99% of investors do not understand the pre-position

Some people repressed, some swayed.

9%

At the end of June, the two representatives of the pre-warehouse model, Dingdong Maicai and Daily Youxian, were listed one after another, but from the data disclosed in the prospectus, there is still a long way to go before full profitability.

In Q1 of 2021, Dingdong Maicai had a net loss of 1.38 billion yuan, and daily Youxian lost 610 million yuan. Dingdong Maicai and Daily Youxian both had a net loss rate of over 35%.

The pre-warehouse model is a new model born in 2015. Unlike O2O’s business model that took advantage of the Internet, the pre-warehouse was initially more like a logistics solution to reduce losses and transportation costs, but it met the needs of instant delivery and home delivery. So as to stimulate more energy.

Early powerful players included Daily Youxian and U Shopkeeper , but the latter fell on the way to expand, and Dingdong Shopping is a rising star. The pre-storage model has been continuously optimized in several companies before it has become what it is today.

The new model tests the insight of investors, especially in the wave of fresh food e-commerce closures from 2015 to 2017, the market has been arguing over fresh e-commerce. For a long time, capital’s views on several companies were very different. Hesitating investors were worried about the future, while determined investors were betting themselves into this adventure.

01

In the early days of the pre-storage model, Daily Youxian and U Shopkeeper were the two most powerful ones. Daily Youxian was in Beijing and U Shopkeeper was in Shanghai. Based on the first-tier cities with the strongest spending power, they were Mode to expand and explore.

At that time, the pre-warehouse model was still immature, and the founders were in the stage of crossing the river by rubbing stones, and it was even harder for investors to have unique insights. They decide to invest, first of all, they are optimistic about the fresh track, and secondly, they are interested in the quality of entrepreneurs and entrepreneurial teams.

Xu Zheng, the founder of Daily Youxian , has been with Lenovo for ten years. He has experience in retail and product operation management and has outstanding performance. In 2012, Xu Zheng became an executive of the Jiawo Group in charge of the fruit business department. He came with him and his partner Zeng Bin, who had worked with him for many years, was once one of the top 300 employees of Ali.

Both Xu Zheng and Zeng Bin are familiar with all aspects of fruit. They quickly realized that the post-80s and post-90s population is becoming the new consumer, which will be an important opportunity for fresh food e-commerce. So in the second half of 2014, 33 The year-old Xu Zheng led 18 employees to start Daily Youxian in an apartment in Wangjing.

At the beginning of 2015, Peng Zhijian of Tencent’s investment met Xu Zheng. At that time, Daily Youxian had not made a pre-storage, but only made next-day delivery through SF logistics. Fresh food e-commerce companies were faced with high cold chain costs, high operating costs (30-50 yuan/order), large losses (average loss rate of about 10%), low customer unit prices, and low repurchase pain points. Founder of Tencent Investment Peng Zhijian has been cautiously on the sidelines and has no investment.

Daily Youxian did a period of time, and found that the cost of using SF’s cold chain logistics was too high, and the loss was large. In the event of a surge in orders for activities on the platform, the warehouse often burst, and the user was delayed in receiving the goods, so they went Complaints from the Industrial and Commercial Bureau. As a last resort, they plan to build their own logistics.

The Daily Youxian team discovered the change in people’s consumption habits at that time: arriving at the store became home, and planning became immediate. They decided to adopt the cold chain logistics model of “sorting center + community micro warehouse” to get closer to users and deliver in time. But implementation requires funding.

At this time, Peng Zhijian already knew something about the Daily Youxian team, and while getting along with Xu Zheng, he was gradually moved by the young entrepreneur’s vision and ability, so Tencent invested in the $10 million daily Youxian The A round of financing can be said to be a complete gambler.

In May 2015, Daily Youxian built the first front warehouse in the industry in Wangjing, serving a three-kilometer radius around it, opening up a brand-new fresh food model. Investor Tencent uses big data to select locations for daily fresh food and to provide assistance for localized operations.

Three months later, another fresh food e-commerce retailer U shopkeeper also obtained financing, and the investor was Xu Xin. U treasurer of the two founders and Zhu Pengcheng Wang Haihui have a No. 1 store executives, are responsible for the No. 1 store back-end and front-end supply chain business. Yihaodian was once one of the earliest “online supermarkets” in China. It was later acquired by Wal-Mart and included in JD.com . After the business of Yihaodian was taken over by Wal-Mart, Wang Haihui and Zhu Pengcheng moved to start a business.

In June 2015, Xu Xin wanted to dig Zhu Pengcheng to become an executive in an invested company of Capital Today, but Zhu Pengcheng wanted to start a business, and Xu Xin immediately invested in him. Zhu Pengcheng hoped to get six to eight million dollars, and Xu Xinyi waved his hand and gave ten million dollars. This is similar to the scene when Xu Xin invested in JD. In 2006, Liu Qiangdong felt that US$2 million was enough, but Xu Xin felt that it was not enough and gave US$10 million.

Xu Xin has high hopes for the fresh track. When the O2O was on fire in 2014, today’s capital saw a lot of projects, such as nail art, hairdressing, housekeeping, fresh food, takeaway, etc. Xu Xin believes that this model should seize the high-frequency category and become the entrance to traffic. This category is either Takeaway, either fresh. She asserted that those who get fresh food will win the world, and that this field will go out of big companies.

02

Real investors have noticed that the uniqueness of the pre-position model is around 2016.

Since the end of 2015, fresh food e-commerce companies have closed down, and daily fresh food has been affected. Despite the endorsement of Tencent’s investment, Xu Zheng also judged that the pre-warehouse model was about to run out based on data such as repurchase and retention, and Daily Fresh still could not raise money. Zhang Ziquan, a partner of Times Capital, had seen Daily Fresh Food, but he didn’t know how far the pre-position model could go, so he didn’t dare to invest.

And the data that many investors struggle with is not the repurchase rate and retention rate, but the GMV. Daily Youxian’s GMV data has no advantages over other platform projects, and it continues to increase investment in membership and pre-warehouses, which investors are not optimistic about. Xu Zheng did not approve of the investor’s opinion, and was unwilling to increase the amount, so he mortgaged the real estate to relieve his urgent need. But before the loan arrived, new investors were recruited.

In 2016, Yuanyi Investment led the B+ round of Daily Youxian. It was Wang Jun who led this investment, who was also the subsequent CFO of Daily Youxian.

Wang Jun believes that China’s e-commerce track will definitely produce a super consumer platform. Daily Youxian is in an area where the traditional advantages of existing giants cannot be directly reused. The infrastructure used is also different from that of giants such as JD and Alibaba. same. Daily Youxian meets users’ needs for “better and faster” fresh food online consumption. The business model has obvious efficiency advantages. Wang Jun feels that it is worth betting. He joined Daily Youxian in March of the following year. The company’s strategy and capital, and also manage the daily business in East China, participate in the front line of operations.

Another key investor is Wu Haiyan, a managing partner of Huachuang Capital. She used to serve as Assistant to the CEO of Dunhuang.com (an online foreign trade trading platform, the invested company of Huachuang Capital). She has invested in many e-commerce projects and has a good understanding of the e-commerce industry.

During the battle for fresh food e-commerce, Wu Haiyan did a lot of research and found that the retail logic of the fresh food track is different from that of standard products and quasi-standard products-the upstream is not a manufacturing industry, and the scale and standardization of domestic agriculture are relatively low, so purchases Management is difficult to do with the existing e-commerce logic, and at the same time, mature express solutions cannot be used in the warehousing and distribution links. There are problems and gaps. This is the opportunity for startups.

She met with a number of companies, but feel that mode does not work, before the 2016 Spring Festival, Xu Wu Haiyan see, breath throw a dozen questions about the company’s operations, with different numbers Xu fluent as stream . The two chatted for about an hour, and then went to the Huachuang office to meet several other investors and business leaders. After less than 10 days, Huachuang Capital completed the due diligence on Daily Youxian and gave Detailed feedback.

“The real value does not come from the short-term sales flow and the number of orders, but from the invisible place. The laying of the new infrastructure that Daily Youxian did at that time was very hard work, but it was also its real value. It was what Huachuang thought it was particularly different at the time,” said Wu Haiyan.

03

When investors are tracking and observing, the pre-position model is also evolving.

Due to the small scale and low degree of standardization, the pre-warehouse model still had problems such as high procurement costs, high loss rate of fresh produce, and high performance costs at that time. From 2015 to 2016, the front-storage fresh food retailers represented by Daily Fresh and U Shopkeeper optimized various links.

First, reduce the loss rate through digital management. Use system algorithms to make predictions based on market conditions, so as to flexibly allocate the goods in the front warehouse and adopt different storage methods for different goods. Soon the loss rate of the front warehouse dropped from an average of about 10% to about 2%, and at best it could reach 1%.

Second, reduce procurement costs through direct sourcing from the source. U shopkeeper has achieved more than 60% of the production area direct procurement in 2016, some of which are produced directly, which saves 30%-40% of the market procurement cost. Nowadays, the purchase amount of Dingdong Maicai’s direct sourcing accounts for 75% of the total purchase amount; the daily direct sourcing rate of fresh freshness is up to 93%.

The last is to increase SKUs and make retail units smaller to increase the repurchase rate. The raw and fresh gross profit is too low, and other SKUs are needed to increase profits. According to Wang Jun of Daily Fresh Food, if the front-end warehouse is only a single category, it will never be profitable. The front warehouse must be a supermarket, neither a fruit shop nor a vegetable market. At the same time, the platform also disassembles and sells products that once needed to be purchased by box, so that users can buy more categories of goods at once. In this way, both achieved a repurchase rate of about 80% in 2016.

In addition to the above basic indicators, at the end of 2016, Daily Youxian also reduced the average fulfillment cost to only a dozen yuan by virtue of its sophisticated operation and cost control, so that the customer unit price can easily be profitable at about 100 yuan. U shopkeeper compressed the operating cost of each order to 10 yuan, and the average distribution cost was 6.1 yuan.

After the transformation, the data of the front warehouse model has been greatly improved. In 2016, Daily Youxian was the first to announce the realization of regional profitability, and U shopkeeper also announced the realization of the breakeven of operating costs at the end of the year.

04

In 2016, Daily Youxian mainly expanded its scale in North China. In addition to Beijing, it also entered Shandong, Henan and other places. The U shopkeeper set up offices in southern China, Jiangsu, Zhejiang and Shanghai.

At the end of 2016, Xu Zheng publicly stated that the number of front-end warehouses on the platform has exceeded 200, and plans to expand to 500 to 1,000 in 2017, covering 30 to 50 cities.

U shopkeeper’s scale is not equal to Daily Fresh Food, and there are only dozens of front-end warehouses within Shanghai’s overseas ring. However, Zhu Pengcheng was still full of ambitions at the internal staff meeting at the end of the year and announced that he would quickly replicate the pre-warehouse model to more regions in 2017. “If 2016 is a process from 0 to 1, then in 2017 we will be behind 1. There are many zeros on the writing.”

This requires adequate financial support. Youxian’s daily financing is smooth, and U shopkeeper gradually loses its advantage due to poor financing.

In 2017, the investors behind Daily Youxian’s two rounds of financing were mostly old friends of Xu Zheng. Huachuang Capital continued to invest. At this time, Wu Haiyan believed that there is no model that can cover the world, but Daily Fresh is constantly exploring new business models and has sufficient rational restraint on scale expansion. She believes in Daily Fresh’s team. The previous Yuanyi Investment and Tencent Investment also continued to pursue investment in this round.

It is worth mentioning that the newly admitted Lenovo Venture Capital, Lenovo is Xu Zheng’s old club, and naturally understands his abilities. On New Year’s Day of 2017, Lenovo Venture Capital President He Zhiqiang personally went to Beijing to investigate the front warehouse. The Lenovo Venture Capital team worked with Daily Youhuahua for several months to make a detailed growth model for the front warehouse to judge the feasibility. Invest quickly.

Lenovo’s support also attracted other investors to join in. Since then, Youxian has accelerated its expansion and established hundreds of front-end warehouses in Beijing at one go.

Soon, Daily Youxian completed another C+ round of financing, led by Tiger Global China and Yuansheng Capital. Wang Pengfei, director of Tiger Global China, explained, “After several rounds of reshuffle, the pattern of the track is gradually becoming clear. Relying on the strong supply chain advantage and unique front warehouse layout, Daily Fresh Food can provide consumers with high-quality goods and speed. Da’s service is very hopeful to stand out on this track.”

Yuansheng Capital, one of the lead investors, is actually at the helm of Xu Zheng’s old friend Peng Zhijian. In 2017, Peng Zhijian established Yuansheng Capital. After seeing the daily performance of the fresh market, he recognized the team’s evolutionary ability, so he invested 60 million US dollars. Yuansheng Capital was one of the five largest shareholders at the time of Daily Fresh’s listing, holding 7.2% of the shares.

This round of financing was mainly hit by Daily Youxian on the expansion of tier 1 to 3 cities, and gradually entered the hinterland of U shopkeeper Shanghai. Different from the scenery of Daily Youxian in the capital market, U shopkeeper hasn’t been interested in it for a long time.

Since receiving over 30 million U.S. dollars in Series B financing in early 2016, U shopkeeper has not received new financing for the next one and a half years, and has not disclosed the progress of the expansion during the period.

It was not until October 2017 that U shopkeeper received a 100 million yuan C round of financing led by Haier Capital, but this is ammunition for unmanned retail. Zhu Pengcheng announced that it will combine Haier’s unmanned retail equipment and smart home appliances to fully expand its unmanned retail business.

This is the last round of financing obtained by U shopkeeper. Since then, Youxian has expanded strongly every day, Dingdong Shopping grabbed the market, and U shopkeeper gradually lost its original market share. In October 2018, U shopkeeper quietly shut down, and it did not grow into another JD under Xu Xin’s.

05

Everyday Youxian basically ran out of a pre-storage template, and new players quickly entered the game.

In April 2017, Dingdong Maicai was born in Shanghai, the hinterland of U shopkeeper, and also adopted the pre-warehouse model. Founder Liang Changlin military origin, is a serial entrepreneur who has founded the parenting website YY net, maternal and child community APP mother to help , and in 020 the track hot when founded ding dong district, but failed.

Dingdong Community provides convenient services for community users, including second-hand transactions, living payment, housekeeping, carpooling, community BBS, and so on. Liang Changlin saw the high-frequency demand for grocery shopping and cooking from the community service. After the closure of the Dingdong community, he led the old employees to transform and do Dingdong grocery shopping.

Early financing of Dingdong Shopping is difficult. The pre-warehouse model has a high initial investment. There are U shopkeepers who have been working for many years in front of them. There is also a wealthy daily Yuxian. The founder Liang Changlin has seen 150 investment institutions have not received any money. However, Han Rui of Gaorong Capital met Liang Changlin by chance and decided to invest after meeting and chatting. The payment was made 13 days later.

Gaorong Capital’s investment method is to find structural opportunities, namely new supply, new demand and new people, and then find eligible projects. Gaorong Capital has been paying attention to the fresh food field since 2014, investing in a number of O2O platforms, investing and researching at the same time, and finally determined three directions for fresh food track investment: 1. First-tier and second-tier cities find the most satisfying Use money for time, such as Dingdong Shopping and Pupu Supermarket ; 2. Find a target that satisfies the ultimate province in a sinking city, and use time to exchange money, such as Pinduoduo ; 3. Pursue the ultimate in a WYSIWYG scenario Convenient, such as Aunt Qian .

Gaorong Capital is also optimistic about the pre-storage model. They believe that if the optimal solution that meets the needs of consumers infinitely is called the “Doraemon model”, then the business model closest to the “Draco-cat model” is the pre-storage model. In the pre-storage model, Gaorong Capital also invested in Pupu Supermarket. Pupu Supermarket was born in 2016 and has gone through four rounds of financing, but the investors behind it are very mysterious. They only know that Gaorong Capital invested 10 million yuan in the pre-A round, and the B round has completed 155 million US dollars.

Han Rui is optimistic about Dingdong Shopping because of its data performance. Within 18 months of the launch of Dingdong Maicai, the user retention rate reached more than 40%. Before that, Liang Changlin had founded the maternal and infant life service platform Mombang. Its users are highly overlapped with the target users of Dingdong Shopping. The cost of Dingdong Shopping is also lower than that of its peers.

At the same time, the coverage area of ​​the Dingdong buy menu warehouse continues to shrink with the operating time, and the order density continues to increase, which means that user experience optimization and operation optimization are in the same direction. Han Rui judges that Dingdong Shopping has a better chance of running through the pre-warehouse model. Since then, Gaorong Capital has invested three more rounds.

Han Rui also pointed out that Dingdong’s repurchase rate at the time was also higher than that of its peers. The weekly repurchase rate of Dingdong Maicai has exceeded 50%. According to public data, the monthly repurchase rate is not excellent.

In 2019, Liang Changlin published the “smile curve” drawn by the repurchase rate data of Dingdong Maicai. After Dingdong Maicai went online in May 2017, it stabilized at more than 20%. In May 2018, when Gaorong Capital invested, Dingdong The monthly repurchase rate of Dongmaicai is around 23%.

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The data of several other pre-positioned warehouses are: in April 2018, Walmart China Vice President Chen Zhiyu revealed that the monthly repurchase rate of the pre-warehouse in Shenzhen Uncle Sam’s member store exceeded 50%; the monthly repurchase rates of Youxian and U shopkeeper were both Has reached 80%.

Dingdong Shopping has grown rapidly. It has been online for four months. There have been more than 6,000 daily orders. After half a year, the daily orders can reach 16,000. In June 2018, the GMV exceeded 36 million. The service station in Shanghai (front warehouse) The number has reached 58. In the pre-position model that has been recognized by investors, it is the player who is most likely to become the second place.

At that time, Dingdong’s financial situation was worrying. Liang Changlin was planning to sell his house to support the company’s development. The founder was determined to break the boat and increase the investors’ determination to Dingdong’s grocery shopping.

It is worth noting that Gaorong Capital has already formed a relatively mature understanding of the pre-positioning model when it entered the market. Several data captured are critical to the pre-positioning model, which is among the many early investors in the pre-positioning model. rarely seen.

There are time reasons for this, and it is also likely to be influenced by Chen Yaochang, the new partner of Gaorong Capital.

Chen Yaochang has extensive retail experience. He was the President and CEO of Wal-Mart China and Executive Director of CP Lotus. Wal-Mart is also one of the retail giants that has deployed the pre-warehouse model. At the beginning of 2018, Wal-Mart and JD Logistics cooperated to implement the pre-warehouse model in the Uncle Sam’s member store in Shenzhen, which can be delivered within 40 minutes.

In February 2018, Chen Yaochang joined Gaorong Capital. In May, Gaorong Capital invested in Dingdong Shopping. In January 2019, Chen Yaochang, as a strategic consultant of Dingdong Maicai, attended the Dingdong Maicai Fresh Suppliers Conference in Shanghai.

06

By 2018, Daily Fresh Food was undoubtedly the No. 1 in the industry. At the end of 2017, its monthly turnover exceeded 280 million and the order volume was 3 million. At the beginning of 2018, Daily Youxian achieved a balance of profit and income in the Beijing area, and began a regionalization strategy to increase investment in the East China region where Shanghai is located. Dingdong, a rising star, is also developing rapidly.

After long-term observation, investors have a more systematic and in-depth understanding of the pre-positioning model, and basically locked the two platforms that are gaining momentum.

Chen Yaochang, the new partner of Gaorong Capital, only saw this project after the company invested in Dingdongmaicai’s pre-A round. He found that Dingdongmaicai’s repurchase rate and other data were much better than he thought. Chen Yaochang estimates that if it reaches 30% of the market in Shanghai, it will be around 20 billion yuan. Dingdong Maicai will have 1,000 front-end warehouses, which is very powerful. In his opinion, the pre-position model is waiting for the right time. Since then, Gaorong Capital continued to bet on the A+ and B rounds.

Dingdongmaicai immediately started its rush mode. As of October 2018, Dingdongmaicai had built 119 pre-warehouses, which was twice as high as the same period last year, covering most communities in Shanghai.

Today’s capital Xu Xin, who once missed on U shopkeeper, also publicly expressed his optimism for the fresh food to home appliance merchants characterized by pre-positioning for the first time. In December 2018, Capital Today participated in an investment in Dingdong Shopping. In January of the following year, Xu Xin was his platform at the 2019 Fresh Suppliers Conference held in Dingdong Maicai. In this event, Xu Xin mainly said two points: optimistic about the pre-storage model; optimistic about Dingdong shopping.

In Xu Xin’s opinion, Dingdong Shopping has unique advantages in competing products of the same model: vegetable categories, high-density distribution of front warehouses, and high penetration rate bring high frequency of use; delivery is fast enough to better satisfy users’ kitchens The needs of the scene.

Xu Xin believes that high-frequency demand is the entrance to traffic. In the foreseeable future, the platform can sell wine, or sell quilts in winter and summer mats. The entrance with traffic has a future. This is also the basis for her judgment that the fresh food track can run out of the e-commerce giant.

The entrepreneurial team of Dingdong Shopping has experience in the Dingdong community and is mainly composed of veterans. It has created a “Iron Army” distribution team of Dingdong Shopping, which has a very strong execution force. These are bonus points. Sequoia China has also joined this round of capital investment today.

At the end of 2018, Dingdong Maicai, which had been established for less than two years, opened 200 front-end warehouses in Shanghai, with a daily order volume of about 150,000 orders, an increase of more than 100 times in one and a half years, and GMV reached 740 million yuan. In 2019, Dingdong Maicai started to move out of Shanghai and set up warehouses across the country. By December 2019, Dingdong Maicai had built nearly 600 pre-warehouses.

Daily Youxian had only one round of financing that year, but the amount was as high as $450 million, led by Goldman Sachs, Tencent, Times Capital, and Davis Selected Advisers.

In 2018, Daily Youxian’s various data is still ahead of its peers, with a GMV of 4.7 billion, which is nearly 7 times that of Dingdong Shopping. It has also gained a lot in East China. In 2018, the daily GMV of Youxian East China increased by 7 times, and the number of front warehouses in Shanghai and surrounding cities was 400. In the first half of 2019, it achieved a monthly growth rate of 30%.

At this stage, more traditional retailers were inspired by the front-end warehouses, such as JD’s 7FRESH and Alibaba ’s Hema Fresh. They adopted the model of front-shop and back-warehouse, and selected locations close to the community. They can consume in-store or instantly. Distribution.

The epidemic has brought the development of front-end warehouses to a climax. Daily Fresh Food Wang Jun said that the epidemic has brought a penetration rate of more than two years to the entire fresh food industry. Daily Youxian’s actual transaction volume from New Year’s Eve to the fourth day of the Lunar New Year increased by 321% over the same period of the previous year, and the customer unit price rose from 80 to 90 yuan to 120 yuan.

From the end of 2019, Dingdong Maicai has exceeded its daily revenue in monthly revenue. During the Spring Festival, Dingdong Maicai added more than 40,000 new users every day, and the customer unit price once reached 70 yuan, which was almost double the previous one. , And even a single month’s revenue in February 2020 will exceed 1.2 billion yuan. The monthly repurchase rate has also increased, reaching more than 40% by August 2020.

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Taking this opportunity, Dingdong Shopping went out of the Yangtze River Delta and entered important cities and provinces such as Beijing, Nanjing, Guangzhou, Hebei, Zhejiang, Anhui, and Sichuan. In only one month of November 2020, nearly 10 new cities were opened. amazing.

07

The pre-storage model is still not fully profitable. On the way to continue to optimize the model, Daily Youxian and Dingdong Maicai are moving towards a different future.

Since the pre-warehouse fresh food platform accounts for only 0.67% of the fresh food retail, the scale is too small, it lacks bargaining power in the upstream supply chain, and the gross profit is lower. Nowadays, the gross profit margin of Hema Fresh Food with a higher unit price exceeds 20%, and the community group buys a lot of vegetables with a lower unit price . The gross profit exceeds 50%, while the gross profit margin of Dingdong Maicai and Daily Fresh Food is only in the middle price range. Around 19%, the daily Youxian gross margin even dropped to 12% in the first quarter of this year (Daily Youxian may not include platform discounts in the marketing and sales costs, but directly deduct it when calculating the gross profit, resulting in a very high customer unit price. High but low gross profit. In addition, Dingdong mainly buys vegetables with lower taxes).

But the biggest reason is the high performance cost caused by the pre-position model. The performance costs mainly include the wages of outsourced riders and workers, warehousing rent, and the transportation costs of goods from the central warehouse to the front warehouse. The performance fee for community group buying may only cost 1 yuan, while the pre-warehouse model costs dozens of yuan. However, the high performance cost is not the initial investment but the later operating results.

In 2020, the number of Dingdong grocery shopping pre-warehouses is 950, and there are only 631 daily fresh food stores. As a result, the overall performance cost of Dingdong grocery shopping is much higher than daily fresh food. However, according to estimates in the prospectus, the performance fee per order for Dingdong Maicai in 2020 is about 20.4 yuan, and the daily premium is 19.6 yuan, which is not much different.

Daily Youxian’s annual orders are only more than 80 million, but Dingdong Shopping is nearly 200 million, which is more than twice that of Daily Youxian. The improvement of the contract performance cost by the single quantity is significant. In the performance cost, the wages of the workers, the rent of the front warehouse and the transportation fee can all be quickly diluted as the number of orders increases. Orders for single warehouses are basically fixed among users within a few kilometers of the surrounding area, so the user’s repurchase rate is the core of reducing performance costs.

However, the unit price of Dingdong grocery buyers is only 65.7 yuan, and the daily fresh food is 94.6 yuan. After deducting concessions and taxes, the income of each order of the two companies is about 57 yuan and 76.3 yuan, which is a difference of nearly 20 yuan. This is also an important reason why Dingdong’s loss in buying vegetables is much higher than that of daily fresh food.

9%

Therefore, if the pre-position model wants to achieve profit, there are two indicators that need to be optimized, the repurchase rate and the customer unit price.

Daily Youxian and Dingdong Shopping have become different.

At first, the positioning of the two is slightly different. Dingdong Shopping starts with vegetables, and Daily Fresh starts with fruits, and the customer unit price is higher. In the subsequent development, they have their own trade-offs.

Daily Youxian focuses on increasing the customer unit price. In 2019, Daily Youxian began to transform and scale down. At that time, Daily Youxian installed more than 1,500 pre-warehouses in 22 cities. Today, only 631 pre-warehouses are distributed in 16 cities. At the same time, Daily Youxian also joined the Yunchao Special Sale (Next Day Delivery) section, adding more expensive categories such as household appliances, 3C digital, and watch accessories.

Dingdong Maicai focuses on increasing the repurchase rate. When Dingdong Maicai started in Shanghai, there were only 12 front-end warehouses. In June of this year, this data increased to more than 1,000, covering 33 cities. Liang Changlin emphasizes the importance of the repurchase rate in every interview, and does not value the customer unit price. In his opinion, the customer unit price of around 60 yuan meets the actual consumption needs of most families.

At this stage, the two categories are almost completely overlapped, but in the future, the differentiation will intensify, which may lead to dislocation competition. No matter how you choose, the pre-position model still needs to burn money.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/99-of-investors-do-not-understand-the-pre-position/
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