---
title: "Shihui Tuan Surpasses 15 Million Daily Orders, New Landscape in Community Group Buying Competition"
description: "According to the latest news from New Distribution, Shihui Tuan has surpassed 15 million daily orders. This is another major industry event one month after Shihui Tuan secured $196 million in funding led by Alibaba in early December. Meituan Youxuan announced it has reached 20 million daily orders, while Duoduo Maicai's national daily orders stand at 12 million... Xingsheng Youxuan also hit 12 million daily orders in November 2020. Compared to the timeline..."
author: "秦淮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-01-28"
language: "en"
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---

# Shihui Tuan Surpasses 15 Million Daily Orders, New Landscape in Community Group Buying Competition

> According to the latest news from New Distribution, Shihui Tuan has surpassed 15 million daily orders. This is another major industry event one month after Shihui Tuan secured $196 million in funding led by Alibaba in early December. Meituan Youxuan announced it has reached 20 million daily orders, while Duoduo Maicai's national daily orders stand at 12 million... Xingsheng Youxuan also hit 12 million daily orders in November 2020. Compared to the timeline...

**According to the latest news from New Distribution, Shihui Tuan's daily orders have surpassed 15 million. This is another major industry event one month after Shihui Tuan secured $196 million in funding led by Alibaba in early December. Of course, this is also great news for Shihui Tuan.**
It is understood that Meituan Youxuan announced its daily orders have reached a peak of 20 million, while Duoduo Maicai's national daily orders stand at 12 million... Xingsheng Youxuan also hit 12 million daily orders in November 2020.
Compared to the timeline, although Shihui Tuan is three months behind, it's important to note that this order volume was achieved not during the 11.11 national shopping festival, but during a regular period.
From this perspective, Shihui Tuan is indeed formidable.
In the past few months, community group buying has been extremely hot, with giants entering the fray, burning cash on subsidies, and making bold claims, putting the entire industry in the spotlight. Almost everyone has focused on the internet giants. At the same time, Xingsheng, as the pioneer of the industry, has been benchmarked by the giants, who study its model, observe its data, and conduct research.
If we also benchmark Shihui Tuan against Xingsheng, the gap that was once several times in Xingsheng's favor has been closed and reversed in just two years. Shihui Tuan's growth rate has been like a dark horse racing forward.
**Looking back at the achievements of the past three months, Shihui Tuan's average monthly compound growth rate and month-over-month growth rate have both exceeded 30%. Especially from December 2020 to January this year, the growth rate has been as high as over 50%.**
Just in early December 2020, Shihui Tuan had secured $196 million in funding led by Alibaba, and subsequently connected to Taobao Maicai in most cities. Given the current daily order volume and growth trend, Shihui Tuan has clearly not let Alibaba down.
Amid the forest of internet giants, why does Shihui Tuan continue to sprint? This deserves our deep thought and research.
**-01-**
**The Explosive Community Group Buying: Big Water, Big Fish**
**Big water, big fish: the rapid development of the industry has driven a surge in order volumes across platforms.**
In fact, as early as 2018, community group buying was once hot, with a large number of platforms securing funding. But the good times didn't last; in 2019, multiple platforms faced negative news.
Meicai's Meijia Maicai withdrew from many stations on a large scale, Squirrel Pinduoduo cut 80% of its staff, and Dailuobo faced capital chain rupture and bankruptcy restructuring. The industry was in a state of shutdown and cooling down.
However, Shihui Tuan, which was in the same 'era', managed to cross the winter smoothly. The outbreak of the pandemic then propelled Shihui Tuan to rapid development, securing three rounds of funding in 11 months, with total funding close to $600 million.
As the saying goes, all competition is competition among people. The founder's genes, combined with organizational accumulation, and the merger with 'Ni Wo Nin', have led to Shihui Tuan's achievements today. As Shihui Tuan CEO Chen Ying said in an internal letter on December 8, 2020:
**"Shihui Tuan stood out from thousands of startups, forged through countless arduous and perilous battles. Among startups, we were the latest to be established, and at one point had one of the smallest amounts of capital. We went all-in dozens of times to get to where we are today. Our understanding of the community group buying model, our operational capabilities, and our organizational capabilities have been honed through countless trials and are unparalleled!"**
These words fully capture the key elements that enabled Shihui Tuan to win and achieve relatively good results.
**-02-**
**Why Shihui Tuan?**
In addition to the team genes deeply ingrained in its bones, Shihui Tuan's ability to secure multiple rounds of investment from Alibaba also lies in its continuous optimization and improvement of its business capabilities.
As community group buying has developed to this point, with the invasion of internet giants and the funding of native entrepreneurs, I think it's no longer of much value to argue about whether the business model is viable, what the profit model looks like, or consumer habits.
**Who can better meet consumer needs, who can capture consumer mindshare, and thereby secure continuous repurchases.**
Regarding meeting needs, Shihui Tuan seems more resolute: adhering to the fresh produce strategy and the origin strategy. Wang Peng, co-founder and CEO of Shihui Tuan, has also stated more than once that **in the future, it will build a supply chain capability centered on fresh produce.**
With this direction, Shihui Tuan has done a lot of solid foundational work, such as entering Zhouzhi County in Shaanxi, gaining origin cooperation resources while helping farmers; entering Bazhong to help sell Ganquan tangerines; and helping the blood orange sales in Changshou District, Chongqing.
It is understood that Shihui Tuan has also established three procurement chains:
> **First, the headquarters supplier team connects with large national suppliers;**
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> **Second, the 'golden buyer' team searches for good fresh produce in various fruit and vegetable origins across the country;**
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> **Third, establish its own procurement teams in product supply areas, mainly connecting with surrounding cities to achieve 'one city, one flavor'.**
Looking back, **when you have strong fresh produce capabilities, you naturally can generate high-frequency connections, transactions, and relationships with users. When you have relationships, you have consumer mindshare and platform awareness, ultimately leading to continuous repurchases.**
The giants' low-price subsidies are just a short-term customer acquisition method, understandable as exchanging money for time. But **there are some things that cannot be exchanged, such as control over fresh produce, understanding of needs, and optimization of efficiency.**
Especially in understanding needs, as industry insiders have pointed out: community group buying brands will form an independent product set in each province, and many products cannot empower each other. Each province must independently restructure a separate product set based on the supplier system, product system, and local consumer preferences. This workload is enormous and requires someone with a strong understanding of the supply chain.
**Today, Shihui Tuan has covered seven major regions: North China, East China, Central China, Southwest, South China, Northwest, and Northeast, spanning 20 provinces and 220 cities, with over 600,000 group leaders and tens of millions of users.**
Behind these figures are not just strings of data or relationships built through transactions, but more valuably, the accumulated understanding of local needs that Shihui Tuan has developed.
**-03-**
**No Group Leader, No Group Buying!**
Looking back at the development and iteration of the retail industry, we have experienced three generations: **the first generation is offline physical stores, based on LBS, physical retail; the second generation is online e-commerce platforms, based on the internet, infinite shelves, aggregating traffic; the third generation is social relationship retail, based on network nodes, decentralized, with traffic intercepted upfront.**
**Community group buying is a typical social relationship retail, and the most important connector with consumers is the group leader.** So the value of group leaders cannot be ignored.
Of course, this also aligns with the overall trend of social retail, where individual value is highlighted based on social network nodes.
Regarding the positioning of group leaders, Shihui Tuan has a clear positioning: **delegate the front-end marketing, operations, and fulfillment to 'group leaders', allowing them to do what they are good at: connecting with customers.**
To cultivate an excellent group leader, in addition to assessing the inherent excellent common qualities of group leaders in the early stage of expansion, it also requires long-term, systematic, and refined cultivation and accumulation of 'nurturing' methods for group leaders.
[Image: Shihui Tuan group leader checking received goods]
Shihui Tuan's group leader training system will help group leaders grow through a series of management measures, including a new group leader training and growth system, target assessment and incentive system, group leader tiered operations, and promotion system. The purpose is to standardize and model the business capabilities of group leaders, which can also be quickly replicated nationwide.
This is the foundation for ensuring that Shihui Tuan's group efficiency (i.e., sales per group) is the highest in the industry (exceeding the average level by 30%), and it is also the prerequisite for ensuring that group leaders are willing to continue to develop deeply in Shihui Tuan.
In 2021, Shihui Tuan released its goal to complete the strategic layout of 5 million group leaders nationwide. When this goal is achieved, sufficient and high-quality group leader reserves will allow Shihui Tuan to not only gain consumer demand based on local cities and districts, but also collect and feed back consumer pain points in reverse, continuously improving the fresh produce-centered supply chain capability.
With 5 million group leaders across the country as a starting point, combined with its understanding of downstream community consumer needs, continuously connecting upstream product supply chains, and integrating online and offline, Shihui Tuan's ambition is not just a single fresh produce product, but the entire near-field retail market!
**Final Thoughts:**
Retail development is a marathon, testing endurance and stamina. Only by truly standing from the consumer's perspective, providing consumers with good quality and low-priced products, and providing consumers with more, faster, better, and more economical services, can we win consumer trust and dependence.
For retail enterprises, rooting in the supply chain, consolidating the foundation, and continuously optimizing warehousing and distribution services are the only ways to achieve overall business cost reduction and efficiency improvement, and enhance profitability.
Returning to community group buying, the true value of the community group buying format lies not only in providing consumers with good products and services, but from a higher dimension, community group buying is an acceleration of infrastructure construction, as well as an iteration and reconstruction of consumer goods distribution channels.
**Whether it's shared warehouses, central warehouses, or grid warehouses, the accelerated penetration of leading community group buying platforms has driven the construction of warehousing and logistics, especially in low-tier markets.**
This means that consumers' shopping radius can be extended to more distant origins with the help of these infrastructures, **and good products and services can be sunk to scenarios closer to consumers, thus providing the possibility for consumer upgrade.**
Consumer upgrade is not just about letting consumers in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen eat imported seafood and vegetables, but more importantly, letting the 800 million consumers in lower-tier markets, who could only survive in a self-sufficient environment, experience a richer variety of products and services.
Secondly, **production enterprises that previously could only rely on wholesale markets for market coverage and sinking now have more choices due to the improved infrastructure brought by community group buying.** Channel construction is no longer constrained by the number of channel personnel. Through cooperation with community group buying platforms, products can penetrate every corner of the country in a very short time, reaching every consumer's hands.
This undoubtedly places higher demands on the supply chain capabilities, warehousing and distribution capabilities, service capabilities, and digital capabilities of community group buying platforms. In this process, only platforms that continuously optimize business processes and consolidate basic capabilities, like Shihui Tuan, rather than blindly pursuing development speed, can run to the end.
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