Daily defeat, Ding Dong buying vegetables and grittering profit "front warehouses" is falsified or proved?

On August 11, Ding Dong bought food (NYSE: DDL, the stock price of $ 4.41, a market value of US $ 1.042 billion) brought a positive news to the front warehouse of Wuyun.

On the evening of that day, Ding Dong bought vegetables in the second quarter of 2022 in the second quarter of 2022. The data shows that Ding Dong ’s buying vegetables achieved revenue of 6.63 billion yuan in the quarter, an increase of 42.8%year-on-year; Non-GAAP net profit was more than 20 million, and the first phase profit was achieved.

In addition, Ding Dong bought vegetables in the Yangtze River Delta well. Ding Dong said that in the first half of this year, the revenue of the Yangtze River Delta increased by 47.9%year -on -year, and achieved 3.7%positive operating profit margins.

Ding Dong buying vegetables Delivery Source: icphoto-1332579999602704384

On July 28th, half a month ago in Ding Dong's buying dishes, another leader of the front warehouse business model confirmed the closing of the extremely fast -moving (front position) business daily, and the industry overnight Falling into the haze.

For a while, the questioning sounded again.

However, at the financial report meeting on the evening of August 11, Liang Changlin, the founder and CEO of Ding Dong buying vegetables, still determined that in the future, he will "die in front of you."

He believes that the front warehouse model has the highest efficiency, the fastest delivery speed, which can better control the quality of freshness and meet the consumer's needs for a better life.

He bluntly said, "There are many more analysis of the front warehouse on the market, and they are benevolent. But everyone often forgets that the most important key point is to judge the pros and cons of a model -Does it really meet the needs of users? Isn't it a change in the change of user consumption behavior? Only the user's choice determines the success or failure of the business model. "

Ding Dong Buy Cooking: Put your teeth profitable

Ding Dong's buying vegetables in this quarter achieved staged profit, which is quite "unexpected, reasonable". Looking back on its recent actions, it can be said that the profit of this quarter is the result of Ding Dong's efforts to control and expect.

In the third quarter of fiscal year in fiscal year, Ding Dong's buying vegetables took the initiative to adjust the strategic direction. In the fourth quarter, Ding Dong's buying food began to frequently emphasize the importance of commodity power.

This change can be understood to some extent that after buying vegetables, it will not plan to "burn money" and pull new. In the quarter of June 30, 2022, Ding Dong even intentionally reduced the scale.

On June 13, Ding Dong's buying dishes reported to the reporter of "Daily Economic News" that the information such as Ding Dong's "large -scale withdrawal of the city" about the recent reports of Ding Dong ’s“ large -scale withdrawal of cities ”appeared in individual reports. Ding Dong ’s purchase of food in Tianjin, Anhui and other areas has changed to normal business adjustments. The adjustment scale is small, which does not affect the company's normal operation.

According to public information, in 2017, Ding Dong bought food in Shanghai and opened the city. In January 2019, Ding Dong bought vegetables into Hangzhou. In August of that year, Ding Dong bought vegetables and walked out of the Yangtze River Delta and entered Shenzhen. In April 2020, , Ding Dong bought vegetables into Beijing. In March 2021, Ding Dong's buying vegetables officially settled in Tianjin.

After careful observation of Tuocheng territory, it can be found that after adjusting the front warehouse layout of the individual areas, the focus of Ding Dong's food buying food is placed in the Yangtze River Delta region. The high -purchasing power of the Yangtze River Delta region has also become the biggest reliance on this stage of profit.

Zhuang Shuai, an expert in the retail e -commerce industry and the founder of Bailian Consulting, told the reporter of "Daily Economic News" on WeChat that in his opinion, Ding Dong ’s purchase of food in the next five years can make a comprehensive profit.

Regarding the profit progress of this quarter, Zhuang Shuai said that Ding Dong's buying vegetables has achieved the following points: focusing on the front warehouse model; no blind expansion and timely stop loss; increasing the proportion of prefabricated dishes and own brands Members and other operations improve user stickiness and repurchase rates.

These points can be seen from the financial report data.

In this quarter, the performance cost of Ding Dong's food buying was reduced, which was 1.542 billion yuan, a decrease of 9.0%from the same period last year, and the percentage of the total income of the achievement of total revenue decreased from 36.5%to 23.2%. Ding Dong's buying vegetables said that this is mainly due to the increase in the value of the average order and the improvement of front -line labor efficiency.

In addition, this quarter, Ding Dong's buying vegetables greatly reduced sales and marketing costs. The financial report shows that the sales and marketing costs of Ding Dong buying vegetables in this quarter were 147 million yuan, a decrease of 64.2%. In this regard, Ding Dong's purchase of dishes explained that product development capabilities have become its main growth momentum.

The reduction of these two key expenses has saved a lot of costs for Ding Dong to buy vegetables.

According to Liang Changlin, in Q2, in the products sold by Ding Dong, there are 217 SKUs that have no special products for me. In addition, Ding Dong's own brand products account for 17.5%. This number is not high in the industry, even less than some regional fresh e -commerce companies. However, since the first launch of July 2021, Ding Dong's goal of buying food is to increase the proportion of its own brand products to 30%.

All kinds of cost reduction measures increased the margin rate of Ding Dong. The financial report data shows that in this quarter, Ding Dong's gross margin rate was 31.6%, which was significantly improved from 14.6%in the same period in 2021.

Cui Lili, Executive Director of the Electronic Mansion Office of Shanghai University of Finance and Economics, told the reporter of "Daily Economic News" that in her opinion, in Q2, Ding Dong bought a lot of effort in reducing costs and efficiency, such as identifying subdivisions Strict selection) product innovation and the use of the scale effect of terminal demand to improve the certainty and quality of upstream agricultural production, which can eventually reflect the increase in the unit price and control of loss. Forehead: A controversial "species"

As the foundation of Ding Dong's buying vegetables and Park Park Supermarket today, the species of front warehouses was created by Daily Youxian, but it was also daily.

In 2019, Hema CEO Hou Yi publicly bombarded the front position was "a pseudo -proposition". It is reported that in 2019, Hema Investment Construction tested 80 front warehouses. It is the operating results of these 80 front warehouses that gave Hou Yi the conclusion of "the front warehouse is a pseudo -proposition".

Hou Yi believes that there are three pain points: "the customer unit price will not go up", "the loss rate will not come", and "the gross profit margin is not guaranteed".

Hou Yi said that the fresh -selling platform of the front warehouse model is basically affordable and the initial agricultural products. To put it simply, there is no difference in the fresh form of the farming and vegetable market. The comparison of the price comparison of all channels means that the purchasing costs and gross profit margins of various fresh front position players are transparent. In addition, these platforms also like to subsidize users and prefer big price wars. It is difficult to imagine that the gross profit level of these front -position platforms, or the severity of the loss rate.

The price is higher, it is indeed a "characteristic" of fresh e -commerce compared to other shopping models.

The research report provided by Soochow Securities in May 2021 Compared the prices of community group purchase, traditional commercial supermarkets and fresh e-commerce, and found that the price of fresh e-commerce products including the front warehouse was 121%-136 of the Shang Chao. %.

Wang Wei, the chairman of Fresh Legend, recently accepted an interview with "Daily Economic News" reporters who also exposed his views on the front warehouse model. He believes that the daily flowers do have created the track. "At present, it is still a good way to deliver home, but some problems have not been solved."

Wang Wei believes that the daily fresh freshness does not solve the problem of background costs. "First, although the front desk provides high -quality goods to consumers, the company still cannot add the price, and consumers will still put these products and dishes. The price of the market is compared.

Ding Dong buying a vegetables in Chengdu's front warehouse picture Source: Every reporter Liu Xuemei

Is there really nothing but "fast" in front of the front warehouse? Not that.

According to the research report of China Merchants Securities, the front warehouse is a retail solution that moves the warehouse from the logistics center of the city's outskirts to the closer to consumers. "Fast". At the same time, the front warehouse model brings consumers with more standardized fresh products through the supply chain optimization, thereby achieving "better".

China Merchants Securities expects that the front positions are expected to make a profitability in 2023, and the profitability of 2025 companies is expected to enter a steady state. It gives four directions: increasing the unit price and reduced performance rate; increasing gross profit margin; increasing the density of order and reducing performance costs; reducing marketing costs.

China Merchants Securities believes that after the model is optimized, it is expected that the front warehouse unit is expected to make a profit in the second and above cities in 2023. At this time, the average daily single volume reaches 1,000 orders, the gross profit margin is 24%, and the profit margin is about 0.3%.

"We believe that the comparison merchant is super, and the increase in the pre -warehouse delivery cost and marketing cost can be covered by the reduction of the cost of efficiency improvement. The front warehouse can achieve the essential logic of profitability. Consumers -the widening of the cost boundary, while achieving the optimization of consumer experience and the unchanged or even reduction of the cost of full chain, "China Merchants Securities said.

"Smart" and "awkward" divide wild

The profitability of the front warehouse may not be a day, it is the result of the comprehensive strength, and it is "hard work" and "tired work". Of course, players will fall halfway.

Q2 At the financial report conference call, Liang Changlin emphasized that Ding Dong ’s buying vegetables will focus on the cause of fresh and food." Some people have compared Ding Dong to buy food and our friends. In recent years, friends and merchants have worked in many formats. And Ding Dong bought food for five years for five years, and the business model of dying front warehouse. "

He said that Ding Dong's buying food has a clumsy spirit. This clumsy spirit is also reflected in the other aspect. "When friends and merchants have expanded to other categories other than fresh food, Ding Dong has always adhered to fresh and fresh food. Food, I will always insist that it will not shake. "

Indeed, compared with Liang Changlin, the daily founder Xu Zheng is strategically "looking around."

On June 25, 2021, Daily Out Fresh was listed on Nasdaq, becoming the "first share of Chinese community retail digitalization." In the prospectus, the daily freshness divides the business model into three pieces: real -time retail, smart vegetable markets and retail clouds. This comes from Xu Zheng's (A+B) X N's community retail multi -dimensional strategy. At the same time, this means that the daily freshness no longer limits themselves to fresh e -commerce and fresh retailers, but to upgrade to "community retail enterprises".

Compared with Liang Changlin, who was born and not good at soldiers, Xu Zheng looked more "smart". At the age of 15, Xu Zheng was presented to the Department of Mathematics of the University of Science and Technology of China for winning the first place in the National Olympic Games. Since then, he has carried out the name of "genius". At the age of 28, he became the youngest general manager of Lenovo Group China. The name of genius, rarely aspirations, has also profoundly affected the daily freshness. Compared with Xu Zheng, who is clever, Liang Changlin's skill point may be on "persistence".

At the conference call on August 11, Liang Changlin said emotionally: "Everyone thinks that the gross profit margin of fresh e -commerce is low, and we improve it by making a strong and strong supply chain; Forecast and recommending technologies to improve; everyone feels that the quality control of non -standard products is difficult. We have regulated processes and increase human and technical investment. "

He said that some people saw the problem and loved to shake the little spirit and told the world that they knew everything. Other people have always bowed their heads to solve the problem. "In fact, entrepreneurship is the process of solving the problem. If one thing, there is a market, can make money, there are no problems and difficulties, and what do we have to do?" Liang Changlin said.

These words are probably the words buried in Liang Changlin's heart for a long time.

It is worth noting that, in addition to the promotion of the epidemic, the overall market pattern in recent years is changing.

In the first place, since Costco has entered China, local retailers have been in a hurry under the huge impact, and their own brands have become the direction of the unified increase in the retail industry. In this direction of its own brand, I found the foundation of the "commodity power" in Ding Dong in the front warehouse model, and since then the opportunity of the difference between the dilated and competitors has been found in the product.

In addition, under the impact of the epidemic, instant retail sales were quickly "urged". Under various uncertain factors, the "near" of geographical distance was regarded by the industry as a key element of guarantee delivery. As a part of instant retail, the pre -positioning enterprises focusing on the self -operated platform coexist with pressure and opportunities.

At the same time, a number of new consumer entrepreneurs revealed to the "Daily Economic News" reporter that in the cold environment of investment, the focus of entrepreneurs' attention shifted from the growth of revenue scale to the steady growth of net profit. When the development of the enterprise enters the slow lane, this brings the crisis to the speculators, and it also brings an opportunity to exercise internal skills to the company that is willing to suffer.

Next, cost reduction and efficiency may become the main theme of the front warehouse and even the fresh fresh industry. Recently, some consumers reported to reporters that the Park Park Supermarket, which was located in Fujian in Fujian, in Chengdu, which was settled in Chengdu to 25 yuan, which was previously 19 yuan.

Of course, Ding Dong, who had just handed over a good transcript, was not able to take a breath.

Regarding whether the front warehouse model has been proven to be established, Cui Lili said that from time to time, the Yangtze River Delta region was affected by the epidemic in the second quarter (promoted the profit of Ding Dong to buy food), and this was not a normal state; From a geographical point of view, the Yangtze River Delta has always been a region with relatively strong purchasing power and relatively strong consumption power, and it is not sure that it can also be applied in other regions.

Daily Economic News

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