Going to Shanghai Stock Exchange, Headquarters:

"Mr. Zhou, judging from the backend data, the effect of shopping in the same city is not very good. When we have subsidies, the user's willingness to purchase is still strong, but once it returns to normal, it will be reduced by more than half in an instant, and subsequent purchases are also very low." Today's CEO Zhu Wenbin reported that he was a little frustrated.

Zhou Yujie was not surprised at all and said with a smile: "It's okay to expect, just open up this business first. Unless one day your cost can be lower than online shopping, it would be unlikely to do it."

People have to eat every day, and the frequency is high, so the takeaway market can be popular and become a chasing battlefield for major Internet giants. It is also convenient to deliver supermarket items with the efficiency of takeaway. After all, it is not an urgent need. It will not be a noon, and people's instinct will force people to eat.

Moreover, shopping can often meet the needs of several days in one go, so the frequency of shopping in the same city is very low. The most important thing is that the prices of supermarket items are already higher than online, and coupled with the delivery fee of delivery staff, how can there be a market?

"But in terms of cost, we cannot be lower than online shopping." Zhu Wenbin shook his head and said: "

The cost of online shopping is low because customers come from all over the country, and batch costs can suppress profits, but how many customers can there be in a city? Not to mention that they need delivery.”

Zhou Yujie nodded and said, "So, it is impossible for us to make money when doing shopping in the same city. This business will definitely lose money. But I just want to open up this market and subsidies are all there to do. However, because there are no competitors, you don't need to burn money too hard, just be appropriate."

Only Alibaba and Toutiao can have a supermarket, takeaway team, and user-side traffic, but Alibaba's takeaway Ele.me is not as large as that of Today's Youxuan and Meituan, and its number of personnel and teams are not as good as that of terminal user traffic. Although Alibaba has Alipay, the click rate of this national APP is so low. How can it compare to TikTok or other Toutiao APPs? So many businesses in Alibaba rely on Alipay. How can it attract traffic to new businesses like Douyin?

Without competitors, the subsidy will naturally stop in moderation, just ensure that the user has some benefits and slowly flow.

Zhu Wenbin asked: "The purpose is to compete for takeaway users of Meituan and Ele.me?"

Lin Youde smiled and said, "Meituan and Ele.me probably think so, but the chairman has other purposes."

Zhou Yujie said: "The real purpose is to make data, data about users' demand for shopping products, and then build warehouses in each city, prepare the products needed by users in advance, and then deliver them."

"Isn't this the same as the model of JD and Tmall? Pinduoduo's data should be enough, right?" Zhu Wenbin asked in confusion.

Zhou Yujie shook his head and said, "Pinduoduo's data is useful, but it cannot be said to be enough. Many times, people's demand for goods is immediate, and online shopping will take one day no matter how fast it is, which will destroy the needs of users. Therefore, in fact, the current online shopping market size is severely limited. The fundamental reason is that the delivery speed is not good. If it can reach the same speed as takeaway, it will be a larger market.

However, the combination of supermarkets and takeaway platforms is not feasible, and the cost is too high. If you want to solve this problem, the only way is to build a warehouse in a non-city core location and then perform delivery.

But one of the problems is that the cost of the warehouse may be very high, that is, the size and turnover efficiency of the warehouse. If you want to operate this model to the lowest cost, the only way is to have the most accurate data."

"So that's the case." Zhu Wenbin thought for a while and asked, "But the area of ​​a city is still too large. A warehouse can only cover a small area, and the distance for delivery is also limited."

"So this is a relatively long route." Zhou Yujie said slowly: "Our positioning is only first- and second-tier cities and strong third-tier cities. All other things are not considered, because from the perspective of population trends, these places will be concentrated areas for the future population, with a large density and strong consumption capacity.

The second is that every city is slowly expanding, first build a warehouse, the area does not need to be large, and it is enough to cover the surrounding 3-5km. Use Pinduoduo's resources to directly obtain goods from the manufacturer, and then use big data to try to achieve multiple customers in one order and reduce delivery costs.

If we can reduce the price to the same as online shopping or slightly more expensive, then we will succeed. In the future, we must formulate an expansion plan in a city based on previous experience.”

"In this way, it seems to work in theory, but it requires cooperation from multiple aspects to connect online and offline resources to succeed." Zhu Wenbin said.

Zhou Yujie nodded and said, "Of course, this is a brand new shopping model. If the future costs can be controlled well, it may subvert the current online shopping model.

But there must be many difficulties in it, just like Ma Yun created Taobao back then. And even if we succeed, we will not really overturn the current online shopping. We can only say that it will replace it to a certain extent."

Zhu Wenbin nodded and said, "I understand, just like online shopping is very popular now, but offline retail stores also exist."

Lin Youde said: "How to arrange and operate this matter requires a lot of effort to study it, but we can appropriately release the news first."

"Release?" Zhu Wenbin quickly understood and said, "Is it for today's selection to be launched soon?"

Lin Youde nodded and said, "Yes, this plan still requires a lot of funds. This is the bigger the IPO, the better. Others can't play with this business model even if they want to play, so we don't have to hide it."

"Okay, this is no problem. Today's Youxuan will go public in one month. It is time to spread such news. This can also alleviate the rumors that the capital market is not optimistic about our Toutiao." Zhu Wenbin said helplessly.

Toutiao is the first Internet company today, but many capital markets are not optimistic about the future of Toutiao. The first reason is that the dividends of domestic mobile Internet have come to an end. Almost every ordinary person has a mobile phone, even the same is true for the grandfather of 70+.

The second is that Zhou Yujie focuses on the new energy vehicle industry. Although this does not affect Toutiao's current operations, it makes many people think that Toutiao is difficult to be innovative.

Zhou Yujie smiled and said, "Whatever the Internet is they know, they just know how to read paper data. But if they want to get their money, they really have to tell stories. Prepare a PPT and go to the stock market to make money!"
Chapter completed!