With large subsidies and commission-free policies, JD.com has successfully attracted many beverage brands to join, causing the sales of Cudi, Gu Ming and other brands to soar on the takeaway platform and double the number of orders. This war has not only changed the competitive landscape of the takeaway market, but also brought new vitality and variables to the entire ready-made beverage industry.
JD.com challenges Meituan, and the first strategic goal is to rush the order volume.
Who would have thought that in the takeaway war between JD.com and Meituan, the winner was actually selling coffee and milk tea.
I used to think that the drink war, hitting the price of nine yuan and nine, was already outrageous, but now on JD.com, a cup of Cudison coconut latte is only sold for 3 yuan 9, Gu Ming’s passion duo is only 4 yuan 8, and the jasmine milk green of Shuyi Burning Grass is only 3 yuan 8.
Mixue Bingcheng even has a drink with a price of 1 yuan, which I am afraid that the Snow King himself cannot imagine.
On the Meituan side, it also offered “Luckin 7.9 yuan delivery to home” and “Bawang Chaji 23 yuan double cup”, and JD.com’s needle tip against Mai Mang.
You know, this price is not picked up in the store, but delivered to your home.
So in the past few days, in the face of terrifying low prices, beverage merchants have exploded orders.
Many Cudi franchisees came out and said that since the takeaway war began, their single-store cup volume has doubled, with as many as 800 cups a day in a single store, and as few as four or five hundred cups, and the clerk in charge of making coffee is so busy that he can’t stop for a minute.
And most of these extra orders come from JD Takeaway.
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The data also shows that as of April 23, Cudi’s monthly sales on JD.com have exceeded 30 million orders, and Gu Ming’s monthly sales have also exceeded 7 million orders.
In this issue, let’s talk about why JD.com vs. Meituan takeaway, milk tea and coffee won hemp.
01
Let’s talk about the coffee and milk tea brands represented by Cudi first.
Naturally, they are going to open champagne to celebrate.
Before this takeaway war, the ready-made beverage industry had actually entered a long and boring garbage time.
Cudi failed to shake Luckin, the Snow King family is dominant, Gu Ming, Cha Baidao, and Bawang Chaji can only compete for the second child, and the market pattern is almost settled.
The capital and franchisees’ money cannot be burned, nine yuan and nine is a balance point, and the number of stores cannot be denser. If it goes on again, everyone won’t make money.
But JD.com’s entry into the game is equivalent to giving this drink war a new variable, pouring a big sip of perfect tonic soup into all players, and shouting to the entire industry:
Lao Wang, it’s overtime!
As a result, those milk tea brands, especially the big players who have not yet won the position of industry leader, began to think again. I want to use JD.com’s new channel to see if there is a chance to counterattack.
You must know that this time JD.com launched a charge against Meituan, all kinds of large subsidies and commission-free are completely paid by the platform, and merchants do not need to spend any money on subsidies. The original balance of nine yuan and nine was easily broken, and all kinds of drinks of three or five yuan a cup were overwhelming on JD.com.
With Brother Dong, the benefactor, who paid for it, the merchant didn’t have to do anything, lying at home, and the doubled order volume fell from the sky and hit his head.
In the eyes of those second brands who are not willing to be lonely, this is a godsend opportunity. With a large number of orders, franchisees who originally lost money can make money, and the number of stores, which was already very dense, can be doubled.
Cudi can challenge Luckin again, Gu Ming Bawang Chaji and Chabaidao can fight in many ways, and brands can earn an extra franchise fee, management service fee and raw material fee.
This is a world where everyone is happy, and only Dong Ge’s wallet is hurt.
Let’s say: Thank you, Brother Dong.
But is Brother Dong really such a good man who burns himself and illuminates the entire industry?
No, JD.com has its own considerations.
JD.com challenges Meituan, and the first strategic goal is the number of orders, or order density.
The order density is large, and the rider can bring more orders in one trip, which can not only use the rider’s capacity to the limit, but also reduce the difficulty of their work, allow them to earn more commissions, and dilute the operating costs of the platform.
02
Meituan was able to defeat Ele.me back then by relying on a larger number of orders and a stronger algorithm to optimize the delivery path of riders, so that they could deliver more takeaway each time.
Later, Meituan focused on making good meals, not hesitating to sacrifice profits, but also to ensure that the order volume was increased.
It can be said that the order volume is the most important indicator of the takeaway market, and there is no one. As for the unit price of each order, and whether each order can lose a little, they are all secondary.
JD.com Takeaway has completed the task of rushing orders very well. In the past two months, the daily order volume has rushed to about 10 million, winning 10% of the market share, which is equivalent to one-third of Hungry.
In order to achieve this goal, the strategic focus must be on the beverage and coffee track.
Why a drink?
First of all, high frequency, this goes without saying.
The second is the low unit price of passengers, which was originally nine yuan and nine cups, and the platform will give some blood, and with a little subsidy, it can reach three or four yuan, and it is just the money for a subway. There is no threshold for everyone to buy, and the order volume is pulled up.
Think about it, the same subsidy for meal takeaway, 25 yuan takeaway to 18 yuan, can it have such a good effect? It’s hard.
The third is high consumption elasticity. Coffee and milk tea do not occupy the stomach, originally everyone may have one cup a day, but with subsidies to replace it with two cups a day, it is not a burden for most people. Unlike fast food, even if you subsidize it, three meals a day is three meals a day, and it is unlikely that it will be changed to four meals a day for a little subsidy.
Finally, and most importantly, the chain rate is high. Talking about the next Cudi, it can be introduced to cover more than 10,000 stores across the country in one go. Talking about the next ancient tea, it is also the introduction of tens of millions of stores in one go. Many small local milk tea coffee brands may also have dozens or even hundreds of chain stores in a single city.
The high chain rate allows JD.com to introduce a large number of merchants at the fastest speed and the lowest business development cost.
Last year, JD.com began to test the waters of takeaway, and the first section of the “Second Delivery” channel was coffee milk tea. JD.com’s takeaway list in the first month, the TOP5 are Luckin, Cudi, Gu Ming, Chabaidao and Bawang Chaji, which were rounded by companies that sell sweet water.
This year, JD.com launched the “Quality Dine-in Merchant Recruitment Plan” to give commission-free to major beverage brands, attracting 200 small tea brands to settle in in one go.
And the result of all this is that the current JD takeaway is almost a milk tea starter.
I made a very rough estimate based on the available data.
JD.com’s daily order volume is 10 million orders, so the monthly order volume is at least 300 million orders, and those two or three beverage brands alone will create nearly 50 million orders per month, so I estimate that the overall beverage market may be able to create 100 million orders per month.
On this platform, one-third of the orders are supported by drinks.
It can be seen that our brother Dong really prefers coffee milk tea.
03
Therefore, the reason why JD.com’s challenge to Meituan Takeaway this time can attract the attention of the whole people is not only because the Internet industry has not had such a large-scale business war for a long time; More importantly, the spillover effect of this war is very violent, and the catering industry, which is directly affected, is the real food and clothing of millions of workers, which is closely related to everyone’s daily life.
In the next few months visible to the naked eye, Meituan will definitely not sit still, and will definitely come up with stronger subsidies to launch a counterattack against JD.com.
As the weather gets hotter and the real peak season of the beverage market is coming, this takeaway war is destined to involve more merchants, massive capital and subsidies.
As a consumer, I just want to say: tear it well, tear it up again!
