship, but from the public industrial and commercial information, it can be found that Pinduoduo does not have the operating qualifications to engage in express delivery business.
According to the industrial and commercial information of Shanghai Xunmeng Information Technology Co., Ltd. (Pinduoduo) on Tianyan, Pinduoduo does not actually have the business qualifications to engage in express delivery business. The operation of the express delivery full-link business requires a courier license, and the new format of express delivery terminal requires a courier service station business license, but the two related qualifications pinduoduoduo do not have one.
Look at the polar rabbit that is closely related to Pinduoduo. In 2019, Jitu directly obtained the express delivery business qualification and network by investing in and holding Shanghai Longbang Express (a second- and third-tier express delivery company in the domestic express delivery industry), but it is interesting that in the industrial and commercial registration information, Jitu and Pinduoduo have no connection.
That is to say, no matter how close the relationship between the management level and the cooperation level of the two sides is, Jitu's express delivery business qualification Pinduoduo cannot be used directly.
Whether Duoduo buys vegetables this time is unlicensed to enter the express delivery industry, there is no way to confirm, but on January 27 this year, the State Post Bureau issued a message clearly pointing out that it will strictly investigate illegal acts such as unlicensed operations in the express delivery industry. If buying more vegetables really involves going on the road without a license, it is bound to be severely punished.
For the express delivery industry, an industry insider also expressed his own views, "In the context of anti-monopoly and strong supervision, healthy and sustainable development, creating real value, fair and orderly competition, and paying attention to the long-term interests of the market are the main themes of the development of the socialist economic system." High subsidies can seize some market share for a while, but there is no benefit to the long-term healthy development of the industry, or it should be treated with caution. ”
Frankly speaking, the giants who burn money to provide wool and only laugh at the bo users are cold and warm. Whether it is the previous community group buying, or the current express delivery industry, this is really related to the survival and interests of the people, capital entry for consumers to bring convenience, bring better services, the market is naturally welcome, but disorderly expansion will be abandoned sooner or later.