A cheap business empire starting from mobile phones

Chapter 161: Increased Competition
In the middle of August, unlike the joy of Quanmin Technology, Wang Lei, a partner of Ali Group and senior vice president of Hungry?, read the market analysis report with a particularly dignified expression.

One and a half months ago, Meituan Waimai ranked first with 32.3% of the food delivery market, followed by 27.1%, and Baidu Waimai took the third place with 18.6%. 32.6% are second, and 27.5% are third.

It seems that there is not much change, only Baidu Food Delivery has been hit to the bottom of the corner, and Quanmin Food Delivery has become one of the top three food delivery companies.

However, carefully reading the more detailed data inside is worrying.

The reason why Meituan Waimai is so high at 32.3% is that a large proportion of it is the share of previous group buying websites. Are you hungry 27.5% seems like a lot, but it depends on the ratio of investment and return.

Wang Lei recalled that a month ago, Mr. Ma Yun and Mr. Zhang Yong (No. [-] in Ali Group) talked to him about Are You Hungry.

Talking about the overall posture of Quanmin Technology’s entry into the food delivery business is too strong, Are you hungry is in a worrying situation and needs a lot of financing.

Ali’s core business is retail, Taobao is retail, and Tmall is also retail. Ali’s transformation from physical e-commerce to digital e-commerce, and then to online and offline Internetization requires the help of takeaway, a direct-to-offline platform.

And the high-frequency payment scene in the food delivery industry is a support for Ali's financial business and must be won.

Are you hungry is crucial to the development of Ali Group, but the founder of Are you hungry, Wu Shuhao, is not a good talent and has limited ability.

Ali can invest in Are you hungry? The person at the helm must be an executive of Ali.

This person is Wang Lei, and Ali will give him the greatest support.

If he wants to win the market, he must set a goal of increasing the market share to 50% within half a year. More than half of the market share will give Hungry the initiative to compete. It is up to them to decide whether to fight or not.

Given a budget of 100 billion RMB for half a year, we will fully integrate Ali-related resources. Are you hungry for Taodiandian and word-of-mouth businesses, and help promote its core products.

The conditions are not bad, and he has also made drastic reforms and spent a lot of money.

It took more than 60 billion yuan in one month and countless human resources, please use official support.

The result is just to keep the original market share, the original 27.1% is second, and now 27.5% is still the second.

The return ratio is too low and does not meet Ali's performance standards.

and deeper data.

There are more than 3000 cities in China, but not every city has a demand for food delivery. The mature food delivery market is in first- and second-tier cities, and office workers are the main group of food delivery users.

The third-, fourth-, and fifth-tier takeaway markets are small and need to be developed.

This is especially important in the first 25 economically developed cities. Mastering the markets of these 25 major cities will basically establish a victory for food delivery.

He personally sent elite subordinates to attack these 25 cities, and also spent money on them.

In the words of Mr. Ma Yun, there are many rich companies in Huaxia, but none of them are as rich as Ali.

If the market can't do it for others, they will use money to kill others.

In doing so, he spent more money than Meituan and Quanmin.

After spending a lot of money, the market share in 25 cities was 52% for Quanmin, 19% for Meituan, and 24% for Are you hungry.

There is no reason.

Spend more money, but can't do others.

In particular, Pengcheng and Yangcheng, the two first-tier cities, have a market share of 70% for food delivery for all, and 14% for Meme, almost driving Meme out of the market.

Why on earth?
He read the market analysis report again, and half a day passed without a definite answer.

The above is the reason for the analysis of the marketing department. The biggest reason is: Pengcheng is a first-tier city with the most young people. Feeling, handsome, understanding of art, coupled with his many trips to Pengcheng to show off, young people in Pengcheng generally like Lin Shu. This preference overrides market choices, and Pengcheng people use Lin Shu's products unconditionally.

The reason can be summed up simply as the 'Internet celebrity effect'. Lin Shu, as the number one Internet celebrity in China, has driven the use of food delivery by the whole people.

He directly ignored this reason, thinking it was unscientific.

As an individual, Lin Shu didn't have such great power. He controlled the market by himself, and overshadowed the market's choices.

He was born in Tsinghua University, and he is very good at modern economics. He knows that this reason does not conform to the principles of modern economics, and there must be other reasons.

He thought it was because of the poor ability of the marketing staff in Are Are You Hungry, and couldn't analyze the essence, so he decided to find the answer from the Ali Group's staff department.

But before that, he's back to competing in the food delivery market.

Are you hungry?

No matter what the reason is, Ali must win the competition in the food delivery market.

He spent this year's 100 billion budget, and the remaining 40 billion will be spent on marketing in the second half of the month, and then he will apply for 100 billion from the group.

For Ali, who owns the three major treasuries of Taobao, Tmall, and Alipay, 100 billion, 200 billion, or even 300 billion is trivial, and it will not hurt the bones at all.

If you can't win the market by throwing money, it means that you haven't spent enough money, so keep throwing money.

Hit until the opponent admits defeat.

This kind of law that throws money and intensifies market competition is feasible!

No one in the world is richer than Ali, and Ali will win.

Thinking of this, Wang Lei cheered up to implement the plan of spending 40 billion yuan in half a month, subsidizing merchants, subsidizing riders, Dafa coupons, and continuing to promote exclusive platforms. In addition to these, he also had a small thought in his heart-seeking old classmates for support For local merchants, create the name of a key merchant, and spend tens of millions so that no one will find out.

So decided.

Although he is a partner of Ali and earns a lot, no one in this world thinks too much money.

Yes.

Unlike Wang Lei who restarted his fighting spirit, Li Shun, the president of Meituan Waimai, also read the market analysis report, and he was listless and very discouraged.

How to fight this?
Two lunatics.

Quanmin Technology Lin Shu is a lunatic, unreasonably offering a one-cent takeaway discount for two months.

There is no precedent for this in the commercial field, and it is simply childish willful behavior.

Although it is willful, the result is that it does not give others a way out.

Under this market competition law, other companies did not offer similar big discounts in a targeted manner. After two months, he was the only one left in the market.

Two months is enough to develop a person's habit of using it.

The whole people made this ruthless move, faced with the decision of whether to follow up or not to follow up, did you choose to follow up and spend more money, which is more willful than the whole people's takeaway.

Another madman.

Meituan is not a lunatic, but a normal person.

But the environment has changed. In the same arena, if you want not to be knocked out in the competition between two lunatics, you have to become a lunatic.

Ali’s financing conditions are unacceptable, so he can only sell part of the company’s equity to find Tengxu’s rescue. Based on financial business considerations, Tengxu Group increased its bargaining chips to enter the takeaway.

He was given 70 billion disposable funds, and the original plan was a half-year budget.

But those two lunatics are like red-eyed gamblers, betting on their wives and daughters as chips in order to turn the tables.

Regardless.

Spending money to grab market share, the more you spend, the harder you smash, without considering the rewards at all, it's purely whimsical.

At least 50 billion was spent in one and a half months, and the two together cost tens of billions, [-] million in a day.

Under such circumstances, the market share of Meituan keeps decreasing. If he wants to survive, his 70 billion funds can only be used as an emergency.

After spending 40 billion yuan in a month, I only spent more than half of the funds in a month. How will I live in the next five months?

However, thinking that Meituan can't lose, if it loses the takeaway market, Meituan will have nothing left, so he has to talk to Teng Xufang.

The result of the talks was to give another 70 billion, not more.

If the market share of Meituan still cannot increase in the second half of the year, they will have to consider whether to continue to support Meituan.

For Tengxu, food delivery is an important part of the mobile payment business, but it is not the only way. They also have WeChat.

Tengxu's core business is investment, games and social networking. Internet finance does not have to be mastered in the field, and failure will not have a substantial impact.

The newly added 70 billion Meituan has to plan and spend carefully, to be effective, to give satisfactory answers and to be responsible to shareholders.

What can Li Shun do, his arms can't twist his thighs, so he can only do what Teng Xu and the others say.

However, Are you hungry announced yesterday that after the [-] billion subsidy in summer, there will be a new round of [-] billion subsidy to comprehensively improve all aspects of the food delivery business of Are you hungry, and upgrade the industry, including market launch, logistics system upgrade, and merchant service system upgrade. There are many, forming a new ecology of food delivery that is efficient, sound and has excellent user experience.

The content is cumbersome, simple to understand Are you hungry and plan to invest another tens of billions in the food delivery industry.

The actual 200 billion was spent, and the competition intensified again.

Also, it is now mid-August, and the 'summer vacation one penny' takeaway war is coming to an end, and Quanmin Takeaway has not announced any follow-up marketing activities.

However, Li Shun understood that Lin Shu was definitely a complete lunatic and could not be treated with common sense.

Lin Shu is so quiet now, there must be some earth-shattering event brewing again.

Meituan Waimai needs to reserve enough strength to deal with it.

This kind of competitor is too strong and Meituan cannot lose.

Meituan only has 140 billion, and it still spends 40 billion. There is only 100 billion left. How to spend it?
Li Shun faced a huge problem.

I couldn't sleep well for a few days, and I was so worried that I lost a lot of hair, which was already thin and thinner.

There is really no way out, so I can only continue to talk to Tengxu's senior management, and I need to give more money.

The result is still unsatisfactory. Tengxu’s profitability is not as high as Ali’s, with a lot of cash flow and many places to use.

140 billion has been invested at the top level, no more investment will be given, and the return is too little.

Looking for investment did not result in good results, but Teng Xu's trip gave him another way to find another way to deal with it.

When talking with Tengxu's senior management about why the same money was spent, the market share of the national takeaway is higher. There must be something special about the national takeaway.

If you really can't analyze the essential reason, you can copy it from the original.

Yes, he can copy the whole people.

Meituan does what Quanmin Takeaway does, and it completely copies it.

Just copying the marketing plan is not enough, you need to copy the model, platform design, service attitude, and everything that can be copied.

Li Shun has found a way, and they will do whatever Quanmin Takeaway does.

In doing so, at least it will not fall behind the national takeaway too much.

Great, it really is Tengxu Company.

Excellent copying skills.

On the other hand, from the middle of August to the end of August, in two months, the three parties of Quanmin Takeaway, Meituan Takeaway, and Hungry?

Lin Shuben saw the market analysis report in the middle of the year, and the national food delivery accounted for 25% of the market share in 52 large population and economic cities, and the total market share reached 24.1%. There are many good news from all parties, and the overall development trend is very close to the first.

However, in the second half of the month, are you hungry? The flood discharge of the reservoir is like crazy money, and 40 billion is thrown in half a month. Not only can you eat takeaway for 1 cent, but you can also get Taobao coupons. The market share of the two sides has increased rapidly, surpassing the US The group reached 36.5%.

Now the total market share is 36.5% for Are you hungry, 31.4% for Quanmin, and 26.1% for Meituan.

The situation was deadlocked.

All the takeaways can do everything, and the performance is perfect. Can't hold back Hungry? He opened the money printing machine to deliver money on the street. It's normal that he didn't win. Hungry? Lin Shu is not discouraged.

He knew early on that this was a long war.

If you want to determine victory in the short term, you can only do so when the opponent underestimates the enemy.

Now the other party has paid attention to it, has seen the prospect of takeaway, and invested a lot of resources.

I can only compare with anyone else.

After the two-month 'All You Can Eat for One Penny Campaign' ended, Lin Shu didn't stop this heavenly subsidy method.

Changed his eyebrows and announced on the Douyin live broadcast that "it's not easy for young people. In order to encourage young people, you can eat food for a penny and continue for five months. From September 9st to January 1st, the same day Receive a coupon of 1-31, and invest a total of 30 billion', and said sincerely, 'Young people are under a lot of pressure, and consumption in big cities is high. Here, Quanmin Technology treats you to lunch. You can save money and go out for a walk. See Look at the beautiful world, live a good life, fall in love more, get married early, life is beautiful and long, come on'.

Those who are not false, also throw money.

There is a lot of money, but Lin Shu knows that it is only 500 billion. Teng Xu is not sure if he will follow, but Ali will definitely follow.

It may be even more against the sky than the whole people, and it is also possible that 700 billion will be thrown into it.

Therefore, Lin Shu didn't intend to win the market by spending this little money, but only planned to consume the other party, first exhausting one, and then exhausting the other until they couldn't bear the pressure from shareholders, so they chose to leave the market voluntarily.

Lin Shu has a more profound grasp of the industry and capital after being a dominant player in the shopping mall for more than half a year.

Capital is profit-seeking, large companies are intertwined, and interests are not monolithic.

Now Ali and Tengxu must end up supporting their respective food delivery platforms based on the mobile payment domain war, and it is not a problem to invest tens of billions in the early stage.

And if the money is more than a few tens of billions, and reaches the level of hundreds of billions, they can't help it.

Unlike the dictatorship of the whole people, large listed groups such as Ali and Tengxu basically have the board of directors decide the group's major decisions, and they must be responsible for shareholders.

Even the founders Ma Yun and Ma Huateng cannot act arbitrarily against the company. Once there is a decision that is not in the interests of shareholders, the board of directors may force them to step down.

Stop unprofitable folly that hurts shareholders.

Now, in order to compete with Quanmin Technology in the food delivery market, Ali can invest 700 billion yuan, and shareholders will have no objections.

Next year, Lin Shu will come up with another 1000-[-] billion subsidy law. If they still follow suit, let alone shareholders, the capital market will not agree.

Shareholders don't look at the value of the food delivery industry. They only see that Ali's investment of hundreds of billions has not monopolized the market and brought much effect.

Immediately, Ali is not good-looking, and the stock is sold, and the stock price drops, which is a shock and misfortune for Ali.

Shareholders will make trouble again, and it is even less likely that they dare to continue to follow up and burn money.

Therefore, in this war, the later the time, the better for the whole people, and the more intense the competition, the greater the chance of winning for the whole people.

The whole people will definitely win in the end.

He was Lin Shu, and he had predicted so long ago.

As for now, it is natural to make the storm more violent!
He was Lin Shu, and he got what he said.

(End of this chapter)