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Beijing, China – Beijing Restaurant Ray Heng’s Chinese e-commerce Jugernot JD.com is unlikely to enter China’s lucrative food market.
There is no reason to believe that the arrival of the famous Mexican restaurant owner Heng will benefit restaurant owners for the challenge of Meitowan and Eleme Dupoly.
Hing downplayed the notion that shipping platforms were a way of life for businesses during China’s “zero-cove” ban.
JD.com Market Capacity – It is estimated at $ 58.7bn in 2021, according to Xin Liju, chief executive of JD Retail, after the company said it was reviewing the idea last month. Alituaba, owned by technology giant Alibaba, controls 95 percent of the market, which is expected to double over the next five years.
“I really don’t like working with delivery apps,” Heng told Al Jazeera, which runs the Pebble Campus in Dongcheng district.
A.D. During the first wave of coronavirus in early 2020, Henng relied heavily on Alibaba’s Maituwan or Elem by recruiting customer orders through the WeChat messaging app and Shansong’s general courier.
Hing is now considering leaving the stage altogether, which has led the menu to focus on better moving objects.
When it comes to bringing in new customers, Meituwan and JSS, a customer-centric shipping app, said they will charge 16-20 percent of Heng’s profits for a fee. He lamented the process that took Meitou weeks to transfer payments from customers.
“We often fight with the Meytuan carriers because they rush to deliver the food, because they are penalized when they are late,” Heng said, citing strict rules that drive drivers to rush between deliveries.
“Restaurants that specialize in food are not able to stop eating at dinner. When we arrived, they said, ‘Guests don’t like to wait too long.’ So I came up with an alternative to stay on the app for a longer period of time – if they are [the customers] They really like the food you expect or plan ahead. And if not, then why not go to another fast food restaurant? But the forum did not return to us on this issue. “
Meituan, Ele.me and JD.com did not respond to Al Jazeera’s comments.
Sharon Ng, head of marketing at Nanang Business School in Singapore, said it was not surprising that some restaurants were wary of supply chains.
“Such apps have a positive effect on extending access to the restaurant, especially as traffic conditions in China are bad and going to a distant restaurant can be a problem. However, the disadvantage is that such apps will make competitors more accessible to the restaurant market, Ng told Al Jazeera.
“This increases competition. Restaurants have to pay for the app, so it is expensive to use such apps. The net impact depends on the type of restaurants, the brand’s fairness, the restaurant’s margin and the transportation costs.”
While high competition is good news for customers, it often means a lot of pressure on small restaurants that have razor-sharp edges.
Fast food brands and big restaurant chains can better cope with this “price war” than independent restaurants, says Hui Huang, PhD candidate at King College London’s Department of International Development.
“In my opinion, these platforms are like ‘vampires’, making restaurants, especially small restaurants that monopolize, especially small restaurants ‘slaves’. Constantly searching for deals, offers and promotions.
As an independent restaurant, Heng JD.com is concerned about the impact it will have on the industry.
“I don’t know what their contract is,” he said. “So I have to see that JD is friendly.”
Henry Timberleck, who runs a slide restaurant at the Slide Nation in Chayoyang County, is more excited about the prospect of another venue.
“I’m 100 per cent behind him and encourage him,” Timberleck told Al Jazeera. “The more fun. The better access to our customers will be.”
While other restaurants were struggling, Timberleck saw the growth of the business during the outbreak.
“When I first started, I didn’t see Kovid going anywhere,” said Timberleck. “People have to eat all the time and the convenience of shipping is great. Any ‘normal’ piece is returned, but there are still people who can afford to order it.
If gravel and sliding nation are on opposite sides of the aisle, Mr. Shi Dumpling’s restaurants may be familiar with platforms such as Meituan.
Restaurant owner Xi Jinping hopes that JDC’s entry will result in lower fees in the sector.
“Meituan and Ele.me are so dominant that I hope other companies can come in and compete,” Shi told Al Jazeera.
“Jedi knows a lot about shipping and transportation. So, I would rather agree with the acquisition platform than the new platform from another company.
In addition to brand recognition, JD.com has deep pockets with $ 204.4bn in revenue for 2020-21.
However, JD.com may need all its resources to be successful in terms of the resources it has invested in Meituan and Eleme to ensure its dominance, said Zhang Zhu, CEO of iiMedia Research.
Zhang Jedi Dotcom said he would enter the sector faster than usual, comparing the company to a tortoise trying to compete with a rabbit.
He told Al Jazeera: “It’s good to wait for those fast and offline competitors to see your unlock until they fall asleep.
“So far, I have not seen any indications that he is doing anything to make those sector leaders stand out from Meitua or Elem or Jedi.com.
Ng, Nanyang Business School Academy, has a bright future.
“As a newcomer to a highly competitive market, I expect JD to develop ways to differentiate its services from existing ones,” she said. “How are you going to do it? We have to wait and see.
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