#Laogao E-commerce Newsletter# [E-commerce Evening News on July 19]

      Evening information: 1688: The rules for industrial experts to select business opportunities will be adjusted and upgraded on July 27; Morgan Stanley: It is expected that Meituan's Q2 revenue will grow by 68% year-on-year to 41.5 billion yuan; it is said that Alibaba's internal testing of the new home service platform "Wanwo Sauce"; Tencent Smart Retail released the "Thousand Domain Plan" to create 200 private domain merchants over 100 million; Kuaishou launched the local life, food, drink and entertainment list...

      Lao Gao provides everyone with the latest and most valuable Internet and e-commerce information every day.

E-commerce newsletter

1. 1688: The rules for selecting business opportunities for industrial experts will be adjusted and upgraded on July 27

      July 19th news, 1688 issued a notice today that from July 27, 2021, the rules for industrial experts to select business opportunities will be adjusted and upgraded, canceling the original conditions of "Wangwang timely response rate should not be less than 80% within 5 minutes" and "Free insurance/free credit option" and adding the conditions of "setting up products with competitive prices, entering the seller's workbench for industrial experts to select business opportunities and reminding to change the price of products". 1688 reminds sellers that products that do not meet the new version of industrial experts’ business opportunity selection rules will be delisted. It is recommended to modify and adjust the products as soon as possible. (Yibang Power)

2. Morgan Stanley: Meituan’s Q2 revenue is expected to grow by 68% year-on-year to 41.5 billion yuan

      On July 19, Morgan Stanley (i.e. Morgan Stanley) published a research report to maintain the "increase in holdings" rating of Meituan, and its target price dropped from HK$380 to HK$360. The bank maintained its forecast for Meituan in the second quarter, expecting revenue to grow by 68% year-on-year to RMB 41.5 billion, and expects Meituan’s net loss to expand from RMB 4.8 billion in the first quarter to RMB 5.1 billion under non-GAAP standards. The bank pointed out that the expected increase in Meituan's losses is mainly due to the increase in investment in community group buying business and cold chain equipment during the period. Morgan Stanley expects that the revenue from food delivery services in the second quarter is expected to reach RMB 22.6 billion, that is, a quarterly and year-on-year increase of 10% and 55%. Morgan Stanley also lowered Meituan's adjusted operating profit forecast for food delivery business from 2021 to 2023 by 5% to 21%, and it is expected that the community group buying business will reach a balance of revenue and expenditure in 2025. (E-commerce News)

3. It is said that Alibaba’s new home service platform “Whide Sauce” is available for internal testing

      According to Tech Planet, Alibaba recently tested a new home service platform "Snailou Sauce". According to official reports, Snail Sauce can provide professional clothing cleaning, housekeeping, home appliance cleaning and 3C repair services. At present, Alipay and WeChat have launched the life account and official account with the same name as "Wawojiang". In Alipay, its services are mainly provided by Alibaba’s previously launched family service platform "Qinge". In addition, the Life Number of Shouwo Sauce lists clothing cleaning, housekeeping, home appliance cleaning and mobile phone repairs into four service categories. It is understood that Alibaba Qinge home delivery service has been online for more than two years and is affiliated to Tmall. (Yibang Power)

4. Tencent Smart Retail releases the "Thousand Domain Plan" to create 200 private domain merchants with over 100 million

      July 19th news, Tencent Smart Retail recently released the "Thousand Domain Plan", hoping to create 10 10 billion, 50 billion and 200 billion merchants in the private domain ecosystem. Chen Fei, vice president of Tencent Smart Retail, introduced that the plan will create an ecological growth system for ecological partners from four dimensions: "policy incentives, business assistance, market support and cultivation plans". At the same time, Tencent Smart Retail also announced that it will take the lead in the Ecological Center and jointly form a core team with industry ecology, product research and development, solutions, business and markets, to help ecological partners with the industry operation and product capabilities of Tencent Smart Retail. (E-commerce News)

5. Hema Hou Yi’s internal letter: Hema NB business department is officially established

      According to July 19, Hou Yi, president of Hema Business Group, recently sent an internal letter announcing the formal establishment of Hema NB Business Department, with Gong Ye (Manhan) in charge. According to reports, Hema NB business unit is the third business unit of the Hema business group, with Hema neighborhood service station as its core product. Hou Yi said that during the more than two months of trial run, Hema's NB business has verified the replicability and sustainability of the new model. In addition, Hou Yi also stated in the letter that the "universal version" boxed housing should be created, with the purpose of "meeting consumers' daily life and one-stop consumption needs for three meals a day." (E-commerce News)

Internet news

6. Kuaishou launched the local life food, drink and entertainment list

      According to July 19, Kuaishou recently released the "2021 Kuaishou Local Life Eating, Drinking and Playing List". Users can enter the list through the merchant's geographical location information page or search for keywords such as "Kuaishou Eating, Drinking and Playing List", "Local Life List". The content displayed on the list is the business hours, location, discounts, per capita fees, labels, and user recommendation reasons. At the same time, Kuaishou official monitors and controls the listed merchants in real time. If there are any safety hazards such as closure, the list will be treated after verification. In addition, malicious video swipes and other behaviors are also banned, and the list will be updated once a month. (Yibang Power)

Cross-border newsletter

7. Flipkart: Antitrust investigations should not treat Flipkart and Amazon equally

      July 19th news, it is reported that Indian regulators are launching an antitrust investigation into Amazon India and local Flipkart, which is affiliated with Walmart. In a court filing, Flipkart pointed out that the antitrust investigation against the company is not the same as Amazon, and there is no "structural relationship" between Flipkart and platform sellers, and the Indian Competition Commission should conduct an independent investigation on the two e-commerce platforms. It is reported that Amazon and Flipkart's rapid development in India has caused dissatisfaction among physical retailers. They believe that the two giants have hindered market competition and created complex business architectures to bypass the regulation of Indian laws. (E-commerce News)

8. Indian payment giant Paytm has 21 million merchant registered users of 333 million

      July 19th news, Indian digital payment giant Paytm recently submitted IPO listing documents, which will raise up to 16,600 crore rupees, or approximately US$2.23 billion through listing. The prospectus shows that as of March 2021, its registered users were 333 million and had 21 million merchants. Paytm's revenue for the year ended March 31, 2021 was Rs 28024 crore, down 14.6% from Rs 32.8 crore in the same period last year. The funds raised from the listing will be used to develop Paytm's own digital ecosystem, including obtaining more customers and merchants, providing more technology and financial services, and will also be used to develop innovative businesses and establish strategic partnerships. At present, Paytm's business mainly focuses on mobile payment and digital life, and is expanding to e-commerce, cloud services, comprehensive financial services, etc. (Yibang Power)

9. Amazon's third-party brand acquisition company Unybrands receives $300 million in financing

      According to Techcrunch, Amazon's third-party brand acquisition company Unybrand has recently received $300 million in growth funds from Crayhill Capital Management.

      Public information shows that Unybrands was founded in 2020 and is headquartered in Miami. It mainly provides Amazon with FBA, Shopify DTC, WMT and other e-commerce services. The company received US$25 million in seed financing in February this year.

      Unybrands said the company has completed multiple acquisitions in the U.S. and Europe since its seed financing in February, as well as more ongoing acquisitions, which will put the company on the horizon to exceed expectations of closing 20 deals in 2021. (E-commerce News)

10. Vipshop's world's only central warehouse project is launched in the West Coast New Area

      July 17th news, recently, as a leading cross-border e-commerce company, Vipshop's world's only central warehouse project was launched in the West Coast New District. It is expected that the first-line import volume of cross-border e-commerce "1210" model will be realized in Qingdao this year.

      According to Wang Hongjiang, head of the warehouse of Vipshop Qingdao Center, the first phase of the project has a storage area of ​​about 40,000 square meters, a storage area of ​​30,000 square meters, and can store 4.5 million to 6 million parcels, and the daily peak order volume can reach 150,000 orders.

      Wang Hongjiang also said that as the first cross-border e-commerce company to open warehouses after the Qingdao Free Trade Zone was approved, Vipshop will use Qingdao Central Warehouse as an important business support platform in Northeast Asia to carry out two-way import and export business, and work with the West Coast New Area Bonded Logistics Center to build the central warehouse into a fulcrum for Vipshop to "buy globally and sell globally", bringing high-quality global goods to domestic consumers more efficiently.

      In addition, Jiang Nan, president of West Coast New District Bonded Logistics Center Co., Ltd., introduced that in order to meet the warehousing needs of enterprises of different sizes, the Bonded Logistics Center has designed a "all-round warehouse" for warehouses, covering a variety of types such as bonded warehouses, general warehouses, and public service warehouses.

      In 2019, Vipshop entered the bonded logistics center of the West Coast New District, and completed the customs clearance of the first cross-border e-commerce bonded imported goods in the Shandong Free Trade Pilot Zone at the end of August of that year. This time, Vipshop once again tilted its national business focus to Qingdao, and upgraded it from a general bonded warehouse to a central warehouse.

      It is worth mentioning that in May 2020, the West Coast New District specially issued the "Interim Measures on Supporting the Development of Cross-border E-commerce Industry", encouraging enterprises to set up central warehouses in the new district to promote the development of cross-border e-commerce industry, and providing full subsidies for land freight allocated to other ports through land transportation, etc., support for policies such as the forefront of similar urban areas in China.

      Relevant data shows that in 2020, the import and export of cross-border e-commerce in the West Coast New District was approximately 3.72 billion yuan, accounting for 68.6% of Qingdao's cross-border e-commerce business, of which bonded stocking business accounts for more than 70% of Shandong Province, achieving leapfrog development. From January to May this year, the import and export volume of cross-border e-commerce in the West Coast New Area is expected to reach 5 billion yuan, an estimated increase of more than 5 times year-on-year. (E-commerce News)