In the current situation where products in channels are becoming increasingly homogeneous and price competition is becoming mainstream, if a platform can develop high-quality and cost-effective self owned products based on high-quality upstream supply chains, it has become one of the important reasons why consumers continue to choose this platform. In this regard, Dingdong has gained a lot from buying vegetables.
On the evening of November 16th, Dingdong Buycai released its performance report for the third quarter of 2023. In the quarter, Dingdong Maicai achieved a revenue of 5.14 billion yuan, an increase of 6.2% month on month, and a GMV of 5.67 billion yuan, an increase of 6.4% month on month. And achieve a net profit margin of 0.3% under the Non Gaap standard. At this point, Dingdong Maicai has achieved four consecutive quarters of profitability under the Non Gaap standard. At the same time, the quarter also achieved overall profitability under the Gaap standard.
Dingdong also disclosed that its total order volume increased by 6.0% month on month in the quarter, and the monthly average purchase frequency of users was further increasing year-on-year and month on month. Among them, the monthly average purchase frequency of green card members reached 6.9 times.
Behind the stable development of scale and profitability is the improvement of the supply chain and system capabilities of Dingdong Maicai throughout the entire chain. "Liang Changlin, founder and CEO of Dingdong Maicai, admitted at the performance meeting," We are not only a retail channel company, but also a food enterprise with commercial product research and production capabilities
It is reported that Dingdong Maicai's refined operation, which started in the Yangtze River Delta region in the first half of this year, is continuously improving its service side operational efficiency. It is understood that Dingdong Maicai continues to upgrade the warehouse network layout of urban sorting centers and front-end warehouses, and through refined operation actions such as optimizing the transportation capacity structure, building intelligent scheduling systems, and popularizing automation equipment in warehouses, the efficiency and labor costs of the fulfillment process have been further optimized reasonably. In this quarter, the proportion of real-time orders within 40 minutes of pre position positions increased by 6.8 percentage points year-on-year, and the shortest possible duration decreased by 14.3 minutes year-on-year.
In addition to improving channel efficiency, Dingdong Maicai has developed high-quality and cost-effective self owned products based on high-quality upstream supply chains, which have become an important tool for Dingdong Maicai to attract users.
Liang Changlin introduced that, for example, during this quarter, the product developers of Dingdong Buycai realized that consumers, especially southern diners, prefer to eat handmade and fresh noodles. Therefore, they collaborated deeply with the upstream supply chain to customize and develop a self branded handmade cloud dumpling with a thin skin as paper and meeting the "cleaning label" requirements on the site. It not only uses fresh ingredients, but also strictly controls the use of salt and sugar, Refuse additives. And due to deep cooperation with upstream factories in research and development, it reduces intermediate links and unnecessary costs, making this series of products healthier and more delicious, while also achieving lower prices.
According to its consumption data and user feedback, this "handmade paper" series product, which is close enough to the taste of the home package, has replaced the ordinary frozen dumplings and Wonton in many users' refrigerators. When this series of products was launched for more than two months, the sales had already exceeded 16 million yuan.
In this process, not only fresh ingredients but also standard food, Dingdong's purchase of vegetables has completed the action of delving deeper into the source to a greater extent. Consumers can now not only 'buy vegetables on Dingdong', but also 'buy Dingdong's dishes' And we have initially established the mindset of 'whatever you want to eat, go to Dingdong'. This is also like the call made by the company to the industry at the beginning of the year, to engage in deep cooperation with upstream partners in research and development, establish a healthy and win-win cooperation ecosystem, and work together to provide differentiated products to the market and serve the needs of different consumers. "Liang Changlin said at the performance meeting.
Dingdong Maicai's own brand has covered four categories: prefabricated vegetables, meat, rice noodles, and bean products, and many of these products can now be developed and produced through 12 self operated factories.
The financial report shows that currently, Dingdong Buycai has formed a full chain closed-loop supply chain from processing to directly delivering to users, ensuring the supply, quality, price, and efficiency of goods to the greatest extent possible.
It should be noted that in today's more complex macro situation, users' consumption intentions and preferences are still undergoing subtle changes. Consumers' mentality when choosing channels and purchasing goods tends to be more focused on the pursuit of 'product price ratio' and certainty. Based on this, the entire retail industry needs to adapt to a new environment full of challenges. And food instant retail represented by Dingdong Buying Vegetables will eventually return to commercial essence Industry analysts say.
Regardless of the form used to reach consumers, the ultimate test is whether a company can provide more certain or even unexpected goods and services, which depends on whether the evolution speed of the company's supply chain system is fast and accurate enough. At present, Dingdong Buycai has become its three long-term core competitiveness in terms of commodity strength, service strength, and supply chain system capability, and is used to cope with changes in the environment and market at different stages.
We use our high-quality services to provide consumers with the best value for money products. At the same time, we will also utilize our full chain supply chain and system capabilities to continuously improve our operational efficiency and profitability. The so-called 'integrity is extraordinary' means that no matter how the market environment changes, we have always been firmly on the right path and have never changed, "Liang Changlin said at the performance meeting.