Tiger sniff: The slogan of new consumption has been shouted, so what exactly is new consumption? At this year’s FM Innovation Festival, Tiger Sniff invited a daily excellent fresh partner and COO Sun Yuan to bring a “new fresh, new consumption” speech. From the fresh and daily necessities category, how to adapt to the intergenerational evolution of new populations, the changes in new channels, the iteration of new technologies, and the changes in new supplies is a topic facing every retail enterprise.
Sun Yuan believes that this generation, that is, “you”, is not only the driving force behind the development of category e-commerce, but also the driving behavior of the previous generation and the next generation The driving force of reform, change and change, and the change of the crowd will bring about a difference in his purchasing method and consumption behavior, coupled with the generation of technology and the active transformation of the supply side, all conditions can be combined to meet the needs of users. Lower cost gratification.
The following is the actual record of Sun Yuan’s speech (Tiger sniffs a little edited) :
Hello everyone, in fact new consumption is a very big concept. When it comes to new consumption, what are we talking about? We have dismantled many of the driving forces of new consumption, trying to find the real motivation behind it, and see what factors we can use and learn from.
Factor 1: New people —— Consumption is undergoing tremendous changes. The real driving force behind this is the intergenerational changes of this generation of consumers. They are the most fundamental driving factor of consumption. If there is no change in the population, it is likely that this consumption environment, the consumption world and the industry will not change so fundamentally.
Factor 2: New Channel Changes Brought by New Crowds —— In the face of intergenerational population changes, in order to maximize the single factor, e-commerce channels have emerged. In offline, the core reform point is community retail. People-centered construction of goods and markets, and community retail quickly achieve online.
Factor 3: New technology —— Consumption will always be a factor that connects people and goods yards. If technology is not available to make supply more convenient, it will meet the needs of consumers in a more cost-effective manner. , May not change so much.
Factor 4: New supplyGiving- Including upstream suppliers, brand owners, and the reshaping of information flow, changes in demand and quality, these are all the factors behind the change that drives consumption.
Let me talk about the trends of these four factors one by one, and where is the future?
New crowd: 80s is the driving force behind the development of category e-commerce
About the new population, the main topic is “intergenerational”.
Everyone actually feels it. In the past 30 years of life, we will obviously see that there is a clear intergenerational difference between the post-80s generation and the 60s and 70s. This is reflected in the concept of consumption. The difference is as small as shopping for vegetables or as big as buying a house.
For example, my parents ’generation bought a house (20 years ago) almost all the money, now we almost buy a house Loans, of course, a big factor is that they have no money. Back to 20 years ago, if our parents had borrowed three homes at that time, we may not have to work so hard now. So big to buy a house, small to buy a lot of things, our decision-making concepts are different.
The new generation of our generation has more different consumption concepts, such as pre-consumption, buying with fragmented time, we are pursuing a better life, we are inclined to house, we are pursuing cost-effective, we care about the friends around us Word-of-mouth communication, etc., and these changes in consumption concepts and concepts are irreversible.
We have also seen that the post-80s generation has actually spawned the online development process of each category. Around 2000, the post-80s generation was basically in college, and their purchase demand at that time was mostly based on small commodities, so Taobao was on the rise. In the next ten years, this generation has a lot of small achievements just after work. (little rich) , can not be satisfied with the general merchandise , Began to have Hai Amoy, the pursuit of overseas (goods) . Later, as this generation reaches the age of 30 and starts to marry and have children, there will be mother-to-child e-commerce (developed from around 2012) . After 2015, this generation hasWith children, there is a need to cook at home and buy fresh produce, and there is a trend of online retail in the fresh produce community.
Therefore, the generation is not only the driving force behind the development of category e-commerce, but also the driving force and driver that drives the consumption habits, reforms and changes of the previous generation and the next generation. The development of our entire e-commerce or category e-commerce is closely related to the intergenerational changes of this generation and the universalization of consumer behavior and consumption habits they bring.
This is why we talk about why entrepreneurship and new models are the most important, because you have to do the right thing with the changes in the consumption and intergenerational changes of this generation, and this behavior is irreversible. Therefore, the online trend of the whole retail is not very reversible.
New channel: The front warehouse model solves the online problem of community retailing
Second, new channels. Changing people will bring different purchasing methods and consumption behaviors. The fact that “the change of the crowd leads to the change of consumption channels” has actually happened in many countries and in many times.
For example, the United States was a baby boom around 1920. With a new generation of population, the population density has increased dramatically, which has led to an increase in the population density around towns and cities, and has led to the development of retailers like Wal-Mart. Can provide more convenient purchases centered on towns, replacing some of the original farmers’ markets. So with the rise of a generation of retailers.
The same thing happened in Japan in the 1970s. At that time, the export trade was in a period of rapid development. The Japanese economy was also better. The proportion of women in employment exceeded 75% for the first time. There were more dual-employee families and people were busy. And the acceleration of the pace has given birth to convenience stores like 7-11 to take root and grow in countries like Japan.
The driving force behind the “crowd” will bring about some of the core drivers of changes in the consumption channel. The era we are facing now is that the generation of 80s is also busier, more in pursuit of convenience, and more in pursuit of good products and value for money. Such a change in consumer demand has also spawned The birth of new channel dealers.
Actually, Daily Fresh is basically born in such an era. We hope to meet, or better meet the needs of this generation’s convenience purchase with a better cost performance. One thing we did was to provide these people with online purchasesConvenience.
Our approach may be different from many similar players, because we see that using online methods to replace offline must meet two factors: 1. To meet the efficiency of consumers. That is to say, a new model must bring more, faster, better, and less expensive experiences to consumers; 2. This model must bring industrial efficiency, which is conducive to optimizing industrial efficiency. Supply chain efficiency and logistics efficiency.
Only with such a bilateral effect can we support the realization of this model. Therefore, in this multiple choice question, we have referred to the practice of a generation of e-commerce.
What the first-generation e-commerce (2000) did was to turn urban consumption into an e-commerce centered on Okura. Their core logic is that an e-commerce city can cover enough urban areas, because a warehouse can basically cover a range of 200 kilometers around, and the quantity of goods carried by a warehouse is sufficient (relative to the same store ), Because it is warehouse-style storage.
The logistics cost that a warehouse can carry is lower than the store rent and labor cost of a store, so that my products can be more economical. This is a warehouse that replaces a large store (things that a generation of e-commerce companies do). The Internet was born based on the efficiency of warehousing and logistics is higher than the efficiency of large Shopping Mall stores.
As a second-generation e-commerce, what we need to reform is actually the next level-the onlineization of community retail. What we can do is actually similar. Can we replace a small store with a small one? Because the storage space and area of Kokura will be more efficient than the shop, because the shelves can be made high enough, the moving line does not need to involve two-way flow of people.
In addition, the geographical radius covered by a small warehouse is higher than that of a small store. A warehouse basically covers two to three kilometers around it. A small store usually exceeds 500 meters and you are not willing to walk past it. , So this is the difference in the coverage radius of the warehouse relative to the store.
Also, the warehouse rent of a small warehouse will be 2/3 lower than that of a store. Warehouse rent is about 1/3, and labor will be less than the storefront, so using the small warehouse instead of the small shop can not only get home at the consumer end, can reach it quickly, can enjoy more goods, but also for industrial efficiency, He can have obvious rent advantages and labor advantages over the shop.
This meets two conditions of a model: 1. It provides excellent user efficiency; 2. It provides higher industrial efficiency. Then meet the better needs of users at a lower cost, this is a formableThe underlying logic of e-commerce.
Based on this idea, in 2015, Daily Fresh as the first front-line e-commerce company did these things. In the process, it has actually experienced a variety of new models from 0 to 1. Difficulties. By this year, a complete system has also been constructed. At present, we have direct mining in more than 30 countries and regions at the production end, and the products go to 10 city sorting centers. After the rough processing is completed from the sorting center, and then the finished products are delivered to the front 1500 front warehouses. After the user places the order, it will be delivered to the user on average 36 minutes.
The advantages it has just mentioned in fact:
1. All supply chains are self-operated: capable of high-quality selected goods and 100% batch inspection. It guarantees that every product is actually up to the quality standard, without any pesticides or heavy metals, so that users can rest assured to eat and buy with ease.
2. Better and faster: It’s home and it takes about 36 minutes to arrive, which is more convenient than going downstairs to buy food.
3. The store is used instead of the store: it will be more efficient than the store and can provide a cheaper price than offline, so the average price is 10% cheaper than the offline format.
4. “Multi”: A small warehouse of about 300 square meters can provide more than 3,000 fast-moving goods, plus we have 10 centralized warehouses, which can provide more than 30,000 next-day goods. To meet a person’s demand for fresh supermarkets in daily consumption.
Here are some of our explorations on new channels. We can use this channel to provide a better “faster and more efficient” user experience, and at the same time we can better optimize the supply efficiency of the industrial chain and the efficiency of logistics. Is the new channel we talk about.
In fact, there are a variety of channels that are exploring online. At the same time, we believe that in the future, different efficiency differences in the industry will be run to determine what our online e-commerce model will look like. The way.
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New technology: AI + big data + IoT makes smart fresh consumption possible
The third is the technology just mentioned. Because man’s needs are unlimited, he will always pursue more, better, faster, and more economical. In fact, in different times, the generation of technology can make the fulfillment of needs become reality at a lower cost . We live in an era of radical changes in technology-
First, the entire IT system is different. Beginning in 2015, the mobile Internet has become the mainstream instead of the PC Internet, so that people-centric business models have emerged in all walks of life. In fact, your mobile phone is integrated with you. Wherever you go, your mobile phone will stay until where. The mobile Internet has made people-centric formats and methods a reality.
Second, the development of big data has made it more feasible for thousands of people, which actually allows us to build a product and service system centered on people.
Third, IoT. IoT, an IoT technology, can make all offline formats available for IoT, improving the efficiency of the entire logistics and supply chain processes.
We have used relatively strong technology in each sector, and have invested enough human and financial resources in technology-
The first is our online marketing. In fact, we have a smart marketing product and technology team. We just mentioned that this generation ’s demand for word-of-mouth communication, trust in people, and endorsement is relatively strong. Therefore, we have used and amplified the ability of social fission to propagate on high-frequency categories. We focused on increasing the investment in the game ’s fission capability, which resulted in a 400% increase in GMV on the mini-program. If you go forward, the growth will be faster, because the applet is basically the last two years, and the monthly life of the whole applet has exceeded 15 million.
The second reason is that our app has made more precise contact. The media environment is becoming more and more precise, which requires us, as a retailer or advertiser, to be more and more algorithmically accurate. In this regard, advertisers such as Toutiao, Tencent, and Weibo have made accurate user matching with our algorithm, which has reduced our customer acquisition cost by 30% and increased the overall new customer conversion rate by 112. %, This is actually our technology application on big data and our customers.
The third is the management of LTV, which is the management of the user’s life cycle and purchase net profit. For this part, we actually did a better user layering, for eachThe experience of individuals doing their related services and products can make the purchase frequency of our core users continue to rise. The annual consumption amount is up to 7,000 yuan, which basically occupies a user’s core purchase pool.
The other big part is the smart logistics system. I just mentioned that logistics is a relatively distributed management system that involves 1,500 front warehouses spread across 20 cities, so the management of inventory, sales management, inventory management, selection, and operations in these front warehouses are all Is a relatively complex set of logic.
In this case, the technology of the Internet of Things has provided us with greater convenience-
First, we have a circle view, which can see the coverage of each front warehouse in the crowd, and can continuously improve the coverage and penetration of single warehouses and single months in this community. One warehouse single month can increase by 70%.
Second, the optimization of human effectiveness. Each warehouse is a separate operation unit, among which there are a lot of automated technologies, semi-automatic technologies, and algorithm technologies that can be applied. The arrangement of each moving line and the distribution path after each moving line are actually supported by data, which can make the staff efficiency and distribution efficiency in our warehouse far higher than the industry average. Improve our efficiency and reduce terminal distribution costs.
Third, unmanned storage. Whether we are in a large warehouse or a small micro warehouse in the future, there will be small equipment with modular unmanned storage to achieve automated assembly lines, automatic sorting, and automatic packaging. This is actually the application of the entire technology at the logistics side, which can greatly Improve logistics efficiency.
About smart supply chain, we have category planning. Category planning has been done by buyers and set by people. After we have a lot of user data, users can use their actual Buying behaviors help you decide what products to have and what to buy, to achieve better people-centric product planning.
The other is supply and demand management. All of our supply and demand for 1500 front positions are done by algorithms, and people are not involved at all.
1. Fresh is a high-frequency category. You have to predict how many days after everyone buys vegetables, what kind of vegetables will he buy every day, sometimes compared to the forecast of durable goods? Easier, we will do better sales forecast for fresh products.
2. Based on the sales forecast, we pushed back to the upstream to have corresponding purchases.