Ding Dong buy food why do you insist on "do heavy"?

For example, in early 2021, Ding Dong Maicai launched pre-made dishes; By June, the penetration rate of prefabricated dishes in orders in East China had reached nearly 30%. Prefabricated dishes can obtain higher gross profit, and even became the best department of Ding Dong's grocery gross profit.

In general, the improvement of the overall efficiency of Ding Dong Shopping Q4 is mainly carried out in three major directions: improving gross profit, reducing the cost of fulfillment, and saving energy and reducing consumption at the entire company level.

In the fourth quarter, Ding Dong's grocery fulfillment rate was 32%, the lowest level in history. In 2019 and 2020, Ding Dong's billing rate reached 49.9% and 35.7%, respectively.

In terms of customer acquisition and marketing, subsidies were also reduced, and Q4's sales and marketing expense ratio was 6.5%, lower than Q3's 6.9%.

Coupled with the efforts of the whole company to promote energy conservation and emission reduction, Ding Dong bought food achieved a gross profit margin of 27.7% in the fourth quarter, which was not only much higher than 18.2% in the previous quarter, but also a record high.

With the improvement of gross profit margin and the reduction of costs, the company's loss is narrowing significantly. In the fourth quarter, Ding Dong's net loss was 1.096 billion yuan, narrowing by 12% year-on-year; It narrowed by 45.5% from Q3.

For the relationship between scale and profit, Liang Changlin believes that the overall growth of the company should be considered from the three aspects of "long x wide x high" : "long x wide" test is the replication ability of the business; "High" refers to the penetration rate, user order frequency, GMV contribution in existing cities, "high" is the basis for high-quality growth, but also the key to profitability.

How to improve "commodity power"?

On the consumer side, what is the core value of a fresh e-commerce platform?

Ding Dong buy food in the past mainly around the "three determination" to create a sense of value - quality determination, time determination, category determination, that is, focus on the needs of users to cook, invest human and material resources in multiple aspects of quality control, promised to the fastest 29 minutes to home.

Since August 2021, Ding Dong Maicai has taken commodity power as the first driving force for the company's development, not only relying on commodities to generate profits, but also relying on good commodities to retain users, relying on users' word-of-mouth communication to attract new users, and relying on users' re-purchase rate to achieve scale development.

Consumption upgrading is the premise of their belief in "commodity power". Liang Changlin mentioned in the telephone meeting that young people's consumption upgrade is the trend of The Times, they are more concerned about the "product price ratio" rather than "cost performance", especially in the matter of eating, hoping to obtain higher quality.

In 2021, Ding Dong Maicai mainly strives to enhance its commodity strength from four aspects: adjusting the commodity structure, creating a new consumption scenario, vigorously developing its own brand of goods, and increasing infrastructure construction.

It is always easier to look back than to experience, and these aspects of the work are complicated and complex.

The development of its own brand of goods is a successful attempt by Ding Dong to enhance its commodity power. Their three goals for developing private brands can be summarized in order from high to low: people have no I have, people have my excellent, if these two things can not be done, then the price is lower.

At present, Ding Dong Mai CAI has developed more than 20 self-owned brands such as Ding Dong Ace dish, Ding Dong Daman Crown, boxing shrimp, Baoluo Workshop, and good core craftsmen.

At the end of December last year, Xu Zhijian, senior vice president of commodity development of Ding Dong, revealed in an interview that at that time, the differentiation rate of vegetables, fruits and aquatic products on the Ding Dong platform was 5%-10%; The differentiation rate of fast dishes (prepared dishes) can reach 50%-60%, and the differentiation rate of standard products is 30%-40%.

Premade dishes are Ding Dong Mai's own brand products. In 2021, they began experimenting with pre-made dishes, and by the end of last year, the GMV share of pre-made dishes had reached nearly 15%.

In the recent earnings call, Ding Dong management revealed that in Q4 last year, the GMV of Ding Dong prepared dishes exceeded 900 million yuan, and the annual GMV was more than 3 billion yuan, which was 2-4 times the business of prepared dishes of the two listed companies in A-shares last year.

Private brand goods not only easy to form scale effect, and high gross profit margin.

Taking Ding Dong's own crayfish brand "boxing shrimp" listed in April last year as an example, it achieved more than 80 million yuan GMV in more than two months on the line; The pre-coupon gross margin was 33.8%, higher than the overall pre-coupon gross margin. In addition, the customer unit price of the order containing "boxing shrimp" is also much higher than the average order, up to 98.9 yuan.