From “going out to buy food” to “waiting for food” – “the world’s most difficult e-commerce business.”
Editor’s note: This article is from WeChat public account “New Retail Think Tank” (ID: newretailinsider) a>, author Zhang Hangying.
“I haven’t been out for more than a month, I don’t know which one is cheaper than online shopping and cooking, because I am lazy.”
Shanghai’s small V, online loyal users, in line with the basic characteristics of the Internet shopping target population: first-tier cities, young white-collar workers, not sensitive to price, lazy to get the door.
These young people who call themselves “social animals” missed a wave of fresh markets early and late, even on a rest day, they would rather “Ge You”. Moreover, for them, it takes courage to bargain in the market. “This is too faceless.”
So, fewer and fewer young people went to the market, and many of them rushed to the Internet to buy food. Last year, through a hungry user who bought the most food on the market, 524 orders were placed, with an average of 1.4 per day.
Now Taobao, hungry, can easily find the “buy food” entrance, and box horses, more Dmall, 叮咚 grocery shopping, daily fresh, etc. can also “send food to the door.” Young people just need to take out their mobile phones, click on the order, and then wait for half an hour for vegetables and fruits to come.
The end of the phone may be a supermarket hypermarket, which may be a pre-warehouse or a normal vegetable market.
Renovation of food fields
Shanghai Jing’an District, Luoping Vegetable Farm with more than 40 years of history, cooperated with Hungry in October last year, and moved to the Internet.
At the beginning of the renovation, Luoping Farms had done an intentional survey, and as a result, residents were reluctant to change the market into a supermarket hypermarket. “The next-door aunts and aunts like to come to the market. After they have finished, they will go to the park next to them. This is a human touch.”
Sincerely, the market is the most flamboyant place, which can make people feel passionate about life.
Huang Yisong, the director of Luoping Farm, said that he finally decided to adhere to the positioning of the traditional market. He just made engineering renovations on this basis, such as the style of the old alley in Shikumen, Shanghai, so that people came in and walked in. the feeling of home.
The Luoping vegetable farm is hungry, and a unified name is called “Amoy Cat”The SAAS system integrates functions such as cash registering, weighing, and payment. With it, merchants can easily perform sales management, financial management, and data analysis.
Today, the face of Luoping Farm is that the old people go to the market in the morning, and they often go home. In the afternoon, young people buy orders through mobile phones.
“At the time of opening (one day) there were 167,000 turnovers, and now there are also 100,000.” Huang Yisong couldn’t say the numbers before the renovation, because there was no data at the time, it was not good statistics. As in Luoping Farm, there are still many traditional farms that have been upgraded and upgraded. It is reported that the word-of-mouth hungry shopping business has been rolled out in 200 key cities across the country, and will quickly promote 500 cities.
Shanghai is the most prosperous place in the fresh market. The crazy expansion of the grocery shopping base is here, but Huang Yisong feels that “the Internet shopping has basically no effect on the business of our traditional market. In terms of it, they are quite Not easy.
Internet shopping trend
A few years ago, the tragic life of the fresh e-commerce shuffling period was as it stood. Around 2013, there were thousands of companies targeting the fresh e-commerce sector. However, they soon encountered a dilemma. When the wind of capital stopped, they suddenly sighed.
According to the data of the Mob Research Institute, by 2016, there were more than 4,000 domestic fresh electricity e-commerce companies, 88% of which were losses, and the profit was only 1%.
Fresh and new retail is therefore called “the hardest e-commerce business in the world” by many people.
In 2019, this wind has come back. With the help of capital, “Internet shopping” is full of fun, and players from all walks of life have entered.
Today’s capital, high-capacity capital, Sequoia Capital and many other investment institutions have focused on the “vegetable basket”, and Internet companies such as Ali, Suning, Jingdong and Meituan have been among them. Daily shopping, shopping, kitchen, and old-fashioned shopping platforms are on the rise. A few days ago, I had a $1 billion D1 round of financing, and I was led by Mingde Holdings.
Behind the “vegetable basket” is a vast trillion market – high frequency, just needed, blue ocean. According to the “2018 China Agricultural Products E-Commerce Development Report” issued by the China Agricultural Products E-Commerce Alliance, the size of China’s fresh-food market is close to one trillion, and the penetration rate of fresh e-commerce is less than 3%.
Xu Xin of today’s capital once said that “Freshness is the last bastion of e-commerce, and winning the e-commerce has won the world.” She said that although the Internet is booming, it accounts for only 10% of the total retail sales of the whole society. % hasn’t caught it yet – 90% is fresh.
于Yes, it is not difficult to understand the enthusiasm of entrepreneurs and capital for the “buy food” business.
tripped by the “vegetable basket”
However, the stories that people have heard of being stumbled by the “food basket” are too many.
The group’s small-scale fresh food store in the low-tier cities was basically closed in the first quarter of this year; Jingdong’s 7FRESH target will open 1,000 stores in the next three to five years, and now only opened more than 10; Yonghui Super species were stripped of listed companies due to performance losses….
The business of buying food on the Internet is tempting, and there are many visitors. After a long time of excitement, there are not many that can be done well.
In June of this year, the 叮咚 菜 被 被 “ “ “ “ “ “ “ “ “ “ “ 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 资金 At present, the unit price of the customer is 50 yuan, and the target is 60 yuan. Compared with the simple supermarket or the daily price of more than 80 yuan, the unit price is still very low.
Daily Good Fresh CEO Xu Zheng has said that consumers are concerned about the speed of delivery, freshness and price concessions. Therefore, you need to do fast delivery, good quality, you can also get the supermarket to buy – the best way is to build a warehouse next to him.
Of course, the front warehouse is an independent operating unit, and only when the density reaches a certain scale can it really work.
Since 2015, the daily fresh food has been heavily invested in the construction of pre-positions. It currently has 1,500 pre-positions in 20 cities across the country.
It’s like a competition. There are also 叮咚 叮咚 叮咚 , , , , , , 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435
Before the density of the warehouse can not form a scale effect, it is inevitable that the costs can not be diluted, then their dependence on capital is endless.
The strength of the Internet to buy food this wave of burning, compared to the previous “network car war” seems to be more than ever. Behind the money-burning subsidy is the trend of online traffic dividends peaking, and the business of buying food seems to be the best traffic entry.
Dishes that never disappear
Why can’t many giants or entrepreneurs who go to succession play the “small business” of buying food?
Huang Yisong, the director of Luoping Farm, attributed the reason to “cost is too high” and unavoidable high loss.
The core of fresh is a “fresh” word, which is difficult to preserve, prone to deterioration, and high loss – any one can become a straw that crushes a camel.
In this respect, traditional food farms also have their own advantages. The stalls of traditional food farms are usually husband and wife shop, all day long, and even “open all year round.” Wife sells vegetables in the market for 12 hours during the day, and her husband buys small quantities at night. The price changes flexibly with the sales situation, and it can be sold out on the same day. Compared with the large-scale purchase of large stores or pre-positions, the loss is reduced to the lowest.
People buy food at the market, and the “fresh” seen in the eyes and the pictures seen on the screen of the mobile phone are separated by countless details.
Because of the fresh requirements of fresh produce, this is actually a very fine business. The self-employed households are guarding their own stalls. When they are empty, they will pick up the pickles and drench the water. For the fresh river, the winter will heat up in the middle of the night and add ice in the summer…..
In the era of mobile Internet, traditional food farms have irreplaceable value, and there is still a lot of room for improvement. Hungry, with the platform’s ideas, bring traditional tools and services such as supply chain, distribution, and flow that are lacking.
From the hungry APP app to enter the food entrance, in addition to “fast monkeys to buy vegetables”, “selling food to buy dishes” and other fresh food shops, you can also see the old-fashioned food and other brands operating the brand. After the hungry on the line, the online transaction volume of the old-fashioned package for one year reached 100 million yuan.
It is reported that the word-of-mouth hungry shopping business has been rolled out in 200 key cities across the country, and will rapidly advance 500 cities. The word of mouth is hungry. The data shows that the number of fresh merchants on the platform was over 100% when they were hungry in 2018. The number of fresh active users in the first quarter of 2019 exceeded that of last year. More than one-third of the fresh online users are young people.
While the online market is booming, the traditional food market is also undergoing a digital upgrade. Perhaps the only key change is that people can choose to buy food on their mobile phones when they are snoring or occasionally lazy.