Under the situation that the Internet giants are squeezing and the market supervision is becoming stricter, the tenth meeting will fall into the storm of layoffs, station closure and market withdrawal.

On August 2 1 day, Chen Ying, the founder of the 10th Club, announced the business upgrade of the 10th Club for the second half of the race through an internal letter entitled "A Self-innovation Focusing on the Long-term Value of Users". In his letter, he said that drastic reforms will be carried out: in terms of regional warehouse allocation and head operation, the Tenth Congress and Ali MMC (community e-commerce business group) will combine geographical advantages and organically integrate to create their own unique advantages; In the supply chain, we will open up more high-quality fresh and daily chemical department store supply resources to further enhance the supply chain capacity.

Immediately, the tenth club broke the news of a large number of layoffs and city closures. Accumulated financing exceeds1200 million USD. At the beginning of this year, the community group-buying head brand 10 also settled in Taobao to buy food. Why suddenly choose large-scale strategic contraction?

Just the day before the internal letter was sent, some suppliers had received the notice that the local power grid warehouse was about to close down.

First, the supplier in Changchun was informed that the group's electricity website would be closed at 3 pm 10 on August 20th. At about 6 pm that day, Nanning Grid Station also sent the same message; Qingdao Station will be officially closed on August 22nd. Since then, Shanghai, Fuzhou, Zhangzhou, Harbin and parts of Guangdong have also received notices of suspension. A number of people close to the inside of the tenth club said frankly: "Although the tenth club suddenly closed the city, it was not unexpected, because its daily orders in many cities across the country were very low and its competitiveness was not strong."

Official website, club 10 shows that its business has been distributed in seven regions, including Central China, South China, East China, North China, Northwest China, Southwest China and Northeast China, with more than 2,000 cities and counties in 25 provinces (autonomous regions and municipalities directly under the Central Government), covering 830,000 communities and 50.83 million household users. However, after the reform, only Hunan, Hubei, Jiangxi and other advantageous areas will be retained, and areas with higher losses will be gradually closed down. This means that this large-scale contraction has affected 90% of the areas where the Tenth Group is stationed.

In the future, "The Tenth Congress will integrate with Ali MMC in some areas and enjoy resources, complementary advantages and teamwork in operation." Chen Ying wrote in an internal letter. Among the laid-off workers in various regions of the country, some members of product and operation positions were told that they still have the opportunity to continue working in Ali as long as they voluntarily leave their jobs, but they can be recommended to MMC interviewers, excluding positions such as technology and warehouse management.

In fact, just as the 10th All-China Youth Federation is undergoing a large-scale strategic contraction, a new round of financing has been basically completed, which is the second round of financing that will be completed within half a year after the completion of the $750 million financing in March. Even so, the living conditions of the tenth club are not optimistic.

The tenth club has its own highlights. 20 19 When negative news broke out in several community group buying platforms and the industry entered a cooling state, the Tenth Society successfully crossed the cold winter and expanded the market by acquiring regional platforms such as "You, Me, You", "Good Gathering Music" and "Neighborhood Talk". The emergence of COVID-19 epidemic in 2020 has made the 10th Club develop by leaps and bounds, and it has carried out three rounds of financing within 1 1 month, with the total amount of financing approaching 600 million dollars.

However, just when the 10th Huituan thought it could take the lead in community group buying, Internet giants such as Didi, Meituan, and Pinduoduo entered the community group buying one after another, taking advantage of capital, traffic and data to dump goods at a price lower than the cost, expanding rapidly, seizing the market, and turning the industry from innovation and implementation into funds and subsidies.

10 back to the group in order to maintain market share, had to take the lead in adopting the price subsidy strategy, but later it was punished twice by the General Administration of Market Supervision for its fictitious original price and false price reduction. At the same time, in the struggle with Internet giants, the capital chain is increasingly tense. Since then, the tenth club has become very cautious in capital investment, and the most direct way to control costs is to withdraw the station and close the city.

This means that the demand for manpower is shrinking-since you can't beat your opponent for the time being, it's better to streamline your team and try your best to live to the end.

10 The closed areas are basically the tail markets with fewer orders. Jiangxi, Hubei, Hunan and other places contributed the most to the performance. Once it occupies enough market share, it is likely to achieve profitability, so the tail city is the first to be abandoned.

For the tenth society, the closure of the city is to "save lives"; For suppliers, it is also a kind of "liberation". Luo Yong, the supplier of the Tenth Club, has just settled the payment of more than 3 million yuan after receiving the notice of the closure of the local city merchants. I am very glad: "I am finally relieved now, I don't have to worry about the platform all day, and the payment can't be collected."

Of course, compared with the large-scale and regional closure of other group buying platforms such as Tongcheng Life and Food Enjoyment Club, the Tenth Congress only selectively closed some cities: Guangxi closed Nanning and retained Guilin; Shut down Qingdao, Shandong, and merge Jinan and Jining businesses. Perhaps, for the current ten clubs, "slimming" is not only the most suitable survival rule, but also the embodiment of focusing on the long-term value of users as the core values.

So, what is the long-term value of users?

In the internal letter, Chen Ying emphasized the goal of "inclusive retail", which was his idea when he went deep into the rural areas of northern Jiangsu in 20 12, and community group buying was his long-term goal to realize "inclusive retail". In his internal letter last year, he mentioned that community group buying can directly supply consumer goods of the same quality and price consumed in first-and second-tier cities to rural areas; Now, in the critical period of life and death of community group buying, he once again mentioned building a rational, healthy, orderly and mutual trust community group buying industry ecology and realizing the long-term vision of "inclusive retail"-this will be a process of gradually returning to rationality from the vicious competition of prices and subsidies.

It is unknown where the end of community group buying will go.

To be sure, the tenth club will not be completely "cold", but if we insist on the subsidy war with the Internet giants, even if we melt more money, it will not bring satisfactory answers to the capital; Only by adjusting strategy, preserving strength, preparing for long-term operation, and deeply cultivating core cities with limited funds can we provide better market data for the next round of financing and even becoming stronger and bigger.