Source: Sina Technology
News on the morning of February 2,$MEITUAN-W (03690.HK)$CEO Wang Xing issued an internal email announcing the new organizational restructuring. According to the email, Meituan has integrated a number of core local business-related businesses and further raised the priority of businesses related to technology and internationalization.
In terms of core local businesses, Meituan has integrated relatively independent business groups in the past. The main adjustments include integrating the Home Delivery Business Group, the Meituan Platform, basic research and development, etc., and jointly reporting to Meituan Senior Vice President Wang Puzhong. Meanwhile, Zhang Chuan, senior vice president of Meituan, will be responsible for businesses such as Volkswagen Review, SaaS, cycling, and power banks. The other organizations remained unchanged.
Meituan CEO Wang Xing said he believes we can gather strength, improve efficiency, and better serve customers.
Notably, the priority of exploratory businesses such as technology and internationalization has been further raised. Following the automated delivery vehicle business, Wang Xing said in an email, “Report drones and overseas business to me.” At this point, Meituan's exploratory business in both the fields of internationalization and technology will be directly reported to Wang Xing.
“There has always been an industry consensus that in-store and at-home businesses are suitable for collaborative development, and this integration is also to be expected,” said a person close to Meituan. “Group buying and takeout are highly supply-focused and meet similar consumer needs through different contract fulfillment methods.”
Takeout, group buying, and wine travel have always been Meituan's important high-frequency businesses. Integrating the platform with R&D shows Meituan's determination to further improve organizational efficiency and upgrade the product experience. According to the analysis of people familiar with the matter mentioned above.
Among them, visiting the store is one of Meituan's oldest businesses, and has gone through many adjustments and integrations. The most recent major adjustment occurred in December 2017. Meituan announced the establishment of a retail business group, with Zhang Chuan, senior vice president of Meituan, in charge ever since.
Public reports show that under Zhang Chuan's leadership, the Meituan Store Business Group has launched a number of initiatives and products in the fields of improving the supply efficiency and standardization of local merchants, and has successfully built a complete digital infrastructure for local commerce. The rich supply of local merchants, standardized products and services, and stable cash flow are the three core values created by the in-store business group for Meituan.
Zhang Chuan's career as a manager began in 2006. He served successively as the head of Baidu Alliance's product department and the executive vice president of 58 Tongcheng. In 2017, Wang Xing stated in an internal email that Zhang Chuan “has very rich successful experience in the field of Internet product technology, commercial product design, and commercial system construction.”
Commercial product design and system construction are common underlying capabilities that Zhang Chuan is about to take over in the public review, SaaS, cycling, and power bank businesses that are currently urgently needed to be built. According to public information, since Zhang Chuan took over the cycling business in October 2021, Meituan Bike Sharing has achieved positive free cash flow for two consecutive years.
Since last year, there have been many new changes in the local lifestyle industry landscape. The person familiar with the matter mentioned above said that with perfect infrastructure, the consumer experience will become the key to competition. Integrating merchants, users, and businesses with high levels of matching needs to develop together will also become more important to provide the most complete local consumer experience.
The one to undertake this important mission will be Wang Puzhong, the former head of Meituan's Home Business Group. According to public reports, Wang Puzhong was born in 1984 and is currently the youngest member of the Meituan S-team. Since joining Meituan in 2015, Wang Puzhong has held positions such as senior product director for takeaway delivery, head of takeout division and delivery division.
In recent years, Wang Puzhong has led Meituan Takeout to continuously expand from restaurants to “everything to home” instant retail. Instant retail has also become an important new type of online and offline business in the retail industry. In the last month, Meituan Flash Sale has announced cooperation with Supor, LEGO, Decathlon, etc.
Before this round of adjustments, Meituan also promoted some business managers. In September of last year, Meituan announced that 5 business leaders had been promoted to vice presidents, many of whom were post-85.
“The current internal and external challenges are fraught with various challenges, but at the same time, this is an opportunity for the company to grow further.” Wang Xing said. Since Meituan announced a new “retail+technology” strategy in 2021, this is the first time that Meituan has made large-scale adjustments to the organization and personnel. Judging from the integrated business layout, around the four key words of “local, retail, technology and internationalization,” Meituan is continuing to move forward with a new strategy in the midst of changes.
Editor/jayden