The following is the Resource endowment and the decisive victory of organization management From Pinduoduo vs meituan recommended by recordtrend.com. And this article belongs to the classification: Electronic Commerce.
The scale of community group buying market is more than one trillion, the short-term competition of the industry is fierce, and the loss is large, but the business model has been verified to be able to run through, and in the long run, it can provide significant value for the platform in terms of customers, income, profit and other aspects. Pinduoduo (PDD. US) and meituan (03690) face to face for the first time. Pinduoduo has excellent resource endowment and has advantages in flow and supply chain relying on the main station of e-commerce; Meituanjiang has the ability of fine operation and fast iteration in all aspects of organization and management, which is of great significance in the industry of community group buying, where the profit margin is very low and there is no final mode. We judge that community group buying will form the end of 2-3 national oligopoly industries, and we are optimistic that pinduoduo and meituan will become the final winners.
Summary of the report
We estimate that the scale of community group buying market in 2025 will be about 2-3 trillion, the industry will have fierce short-term competition and large losses, but the business model has been verified to be able to run through in the long run. We expect that after one to two years, the competition in the industry will tend to ease, forming an oligopoly pattern. We estimate that the market scale of community group buying will be about 2-3 trillion yuan in 2025 by two ways: the national market scale is calculated by Changsha market scale and the whole category is calculated by fresh online penetration rate. Considering the nearly linear scale effect of community group buying, as well as the regional attribute and non monopoly of the upstream supply chain, we judge that community group buying will form an oligopoly pattern in the future, and there will eventually be 2-3 national community group buying platforms. At present, the competition in the industry is fierce and the losses are large. Considering that most of the participants do not have the sustainable financial strength and financing ability to bear the huge losses for many years, we expect that the industry pattern of oligopoly will be basically formed in 1-2 years.
Pinduoduo has excellent resource endowment and advantages in flow and supply chain; Meituanjiang has the ability of organization and management, fine operation and fast iteration in all aspects, which is of great significance in the industry of community group buying, where the profit margin is very low and there is no final mode. We are optimistic that both sides will be the final winners. In the aspect of traffic, pinduoduo’s main station has more traffic, higher fit with the portrait of community group buying users, and lower expected customer acquisition cost. Meituan relies on a strong BD team to quickly develop the market; In the process of warehouse allocation, the modes of both sides are similar, meituan management is more refined, the performance rate, loss rate and other indicators are better, and the short-term investment cost is larger, but it is expected to achieve cost reduction and efficiency increase in the long term; In the supply chain, Duoduo has some advantages by relying on the main station fresh supply chain. In addition, supplier selection is driven by the system, with price as the core, and quality control is backward. Meituan gives more voice to operation and procurement, and has higher requirements for consumer experience and quality control. Strategically, for pinduoduo, community group buying is a natural extension of the main station of e-commerce and an important driving force for the growth of users and Gmv in the future. For meituan, it undertakes the important task of entering physical retail and sinking market, which is a new growth curve. Pinduoduo and meituan have invested enough resources in the field of community group buying, and they are optimistic that both sides will become the final winners.
Investment advice: continue to recommend community group buying platform giants pinduoduo and meituan.
Risk tips: 1) industry competition is more intense than expected; 2) antitrust regulatory risk; 3) Sample data bias has an impact on the measurement.
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