This article compiles self-confidence Securities "Meituan: steady and steady, based on the Future", Guosheng Securities "depth 5: Meituan's Strategy, tactics and ability Circle" and so on.

Meituan 20Q1 achieved excellent results.

Meituan 20Q1 performance is excellent, mainly due to takeout and arrival performance is excellent.The operating profit of 20Q1 Meituan takeout / inbound wine tour / new business / unallocated items is-0.7, 6.8, 13.6 and-960 million yuan respectively, compared with-1.5, 15.9, 25.8 and 160 million yuan last year. Takeout and new businesses have still achieved loss reduction under the adverse effects of the epidemic.

Guoxin Securities pointed out that the bigger bright spot of Q1 takeout business is the joining of brand merchants.The epidemic makes the majority of brand merchants begin to quickly join the takeout supply side, which is a very important change. During the boom, brand merchants think that the customer price of takeout is relatively low and their enthusiasm is not high, but once brands use the takeout platform, they will more and more adapt to this convenient and efficient e-commerce environment.

Due to the influence of family ordering and the high quality / high premium of brand merchants, the customer unit price of Q1 has increased significantly to 52 yuan, including 51 yuan for 1P model and an astonishing 53 yuan for 3P model (10 yuan higher than 2019Q4).

Zhongtai Securities expects that the impact of the epidemic on foreign sales business will be basically digested in the third quarter, and the hotel wine and travel business will also gradually recover. Meituan takeout / arrival business leader has significant advantages, long-term logic is sound.

How to understand Meituan's seemingly "disorderly" expansion

Meituan has attacked his business line in all directions in recent years, doing both a ride-hailing and a fresh supermarket, making it difficult for investors to understand Meituan's business expansion logic. Guosheng Securities believes thatTo really "understand" Meituan, we must first play a role in Meituan's two major strategies:

1. Super platform strategy

Meituan's grand strategy is the "super platform" strategy, this platform takes the local life service as the big scene closed loop, by meeting the different needs of the same kind of users, low frequency is intermediate frequency, concentrated frequency is high frequency, to achieve user competition and mental occupation, so as to achieve the purpose of controlling user traffic.

Generally speaking, the super platform usually refers to the Internet platform which has more than 100-200 million users and each user uses more than 8-10 times per year (usually refers to the mobile APP). The super platform is becoming a more and more important traffic distribution portal and holds the power of traffic distribution in the mobile Internet era.

Meituan's logic of establishing a super platform is to form a high-frequency demand for the platform by collecting the medium-and low-frequency demand that would otherwise be scattered in different businesses, so as to build Meituan, a super platform.There are two key points in the construction of the super platform: one is to increase the frequency of use and increase the total amount of traffic (to enlarge the flow pool); the other is to realize the closed loop of consumer services so as to monopolize the user's mind (monopoly flow pool). Its core purpose is to grasp the right to distribute C-end traffic in the big scenario of "local life service".

After the completion of this super platform, Meituan can win customers at low cost internally, nurture and drain new business, set up barriers to resist the enemy, and achieve a dimension reduction attack on single-line companies.For new businesses with low barriers to the industry, Meituan's past place is basically to destroy the city and pull out the stockade, without disadvantage; for the business with strong barriers, Meituan is often able to break through the enemy's defenses, thus getting a piece of the pie.

For example, in the field of OTA, ride-hailing and takeout, Meituan is all late and first-come. When the original market competition pattern has been stable, he uses the advantages of the super platform to achieve anti-surpassing or occupy a large market share.

Under the super platform, Meituan has obvious cost advantage in getting customers. The cost of getting customers per user of Meituan in 2019 is 4.7 yuan, which is much lower than that of other Internet companies.Therefore, in order to build a super platform, Meituan needs to constantly expand and improve the subdivision business under the "local life service" scene, in order to achieve the closed loop of services and improve the frequency of use of the platform.

Therefore, Meituan's business expansion in recent years is not a random extension without direction, and most of its actions are carried out around the grand strategy of "super platform"; the acquisition of mobike and taxi-hailing are all laid out under this strategy.

Tencent and BABA can better understand Meituan. Wechat, with social interaction as the core scene, has the largest DAU; with financial payment as its core scene, and recently revamped into the field of local life services; Meituan platform takes "local life service" as the core scene and has a lot of offline traffic.

2. Supply-side strategy

Meituan hopes to strengthen his own barriers and improve the value of the industrial chain by leading the supply-side reform.

The business of O2O is a bilateral (B-end + C-side) or even trilateral (B-side + C-side + distribution side) business model. No matter how strong the C-side is, the whole model cannot run without B-side. After Meituan controls the B-end, he can use the B-end barrier to attack the competitors and cut off the possibility of competition to the entry challenge, thus greatly strengthening his own barriers.

At present, Meituan's comprehensive layout of catering supply-side reform has initially taken shape.Before opening a shop upstream, merchants can choose fast donkey to solve the supply chain demand, apply for Meituan small loan financing, participate in catering training held by Meituan University, and use steamed bread to recruit staff. After opening, merchants can do marketing on Meituan and Dianping, use Meituan takeout, use Meituan's logistics to provide distribution, and use Meituan's ERP system to solve all the middle and background needs.

Meituan's two major strategies can form coordination with each other, so that different businesses can be put together to achieve the effect of 1: 1 > 2. This is an important advantage of Meituan over single-business companies. It can make industries that the original single-business model can not run through. Survive on Meituan's platform, and even contribute great value beyond the business itself.

To Biao Ali, where is the boundary of Meituan?

From a business point of view, the expansion of Internet giants can be divided into three stages

After achieving a certain scale of the original business, ① Internet enterprises can expand their business horizontally to businesses similar to the original business by relying on the experience accumulated in the original business.

② Internet enterprises can rely on the understanding and advantages of the industry (usually channel advantages) to expand the industrial chain vertically.

③ uses the technology, talent, capital and organizational capabilities accumulated in the previous business to enter all Internet-related areas that can be transformed with Internet technology, even if the new areas have nothing to do with the original business.

Take BABA as an example:

BABA was founded in 1999, launched the global wholesale trade market website Alibaba.com, and then began a series of horizontal expansion, including B2B trading platform in the same year, B2C Taobao launched in 2003, Taobao Mall in 2008, etc. (later changed to Tmall).

Since 2009, BABA began the vertical expansion of the upper and lower reaches of the industrial chain, and successively established Aliyun, Cainiao Network, Ant Financial Services Group, Retail pass, and so on.

Since 2014, with the help of the output of organizational capabilities, BABA has expanded his business to OTA (Flying Pig), Medical Health (Alibaba Health Information Technology), Group buying (word-of-mouth), communication software (nails), film and television (BABA Film), offline retail (box horse), etc., which are not related to the original business (e-commerce).

Guosheng Securities expectsIn the short term, Meituan will focus on fresh retail, B-end integrated solutions (ERP, finance, fast donkey), new retail, financial payment, ride-hailing, OTA, logistics, city services, and long-term catering intelligence, self-driving, AI, and even online retail.