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Multi category consumption in trillion market, new brand pattern shaped by channel change From Community group buying series report

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The following is the Multi category consumption in trillion market, new brand pattern shaped by channel change From Community group buying series report recommended by recordtrend.com. And this article belongs to the classification: Securities report, Group buying, Electronic Commerce.

Core point:

Throughout the development history of retail industry, every major channel change is not only an efficiency revolution, but also a profound impact on the brand side. The long-term market scale of community group buying exceeds one trillion yuan, occupying consumers’ minds with high price and effectively sinking into the town and village level market. For some high-frequency + rigid demand + low brand premium categories, it will become an important channel, or will bring about changes in the upstream brand pattern. From the perspective of investment, second – and third tier brand products are more cost-effective, and the burden of the original distribution channel is often lighter. It is expected to usher in new development opportunities with the help of community group buying. However, after the quantity is increased, we still need to pay attention to the shaping of brand power and multi-channel operation ability, so as to become “Friends of time”.

Fresh food is the core category of community group buying, and the expansion of multi category and multi SKU is an inevitable trend. The core of community group buying is to meet consumers’ demand for fresh food, but the density of fresh orders is limited, and in the long run, as a drainage variety, the gross profit rate is relatively low. Therefore, expanding categories can improve the order density (reduce the performance fee rate) and comprehensive gross profit rate of the platform, which is an inevitable choice for long-term development and profitability. According to our estimation, the proportion of fresh sales is less than 35%, and the platform can make profits. The mode of selected single product + three-level warehouse distribution determines that there will be an upper limit for the community group buying SKU. However, after the platform grasps the high-frequency flow entrance through fresh products, it can also upgrade the SKU ceiling through the one-piece distribution mode and evolve to a multi category integrated e-commerce platform.

High turnover brings high roe, and community group buying is attractive to suppliers. The difference between the supply price of community group buying and traditional channels is small or slightly low (the gross profit rate is slightly low), and it puts forward higher requirements for the frequency and timeliness of commodity distribution (the expense rate is higher), so the overall net profit rate is slightly low, but the payment collection cycle of community group buying is greatly accelerated (within one week vs more than one month). On the whole, the rate of return on investment is higher, and the long-term growth prospect is considerable, so it is very important for the supply of community group buying Yingshang has great attraction.

Channel change may affect the upstream brand pattern, and the second and third tier brands will usher in new opportunities for development. We estimate that the long-term space of community group buying will reach trillion level. In some high-frequency + rigid demand + low brand premium categories, it will become an important channel, which may have an impact on the upstream brand pattern. For brands with strong traditional channels, the price of community group buying channel is low, which may damage the interests of the original channel. The brand needs to make a trade-off, and the interests of all parties may be balanced through differentiated SKU in the future. Second – and third tier brands are more cost-effective, and are more in line with the positioning of community group buying channels. The burden of the original channels is often lighter, and it is expected to usher in new development opportunities with the help of community group buying. However, in the long run, we still need to pay attention to the shaping of brand power and multi-channel operation ability, so as to become “Friends of time”.

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