Home food will Sunhao: The logic of group purchase and takeaway is different

Absrtact: In the past 2014, the fierce level of O2O market was staggering. Are you hungry? And the United States to sell out in the three or four-line city of the positive competition, sporadic incidents of vicious fights can be a glimpse of the severity of competition. The entry of the capital party and the originating in the fight

In the past 2014, the intensity of the O2O market was staggering. Are you hungry? And the United States to sell out in the three or four-line city of the positive competition, sporadic incidents of vicious fights can be a glimpse of the severity of competition. Capital side of the entry, but also originated in the taxi software subsidy war, copied to the takeaway market.

And Home Gourmet will, a and hungry what is the basic same time to start the takeaway team, but in 2014 the entire market by leaps and bounds, maintaining the original low-key posture.

Sunhao, founder and president of the Gourmet Meeting home

From the order to see, daily single amount of "tens of thousands of single" home food will seem powerless and hungry Mody, the United States to sell out, but this only to "heavy logistics, heavy service" mode to win the team, has been in Beijing and other first-tier cities have harvested a good reputation.

Home food will founder, President Sunhao recently accepted Tencent Technology exclusive interview, details of the development of the home food will be the path and his personal understanding of the takeaway market.

The following text from Tencent Science and technology to home food will Sunhao interview minutes:

Restaurants choose to expand from big restaurants to fast food

In the 10 when the food will start, no one talked about O2O, these are the later things. At that time I just felt that there was a demand for it, and I could see that the future might be a platform.

At that time in Beijing to do the takeaway is also a big, Li Hua fast food, but the whole market in Beijing is still relatively traditional (Tencent Technology Note: 2007, in several startups, Sunhao as a professional manager to join the traditional family business, Li Hua fast food, 10 left Lihua to start home food will be). When "Hungry" also just started soon, the United States Regiment has just begun to do group buying, the whole market is not like now so attract attention to a market.

We finished covering the whole of Beijing with about 1.5 of the time. From the start, we don't want to be a low-end restaurant. One is because of the informal, there is a risk; the second does not see that there are too many opportunities for monetization in the future. So we come up with a chain, or some relatively well-known restaurants.

But since last year, we have also changed the standards of restaurants. In fact, we are relatively cautious about fast food, we hope to bring the food are more distinctive. But from last year we feel that the chain of well-known brands of fast food, for many of our consumers is also needed, so we are now more and more involved in a number of chain brands of fast food, including like Yoshinoya, Jia and a product.

Using differentiation to face market competition

Today's market is in fact a very high capital, but you say that the service demand is very good to be full of it? Not yet, the real good service ability is very scarce, we are nothing but a price war, but is not very good to the service presented to everyone, as if not, I think this market in fact in a relatively rough competition stage.

We always do very little to the price war. We may have a little welcome action for new users, but we never get big subsidies. We think that in the life service of this interval, in fact, the most valuable is fixed in the consumption of the crowd, the crowd has a certain degree of sensitivity to the price, but they sell this matter, get first or service guarantee, such as the speed of distribution.

So I think we still want to be able to do it differently. Instead of saying that it seems that everyone is less than money, because we can not burn Ali or Tencent in any way.

The logic of group buying and takeout is different.

The speed of expansion is always important, but it depends on how you analyze the market. I actually for blind horse enclosure, is not a special identity, because if we look carefully, the logic of group buying and the logic of the takeaway is reversed, is not the same. Many people will see the comments in the group, did not quickly rushed to the third. But take-away and group buying, can not so analogy. The two businesses are actually driving differently.

The driving force for group buying is low prices, so the more attractive it is to go to the three or four-line city. Because the consumption pattern of the three or four-line city is different. Unlike Beijing, Shanghai, there has been the pursuit of convenience, the pursuit of stability of the group of people. In the three or four-line city can save 20 dollars is the kingly way, so the United States to occupy the city first, get the driving force, let those cities get orders.

What is the driving force of takeout, is the way of life. You need to have a heavier life pressure, and then the small husband and wife living alone, rather than living with their parents, but also the daily traffic on the road for a long time, the next class do not want to cook, meet these conditions, your demand for takeout is strong. If we go to the United States or Europe, it's really healthy takeaway business around the metropolis. Because in such large cities, young people do not cook, everyone wants to spend time on a variety of value-added things. But if we go to the three or four-line city, you can imagine that the next 3 or 4 minutes walk home, next to the small market, may still live with their parents, maybe 5:30 off. In this case, the three or four-line city without the power of capital, in fact, the core driving force is very weak.

And for the student market, if it is a big platform, take takeout as a flank of the battlefield, to increase the core group buying crowd viscosity, then I agree. Anyway, I have other business to do with these students, and now I take the takeaway to stick him, let them more interaction with me, more new students in the circle, and then make money elsewhere, I think this model sounds reasonable. But if you're a takeaway, I think the student market is a relatively limited attraction because they are very sensitive to price.

Therefore, we actually think that the market outside the campus to meet more demand, rather than venture into the campus market. Because in fact, China and foreign situation is not the same, China's canteen has state subsidies, in the absence of capital, in fact, the canteen is the cheapest, so I believe that once the subsidy is removed, the real demand is not so much.

(Tencent Science and Technology Note: Hungry? Also in the last period of time gradually stopped large-scale subsidy activities, founder Kangjia described the process as "squeeze water", in large-scale subsidy to students outside the market, hungry do not think that the real needs of the discount. ）

Light mode and heavy mode will eventually merge

From the long-term view I think the takeaway market will be integrated, we will also provide some (light services), such as non-owned logistics, restaurant if the logistics capacity is OK, you can let the restaurant to send. "Hungry" now is also providing logistics services, so I think in the end, we may be a similar model, but the earliest genes, but also affect its brand positioning.

We hope to win the service, let everyone think of home food will, it will say that it is with good restaurants together, food is guaranteed, the service itself is guaranteed, is a very reliable service. We want to be such a positioning.

Secondly, in the restaurant in this standard, the final will also be relative convergence, who hope and well-known good restaurant cooperation, we certainly have our own set of service standards and systems, we will do the strength of the restaurant survey. With several food safety issues being exposed this year, I believe that our peers, like us, will gradually turn to our solutions.

But the restaurant is not the main embodiment of the difference, because every restaurant will want to have more than one to help me sell is not a bad thing. In particular, Baidu, Taobao such a big brand, so no one can say that the real Monopoly restaurant, or signed exclusive. I think the real difference is to build the core of the service sector, that is, who can really in the consumer's psychological side to establish a reliable image. We are faced with a group of people who are more valuable to time, hope to release their life pressure, if really sensitive to 5 yuan to go, such a customer I may not think he will become my user.

The key to the scale is to ensure the quality of service

Now actually do life service O2O a lot. I think the biggest difficulty is that after you expand the scale, you can also ensure that the quality of service is at least stable, do not say that the promotion at least do not fall. It's really hard. The big difference between the O2O and the traditional business operators is this, because more people are involved than machines. Or people go directly in the front-line services, and the electricity quotient, they are more warehouses, warehousing, packaging these things. Therefore, the life service O2O is from standardization to personalization, which leads to the fact that quality control is a big event.

This is also involved in food logistics, this and the traditional business logistics difference is quite large, our logistics time sensitivity is far higher than the Beijing-east, Beijing-East rapid up to 3 hours, in the field of electricity has been appalling. But in the field of selling out, if you timeout 15 minutes or 20 minutes, the user may have been very angry, so how can you do so time sensitive, but also on the temperature requirements, but also some special treatment of food requirements, its service and complexity is actually much higher than the traditional consumer.

In terms of service quality, I think this is the cost of home vitality, but this is actually a comprehensive ability, it is not a certain point on how you do it, he involves the recruitment of personnel to training, to your operational support system, to the entire IT system, this is a comprehensive capacity. We still want to form a true core service capability, because that's what everybody says O2O going to do a heavy vertical, I mean the heavy vertical means that you are in the vertical area of your chain, you can occupy an indispensable position, I particularly dislike homogeneous competition.

O2O will revolve around the core of the city

I think the whole O2O market will be around the core city. Why? The O2O we're talking about today are all about convenience, which is better than before, but it's a requirement that users should cherish this convenience.

So O2O's market is really worth doing, not as big as you think, or as a way of life driven by that phrase. So O2O this market, there may be a lot of rush in to burn money, burn a lot of money, but may be burned on the beach, the market may not go in altogether. Even in contrast to the United States, the United States, the delivery platform OpenTable on the market, the prospectus said that 600 cities, contracted restaurants only 30,000, 30,000 of the average to 600 cities, a city only 50 restaurants. That's why you know it. In fact, most of the orders are concentrated in the first four to five big cities, the other small cities are very small. If the United States such a developed market, everyone for the convenience of places are very high, I think in the Chinese market to the two or three-line city to see, this new lifestyle-driven services, the subsidies are not so eye-catching.

The hardest problem with catering O2O is still unsolved.

I think O2O in fact more difficult than the larger is said in the part of the diet, in fact, no one has found a particularly ideal solution to this part of the store. Now there are some things to do, such as the remote phone ordering, to the shop order, but I do not think it is a real demand, the demand is very weak. There are also to do the queue machine and so on, this is a small point, these things I think can not really intervene in, the formation of this real demand.

and catering This market, the original business of their IT capacity is too weak, causing them to want real digitization and interconnection, in fact, there is still a period of time, this time is actually very painful, such as we want to go and the restaurant docking, a large restaurant may also have nothing to do with you docking. The important thing is to find a point that really lets your traditional partner earn money first so that he has the power to keep going with you.

Build an open logistics system

We also have business cooperation with the investment side. In fact, like the first section of the Beijing-east to launch a fast, there is a part of us to do, because after all, for the last kilometer of distribution, this is also the Beijing East in the experiment of some things. But his own logistics system is not so convenient, we help him to do this is also logical. In fact, the faster business is more like our business, just like we go to a restaurant to get something to go out to send, so it is quite logical. But just say hurry. For Jingdong, today is still a trial, not a large scale to do. We will work together on more business level in the future.

We may be an open distribution platform in the future. Imagine the space is actually very big, if we in Beijing each district to sign a flower shop, we can send flowers, assuming that there is no license limit I sign a drug, I may also be able to send medicine, there are many things can be done, and I think the whole of the future of the local business ecology, may be due to the last kilometer changes, I can help more businesses to extend the service directly, which can actually do a lot of things.