Local life, then make waves

The calm surface of the local living track is constantly being broken. For example, the recent Douyin and Hungry announcement that the cooperation has set off a heated discussion in the industry. So in the face of Douyin and hungry, what measures can other players make in this local life service? Why is the prospect of local life services be seen by so many giants?

Since the merger of Meituan and Public Comment in 2015, local life has been in a "no war" situation for a long time. With Douyin and hungry hands, the calm state was broken, and the local life was about to usher in a new exploration.

In fact, the cakes of the local life are also jealous of JD.com and Tencent. The giant is waiting for a new victor in the local life?

In the environment of "cost reduction and efficiency" on the Internet, how long will it take to spend a lot of manpower and material resources in the battle of local life?

1. Douyin, are you hungry?

On August 19, Hungry and Douyin announced "reaching cooperation" almost at the same time.

As soon as the news came out, it quickly caused heated discussion in the circle. Many people in the industry believe that the cooperation between the two is "a strong counterattack of Meituan and even Tencent"; there are also opinions that the specific cooperation mechanism of the two parties is not clear, and it is difficult to say whether it can cooperate with tacit understanding and form effective blocking.

But almost everyone asserted that the cooperation between Douyin and Hungry is a "optimal solution" for both parties.

In some media reports, the local life was highly hoped by Douyin to become a new growth curve.

As early as September 2018, Douyin launched POI (POINT of Interest), which shows the specific geographical location in the stores in the Douyin video. This is also the traffic entrance to the life of the same city.

In July 2020, Douyin officially made a local life, and successively launched functions such as "ticket booking", "hotel reservation", group purchase and other functions. Last year, the news said In fact, there is no takeaway related business plan. "

But the rhythm of Douyin's layout of local life is accelerating.

In March of this year, byte beating launched the "Douyin Guest" independent app for the local life mobile management tools, which is also an independent local life app independently from Douyin.

In July of this year, Douyin entered the group purchase label that was available in the merchant. Users can place an order in the merchant with the label, and the merchant undertakes the freight and contacted third -party riders to provide distribution services. This service is currently launched in a small part of Chengdu, Shanghai and other cities.

At the same time, the "OKR" of Douyin's local life business is also increasing.

According to the TECH planet report, this year, the goal of bytes to beat the local living business will increase to 50 billion yuan throughout the year. At the end of last year, the target set was "30 billion yuan to fight for 40 billion".

As the other side of the cooperation, Hungry, as the second -ranking local life player, has a complete logistics performance network in the same city.

However, it is undeniable that the gap between hunger and Meituan has widen, and the market share is currently less than 30%.

Ali, who is unwilling to fall, has never given up local life, and has been frequent in the past two years.

In July 2021, Ali announced that Flying Pig, Gaode, and Hungry Model formed a "flying high" living service sector, which was considered by the outside world to "make up flow and supplement the scene". During this period, from Wang Lei and Li Yonghe to Yu Yongfu, three CEOs were replaced by local life.

Under the leadership of Yu Yongfu, the local life business has formulated the "Four horizontal and Four vertical" strategies, designing the "541" formation, and reducing word -of -mouth business. It said in the previous internal letter that this was a long -lasting battle of "not fierce but cruel", and it was necessary to prepare for long -term battle.

In June of this year, Hungry started to work hard and held a ten -day free event.

According to statistics, it is hungry for more than 956,000 orders for orders, and there are as many as more than 300,000 merchants.

During the event, the sales of merchants on the platform increased significantly. Shen Yi, the person in charge of the operation of the hungry tea beverage operation, publicly stated that in the free -term free activity involving milk tea and juice, many juice tea brand merchants' orders on the same day have doubled the previous week, up to three times the highest growth. After the consumption peak of the event, the order volume has increased significantly for many days in a row.

Both big players have the determination to die and complement each other. This time, there is a tacit understanding of one shot.

Regarding this cooperation, Zhang Nan, CEO of Douyin Group, said that he looks forward to and hungry to help the living service industry explore video operations to help small and medium businesses better develop. In the future, I also hope that through the Douyin Open Platform, we can create greater value for users with more partners.

Yu Yongfu, CEO of Ali Living Service Company, said that the cooperation with Douyin is a new beginning. I believe that this cooperation will further enhance the digital operation capabilities of merchants, bring new experiences for consumers, and upgrade and develop the entire industry. Bring new space.

Second, the giant snatch battle

The giants' snatch battles in local life have intensified, and the scope of snatch has already extended from takeaway disputes to retail.

Faced with the positive challenges launched by Douyin and Hungry, Meituan will inevitably wait to wait.

On August 24th, according to the "Eleven Finance" reports, many people in Meituan recently revealed that Meituan's e -commerce business is currently merged with Meituan's preferred business department. The relevant person in charge of Meituan responded to this.

Industry insiders said that Meituan preferably and Meituan e -commerce covered the COSCO e -commerce shopping scene of the next day and the multi -dayda. Under the strategic layout of Meituan's "retail+technology", this integration from business form and consumer scenarios, this integration It is an inevitable choice, and it is also the way to maximize resources and benefits. According to the first quarter financial report released by Meituan, Meituan achieved revenue of 46.27 billion yuan, an increase of 25%year -on -year, higher than the market expectations of 45.299 billion yuan. Under the non -international report standards, the adjustment of the adjustment of the loss was 3.59 billion yuan, a narrowing of 7.8%year -on -year.

From the first profit of 2020 to the loss of 2021 and 2022, it mainly stems from the continuous losses of new businesses, including community e -commerce. In the fourth quarter of 2021, the operating loss was 10.2 billion yuan, and the annual operating loss reached 38.4 billion yuan.

Meituan mentioned in the 2021 financial report that the company's strategy has been upgraded from "Food+Platform" to "retail+technology", and based on this strategic adjustment to increase investment in new businesses. Meituan said that retail business has important strategic value for the company and is a key investment area. In the fourth quarter of 2020, Meituan quickly promoted community e -commerce Meituan in more than 2,000 cities and counties.

"Instant retail" has become another focus of Meituan.

As of June 2022, the Merchant Merchant Store of the Meituan Lightning Warehouse project has covered more than 100 cities across the country. The merger of the e -commerce business and Meituan's preferred business department also highlighted Meituan's determination to retail immediately.

In fact, Douyin is not the first short video platform to join the local life battle.

In December last year, Kuaishou and Meituan announced their strategic cooperation. Meituan will launch Meituan Mini Program on the Kuaishou Open Platform to provide a set of closed -loop services such as package, vouchers, booking and other products for Meridian merchants, online transactions and after -sales service. Merchant and order.

In addition to Meituan, Ali, and bytes, there are other giants in the local life.

Two days ago, while Dada Group released the second quarter financial report, the founder, chairman of the board of directors and CEO of Dada Group resigned, and the chairman of the board of directors was taken over by the CEO of Jingdong Retail Singeli. Jian Sheng is the president of Dada Group to comprehensively preside over daily work.

This personnel change is also interpreted by the outside world as "further showing JD's determination to retail in the same city."

In March of last year, JD.com and Dada Group jointly announced that JD.com has reached a shares for a share purchase agreement through its subsidiary and Dada. According to the agreement, JD.com will invest $ 800 million to purchase Dada's newly issued ordinary shares. After the transaction is completed, JD.com will hold about 51%of the existing shares in JD.com.

In March of this year, according to the new financial report, a new round of organizational structure adjustment was conducted within the new statement of JD.com, one of which was to establish the same city business department. It is reported that the business department of JD.com focuses on home furnishings, housekeeping, local life and other sectors.

Not long ago, JD.com retail CEO Singlijun confirmed that he would enter the takeaway business in an interview with the media. He said that JD.com has considered entering the takeaway business. "As for when to start, it depends on our ability and when can we form a talent team."

On the other side, the social giant Tencent also tried to enter the local life in the video number.

In June of this year, Tencent launched a local video help plan to provide merchants with two major gameplays such as live video broadcast live broadcast and mutual selection of experts. At the financial report in the second quarter of this year, Tencent's senior management revealed that it will invest more resources to the video number commercialization and e -commerce business to help them land.

3. Where is the future of local life?

Local life is a 10 trillion -level market.

According to iResearch data, the size of China's local life service market in 2020 is 1.95 trillion yuan. By 2025, this number will increase to 35.3 trillion yuan, and the overall online penetration rate of local life will only be 10%.

At present, the big players are still competing for local life. There is no new business model. Last year, the progress of the cooperation between Kuaishou and Meituan only stayed in the store group purchase business.

Obviously, if you want to continuously tap the potential of local life, it means that you need to explore with new models.

In the announcement of Douyin and Hungry, both parties mentioned that they will work together to explore the upgrade of new scenes of local life services and bring a new local life experience of "watching, point, and Da" in the era of videoization.

This is also regarded as a new breakthrough point by many people.

Different from the traditional online grass-group purchase order-offline nuclear sales links, in addition to the needs of high-quality content to match the needs of users to enter the order, " Products and efficient logistics distribution support.

Can Douyin and hungry be trusted and cooperated with each other? This will attract continuous attention in the industry.

However, although there is a "trillion trillion" future, it is not easy to want to live a nugget in the local area.

According to the 2021 financial report released by Meituan, the annual revenue was 179.1 billion yuan, an increase of 56%year -on -year; the loss was 23.5 billion yuan during the period. Among them, the cost of the Meituan rider reached 68.2 billion yuan in 2021, an increase of 18.9 billion yuan on the basis of the same period of 2020.

This situation improved in 2022.According to the latest 2022 financial report released, Meituan's core local commercial branch revenue increased from 33.7 billion yuan in the second quarter of 2021 to 36.8 billion yuan in the same period in 2022.At the moment of the industry's cost reduction and efficiency, a carefully calculated local life war is about to start.

Author: Lin Xiaobai

Source public account: whip beef (ID: biancews8); accurate, fast, and deep technology media

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