Ding Dong buy vegetables for the first time to achieve stage profit, pre-position mode and "commodity power" strategy has been verified

Tianfeng Securities believes that benefiting from the rapid growth of the instant retail industry, the pre-position model has broad space for the company. As a leader in the warehouse industry, the company occupies an important position in the industry based on strong organizational capabilities and digital capabilities. In the future, with the optimization of product structure and customer structure, the increase of the proportion of self-owned products such as prepared dishes and the improvement of operational efficiency, the improvement trend of profitability is obvious.

02 Focus on fresh and food track, "commodity power" has become a new driving force for the company's development

Just last year, Ding Dong Maicai clarified the strategy of "commodity power is the first driving force", and constantly polished market insight and research and development capabilities. Now Ding Dong Maicai is not only a leading fresh e-commerce enterprise, but also a food enterprise with research and development and innovation capabilities.

Continuously delving into the source of ingredients and maintaining the rapid response of the supply chain have brought more goods to the platform that can occupy the minds of users. In this quarter, Ding Dong's sales of private brand products accounted for 17.5%, most of which were developed and processed by Ding Dong Food factory. In addition, among the products sold by Ding Dong Shopping in this quarter, there were more than 200 SKUs with market differentiation.

The fast and solid supply chain foundation also played an important role in ensuring supply during the fight against the epidemic in Shanghai and other cities. During the epidemic, users' large demand for livelihood goods has brought a great test to Ding Dong Buy food, and has also brought more people's recognition. After the epidemic, Ding Dong bought Food quickly responded and continued to optimize the logistics and warehousing system to bring more stable and better user experience.

From the beginning to the end, Ding Dong Shopping focuses on the core track of fresh and food, and helps users "eat better" through infrastructure construction and other actions. In addition, Ding Dong Maicai also expects that compared with the first quarter before the epidemic, the operating efficiency will continue to improve in the third quarter, and the profit margin will also be significantly optimized.

According to the management of Ding Dong Buy Food, the company mainly improves its commodity power from five aspects:

First, resolutely improve the quality of goods. For example, in order to avoid the problem of excessive pesticide residues in the cultivation of leeks and scallions, we ran through more than 10 provinces in China, and finally established a base of leeks and scallions with reliable quality through D-GAP and order planting.

When developing food, the company has been advocating clean labels. When you buy food, pay attention to the list of ingredients on the package of goods, there are many chemicals, flavorings, preservatives, etc., sometimes densely written on a page, and Ding dong buy food advocates: unless necessary, rarely add. And, we continue to improve the technology to achieve this clean label. In this way, sometimes the cost increases, and sometimes the product without those additives tastes rich, but we hold the bottom line of health for consumers.

Second, the company continues to increase its own research and development and production, more development of Ding dong characteristic products. Ding Dong Maicai not only has its own brand, but also has a high proportion of its own research and development and production of products. Ding Dong Maicai is already a food enterprise with research and development and innovation capabilities. In Q2, Dingdong featured 217 SKUs.

For example, the 1972 farm craft beer jointly developed by Ding Dong and Qiandao Lake Brewery takes no more than 24 hours from the factory to the user's home, ensuring the delicate taste and extreme freshness of the beer. For another example, by transforming and applying the patented technology of Jiangnan University, the company has exclusively developed the control-control-carximei enzyme beverage, which successfully realizes the fusion and sublimation of California prume, citrus fiber, probiotic fruit and vegetable enzyme, etc., and achieves a shelf life of 45 days in the case of zero preservatives, becoming a delicious choice for young users to maintain intestinal health and body lightness.

With the advantages of consumption scene and research and development and production, Ding Dong prepared dish plate continues to make further progress, in view of the emerging consumer trend, one after another launched the "air fryer food" series and "vegetarian prepared dish" series, which not only further enriched the consumption scene and user experience of Ding Dong prepared dish, but also led the research and development direction of prepared dish health. Consolidated Ding Dong's leading position in the prepared dish industry.