The popularity of group buying in condiment community is on the rise

The market generally believes that condiments are a stable sector with anti-cyclical properties, but since the outbreak of the new crown pneumonia epidemic, the entire condiment sector has experienced considerable fluctuations in both performance and stock prices, and the market's views on the condiment industry have also appeared.

From the perspective of business model, community group buying is an upgraded model of local life O2O, but even in the stage of rapid development of O2O, brand owners, distributors and consumers have not felt its excessive impact and impact on the condiment industry

With the rise of community group buying, the condiment sales system that has been relatively stable has been directly affected

Capture core consumers

The target group of community group buying has a high degree of overlap with the actual purchase and use group of condiments, and has captured the core consumers

Community group buying has emerged in second- and third-tier cities.

The prosperity of supermarkets has continued to decline.

Platforms impact traditional channels

Kitchen products with three meals a day as the main requirement are the core categories of the community group buying platform.

Community group buying originally appeared to meet the needs of families for grocery shopping.

The industry believes that in the early stage of the development of the community group buying platform, the relative importance of grain, oil and seasoning products is the most important standard product.

After all, the increment of the condiment industry is limited, and the incremental demand is far from meeting the vigorous development of community group buying, which will naturally affect other channels, which will impact the traditional channel system of condiments

Affect the industry price system

The community group buying platform broke the supply chain system of the condiment industry and affected the price system of the industry

The biggest conflict between community group buying and the traditional circulation system is its impact on the supply chain system

However, as far as the community group buying platform is concerned, the retail price is more than 20% cheaper than that of traditional channels, breaking the original price increase system

The community group buying platform has a large sales volume and a fast payment cycle, but the market price comparison is suppressed, and the profitability of some dealers will be affected after participation, and the overall profitability of the industry will be affected

(Kou Xing Lu Zhouwei)

"China Food News" (August 05, 2021 Edition 04)

(Editor in charge: Zhou Yan)