I Am a Big Winner in Life

h1888 Harvesting wool? Non-existent! [2/5]

Tianfu School of Economics, male dormitory building 7, in dormitory No. 307, An Liang is discussing with his roommates about the group buying of giant companies entering the community.

“The research direction of our country’s giant enterprises and overseas giant enterprises is one problem, and our country’s giant enterprises entering the community group buying is another problem.” An Liang’s response to the spin-off.

I don’t think there is any problem with giant companies entering community group buying. ” An Liang first explained his point of view.

Lu Wenshan responded, “No, Brother Liang, is this a big problem?”

“What’s the big problem?” An Liang asked rhetorically.

Lu Wenshan organized a speech, “Although community group buying seems to be very cheap at present, it is cheaper than the price of small businesses and hawkers, but what about the follow-up situation?”

“The follow-up situation?” An Liang wondered, “What’s the follow-up situation?”

Before Lv Wenshan answered, An Liang continued, “Giant companies have a natural advantage in entering the community group buying market, because they are giant companies, they have enough resources, whether it is upstream resources, or downstream user portrait data, and the times All trends tend to favor giant companies.

“Taking the most upstream resources as an example, giant companies can directly contact the origin of vegetables and fruits, so as to obtain large-scale purchase channels at the most favorable price; coupled with the resource allocation capabilities of giant companies, they can optimize as much as possible. Transportation costs; in the downstream user terminal link, giant companies use network channels to bypass site costs and personnel costs, further reducing costs.” An Liang added.

“What’s more important is that the times are supporting giant companies. Whether it is the post-80s and post-90s generations of young people, or the generation that has grown up after the 00s, we are all accustomed to using online channels and are used to it. Just tap and choose on your phone and someone will deliver vegetables and fruits to your door||” An Liang added.

“In the case of supporting giant companies from top to bottom, isn’t it a logical thing for giant companies to enter the community for group buying?” An Liang asked rhetorically.

Lu Wenshan nodded, “Brother Liang is right, but here comes the problem. When the giant enterprises kill the small business and hawkers, the current discounts and the cost of the early losses of the giant enterprises will all be recovered from the users.

Who said this “theory?” An Liang was stunned.

“It’s all this theory on the Internet. Everyone agrees with this theory. Giant companies also want to make money. They lost money in the early stage. After monopolizing the market, won’t they recover the early losses?” Lu Wenshan asked.

Lu Wenshan continued, “This should be the basic rule in the economic market, right?”

“Yes, this is the basic rule in the economic market.” An Liang affirmed Lu Wenshan’s statement, “but this is a statement that only one knows one and one does not know the other.”

Wen Shan, “The theory you mentioned is actually just as valid as it is on the body of the online car-hailing. The online car-hailing is also a giant entering the market, with overwhelming discounts, and then suppressing the taxi industry to the point of breathless, when the discounts are the most, For the same distance, a taxi costs 20 yuan, and an online car-hailing may only cost 2 yuan.” An Liang gave an example.

However, “What about now?” An Liang asked, “Taxis have not yet perished, and online car-hailing has not completely taken over the market.”

Lu Wenshan was lost in thought.

We “jumped back to community group buying again, the giants entered the market, the giants gave discounts, the giants held various cost advantages, and finally completely wiped out all kinds of small businesses and hawkers, and then what’s the next step?” An Liang asked.

An Liang replied in place of Lu Wenshan, “The giants have monopolized the market of community group buying. Is the next step going to increase the price?”

“Of course not!” An Liang responded, “In the case of various cost advantages, community group buying has already achieved wool harvesting, so why increase the price?”

“Let’s give an example.” An Liang gave an example. “Take watermelon as an example. At present, the price of Xia Ning watermelon sold by small merchants and hawkers is about 2.5 yuan to 3 yuan per catty, and the price of community group buying may drop to 1.8 to 2.0 yuan per catty. , If the small business and hawkers disappear now, will the Xia Ning watermelon bought by the community rise to 4 yuan a pound, or even 5 yuan a pound?”

Lu Wenshan was lost in thought.

Shen Shizhong responded negatively on the side, “I don’t think it is possible, if it really rises to four or five yuan per catty, small business hawkers will reappear and sell at the price of 2.5 yuan to 3 yuan per catty.

Shen Shizhong continued, “Small merchants and hawkers could make money at 2.5 yuan to 3 yuan before, and now they can naturally make money in this price range, so when the price of community group buying goes up, the small merchants and hawkers will definitely make a comeback!”

An Liang affirmed his approval, “Yes! The gentleman is right! Perhaps after the community group buying strangles the small traders and hawkers, the giant enterprises should increase their prices, but this price increase is bound to be impossible to exceed the small traders and hawkers, because it exceeds the small traders and hawkers. Traders, why can’t we choose small traders?”

“The entry cost of small business hawkers is too low, let’s take Xia Ning watermelon as an example, many small business hawkers specialize in selling watermelons in summer, and do other things at other times. Under such circumstances, If the price of community group buying exceeds that of small traders, they will be educated by small traders in turn.” An Liang added.

“Even if the price of community group buying is the same as that of small merchants and hawkers, consumers will choose small merchants and hawkers, because real people can participate in buying from small merchants and hawkers, and they can choose freely, so as to gain a sense of taking advantage.” An Liang added.

“The fixed delivery system of community group buying makes it impossible for consumers to choose, especially when faced with fruits and vegetables of poor quality, they will have accumulated complaints. This is a problem that cannot be solved by online channels.” An Liang explained in depth.

“So the giants enter the community group buying, and there is no such thing as harvesting wool.” An Liang concluded.