At present, Fenghuo Delivery has become the largest offline delivery platform for small and micro businesses in China.
After 3 years of entrepreneurship in the SaaS field of e-commerce, Lanchuan Technology began to expand offline in 2016, and has served more than 20 million offline small and micro merchants in the past 4 years.
Lanchuan Technology founder and CEO Liu Wei introduced to the company that, at the beginning of its establishment, the company mainly provided software services for Taobao “small e-commerce businesses that do not require ERP”, including Store management, order processing, etc. However, the team later discovered that competition is becoming increasingly fierce and that industry services are becoming more homogeneous. After accidentally discovering the service space of offline merchants, the company began to shift its business focus to offline.
In 2016, Lanchuan Technology first targeted the largest wholesale market for Sijiqing clothing in Hangzhou. E-commerce has been developed for more than 20 years, but more than 80% of merchants in the wholesale market are not on any e-commerce platform, because these 2B shops are too small. Liu said,these stalls are generally only 3-5 people, relying on existing existing customers Replenishment orders can meet the survival. Before the epidemic this year, e-commerce has little effect on the wholesale market.
The bigger pain point for these merchants is that the delivery efficiency is too low. Since the replenishment orders of old customers are all delivered by express delivery, merchants10-20 orders need to be issued every day, and there are thousands of orders when there are promotional activities, but because of the transaction It is not on the e-commerce platform, and there is no way to electronically deliver goods. Merchants need to sort out the information themselves and fill out the face sheet manually, which is very troublesome.
In the past, most merchants needed to write their own face sheets
In response to the above pain points,Lanchuan Technology launchedbased on the windExpress delivery service of Huodi delivery applet + Bluetooth printer. Merchant customers can place orders directly from the circle of friends and WeChat group to fill in the information, customers can self-check Track logistics information at any time; for merchants, parcel records, old customers, and express bills can all be managed online, which greatly improves the delivery efficiency.
In the early acquisition of customers, Lanchuan Technology chose to cut in from a courier company. Previously for express companies, express delivery in these wholesale markets was also very painful.Hangzhou Four Seasons can produce 50,000 parcels per day, a total of more than 100 The courier, on average, is responsible for hundreds of parcels, and basically has to work overtime until midnight. In the early days, Lanchuan Technology cooperated with the courier company’s outlets to push the electronic face sheet to the merchants of Sijiqing. Now it has reached an in-depth cooperation with the four-way one-headquarters.
In the early days, Lanchuan Technology mainly promoted its own printers, which were gradually opened to the industry. At present, it has reached a good agreement with more than ten mainstream printer manufacturers and distributors in China. Partnership.
But it sounds like the threshold for such a small program is not high, why don’t the courier companies do it themselves? Liu Ji replied that, unlike the C-side receiving scene, merchants have many and complicated shipments, and it is still not convenient for couriers to post. And this solutionBehind the need to connect with various printers in the industry, in addition to small programs, it also needs to cooperate with e-commerce SaaS software to meet the needs of a large number of e-commerce customers . In fact, this programR&D costs are not low, Fenghuo Di has been iteratively updated for many years, and the annual R&D costs are over 10 million.
After several years of development, the types of merchants served by Fenghuo Delivery have expanded from wholesale markets to fruit farmers, micro-businesses, various retail stores, etc. It can be said that it is applicable to all offline scenarios with delivery needs, serving small B customers More than 20 million homes with 36 users0 million. At the same time, the offline business in turn promoted the development of Lanchuan Technology’s e-commerce business. So far, 550,000 e-commerce customers have been served, covering Taobao, Pinduoduo, Youzan, Weidian and other platforms.
On the profit model, e-commerce companies charge SaaS service fees to merchants. In 2019, Lanchuan Technology’s revenue was more than 20 million; offline business has not yet officially charged, and it will be commercialized in 2020, mainly with value-added services. , Such as inventory, CRM, trading, marketing, etc.
The Fenghuodi team currently has more than 80 people and is headquartered in Hangzhou. The founder Liu Ji has worked for companies such as UUCall and Alibaba, and is a serial entrepreneur; other core members come from e-commerce, retail, logistics and other industries.