Chapter 613: Market Penetration in University Towns

University towns have their own commercial areas distinct from the broader city ecosystem which offers unique barriers.

Locally, the types of businesses and the richness of commerce mean they could operate independently of the city business structure.

Initially, Group-Buy leveraged the cover of university towns to accumulate power before striking fiercely in the national market, establishing its dominance in group-buying.

Thus, describing university towns as fertile ground for Group-Buy is no exaggeration.

Adding the verticality of college student’s highest usage in social apps like Zhihu Campus within Group-Buy’s ecosystem, it almost commands with decree.

This is also why Praise Delivery and Baidu Delivery have been reluctant to target the college student market.

In this independent market, few can compete with Group-Buy.

Hungry Yet later targeting university towns wasn’t from a belief in their competitive edge against Group-Buy Takeaway but due to a need for higher market share to seek financing.

Even if they lose after expanding, as long as they secure the financing, it won’t be considered a loss.

In other words, everyone knows Group-Buy Takeaway’s absence in university towns is only temporary; no real competition will last once they enter.

Yet, nobody expected Group-Buy Takeaway to make its move now, surprising everyone.

Why?

Because summer vacation is just two months away.

During summer, few students stay on campus, seriously dropping the takeaway business, which is a known fact.

In Koubi’s, Baidu’s, and Hungry Yet’s views, Group-Buy Takeaway’s ideal entry should have been in September, the start of the new school year.

New students arrive, revitalizing the university town.

Freshmen are curious about everything, making promotional work much easier.

Yet, Group-Buy chose to make its move unexpectedly at the end of April.

Normally, a new competitor doesn’t majorly impact the market quickly, but Group-Buy Takeaway emerged thunderously strong right from the start.

Several brands confirmed as members of the Linchuan Business Group didn’t even pretend, directly aligning with Group-Buy Takeaway’s exclusive page.

First, the nationally popular Xitian Bubble Tea released three new items only available through Group-Buy’s online avenue.

Burger King launched a value meal deal just for Group-Buy Takeaway.

Convenience stores usually have low profit margins and charge for delivery, but not with Group-Buy Takeaway.

Crucially, using Group-Buy Takeaway doesn’t require a separate app download, as it’s integrated into Group-Buy’s core app.

College students usually enjoy karaoke, movies, and hotpot gatherings, making Group-Buy an essential app for this group.

Thus, with exclusive vendors like Zhihu’s online support and no need for app downloads, the university town market went wild.

“Damn, is it targeting me?”

At Hungry Yet headquarters, Zhang Xuhao’s face fell upon hearing the news.

The last subsidy campaign cost them, but Jiang Qin just shrugged it off, leaving their finances strained again.

Tencent is now focusing on promoting WeChat and supporting Tencent Video with billions, not minding their plight.

Thus, Zhang Xuhao kept seeking new investors.

This month, Alibaba expressed interest in investing in Hungry Yet, offering very tempting conditions.

Zhang Xuhao was intrigued and has been in talks with Alibaba’s Li Changming, almost taking the bait.

Just as things were looking up, Group-Buy Takeaway’s move into the college student market nearly gave Zhang Xuhao a heart attack.

If they lose to Group-Buy Takeaway nationally and in the university market, Alibaba’s investment in Hungry Yet might significantly shrink.

Because Alibaba isn’t foolish to bet on a losing side.

“Mr. Zhang, Manager Yang is here.”

“Let him in.”

With Chen Jiaxin at a Internet conference in Shanghai, only Yang Xueyu from Public Review had useful operational advice now.

After all, Yang Xueyu had been through the group-buy wars and understood Jiang Qin’s tactics.

Soon, Yang Xueyu entered the office looking quite distressed.

“Damn it, as expected. It’s probably going to be rough, and I’m scared to compete against Group-Buy.”

“Mr. Yang, please have a seat.”

“Mr. Zhang, you wanted to see me about Group-Buy Takeaway entering the college market, right?”

Zhang Xuhao nodded, “Group-Buy’s entry was sudden but fierce. Our managers in the university market feel overwhelmed, so I wanted to tap into your experience.”

Yang Xueyu paused, “Burn money.”

“But… that’s all the operation funds we have left.”

“If Mr. Zhang, you trust my advice—in order to keep the company running—invest all our remaining funds.”

Zhang Xuhao paused, “Can you explain why?”

After organizing his thoughts, Yang Xueyu explained, “Understanding Jiang Qin, he wouldn’t enter without assurance. He starts strong with combinations that hardly give others a moment to breathe. We can’t afford to be lucky; we must go all out.”

Hearing this, Zhang Xuhao reflected deeply.

Honestly, as the boss, seeking growth while stabilizing the whole operation was tough.

Now, being advised to invest all operational funds was challenging.

Sensing Zhang Xuhao’s dilemma, Yang Xueyu spoke again, “Before joining Public Review, I was with Lashou. When Group-Buy first entered the national market, their ground-promotions were brutally efficient. Everyone thought to outlast their promotions then crush them with money, and then…”

“And then what?”

“Then, when Group-Buy’s promotions seemed weary, suddenly a collection of cooperative brands broke through the blockade using their chain stores. We mustn’t have any illusions about Group-Buy.”

Zhang Xuhao pondered deeply before ultimately deciding to spend heavily to counter Jiang Qin’s expected moves.

Thus, in university towns nationwide, Hungry Yet launched an aggressive subsidy campaign to face Jiang Qin’s combined punches head-on.

Following the campaign launch, Meal Point’s users rapidly defected, hitting record low order numbers.

“Boss, just like you said, Hungry Yet started burning cash.”

“Yang Xueyu went to Hungry Yet; Chen Jiaxin was there too. They know my style, hence fearing I had further moves. Seeing my entry, a reactive spending is typical, especially as Hungry Yet is in the midst of financing and can’t afford to lose the college market.”

Ye Ziqing appeared contemplative, “What now?”

Jiang Qin narrowed his eyes, “Hold our ground. Let Hungry Yet burn through Meal Point.”

“But if we don’t participate, Hungry Yet might very well consume most of Meal Point’s market share.”

“I don’t care. We can always reclaim the market share later, but for now, as long as Meal Point is out, we’re good.”

Ye Ziqing pursed her lips, “But what if Hungry Yet can’t burn through Meal Point?”

Jiang Qin smacked his lips, “Then we’ll personally step in and finish them off; don’t let them suffer too much.”

When the top two fight, the third one dies—an absolute truth.

Group-Buy Takeaway has a large base of brand vendors, who even produced exclusive package deals for them, so even without burning cash, they wouldn’t be driven out soon.

But what about Meal Point?

Group-Buy’s entry already cost Meal Point a massive loss of top-tier users. Now, Hungry Yet reacts rapidly by spending heavily, leaving Meal Point struggling to survive.

There’s no other way but to outspend Hungry Yet.

Jiang Qin aims to use Hungry Yet’s reactionary spending to completely drain Hurricane Investment’s investment.

Meanwhile, Meal Point’s headquarters felt their heads spinning; first, losing merchants to Group-Buy, now facing Hungry Yet’s frenzied spending, they too began burning through recently acquired funds.

But they underestimated the college students, a group who truly dared to take advantage…

With the subsidy war in full swing, the market turned into a bottomless pit, rapidly draining funds.

The students were ecstatic, joking they’ve been alive all these years and finally witnessed a miracle, so they simply went wherever the higher subsidies were.

Three meals a day? Nonsense, five couldn’t keep up!

And Group-Buy Takeaway’s university branches got higher-ups’ orders: skip Hungry Yet, go after Meal Point.

Duan Wenzhao went mad, “What’s going on? How did this happen?”

“Young Master Duan, our premium merchants were mostly taken by Group-Buy, we can’t afford this burn rate; maybe we should give up.”

“Give up? If we do, we’re finished. Hungry Yet offers crazy deals; Group-Buy has exclusive packages. What do we have? The users will definitely abandon us!”

“But Young Master Duan, it’s only been a day, and we’ve already burnt through half of our newly acquired funds meant for nationwide market expansion.”

Duan Wenzhao sat for a long time gasping breaths, “Has Meal Point always been this fragile?”

While Duan Wenzhao remained bewildered, Hungry Yet’s Zhang Xuhao was equally confused.

What about the combination punches? The expected Group-Buy combination punches. Could it be… Group-Buy isn’t aiming for me?

But it seems Hungry Yet might actually dominate the university town market!

Zhang Xuhao knew he couldn’t hesitate, so he pushed forward immediately.

In three days, Meal Point’s freshly secured investments burned away massively, but the real problem came from Sang Jingbo.

“Mr. Duan, the merchants want early settlements and a security deposit.”

“Why?”

“We’ve burned fiercely these past three days. They fear we’re too fired up and might burn their share too, so they won’t continue without settlements.”

Duan Wenzhao was livid, “Nonsense, we still have money.”

Sang Jingbo bit his lip, “But there’s a post on Zhihu saying we’ll run out soon and those wanting to cash in better hurry. It’s gone viral and spread to merchants across university towns.”

“They believe such rumors?”

After numerous group buying platforms went bust, taking merchants’ money and running, those in business are now terrified.