Ding-dong bought vegetables and withdrew from many cities one after another. The official said that it was routinely optimized and adjusted. This time, it was blown out of many cities. Ding-dong bought vegetables and responded that the current suspension of service at individual sites is the routine optimization and adjustment of some regional sites by the company. Ding-dong bought vegetables and withdrew from many cities one after another. The official said that it was routine optimization and adjustment.
Ding Dong's grocery shopping has been withdrawn from many cities one after another. The official said that it was routine optimization and adjustment. 1 The person in charge of Ding Dong's grocery shopping told Modern Express Finance Cheetah that the suspension of service at some sites is the routine optimization and adjustment of some areas and sites by the company.
On the track of fresh e-commerce, both Ding Dong's grocery shopping and Daily Fresh Food were listed in June, 20021,but the two fresh e-commerce enterprises have not yet achieved profits, and Ding Dong's accumulated losses in grocery shopping in the past three years 1 10 are more than one billion yuan. According to institutional analysis, the capital is constantly increasing the pre-warehouse mode of fresh e-commerce, but the fresh e-commerce industry is still in the stage of losing money and burning money because of its high cost, and it needs to find new profit breakthrough points.
"Ding Dong Shopping" closes some city sites
Recently, some citizens have noticed that the Ding-Dong Shopping App can no longer be used in some cities. After clicking it, it shows that there are no goods for sale.
On May 30th, "Ding Dong will quit the Anhui market to buy food" boarded the hot search. According to the news, Ding Dong's food-buying business will be abolished in many places, including Xuancheng and Chuzhou in Anhui, Zhongshan and Zhuhai in Guangdong. At present, the products in the Ding-Dong grocery shopping platform in some cities are sold out, users have been unable to place orders, and some offline stores have begun to clean and carry items.
On the same day, the reporter of Modern Express located the App in the above-mentioned cities, and you can see the "Stop Service Announcement" at the top of the homepage. The announcement pointed out: "This site will stop delivery service on May 3, 20221day 18:00, and the community of your site will also be dissolved." "From now on, if the recharge balance of your account has not been consumed, please use it as soon as possible; If the account still has a balance or the green card member has not expired, you can contact customer service to assist in refunding and returning the card. "
Under the hot search, many netizens started discussions. Some netizens said: "Unfortunately, all kinds of fruits and vegetables on the platform are very fresh, and I don't understand why they should be turned off." Some netizens also said: "I have never used this. There are too many softwares for buying food."
In this regard, the person in charge of Ding Dong's grocery shopping told Modern Express Finance Cheetah that the company has not withdrawn from the Anhui market, and the sites in other cities in Anhui are still operating normally. The suspension of services at sites including Xuancheng, Chuzhou, Zhongshan, Zhuhai and other cities in Anhui Province is a routine optimization and adjustment of some regions and sites by the company, and this business adjustment does not involve Jiangsu, Zhejiang and Shanghai.
Behind the closure of some city sites, the company has been in a state of loss. In June of 20021year, Ding Dong bought vegetables and landed in the US stock market and entered the capital market. Not long ago, the company released the financial report for 20021year, showing that during the reporting period, the company realized the revenue of 20 1.2 1 billion yuan, the net loss was 6.429 billion yuan, and from 20 19 to 20021year, the company accumulated losses/kloc.
On May 1 1, the US Securities and Exchange Commission listed Ding Dong's food-buying enterprises as "pre-delisted". In this regard, the company said that it has been actively exploring possible solutions to protect the interests of shareholders, and the company will continue to abide by relevant applicable laws and regulations and strive to maintain its listing status on the NYSE.
How can the fresh e-commerce platform play well?
Since the outbreak, online shopping has become a part of everyone's life. Mob Research Institute's Insight Report on Fresh E-commerce Industry in 2022 (hereinafter referred to as "Report") pointed out that the total transaction volume of fresh e-commerce industry exceeded 400 billion yuan. At present, the traditional food market is the main place to buy fresh food, and the penetration rate of fresh e-commerce platform has increased to about 10% year by year.
Market demand has also given birth to the rapid development of related platforms. During the epidemic period, fresh e-commerce platforms, including Ding Dong Shopping, Daily Fresh Food, Meituan, Box Horse Fresh Life, etc., have played an important role in safeguarding people's livelihood, greatly increasing inventory and deploying riders across regions.
In June, 200212002, Youxian Daily was listed together with Ding Dong's grocery shopping. In terms of performance, Youxian also faces the same loss every day. From 20 18 to 2020, the company lost 2.298 billion yuan, 3.096 billion yuan and1656 million yuan respectively. The report pointed out that the capital is constantly increasing the pre-warehouse mode of fresh e-commerce, but the whole industry of fresh e-commerce needs to find new profit breakthrough points because of its high cost and still in the stage of losing money.
In the fresh e-commerce track, some platforms choose to leave because of business problems. In March of this year, all the businesses of the fresh e-commerce platform, the 10th Hui Group, in the whole country have been shut down. Previously, the fresh e-commerce platforms including Tongcheng Life, Ji Ji Xian and Dai Radish were suspended from business, went bankrupt and reorganized.
Dai Wanwen, an associate professor in the Department of Marketing and E-commerce of Nanjing University Business School, believes that in order to achieve long-term and stable development, fresh e-commerce should first gain the recognition of consumers, and then handle the relationship with other competitors, improve product quality and supply chain, and improve the core competitiveness of enterprises.
"Fresh goods are the daily necessities of people's daily consumption, and they also belong to high-frequency consumer products." Yang Jie, secretary-general of Nanjing Electronic Commerce Association, said that during the epidemic, citizens gradually got used to purchasing fresh food online. For the fresh e-commerce platform, the logistics cost of fresh transportation is high and the shelf life is short, which determines that it is different from other commodities and needs to pay more attention to refined operation.
What is the future trend of fresh e-commerce platform? The "Report" pointed out that under the premise of "compliance management", the state has successively issued a number of policies to encourage the development and innovation of the fresh e-commerce industry, especially to fill the shortcomings of "the first and last mile cold chain logistics" and benefit the pre-warehouse model; Fresh e-commerce is difficult to form a scale because of the lack of standardization of products at present. In addition, the cold chain transportation efficiency is low, the transportation and storage losses are large, the supply cost is high, and the profit is difficult. In the future, we will seek new growth points through the supply of prefabricated vegetables.
Ding Dong's grocery shopping has been withdrawn from many cities one after another, and the official said that it has been optimized and adjusted regularly. According to Anhui Net, the Xuancheng and Chuzhou sites of Ding Dong's grocery shopping will stop serving. Log in to the "Ding Dong Shopping" APP with a mobile phone, and the "Stop Service Announcement" at the top of the homepage is very conspicuous. At the bottom, it says "This site will stop service on May 3, 20221day 18:00".
The announcement shows: "The site will stop the delivery service and the site community will be dissolved. From now on, if the recharge balance of your account has not been spent, please use it as soon as possible. If the account still has a balance or the green card member has not expired, you can contact customer service to assist in refunding and returning the card. "
In this regard, the customer service staff of "Ding Dong Shopping" said that due to operational adjustment, both Xuancheng and Chuzhou in Anhui will stop serving.
In addition, on May 27th, Ding Dong bought vegetables and announced that the stations in Tangshan, Hebei Province and Zhuhai, Guangdong Province will also stop service at May 3rd1Sunday 18.
This time, it was blasted out of many cities, and Ding Dong responded by buying food, saying that the suspension of service at individual sites at present is the routine optimization and adjustment of some regional sites by the company.
After the US Mission preferred to withdraw from the four northwestern provinces and shut down its business in Beijing, Ding Dong became the second player to withdraw from the fresh retail track.
Dingdong Shopping was founded in May, October, July, 20/KLOC, and it is in deus ex, a fresh retail track, with the service mode of direct production, pre-warehouse distribution and the fastest delivery to home in 29 minutes. Ding Dong has always been favored by capital to buy food. According to the information of enterprise investigation, since it was founded, it was financed by Angel Round and went public in the United States in June last year, Ding Dong has carried out 1 1 round of financing. Among them, the amount of financing disclosed last year alone reached1440 million US dollars (about 9.2 billion RMB), and there are many well-known institutions such as Softbank Group, Today Capital and Sequoia Fund behind it.
In June, 20021,Ding Dong bought vegetables and listed them on the New York Stock Exchange. Affected by the daily fresh break, Ding Dong bought vegetables and reduced the amount of IPO financing by about 70%. Behind the loneliness of buying food IPO, the secondary market is unwilling to pay for fresh e-commerce.
It never rains but pours. Ding-dong, who burns money and relies heavily on capital, has recently faced the risk of delisting.
According to the seventh batch of "Pre-delisting of China Stock Exchange" published by the US Securities and Exchange Commission (SEC), Ding Dong needs to submit the required necessary documents and materials to the SEC before May 3 1 to prove that he does not need to be delisted, otherwise he will face delisting from 2023 to early 2024.
According to the latest financial report, the annual revenue of Ding Dong's grocery shopping in 2002/kloc-0 was 2010.2 billion yuan, up 77.5% year-on-year. The net loss was 6.43 billion yuan. According to public information, in 20 19, in 2020, the annual revenue of Ding Dong's grocery shopping was 3.88 billion yuan,11336 million yuan respectively; The annual losses were1870 million yuan and 310.80 billion yuan respectively. At present, Ding Dong has accumulated losses of over11400 million yuan since he bought vegetables for three years. Judging from the financial report, Ding-dong's buying vegetables is deeply mired in the quagmire of "increasing income without increasing profits".
Ding Dong's dilemma of buying vegetables is not a case in the industry. In recent years, some fresh e-commerce platforms have been reported to be shut down. With the continuous expansion of losses, the input is not directly proportional to the income, and its own development ability is limited. Once capital transfusion fails to keep up, it will eventually face closure.
Can Ding-dong, who has returned to Ding-dong to buy food and is unable to make a profit for a long time because of his insufficient hematopoietic capacity, find a way out? Perhaps this withdrawal from many cities is on the way to find a positive solution to the profit of fresh e-commerce.
Ding-dong bought vegetables and withdrew from many cities one after another. The official said that the routine optimization and adjustment were carried out three days ago. It was reported that Ding-dong bought vegetables in a large area and closed the point.
It is reported that Ding Dong will stop serving in Xuancheng and Chuzhou, Anhui. Some local consumers in Xuancheng have received the service adjustment announcement of Ding Dong's grocery shopping, saying that the site will stop the delivery service on May 3, 20221day 18:00, and the site community will also be dissolved. You can contact customer service for a refund or card refund.
The announcement information shows that from now on, if the user's account has not been recharged, it needs to be used as soon as possible. If the account still has a balance or the green card member has not expired, you can contact customer service to assist in refunding and returning the card.
It is worth noting that before the service was stopped, the products of the Ding-Dong shopping platform in some cities had been sold out, and users could not place orders. In addition, some offline stores have begun to clean up and carry items. Ding Dong's customer service said that the goods sold out are related to the specific situation of each store. At present, some stores have terminated the supply of goods, and some stores have cleared their inventory.
Regarding the large-scale evacuation of the city, Ding Dong responded that the suspension of service at individual sites at present is the routine optimization and adjustment of some regional sites by the company. For example, Xuancheng and Chuzhou in Anhui, Zhongshan and Zhuhai in Guangdong. Jiangsu, Zhejiang and Shanghai are still delivering normally.
According to official website's information, Ding Dong released the position of sales manager on May 29th, and its working places are in Shanghai, Jiangsu and Zhejiang.
The financial reports of 20021year and the fourth quarter released by Ding Dong for buying vegetables show that the revenue in 20021year was 2010.2 billion yuan, up by 77.5% year-on-year, but the net loss reached 6.43 billion yuan. In the fourth quarter, the revenue was 5.48 billion yuan, up 72.0% year-on-year, and the net loss was196 million yuan. In the same period in 2020, the net loss was1246 million yuan. The gross profit margin was 27.7%, up 9.5 percentage points from the previous quarter.
In addition, Ding Dong announced that Shanghai achieved overall profit in 20021year1February, and the entire Yangtze River Delta region achieved UE rectification in this quarter, and the overall loss rate was greatly optimized, with remarkable efficiency improvement results. In this regard, Liang Changlin, founder and CEO of Ding Dong Shopping, once said that "the performance in the fourth quarter of last year exceeded the best performance since the establishment of the company, which indicates that the company's efficiency has been optimized".
But on the whole, Ding Dong is still burning money to buy food. It is understood that from 20 19 to 2020, the net loss of Ding Dong's grocery shopping is1873 million yuan and 3177 million yuan respectively. The net losses in the four quarters of 20021year were1385 million yuan,1937 million yuan, 20.1and196 million yuan respectively. Although the single-season loss has narrowed, since 20 19, the cumulative loss of Ding Dong's food has exceeded 1 10 billion yuan.
In March of this year, Liang Changlin, CEO of Ding Dong Shopping, responded to Hou Yi, the former president of Box Horse Business Group, when he participated in a public event. Liang Changlin said that Ding Dong didn't take the competition seriously, but felt that the market should be harmonious and different, and the biggest competition was whether it really met the needs of users and served consumers.
In this regard, Hou Yi responded in a circle of friends from a distance: "Lao Liang is really anxious to see it, and his investors are also anxious. It is estimated that he will soon explode ... Lao Liang said that he is the boss of fresh e-commerce, and there is no boss who is worried about the monopoly of the second child."
Hou Yi questioned: "Winter is coming, who is swimming naked?" . In his view, it is not long to win the market by the disorderly expansion of price subsidies by investors' capital.
It is reported that on 1 26, Hou Yi fired at Ding-Dong in a circle of friends, claiming that tens of billions of dollars were trapped in it, and there were almost no leeks. Like a Titanic that hit an iceberg, the ship is sinking, and the era of winning competition by price subsidies is coming to an end.
At that time, Liang Changlin also replied from a distance: "Commercial competition is normal, and the biggest dream of the second child is to fight with the boss to the death." He also posted a screenshot of the data that Ding-dong has become the number one fresh e-commerce. Smoke filled the air.
Before Liang Changlin answered from a distance, the news of big layoffs was also exposed when Ding Dong bought food. /kloc-in mid-October, users who were certified as Ding Dong's grocery shopping staff revealed on social platforms that the layoffs in the core departments such as Ding Dong's grocery shopping procurement, algorithm and technology ranged from 20% to 50%, and employees in the front warehouse service station were forced to take unpaid leave, and some fulfillment sites even appeared 1 month for half a month.
In response to the above news, Ding Dong responded that the relevant rumors were untrue and were malicious guesses without factual basis and rigorous data sources. The company reserves the right to investigate all false rumors.
From the perspective of the development mode of fresh e-commerce, there are three types of total * * *: self-collection at the store (warehouse), pre-warehouse arrival at home, and integration of stores and warehouses. When you arrive at the store (warehouse), you pick up the radish as the representative; Daily fresh, ding-dong shopping is the pre-warehouse home mode; Box horse, 7Fresh, etc. adopt the integrated mode of store and warehouse.
Among them, the profitability of the front warehouse model has been controversial. Hou Yi once analyzed the pre-warehouse model and thought that the pre-warehouse had no future. In his view, the loss of the pre-warehouse mode can't be controlled, the rent is high, and the traffic can't be aggregated. If you rely on the ground and buy other platform traffic, it is no different from traditional e-commerce. The online and offline integrated store and warehouse integration model is the future.
Regarding the issue of profitability, Liang Changlin believes that the overall growth of Ding Dong's grocery shopping should be considered from three aspects: "length x width x height". Among them, "length x width" tests the replication ability of the business; And "high" refers to the penetration rate of existing cities, the frequency of users placing orders and GMV contribution, which is the basis for achieving high-quality growth and the premise for achieving profitability.
In the eyes of the industry, there are still many bottlenecks in fresh e-commerce, such as the commonplace profit problem, as well as pain points such as commodity standardization and cold chain logistics. In addition, we must face the competition of community group buying.
According to soochow securities's research, under the condition of continuous losses, enterprises may need to continuously seek financing in the future if the front warehouse industry cannot fundamentally improve the problem of operating losses.
The latest round of financing for Ding Dong's grocery shopping stayed in the middle of last year. By the end of 20021year1February, the cash and cash equivalents and short-term investment of Dingdong's vegetables were 5.23 billion yuan, of which the cash part was 660 million yuan, a decrease of about1600 million yuan from the previous month. Ding Dong bought vegetables with 20.6 yuan of accounts payable and 3 1 100 million yuan of short-term loans.
According to the previous loss rate, there is not much cash flow left for Ding Dong to buy food.