Published ｜ Tiger Sniff Business Group
Author ｜ Fang Yu Tiger Sniff Master
Title map | Graph insect
Wealth, potential, and ideas, but may not be able to break through in the field of fresh food retail. This may be the biggest inspiration for Hema Fresh to bid farewell to Fuzhou market.
On May 7, 2020, Hema Xiansheng’s last two stores in Fuzhou closed, saying goodbye to the Fuzhou market. However, even if Hema left, retail brands such as Yonghui, Wal-Mart, RT-Mart, and Park Park will continue to fight in this “new retail capital”. It’s just that the new retail capital lacks the figure of the initiator of the new retail, which is a bit disappointing anyway.
From the perspective of Hema, it will definitely emphasize that it is not normal to close a store or open a store. What’s more, Hema may also have encountered a strong blockade and chase by competitors. However, looking at the issue from another angle, Hema has also had a unique advantage that its peers have envied since its birth. First, the money is rich, and the initial investment of each store is high standard and high investment; second, Alibaba provides flow support in terms of flow. Third, the model is novel. From birth, it is omni-channel, and fresh food is delivered to you within 30 minutes.
Even so, Hema still withdraws from Fuzhou. The significance of this incident is a small matter for Hema and a big thing for the industry. In short, due to lifestyle changes brought about by the epidemic in 2020, many retail stores have achieved unexpected growth. Is this growth sustainable? In this year, should companies take advantage of the pursuit, or think about Buffett’s famous quote-“I fear when others are crazy”? This question is related to the pattern and trend of the entire fresh food retail industry in the next two to three years.
Grab a chair and occupy a pit
Encouraged by the large increase in outbreak orders (turnover), many fresh retail companies and supermarket companies have chosen to expand against this trend this year. For example, Dingdong grocery shopping recently entered the Beijing market; Hefei ’s fresh food legend began to enter the national market; Aunt Qian, who completed a new round of financing at the end of 2019, opened the first local store in the epidemic center Wuhan in March 2020. Continue Expand into new cities.
Among the leading supermarket retailers in the market, there are also obvious differences on the industry trends and strategic choices.It can be found that the former is conservative and the latter radical.
From Hu Sniff’s perspective, everyone is somewhat optimistic about the situation. It should be noted that the retail industry with fresh food as the core category has always been a Red Sea action. Are you prepared?
Now, for example, the pattern of the fresh food retail industry, like a game that many of us have played-grab the chair. At many company annual meetings, we have seen this scene. Suppose there are 7 people on the stage and 6 chairs. The music sounds, everyone walks around, the music stops, sit down, there must be one person out.
In a chair grab game, the ratio of chair to person is always N + 1, ensuring that only one person is out of the round. The pattern of fresh retail is much cruel than this, and there is no N + 1 correspondence. If it doesn’t work out, it’s possible for everyone to lose.
During the epidemic, from the government to investors, to practitioners and consumers, they realized that the retail industry, especially the supermarket format that provides fresh food is the infrastructure of urban life, and its status is very important. This is a conceptual Popularity and progress. But on the other side of the problem, three meals a day is just demand, which on the one hand means the universality of demand, on the other hand, it also means that the stability of demand under certain conditions, there is no possibility of explosive growth under the flow of gameplay. Just like the example given by Mr. Tao Ye, the general manager of Good Neighbor, three meals a day cannot be changed to five meals a day because of your promotion.
Someone can empty the shopping cart for one year on Double Eleven, but can someone eat all the meals for the year on Double Eleven?
In fact, the core factor that affects the demand for fresh food is still population changes, but if viewed in a short period of one year, this factor can also be ignored. Therefore, fresh retail is a Red Sea game. During a certain period of time, there will be trade-offs. During the epidemic, many retail chain channels, including front-end warehouses, have seen a substantial increase in orders. In addition to the changes brought about by the diet structure, more are still a kind of channel transfer. Emerging retail channel transfer. However, from the demand side, this transfer is also a long migration process.
From the supply side, expansion is not expansion, on the one hand, it depends on the company’s actual strategic choice. Recently, Xu was sending a letter on the occasion of the 5th anniversary of the establishment of Daily Fresh. The letter said that he also pointed out that the first half of the fight mode, the second half of the fight for internal power. Online fresh retail may be more concentrated than offline retail, but there is no winner-take-all.
In other words, whoever wants to dominate the market, kill opponents, or promote the ultimate model is futile.
This position and the style of Xu Zhengdu who seemed to have changed his style when he fought against Shanghai,In particular, Dingdong’s food-bearing soldiers came to the city and passed the tens of billions of daily thresholds. Instead, they were more cautious and had a mindset of occupancy. Daily Fresh also said that it would not follow up on its opponent’s early subsidy strategy.
However, caution is not only about daily freshness, but also RT-Mart. You should know that RT-Mart has reason to expand with high profile today. In the 2019 financial report of Gaoxin Retail, it officially announced the news that online fresh e-commerce has achieved full profit. However, Sun Art Retail still insists on “being careful for thousands of years”. From the currently known information, one of RT-Mart’s main tasks in 2020 is to continue to reconstruct 50 hypermarkets. At the same time, doing small business explorations, in short, is to grasp the stocks to transform and reduce costs and increase efficiency. Try community format first-hand.
High-paying retail CEO Huang Mingduan and Daily Excellent Fresh founder Xu Zheng, a post-60s and a post-80s, but in the 2020 strategy of fresh retail, Qianlang and Houlang both agree that efficiency is the only problem. Fresh food retail is a matter of life and death.
All channels and small formats are not the savior
Of course, no one likes to fight in the Red Sea, so some people proposed the blue ocean strategy, calling on everyone to jump out of the Red Sea and find another way.
But I am very sorry that from the perspective of market space, there is no such thing as the so-called blue ocean.
The so-called blue ocean, using classic sales theory, is to let people who do n’t have shoes put on shoes, and people who do n’t like to wear hats. For Ruixing, it is to let people who do not drink coffee drink coffee, and almost make the cafe a public welfare project, and everyone sees it.
Even if there is an increase in fresh food retail, it is not “let people who do not eat start to eat”, which is obviously ridiculous. And there are more and more young people who are not married and more and more vegetarians. The so-called demographic dividend is also limited.
Many companies may have different opinions. Especially in the past two years, offline retail companies have started to online and started to make fresh O2O. Is n’t this an increase? For a company’s plate, this is of course your increment.
But there are two questions worth thinking about, how high does your fresh O2O overlap with your offline user base? In other words, did you rush back the users who might have been to the store and let them go online to place the order, and then you sent it away in vain? This is equivalent to the flow of his left hand to the right.
The second more serious problem is that fresh O2O and traditional e-commerce