Dingdong Maicai's third-quarter revenue increased but still suffered a loss-
How is the fresh food warehouse?
Our reporter Li Zhiguo
Recently, Dingdong Maicai, one of the representative companies of the pre-warehouse model, released its third-quarter financial report.
According to the financial report, Dingdongmaicai’s third-quarter revenue reached 6.19 billion yuan, an increase of 111% compared to the third quarter of last year; GMV (total merchandise transactions) was 7.02 billion yuan, a year-on-year growth rate of 107.7%.
The loss rate narrowed by 5.3 percentage points from the previous month, but it was still at a loss.
At the same time, as of the end of the third quarter, Dingdong Maicai had 1,375 front-end warehouses in 37 cities across the country, and the number of cities entered increased by 185% compared to the same period last year.
On the one hand, it continues to lose money, and on the other hand, it continues to expand.
Whether Dingdong's pre-storage model for grocery shopping can be sustained has once again become the focus of public debate.
The so-called front warehouse is a small warehouse that is 1 km to 3 km near the community, which solves the problem of the last mile of fresh food distribution, improves the timeliness of distribution, and reduces product loss.
In the pre-warehouse model, companies can quickly respond to user needs, and make products fresher and higher value-added.
Liang Changlin, founder and CEO of Dingdong Maicai, believes that the overall growth of Dingdong Maicai should be considered from the three aspects of "length × width × height".
Among them, "Length x Width" tests the ability to replicate the business; and "High" refers to the penetration rate of existing cities, the frequency of user orders, and GMV contribution. This is the basis for achieving high-quality growth as well as achieving profitability. premise.
In the past period of time, Dingdong Maicai’s regional replication and expansion capabilities have been verified. At the same time, its development in the Yangtze River Delta region is still accelerating. This shows that Dingdong Maicai is improving the penetration rate of existing cities. Play a huge potential.
In addition, Dingdong Maicai proposed a strategy centered on commodity power and supply chain in August, in an effort to improve operational efficiency and achieve high-quality development.
With the advancement of this strategy, Dingdong Maicai expects that the loss rate in the fourth quarter of this year will be further optimized.
"Dingdong Shopping's revenue and GMV growth rate both broke the 100% mark, but the'beautiful' performance was the result of continuous money-burning expansion, and the growth rate of both operating expenses and contract performance expenses also exceeded the 100% mark. From the perspective of income sources, 99% of Dingdong’s income comes from products.” said Mo Daiqing, director of the online retail department and senior analyst of the E-commerce Research Center of Net Economics.
As Dingdong Shopping brings more green, safe, and differentiated product choices, users have gradually developed the habit of “buying Dingdong’s food” from “Buying Dingdong Food”.
For Dingdong Maicai, the growth of self-owned brands and self-processed products will further promote the richness and structural optimization of Dingdong Maicai categories. Together with non-private brands, they will contribute more optimized gross profit margin and Better reputation from users.
In Mo Daiqing's view, the fresh food track is now fiercely competitive, and platforms such as "Duo Duo Mai Cai" "Tao Xian Da" "Meituan Optimal" supported by Internet companies such as Pinduoduo, Alibaba, and Meituan are competing with Dingdong Shopping. Dishes seize the market and customers.
Daily Youxian, which is similar to Dingdong Maicai, also proposed a strategy of (A+B)×N [that is, (front warehouse + smart vegetable market)×retail cloud], which expands the scope of revenue while serving consumers. Makes future sources of income more diversified.
And Dingdong Shopping has not broken the "curse" of losses, and the future is still unknown.
In response to this situation, Liang Changlin said: "We will work with more partners to develop more products that are better than others and others have, and bring more surprises to consumers."
Our reporter Li Zhiguo