Chapter 678: Forcing Mituanyou to Form an Alliance with Amoy Vegetables
Soon, all registered users of Fresh Best received SMS messages from the platform.
The prices of vegetables, fresh meat, and pasta are all reduced by 10%. Annual card users can also purchase three special products every day, and the prices will be reduced by at least 20% on the original basis.
Seeing this text message notification, almost all Fresh Fresh Best users took the time to open the app to see if it was true or not.
After comparing the prices, the users believed that Fresh Fresh Best had really lowered the price again.
Not long after, Wang Xing, CEO of Mituan Best, and Chen Yong, CEO of Tao Vegetables, both knew about the new move of Fresh Best.
Wang Xing cursed angrily.
"What on earth does this Yang Chen want to do? Will a horse rider know how to do business? This is no business, it's clearly doing charity. Losing hundreds of millions every day, according to this method, no one can bear it."
Chen Yong on Amoy Vegetables was also very angry. He gave all the last discounts that the platform could give, but the result was still not as good as Fresh Fresh.
At this moment, he really doesn't know how else he can compete with Yang Chen.
Shopping online is not the same as buying food at the grocery store.
When you go to the vegetable market to buy vegetables, you will definitely not be too busy to compare the prices of each vendor.
But to buy food online, you only need to open the apps of the three platforms, search for the food you want to buy, and compare the prices to know which one is more favorable.
It can be said that there is no information gap in online grocery shopping, and users will definitely choose cheaper platforms to buy.
In fact, the competition among e-commerce companies is essentially a price war.
If the price is the same, or even higher than others, consumers will definitely not choose.
For the same product, the price offered is significantly lower than that of other companies, and consumers will definitely choose it.
In the stage of competing for market share, there is only competition for who is more willing to lose money, who has more money to subsidize users, and the rest is false.
For consumers, the benefits are the most real, and the rest are all dentures.
Chen Yong was worrying, and Wang Xing called him.
Wang Xing: "Mr. Chen, have you seen the new countermeasures of the fresh food platform?"
Chen Yong: "Oh... I saw it, but what can we do? I don't know what's going on with you. We can't lower the price anymore."
Wang Xing: "I can't continue to follow up here. If the price is lowered by 10%, we will lose hundreds of millions every day, and the year-end financial report will be ugly. The loss is small and affects the group's stock price. It's a big deal. If it falls by a few dozen points, the wealth of us shareholders will shrink by tens of billions. We can't afford to lose, we can't afford to lose."
Chen Yong: "Who says it's not? Taovegetables has not been spun off from Ali Group. If this business suffers serious losses, it will definitely affect the group's year-end net profit. If the profit is lower than expected, the stock price will definitely drop sharply. Since last year, we have The market value of the group has fallen by more than one trillion yuan. If the group’s annual report is ugly next year due to the business I am in charge of, I will definitely pack up and leave. Sigh... there are benefits to not being listed, at least as long as you want to lose money , no one can say anything, and don’t worry about the stock price or anything.”
The two bosses are very worried, the problem now is that they don't dare to follow up with Yang Chen.
Yang Chen has no financial reporting pressure, and doesn't have to worry about the net profit falling short of expectations and affecting the stock price.
Therefore, he can lose whatever he wants.
However, Mituanyouyou and Amoyvegetables dare not do this. If it seriously hinders the group, the consequences will be serious.
Wang Xing said again: "Mr. Chen, the situation has developed to such an unfavorable point, don't you still consider forming an alliance with us? As long as the two of us share warehouses and logistics,
If the price is lowered by 10%-15%, it will definitely not have any impact. Because of your hesitation, we have lost 10% of our profits, and now we are cornered again. Do you still have to hesitate to wake up when the market is fully occupied by fresh products? "
Chen Yong didn't speak.
In fact, he also felt that Wang Xing's suggestion could be tried.
But he refused to give up his own advantages, and he also knew that the group leaders would not agree.
Ali Group controls Shentong Express, etc., as well as its own Cainiao Logistics, and has invested in many other express companies.
Simply speaking of the logistics system, Amoy Vegetables definitely has an advantage over Mituanyou.
Once the logistics are shared, Amoy Vegetables has lost the capital to compete with Mituanyou before it can defeat Fresh Fresh.
No, absolutely not!
Chen Yong hurriedly replied: "I understand Mr. Wang's thoughts, but this matter is too big, and I dare not make decisions privately. Last time I also reported to the group leaders, but there is no news yet. I think such a big event, It's not that you and I can make a decision without permission. Why don't we let the bosses of our two groups communicate and let them decide whether to form an alliance. What does Mr. Wang think?"
Wang Xing replied reluctantly: "Okay, then follow Mr. Chen's method. I will call Mr. Ma now, and you should hurry up."
Chen Yong: "Okay, okay, I'll fight right away."
After hanging up the phone, the two hurriedly called their own boss Ma.
So two days passed.
Today is the 22nd New Year's Eve, and tomorrow will be the New Year's Eve.
Many companies have also entered the stage of countdown to the holiday.
At this time in previous years, Yang Chen was already ready for the Spring Festival holiday.
But this year is special, he is still waiting for news from the city government.
At 12:00 noon, Mituanyouyou and Amoyvegetables respectively released a joint statement on Weibo and their respective platform official websites.
In order to provide lower-priced products to users of the two platforms, after friendly negotiation, the two platforms decided to share warehouses and logistics systems across the country starting at 24:00 tonight.
The warehousing and logistics costs saved after sharing will be fully subsidized to users of the two platforms.
In addition, to celebrate the alliance between the two platforms, from 24:00 tonight to 0:00 tomorrow night, all products on the two platforms will be sold at half price for annual card users and 30% off for non-annual card users.
The announcement did not fully reveal the details of this cooperation.
For example, Mituan Optimal will bear all the losses incurred by the two discounts.
Amoy vegetable platform lost 100 million yuan, and Mituanyou took the 100 million yuan.
Amoy vegetable platform lost 1 billion yuan, and Mituanyou will bear the 1 billion yuan.
No matter how much Amoy Vegetables loses, as long as the order is between 24:00 tonight and 0:00 tomorrow night, all the orders will be borne by Mystery Optimal.
This is the price for Mituanyou to obtain the logistics system of Amoy Vegetables.
After all, if the two parties want to cooperate, it is natural to be fair. Mituanyou cannot use the powerful logistics system of Amoy Vegetables in vain.
Zhang Qiutong hurriedly called Yang Chen to report the new actions of the two platforms.
Yang Chen didn't care about it, but replied very flatly: "Don't worry about them, they play however they want, as long as they like. We just need to be ourselves."
Zhang Qiutong: "But the two of them cooperate to share warehousing and logistics, allowing them to continue to reduce by 10%-15%, and our advantage is gone. After losing so much money, we have no advantage at all, so we are not in vain. ?”
Just as Yang Chen was about to speak, Mayor Wang called.
It is estimated that the formalities for the 10,000 mu of land have been completed, Yang Chen hurriedly said to Zhang Qiutong: "You don't need to worry about this, just do your own thing well. I have a call from here, hang up first."
Before Zhang Qiutong could reply, Yang Chen immediately hung up the phone.
Looking at the hung up phone, Zhang Qiutong said to himself in confusion: "What can Mr. Yang do? Sigh... the losses are so huge, I really don't know how he can smooth them out."