note: hunting cloud in 2014 years, take-away O2O degree of market competition is fierce, hungry yao, Meituan, baidu, and home food will many of the players, such as the outbreak of market and future development will abide by what kind of logic? What is the most important problems haven’t solve? Home food, President and founder of corleone recently had an interview with tencent technology and discuss the development of home food will path as well as his personal understanding of the food market.
the following for tencent technology interview summary:
expands to fast food restaurants to choose from a large restaurant
10 years food will start when I get home, no one talk O2O, these are all things later. At that time I just feel (delivery) it has a lot of demand, and I can see, the future may be able to platform.
when do take-away is lihua fast food in Beijing is large, but the market was still in Beijing is more traditional (tencent technology (note: in 2007, after several business, corleone to professional managers in family firms joining traditional lihua fast food, 10 years will leave lihua found home food). When “hungry?” also just started soon, Meituan has just started to do deals, the whole market is not like now so a market attract the attention of people.
we complete coverage of the whole of Beijing, about a year and a half of the time. From the beginning, we don’t want to do is very low end of the restaurant. A lack of formal, there are risks; The second didn’t see that there were too many future will monetization opportunities. So we came up a chain, or relatively well-known restaurants.
but since last year, we changed the standard of the restaurant. Originally we of fast food is actually relatively cautious, we hope to bring food are more distinctive. But from last year, we feel that the famous brand of fast food chains, also need for a lot of our customers, so we are now more and more involved in some fast food chains, like yoshino, jia and swallow.
face competition in the market with differentiated
now market actually is a capital of heat is very high, but you said your service needs good be full? Not yet, real good service ability is very weak, no more than the price war, but it’s good is the service presented to you, if not, I think the market is in a more brutal competition stage.
for price, we always to do very little. We will have for new users, for example, welcome a little, but we also never do large subsidies. We think in this range of service life, in fact, the most valuable is fixed in a population with spending power, this group have a certain sensitivity to the price, but they sell it, get first or service guarantee, such as the speed of delivery.
so I think we still want to be able to have differentiation to do it. And is not to say that as if everyone was less than money, because we no matter how impossible than money spent ali or tencent.
group purchase and delivery of logic is not the same as
expansion speed is always important, but how to see your analysis of the market. I actually for their blind, is not a special identity, because if we carefully to see, a bulk of logic and take-away logic is reversed, is not the same. A lot of people will see the comments on when doing the coupon, did not go quickly rushed to the third line. But the takeaway and group purchase, don’t can go to this analogy. These two business actually driving force is not the same.
the bank is a driving force of the low price, so the more low price to three or four line city more attractive. For three or four line city consumption patterns. Don’t like Beijing, Shanghai, there has been a pursuit is convenient, the pursuit of service on the stability of this group of people. In three or four line city can save 20 dollars is king, so the regiment to account for these cities first, won the driving force, let the city get the order.
delivery what is the driving force, is a way of life. You need to have a heavy pressure of life, and then the couple live independently, rather than on a live, with their parents also need to be on the road traffic for a long time every day, I don’t want to cook a meal after work, satisfy these conditions, your delivery demand is strong. If we go to the United States or Europe, it really healthy take-away business, are all around the city. Because in this metropolis, young people don’t cook, everybody wants to spend time on the various value of things. But if we rush to three or four line city, you can imagine, May 3, 4 minutes walk home after work, next to a small market, may also in a live with their parents may work at half past five. In this case, three or four line city without the power of the capital, in fact, the core driving force is very weak.
for the student market, if it is a big platform, take delivery as a flank of the battlefield, to increase the viscosity of the core group purchase crowd, I agree with that. Anyway, I have other business with these students do, now I get take-out stick him, let them more interaction with me, the more new students came in, to make money in other places, I think this model sounds reasonable. But if you’re a take-out players, I think students’ appeal is relatively limited market, because they are very sensitive to price.
so we actually feel or hope in markets outside the campus to meet the needs of more, rather than into the campus market. Because it is not the same as the situation of the foreign and Chinese, the Chinese dining room to have state subsidies, without the power of the capital, the cheapest is the canteen, so I believe that once the subsidies were removed, there is no real demand so much.
(tencent technology note: hungry? Also, over the first time to gradually stop the massive subsidies, founder Kang Jia described this process as “moisture”, after large-scale subsidized student take-away market, hungry also thinks, the real demand is discounted.)
light patterns and heavy pattern will eventually merge
from the long run I think delivery market will merge, we will also provide some light (services), such as the own logistics, restaurant if logistics capability are ok, can let dining-room to send. “Hungry” now also in providing logistics service, so I think it is the final people to do it may be a similar pattern, but their earliest genes, can also affect the positioning of its brand.
we hope to serve to win, so everyone will think of home food, will say it all together with good restaurant, food assured, guarantee the service itself, it is of a service. We hope it is a location.
second, on the standard in the restaurant, will eventually relative convergence, who all hope to cooperate with famous good restaurant, of course we have our own set of service standards and system, we will do strength investigation for restaurant. With delivery platform several times this year’s food safety problem was exposed, I believe that as we walk these will gradually turn to our plan.
but this restaurant is not mainly differentiation, because every restaurant want to have more a selling isn’t a bad thing for me. Special and big brands such as baidu and taobao, so no one can speak real monopoly restaurant, or sign a sole. I think the real difference is in building the core services, who is in the consumer’s mentality to establish a solid image. Group is something we face for the time is precious, hope to release the pressure of their own lives, if it is really sensitive left to five dollars, such customer I probably don’t think he would be my user.
scale up after the key is to ensure that service quality
now actually be service O2O a lot. I think the biggest difficulty say how after you expand the scale, you can guarantee the service quality is stable, at least not ascending at least don’t fall. It is very difficult. O2O and traditional B2C electrical business particularly large difference in this, because more people are in participation, not by machine. Or the person directly in the first line service, and electricity, they are more warehouse, storage, packaging, these things. So life service is from the standardized to the personalized O2O, said lead to qc is actually a big deal. It also involves the food logistics, and the traditional B2C logistics difference is quite big, our sensitivity is much higher than jingdong logistics time, jingdong rapidly up to 3 hours, however, had been in the field of electricity. But if you’re a timeout on the order in the 15 minutes or 20 minutes, the user may have been very angry, so how can you be so sensitive time, also have a requirement on temperature, at the same time also for some special food processing requirements, its degree of service is also much higher than the traditional B2C and complexity.
in service quality, I think this is the source of home life, but IT is a comprehensive ability, IT is not a point what do you do, he involves the personnel recruitment, training, to your operation support system, to the whole of the IT system, IT is a comprehensive ability. We still hope to form the ability of a true core services, because this is everyone speak to do a heavy vertical O2O, I say severe vertical means, say you in your area of the vertical chain, you can possess an indispensable a position, I don’t like the homogeneity competition in particular.
O2O around the core cities
I think the whole O2O market, will revolve around the core city. Why is that? Today we talk about O2O are to provide convenience, convenience is better than before, but its requirement is that user need to value the convenience.
so O2O market, really worth to do, not as big as imagination, or that sentence driven lifestyle. So O2O this market, may now have a lot of rushed in and burn, burn a lot of money, but may be burned on the beach, the market may have absolutely nothing in. Even to go by the United States, the United States listed on delivery platform opentable, prospectus said 600 city service, signing the restaurant only 3 m, 3 m match to an average of 600 cities, a city with only 50 restaurants. So you’ll know it is a most orders focused on big cities, the first four to five other little cities are small. If the United States such a such a developed market, for the high demand for convenience is everyone is so, I think in the Chinese market in the lower-tier cities to see, the new lifestyle driven service, remove the subsidies are not so attractive.
restaurant O2O the hardest problems haven’t solve
I think O2O difficulty bigger actually mean in eat-in part, in fact, no one has found an ideal solution to this part of the solution to the store. Now there are some doing, such as remote mobile phone order, to the shop to order, but I don’t think this is a real demand, demand is very weak. And to do automatic calling distributor, and so on, this is a small point, these things I don’t think it can truly intervene in, form the real demand.
and catering this market, the original merchants their IT ability is too weak, cause they think real digital and interconnection, actually there is a period of time, this paragraph of time is very painful, for example, we want to go to restaurant and docking, a lot of restaurants may also have no what can and your butt. Important is to find a point, let you of the traditional real partners to make money first, so that he didn’t have the power to continue to go down with you.
build open logistics system
we have business cooperation and investor jingdong. Actually like jingdong before a launch of jingdong hurry, some of us to do, because, after all, for last mile delivery this is jingdong something in the experiment. But his own logistics system is not so convenient, we can help him to do this also. Actually get more like our business, as we go to a restaurant to get something for go out to send, so pretty. But just say hurry for jingdong, today or a try, do not become a big scale. We will in the future hand in hand to cooperate on more business level.
in the future we may be an open platform for the delivery. Imagination is very big, if we sign a flower shop in Beijing each region, we can send a flower, assuming that there is no limit to the licence I sign a drug, I probably can send medicine, in fact, there are a lot of things to do, and I think in the future, the whole ecological local merchants, could be because of the changes in the last mile, I can help more stretched away business services directly, it can do a lot actually.