Author | Feng Yu

Editor | Egg Manager
Produced | Bullet Finance
The price increase in Fengchao was unprecedented, and SF also “grabbed” the work of takeaway delivery riders. Recently, SF Express launched a “Fengshi” small program platform in the same city, which mainly provides group meals for enterprise employees.
The originally low-key product was instantly pushed to the top of the storm, and the outside world generally interpreted the action of SF’s water-testing meal as “challenging the US group.”
However, SF Express is trying to “extinguish” this group of flames: the “Feng Shi” WeChat mini program is still in the incubation stage, and it is currently only implemented within SF Express.
However, SF Express’s clarification does not seem to dispel the doubts of the outside world.In the turbulent, unbroken Internet world, behind the turbulence may be the early formations.
The stories of Meituan CEO Wang Xing and Didi founder Cheng Wei are no longer familiar.On Valentine’s Day in 2017, Cheng Wei and Wang Xing had a meal together. The two had a great conversation as usual, but after the meal, Cheng Wei suddenly found out from the news that Meituan had launched the online car-hailing service.
Cheng Wei once said that there is a fearless chivalrous sentiment in the “I want to fight, then fight”. In contrast, although SF is low-key, the “enterprise ordering” entrance on the “Feng Shi” home page has already hinted that this will be a show”Ming War” in the game.
However, the pattern of “two heroes fighting for hegemony” in the food delivery industry is already established. What kind of “abacus” is SF playing at this time?
1. SF Express “enters while taking advantage”
Whether SF Express is planning ahead of schedule or being inspired by the epidemic situation, it has already won the “Tianshi” first.
The opportunity for SF to enter the take-out area in the same city happened to be a bleak moment for the opponent’s “healing”-Although the limelight of the Meituan’s surge in commissions during the epidemic passed, the resentment and anger of the merchants still need time to calm down.
As early as February of this year, there were reports of merchants in many places across the country, alleging that Meituan had increased its commissions under the epidemic and was suspected of monopolizing operations.Catering associations in Hebei, Guangdong and other places also issued an open letter to the Meituan platform, calling on the platform to reduce or eliminate commissions.
(Picture / Letter of Right to Negotiate Joint Delivery Negotiations by the Guangdong Catering Industry to the US Group)
In this upsurge of commissions, it is not difficult to understand the dilemma faced by small and medium-sized merchants: on the one hand, the high commissions of the Meituan platform make small and medium-sized merchants complain; on the other hand, merchants need to frequently buy and promote at a high price in order to obtain platform exposureService, and leaving the platform is equivalent to directly sentenced the shop to “death penalty”, which also led to the merchants have to be forced to bundle with the platform.
According to “Bullet Finance”, some small and medium-sized restaurants in a certain area of ​​Chongqing are dissatisfied with the relevant terms of the platform for charging commissions. After the shop was removed from the store, they spontaneously organized merchants to build small programs and regain private domain traffic in an attempt to counter the platform’s “overlord.”Terms “.
An industry observer told Bullet Finance that the better the sales of big brands in Meituan, the more the boss will worry about the brand’s over-reliance on take-out platforms.
Amid the concerns of big brands and the dissatisfaction of small and medium-sized businesses, Meituan’s “disappointment” made SF Express find a breakthrough.
On the front page of “Feng Shi”, under the words “merchants settle in”, there is a striking “free online, easily double the amount”.Earlier, there were media reports that the merchants launched “Fengshi” before July 1 this year, with a commission of three thousandths; after that, the commission on the line was only 2%, while the commission rate of other takeaway platforms was generally 8% -20%between.
(Picture / Fat Food Mini Program)
Don’t underestimate these “tricks” that attract merchants.
For small and medium-sized catering merchants, the cost of food raw materials, rent, gas, water, electricity and labor is high, and the gross profit after conversion is very low, so the platform commission has almost become the “life and death line” for merchants.For big brands, even if the flow of “Feng Shi” is not as good as Meituan and hungry, it does not cause much loss, but it is just one more platform.
Up to now, there have been many chain brands such as Dixie, Hefu lo mein, Yunhai cuisine and Zhen Kungfu.
In addition, there is a “Fengshi invite you to share 5 million” activity on the platform-the recommended enterprises will accumulate a total of 1,000 yuan before June 30, which rewards the recommender with a 500 yuan balance, which can be consumed on the platform.
Under multiple stimuli, SF Express will undoubtedly become the third way for catering merchants.
More importantly, the layout of the takeaway business is also considered by SF Express for its own advantages.Catering and distribution are mostly concentrated in the two time periods of lunch and dinner, and in the rest of the time, these idle capacities can refocus on the main business of express delivery.
On the other hand, SF Express has been relying on high-end business parts to open the B-end market, and has developed many large enterprises into customers. In the future, these high-end customers will be the basis for SF Express to expand its group meal business.Therefore, the takeaway business has a lot of imagination for SF Express.
2. Side B of the group meal
In addition to competing with Meituan and Hungry, what other considerations does SF focus on the group meal business?
According to data from AiMedia Consulting, the scale of the Chinese group meal market will reach 1.5 trillion yuan in 2019. It is expected that the size of the Chinese group meal market will increase by 12.67% in 2020, with a total scale of 1.69 trillion yuan, and its share in the catering market will increase to35.65%.
(Picture / Ai Media Consulting)
Especially under the epidemic, the value of group meals was rediscovered, and contactless delivery was also put on the agenda.
As early as February of this year, Meituan, Hungry and other platforms have jointly organized various agencies to launch “safe work meal direct supply” and “corporate meal safe delivery” actions to provide contactless delivery services for reinstatement enterprises.
“During the epidemic, employees can only order takeaway meals. Even if there is a cafeteria, they are not allowed to gather. They are packed to their respective stations to eat, so this scene has already educated users well and has formed certain habits.The meal business is good news. “Liu Xing (pseudonym), an employee of an Internet company, told” Bullet Finance “.
In his view, if some companies themselves regard group meals as employee benefits, SF Express can use these Internet companies to cut into potential energy.
Although the group meal market is large in scale, the industry concentration is not enough, which shows that the business is “easy to defend and difficult to attack.”
According to the data from the China Culinary Association, currently 99% of the entire group meal industry has an annual revenue of less than 100 million yuan. The top ten group companies in the group meal industry have a combined operating income of more than 55 billion yuan, and the market concentration of the top ten companies is about 5%, Far lower than Europe, America, Japan, South Korea and other countries.In other words, there is a lack of giants in the industry, mostly small businesses.
From the perspective of the business itself, group meals require corporate entities to have collective meal distribution, food safety and management qualifications, and have high requirements for meal-making merchants. For SF Express, which operates cross-border, there are already considerable challenges in management.
In addition, SF’s attempt to snatch businesses from Meituan and Hungry is not a one-time job.”Existing food delivery platforms initially used merchants to distribute raw materials and subsidies, and then used the merchants to attract the C-end.” An industry source told “Bullet Finance”.
This means that in addition to the existing big brands, if SF Express does not have a traffic advantage, it is not easy to establish a small and medium business system with low commissions.
It is worth noting that some of the merchants who have settled in “Fengshi” have begun to worry about the insufficient quantity. “It is not yet decided whether the group meal is just needed. Our business is most worried that the group meal is only a stress response under the epidemic situation.long.”
However, I am afraid that the most anxious peers will still be SF or will use the B-end business to force the C-end.
As early as 2016, SF Express cooperated with Baidu takeout to provide delivery for Baidu takeout in some cities.On the merchant side, SF Express has also reached cooperation with McDonald’s, Burger King and other brands to provide distribution services for them.
Although the take-away C-end is the home of Meituan and Hungry, SF’s “distribution +” strength and ambitions should not be underestimated.
3. Wang Wei’s ambition
It is also helpless for SF to cut into the food delivery field from group meals.
Founder Wang Wei has been trying to find the entrance of local life services from outside the express delivery business, which can be seen from the previous entry of SF into the e-commerce field.
Wang Wei’s speech at an internal meeting can also show his ambitions, “Shunfeng is dead now doing e-commerce logistics, not doing e-commerce logistics, and may be dead in the future.” So SF Express started to work on e-commerce logistics.
As early as 2010, SF Express launched the “E-Business Circle”. One year later, “SF Express” obtained a third-party payment license. In 2012, it launched the community fresh food brand “SF Preferred”. In 2014, “Hey Store” opened, SF ExpressStarting to test O2O … From convenience stores, financial services to new retail, SF has many tentacles, but these so-called “must not fail tasks” all end in failure.
“Not doing business right” failed to bring cross-border surprise to SF Express. On the contrary, in the core express business, SF’s position began to become precarious.
SF Express has been working on e-commerce since 2013.However, the data released by the State Post Bureau also shows that SF’s market share has continued to decline since 2010: from 18.8% in 2010 to 7.6% in 2017, and it has maintained a market of about 7.6% from 2017 to 2019.Share.
“Tongda” backed by Ali and Pinduoduo’s e-commerce orders have been sinking into the market. After the merger of JD Logistics and Dada, in addition to the business parts of JD Mall, it also contracted short-distance delivery orders within 3 kilometers. SF ExpressThe previous speed advantage of distribution is being eliminated.
SF Express had to compromise with reality and joined the “price war”.
In May 2019, SF Express launched new service products for e-commerce platforms and customers with special special offers. The price of each special item is between 5 yuan and 8 yuan.Although this compromise brings significant growth to SF’s business volume, the preferential price also means that it is difficult to increase corporate profitability.
From 2017 to 2019, SF Group’s gross profit margin was 20%, 17.9% and 18%, and net profit margin was 6.7%, 5% and 5.2%.
Short-term courier business pressure and competition among courier peers make SF Express urgently need to find new business growth poles.
And the food delivery to the army is not the only way.As early as the beginning of 2019, SF Express released the “SF Express City Express” brand, focusing on localized and diversified scenarios, providing instant delivery of food and beverage delivery, supermarket, fresh food, cakes and flowers, similar to the Meituan errand business.
Some time ago, Fengchao charges for overtime express shipments more because of stop loss considerations. After all, Fengchao is behind SF Express.
Now, after quickly stepping into the takeaway, SF Express has shown a lot of “bottom cards” in the distribution industry. This will be a “Ming War” among the head players.However, it is difficult to make a group meal. SF would like to walk on one leg, but it will inevitably fail. But casting nets everywhere will turn into another “useless attack”.

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