Life as a local service industry the most direct bearer, leading the US delegation accompanied by even the industry continue to improve. On the long-term value mentioned in Wang, "As long as we do the right thing, economic units and market share will naturally increase."
Overall profitability in the second quarter, regarded as the industry for nine years the US group deep praise.
Author / Nan Mountain
Edit / Liu Yu
"Like thinking strategy, think about the future, a key strategy can be picked." Xu, Capital Today has commented on the US group founder Wang.
In fact, the success of the US group business strategy today is victory, at the same time adhere to its roots in the industry, "always insist on doing the right thing." When a company would own long-term development strategy and an industry tied up, the value of this enterprise will be accompanied by the development of the industry increases.
Throughout the past decade the development process of the US group, which has been combined with local service life deeply. In experienced several commercial war, the US group is moving toward the more distant future.
Now, with the entire service life of local ecological prosperity, the value of the US group has also been recognized by the market. This implies that it is a true reflection of Wang forward-looking strategic insight and tenacity of the execution of the US Mission team. US group to do what? It has a kind of future?
01
Wang eyesight
This time, the US group with a gorgeous earnings proved himself.
The evening of August 23, the US group announced 2019 second quarter earnings, the data show quite brisk. Reported a second quarter of 2019, the US group revenue of 22.7 billion yuan, an increase of up to 50.6%, gross profit 7.9 billion yuan, an increase of 179.5%, growth of 56.6%.
More landmark is adjusted second-quarter profit 876 million yuan, the market expected a loss of 1.45 billion yuan, a loss of 7.7 billion yuan over the same period last year. This means that the US group was founded nine years, finally achieved overall profitability.
Disclose earnings, end of the second quarter, the transaction number of users reached 422.6 million, compared with 356.9 million the same period rose 18.4%, the number of active businesses reached 5.9 million, an increase of 5.1 million over the same period of 16.2%, average annual per user transaction of transactions reached 25.5, an increase of 19.1% compared to 21.4 over the same period.
Users continue to grow, continue to increase the frequency of transactions, the overall profitability of the US group is the inevitable result of its many years in the business side and the user side of deep plowing.
When today's Internet are beginning to focus on the sinking dividend market, Wang long ago moved toward the vision of a four-tier cities. In the era of buy, the US group will be four-tier cities as a strategic priority, and wait until the US Mission to open takeout business, through rapid expansion team, the business spread to more cities.
US group living in the local service user can achieve such a high coverage, but also because a large part of barriers to competition set up in the four-tier cities, which stems from the early results of the investment market continues to sink. Currently, service groups all over the United States in 2800 cities and counties nationwide, almost nationwide coverage in urban areas.
US group judged that the number of small businesses the city is relatively small, less investment you can get absolute control over the local market, can quickly achieve local profit. In contrast big city businesses more difficult to form the business end of the advantages of resources, the need to continue to invest heavily subsidized at the user end.
"Even if you made the right strategy in the implementation of the ground will encounter a lot of challenges." Senior Vice President Wang Huiwen US group had ever share of tough times. Since the early distribution of the US group a lot of business in the four-tier cities, investors in Beijing, Shanghai and other cities due to see the US group not to carry out business, so Wang Huiwen frequently felt pressure from investors.
Senior Vice President Wang Huiwen US group
"These challenges which come from investors, from the sales team, from management, as well as from their inner fear, so when do the right strategy, you need to do is a choice." He admitted, insist on doing the right thing, at a time of resource input selection, product selection iteration, choose the direction of cashed up.
"Of course, if you insist on doing the right thing, insisted on the positive results brought about, in fact, honor the cycle is often much shorter than we imagined."
Today, the US group invested in the sinking market began to return, with the brand potential and advantages of scale, creating a competitive strategy "encircling the cities", the US group as the preferred tier cities the user's local living services.
02
Chance of sinking city
A huge number of users, rising consumer demand, so that four-tier cities become the focus of attention of capital.
According to statistics, in 2018, Chinese residents' disposable income reached 28,228 yuan, an increase of 8.7% over 2017's 25,974 yuan.
Hai Tong Securities research report shows that three or four lines of urban consumption growth has been higher than the first-line, second-line over the past two years. "Since 2012, consumption growth marked decline in first-tier cities, the total retail sales of social consumption year on year growth continued to decline from 12% in 2017 to 7.3%. By contrast, consumption of three or four lines and second-tier cities and the following cities the growth rate dropped to a lesser extent, in 2016 and 2017 two years, three or four lines of urban consumption growth also rebounded. "
Performance in the food and beverage market is a four-trillion-scale selling of foreign penetration is still at a very low level. A second-tier cities and more than once a day order takeaway users accounted for 54.3%, while the four-tier cities users accounted for only 26.6%.
Low permeability also means a huge market space.
"China's urban population is 860 million, according to eat three meals a day per person, the needs of 2.5 billion meals a day to eat, the two companies together industry penetration rate of only 2%, the growth potential is still very large." Wang Xing in the second quarter earnings call conference, said, "with the change in disposable income growth, urbanization of the depth and lifestyle, home cooking proportion will decline, consumers will enjoy more convenience and more Alternatively, take-away business growth has accelerated in recent years to change this lifestyle, this trend will continue. "
US group founder Wang Xing
In this transformation, no doubt more space third and fourth tier cities, growth is more robust than the first-tier cities.
Trustdata "2018 the Q1 Chinese takeaway O2O industry analysis report" shows that the four-tier cities and the proportion of users in takeaway market share of 43%, and showed a gradual upward trend. At the same time, the business end accounting for 53%, also showed a gradual upward trend.
US group than-expected performance in the second quarter, due to seasonal factors and an increase of four-tier cities, "the second quarter, sinking market takeaway number of transactions grew faster than a second-tier cities, and sank market contributed most of the orders . "
Data show that first-tier cities outside selling viscosity of 23%, the viscosity of the third line and the following cities has reached 20% and rising. Customers, express delivery and other life service tier cities in the overall coverage of more than four times higher than the take-away, this is the take-away restaurant next huge room for growth.
Food + Platform's strategy to further increase the advantages of the US Mission in the four-tier cities. High, collaborative medium and low frequency business for the US group provides a very favorable conditions in the cross-selling services. According to the US Mission in the earnings disclosure of data and telephone conference, "90% of consumers are booking takeaway shop catering to business and business diversion", which makes US corporations have a better cost structure and business capabilities.
US Mission Reviews Food + Platform to eat at the core of the whole ecological whole scene +
There's a logical answer can be found from the US Mission to the Business Group President Zhang Chuan shop recently to share in the "high drive frequency, and then continue to develop the low-frequency, low frequency of service user awareness can be formed by polymerization up, trickle, ants Xiong Bing. "
US group can be driven by the high frequency of take-away business paternity services, the US industry, entertainment and other intermediate frequency business, to wedding and other low-frequency business, implement the entire platform end consumer brand awareness, establish their own barriers.
Owned by Diverse Levels in a telephone conference said, "the US group platform has a significant advantage in the number of users, the number of merchants, service delivery and integrated services, these advantages into the company's brand awareness in the market sinking, the US group has become the app and app reviews one app sinking city very popular. "
03
Beautiful revolution
Undoubtedly, the US group will continue to be three or four lines continued investment in the market. However, Wang apparently has a more long-term goal, "our service to shop only covers less than 2 million MAU. In the future, the US group will continue to invest in the hotel business, the second-tier cities and between a sink market hotel night ever rise. continue to improve sales efficiency, seize the opportunity to penetrate the market sinking of local businesses. "
If the early stages of the US group market share by three or four lines, access to a large number of users and business foundation, established a takeaway barriers, then the current phase of the US Mission in the four-tier cities, by upgrading to the original industry, It will have a greater value.
In the broader four-tier cities, and a large number of more traditional industries combined, through technical transformation and its brand, while industrial upgrading itself also received bonuses, which are common future dividends Chinese Internet and technology companies.
Due to traditional small business advertising is huge and can not be broader and more effective contact of the user. US group by location, by consumer base, the advantages of the algorithm, combined with massive platform's true Comments can be provided to the merchant low-cost, high-ROI advertising services.
For the back-end capacity of businesses, the US group by RMS to help businesses upgrade service capabilities to provide services and to help improve the food value chain, improve business operational efficiency, customer satisfaction and reduce management issues.
At the same time, by matching algorithm, consumers can get more accurate search results. Users can get a one-stop, high-quality consumer services, online and open up lines, users of consumer will be more abundant and convenient.
As the platform side, connected by a US group, the whole industry will be in the way upward, the return on their own commercial value.
Industry growth has been driven by a past user growth to increase purchase frequency current drive. The US group's trading platforms for each user an average annual frequency of transactions is only one point the largest single amount of 10% of the users of the fifth. How to effectively improve the user's transaction frequency, how to provide convenient trading environment for users and businesses, this is where the US Mission Next there is a huge room for imagination.
04
Epilogue
Life as a local service industry the most direct bearer, leading the US delegation accompanied by even the industry continue to improve. On the long-term value mentioned in Wang, "As long as we do the right thing, economic units and market share will naturally increase."
Overall profitability in the second quarter, regarded as the industry for nine years the US group deep praise.
However, competition remains fierce, the market continued to deepen reform, for the US group, how to continue to "help you eat better, live better" on and create more value for users, still need US group constantly looking for industry new opportunities for change.
Maintain long-term exploration, increase investment, continue to improve the eco-reaching collaboration between business, industry to find new opportunities for the US group, it is still the top priority. In fact, after the listing is still fierce attack on the US Mission to carry out on new business.
US group to buy food after Beijing, Shanghai test initial success, the next step will be stationed in Wuhan. Wang also said the fresh attempt at retail, "This will be a great opportunity. Fresh food online retail also has a great opportunity Once we made the right choice, we will add scale and big investment. "
"The word is the key to long-term," Wang earnings at the end of the phone will, once again emphasized again.
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