[Economic Observation] News of IPOs have been repeatedly reported, and fresh food e-commerce companies have "boiled out"?
Recently, fresh food e-commerce companies such as Dingdong Maicai, Daily Youxian, Meicai.com, and Dmall have reported IPO (initial public offering) news, giving the outside world the feeling that fresh food is constantly "burning money" It seems that e-commerce companies are about to "get ahead".
In 2012, a large number of fresh food e-commerce companies such as Benlai.com and SF Optoelectronics emerged. This year is also known as the first year of domestic fresh food e-commerce.
Over the past eight years, the industry has been ups and downs. There are enthusiasm for giants to enter the market, the joy of large-scale financing, but there is also the embarrassing reality of "only 1% profit" and the sadness of continuous corporate collapse.
Now, after many reshuffles, those fresh food e-commerce companies that have survived have ushered in new opportunities.
In 2020, many industries are in trouble due to the impact of the epidemic, but as a daily essential fresh product suddenly ushered in a major outbreak in the online market. The surge in demand has brought the fresh food e-commerce that was on the verge of collapse into Second Spring".
According to Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, the current time is a better time for fresh food e-commerce IPOs.
At present, the "home economy" is in an explosive stage, and fresh food e-commerce companies can obtain higher IPO valuations.
At the same time, fresh food e-commerce is still in the stage of "burning money" and needs to obtain more "ammunition" through listing and financing to help the company further develop.
Moreover, many fresh food e-commerce companies have carried out a large amount of financing in the early stage, and investors of these companies need IPOs to realize their cash.
In 2020, the data of the entire fresh food e-commerce industry is very eye-catching, coupled with the assistance of the "home economy", it is easier to obtain financing and listing and obtain high valuations.
In addition, as of now, there is no listed company in the fresh food e-commerce sector.
If you can seize the first share of fresh food e-commerce, it will help you build a solid brand during the epidemic and gain agglomeration effect.
It is worth mentioning that community group buying in second- and third-tier cities has also begun to enter first-tier cities.
On January 12, Pinduoduo's Duoduo Maicai officially entered Shanghai, opening the scene of community group buying into first-tier cities.
On January 18, Didi’s community group buying business, Orange Heart Optimal Group, officially entered Beijing, becoming the first community group buying platform to "come to Beijing to rush to the exam."
Since then, Meituan Optimal Group has also officially launched in Beijing, and the first group leader pick-up points cover Chaoyang District and Tongzhou District.
These community group buying giants are coming fiercely and will undoubtedly squeeze the living space of fresh food e-commerce, which will also accelerate the reshuffle of the original industry structure.
In the opinion of experts, fresh food e-commerce companies need funds to strengthen their supply capabilities and increase the richness and differentiation of platform products.
However, based on the development of the industry over the years, capital investment in my country's fresh food e-commerce industry tends to be rational.
According to the "2020 China Fresh Food E-commerce Industry Big Data Report" released by Qichacha, from the perspective of the financing frequency trend of fresh food e-commerce in the past 10 years, it reached a peak of 250 in 2015, and has been in a downward trend for the next few years. Fresh food e-commerce companies will have good development opportunities in 2020, but the financing frequency is only the same as in 2019, with a total of 33 cases.
Therefore, it is expected that fresh food e-commerce companies will transfer financing channels from the primary market to the secondary market.
However, many analysts pointed out that due to the low level of standardization, high attrition rate, heavy asset model, and high cold chain logistics costs, there are still many difficulties in the operation of fresh food e-commerce.
There are "wolves waiting on the sidelines" from the outside, and there are many shortcomings to be filled inside. It is not difficult to understand that fresh food e-commerce companies have repeatedly reported IPO news.
But even if the fresh food e-commerce company succeeds in IPO, it will not be easy to break through the profitability barrier in the future. There are still many "hard battles" to be fought.