Text/Block Technology
Editor/Block Tech
preface
Wang Xing's dilemma: the dispute escalated, and the market value evaporated
As the founder and CEO of Meituan, Wang Xing has dominated the local life service industry for the past few years. Meituan's success is due to their strong ground promotion team and leading business model, which has developed and expanded its Internet takeaway and in-store business.
However, over time, competitors began to rise, putting extreme pressure on Meituan. Today, Meituan is facing the dilemma of losing its market value, which has fallen by 1.05 trillion Hong Kong dollars, from 2 trillion Hong Kong dollars at its peak to 799.3 billion Hong Kong dollars.
As can be seen from Ali's example, even industry giants are inevitably replaced. This rapidly changing industry environment can be a bit overwhelming. Wang now faces a formidable competitor — Douyin.
Douyin has recently begun to deploy in-store business and live broadcasting, which are Meituan's core competitive areas. According to brokerage forecasts, by 2025, Douyin's in-store GTV will reach 300 billion, about half of Meituan's. Douyin has also attracted more and more local merchants to use its B-end marketing because of its low deduction points and strong traffic resources. In contrast, Meituan had to reduce commissions for merchants to retain them.
The rise of Douyin: resource advantages and diversified exploration
As a representative of the short video platform, Douyin has won the favor of the market with its strong user traffic and unique marketing methods.
In recent years, Douyin has begun to make efforts in the field of local life services, focusing on in-store business and live broadcasting. Compared with Meituan, Douyin provides merchants with more resource support, in addition to traffic, it also has the advantage of low deduction points. Douyin's deduction for catering businesses is only 2.5%, while industries such as beauty, play, travel agencies, cars, and shopping also enjoy lower deduction treatment.
The rapid rise of Douyin has brought great challenges to Meituan. Douyin's user base is growing rapidly, and merchants are happy to join its platform for marketing.
In the case that merchants are increasingly inclined to use Douyin, even if the takeaway business encounters difficulties, Douyin can still find new growth points in the fields of in-store catering and group buying. Meituan must face competition from Douyin and strive to find new growth points to remain competitive.
Merchant and consumer welfare: Competition brings advantages
For merchants and consumers, fierce competition between competitors is a good thing. Only in a competitive environment can businesses and consumers truly benefit. Competition promotes service quality and drives innovation and development.
In the competition between Meituan and Douyin, merchants can enjoy lower commission fees and better marketing resources. At the same time, consumers can also get more choices and benefits from the competition.
However, for Wang Xing and Meituan, the challenges brought by competition cannot be ignored. At present, Meituan is trying to cope with competitive pressure and find new growth points and business opportunities. In addition to reducing commissions to retain merchants, Meituan also needs to increase investment in technology research and development, user experience and brand building to remain competitive.
Reflections and Conclusions: How to Respond to Changing Challenges
The fierce competition in the Internet industry can be seen. Wang Xing and Meituan have had great success in the field of Internet food delivery and in-store, but now face unprecedented competitive pressure and declining market value. This gives us more thought about how to meet challenges in the midst of change.
First, maintain insight and acumen into the industry. Only by keeping an eye on market dynamics and competitors' movements can we adjust our strategies and innovations in a timely manner. Continuous learning and evolution can lead to invincibility in the fierce competition.
Second, focus on user experience and needs. Users are the core of the enterprise, only by meeting the needs of users and providing high-quality products and services can we gain the trust and support of users. Especially in the Internet industry, the importance of user reputation cannot be ignored.
At the same time, it is necessary to continuously strengthen technological research and development and innovation capabilities. Technology is the core driving force for the development of the Internet industry, and only by continuously improving technical capabilities and promoting innovation can we occupy a dominant position in market competition.
Finally, be good at seizing opportunities and change. The Internet industry is changing rapidly, and new opportunities and models may emerge at any time. Enterprises need to have a broad perspective, keenly grasp market opportunities, and be able to respond flexibly to change.
epilogue
In general, Wang Xing and Meituan are facing great competitive pressure and challenges at present, but they also have the opportunity to cope with it through innovation and adjustment. Only by continuing to evolve and adapt in this rapidly changing industry can we be invincible in the competition!
As mentioned in the above article, for "Meituan's market value lost 1.05 trillion Hong Kong dollars!" Meituan's "strong enemy" Douyin appeared, and the competitive pressure gradually increased", what do you think about this?
Welcome to leave a message in the comment area to discuss!
☞ Pay attention to the blocks and bring you different wonderful information every day!
If you like this article, please help the cube like, add a follow, forward support, thank you!
The picture comes from the Internet, if there is infringement, please contact to delete!