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Meituan adjusts strategy to overweight B2B catering

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Core Tip: Recently, Meituan Review announced a new round of organizational upgrade, and adjusted "eating" as the strategic core again. This is the first time that Meituan has adjusted its structure after listing. On October 30, Meituan was founded
Recently, Meituan Review announced a new round of organizational upgrade, readjusting "eating" as the core of the strategy. This is the first time that Meituan has adjusted its structure after listing.
On October 30, Wang Xing, the founder and CEO of Meituan, announced in an internal letter that they would focus on Food + Platform with "eat" as the core and build a multi-level technology service platform from the demand side to the supply side in the life service industry. To this end, Meituan will set up two major business groups, namely the user platform and the store and home, and the LBS platform, while the two new businesses of the fast donkey business unit and the baby elephant business unit will continue to explore business.
In fact, Meituan made structural adjustments twice in 2017. In January of that year, the Meituan Group reorganized through the "troika" to build three major business groups: the catering ecological platform, the Meituan platform, the wine and tourism business group, the review platform, and the comprehensive business group. In the following December, Meituan adjusted its structure again, saying that it will focus on the four major LBS scenes of the store, home, travel, and travel. Based on the original hotel and tourism business group, through business integration, a new store business group and large Retail business group, and joined the travel business department.
It is not difficult to find that in this latest structural adjustment, the wine travel and travel business that used to enter the LBS scene in the United States were integrated into the store business group and the LBS platform. Instead, the two major focus on the catering industry are fast donkey and baby elephant. The business unit is placed in a prominent position. It is not difficult to see that such an organizational structure is in line with its strategic positioning of "eating" as its core. In the future, Meituan's business expansion may focus on the catering industry.
It is worth mentioning that in the internal letter, Meituan also announced that the fast donkey business department is under the responsibility of Chen Xudong to provide merchants with high-quality supply chain services. In March of this year, when Meituan appointed Chen Xudong as senior vice president of Meituan, he said that joining Chen Meitu in Meituan Reviews will help Meituan to show its advantages in catering B2B and build a more complete catering ecosystem.
In 2016, in order to combat the “hungry” supply of B2B business, Meituan launched the back-office system “quick donkey purchase” of the take-out merchants, and this business became an important support for Meituan ’s catering ecosystem. This time, "Donkey" is regarded as a separate business unit and given the task of providing high-quality supply chain services. Obviously Meituan has regarded catering B2B as a moat to consolidate its position in the catering industry in the future.
In February this year, the China Culinary Association predicted in the "2017 Interpretation of the Catering Market and the Market Prospects in 2018" report that the annual growth rate of China's catering industry in 2018 will remain at about 10%, and the overall scale will reach 4.3 trillion yuan. As the representative of Internet catering, the takeaway market has experienced the previous "burning money" wrestling, and now the C-oriented pattern has gradually been shaped.
Under this new pattern, life service platforms like Meituan chose to travel up, and nuggets from merchants at the top of the supply chain have become a trend. In addition, in the face of Ali, who has integrated word-of-mouth and hungry into a local life service company, Meituan's overweight catering B-side also seems to show its determination to "fight to the end" with Ali.
However, the focus on the catering B-side also means that the US regiment's war on burning money has not yet ended. According to the previous report of Yibang Power Network, "Quick Donkey Purchase" has now covered 21 provinces and 38 cities, and in order to strengthen its push in the Shanghai market, Quick Donkey has taken the price of grain and oil standard products at a discount and burned money subsidies Means to drive sales growth. For the Meituan group, which has not burned a lot of money, when it will reach the boundary of the catering B2B business, I am afraid it is not an easy question to answer.
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