Jiuxian 5 years, what is the opportunity to seize?

August 5 is Jiuxian 5 anniversary of the celebration of the wedding day, we should be on the Jiuxian network in the past few years of performance and efforts to give a bit of praise, but we also have to point out, in its brilliant performance behind the wine industry electric business channels are undergoing great changes. Once proud of the business model in the logistics cost of cheaper O2O model before, no longer has an absolute advantage, and the Jiuxian network of O2O services "wine Fast" also exists in the pattern level defects.

Jiuxian, what chance did the net take?

Jiuxian Network was founded in 2009, founder Shang at that time faced the biggest problem is, in an agent system and price system are very strict seller's market, who will be in the low price for the competitive advantage of the internet to sell liquor?

Early big brands are not directly to the Jiuxian net wine, so Shang used to play the way to the edge, for the liquor-making power to win the first way out. Winery does not cooperate, he uses his resources, find a large channel to take goods; and their own money to buy wine, some high-grade liquor income inventory, in time to "old" in the online low-cost sales, gather popularity; at the same, resolutely maintain the winery "image Products" of the price, so that the winery to provide a network for products, not only with the offline product compartment, Also guaranteed profits.

In addition, Shang chose to expand the opportunity from the regional liquor brand. Chinese liquor market is huge, almost every region has reached a certain size of the brand. Currently registered Liquor Winery has more than 10,000, and the product category is more than 100,000. Jiuxian Network formed a procurement team of more than 100 people, is responsible for looking for regional brands across the country liquor.

At the same time, in order to attract the traditional wine enterprises to join the electric business, 2011, Jiuxian Network launched a set of E-commerce integrated marketing program, that is, to set up a team for customers, tailored personalized services to different customers to help wine enterprises to implement a full set of E-commerce solutions, including product packaging, pricing, taste, To complete the nationwide promotion and market-oriented construction.

As a result, Jiuxian network and many regional small and medium-sized wine merchants have established a good cooperative relationship, which for the future development of Jiuxian network laid the foundation, because it is the way to encircle the city of the countryside gradually settled the supply chain upstream resources.

But Jiuxian network of electric business model, is vertical: consumers in the Jiuxian net of the official website orders, Jiuxian network responsible for distribution. This means that the Jiuxian network must spend great effort to build warehousing and logistics. And Shang will use the power of capital, by 2012, Jiuxian Network has completed a tricycle nearly 1 billion yuan of financing, the bulk of the expansion of warehousing, logistics infrastructure. North Canton, Wuhan, Chengdu, the central warehouse built, the basic can be achieved in most parts of the country 24-hour delivery.

Although the data show that the Jiuxian net liquor has been profitable, but the huge logistics cost has dragged its hind legs. However, "lose money to make a yell" has always been the beginning of the electric business method, Jiuxian net 2012 1.5 billion yuan sales, has stimulated the enthusiasm of the wine electric business.

And the decision Jiuxian Network current liquor electric trader dominant position strategy, is Shang decided with each big third party electric business platform cooperation, exclusive agent operating liquor business, almost monopolized the liquor enterprises in the online sales channels. Through the signing of exclusive network agent, the upstream wine closure, through the platform to operate exclusively, to open the water channel for themselves, Jiuxian network can be described as a profit, scale, efficiency to maximize the "dam."

Later, the bigger change comes from policy: by the three public consumption restrictions and other policies, the 2013 liquor, especially high-end liquor sales plunged into an unprecedented trough, the liquor industry solid system was hit. Mergers and acquisitions in the industry, the size of wineries are looking for a way out-small wine, "return" to the mass market, as well as the attempt to electricity business. Jiuxian Network has therefore become a winery competing for cooperation of the object, become a well-deserved alcoholic No.1.

Jiuxian didn't catch any chance?

"Wine O2O is a false proposition!" Shang has publicly stated that the rent and manpower costs of the O2O shop are "going backwards". In this respect, in 2013, the O2O of the COO Wang Zexu also means to respond: the most lethal wine is logistics costs, and O2O can reduce the cost from dozens of hundred yuan to 5 yuan. This is poking at the Jiuxian network operating costs too much pain.

All along, the low price characteristics of the line and the high cost of logistics makes the Jiuxian network business has been quite chicken, as mentioned above, although the liquor is profitable, but the huge logistics cost is not Jiuxian net such a vertical electric trader can afford to play. To this end, Shang had to re-examine the "location" of the Jiuxian network.

The advantages of Jiuxian network, its brand influence, upstream suppliers and more than 4 million loyal users on line, have provided the innate advantage for its transformation. In the March 2014, Shang changed the "prejudice" against O2O, Jiuxian Network launched its own O2O strategy-Mobile client App "Wine fast to", and even declared "9-minute delivery", but O2O offline stores, Jiuxian network is "from zero", has long missed the layout of the best time, therefore, "wine fast to" Stores are working with small physical wine retailers like street-side stores.

According to Shang, through the "wine fast to", consumers can find the vicinity of 5 kilometers within the range of wine retail outlets, to achieve the nearest consumption, and can enjoy door-to-door service. In theory, this is like using a public comment on a category of LBS applications, consumers can pick the most recent purchase, perhaps a shop in their own community, then 9 minutes delivery is also possible.

But its business model is hidden from its relationships with offline stores. As Shang said, like the taxi software and the relationship between taxis, Jiuxian network is only to provide a platform, "Jiuxian network does not participate in the distribution of stores, customer door-to-door experience and pay." By serving these retailers, they are actually serving manufacturers and distributors.

But such a pattern misses the most critical of O2O: the lack of a logistics supply chain. The O2O mode of selling products is different from the O2O mode of selling services in group buying. As the key to selling the O2O mode is to reduce the logistics cost and provide users with a good experience of the whole process from order to distribution, so it needs to be more unified in sourcing, store, distribution and more control.

Moreover, whether the store size, or control power, are only the first to break the wine O2O, more importantly, the end of the terminal store product information management, because this may have a direct impact on the user experience.

On the one hand, the terminal products are in constant change, inventory, distribution, etc. are dynamic Data, online display can reflect the terminal situation in a timely manner, determine the pros and cons of the user experience.

On the other hand, the current O2O most of the integration of traditional channels, and the traditional dealers are accustomed to the "dozen, purchase, sell" mode, in conjunction with O2O tightly compact system management also need to adapt to time.

This kind of back end more refined competition, perhaps is the wine industry electric business O2O mode in the future to distinguish the key.

The challenge of the Jiuxian network comes from whether it can drag on the heavy consumer body while leveraging its brand influence, upstream resources and loyal users ' advantages to achieve a successful transformation of the O2O model. For not in the logistics supply chain and store size operation of the "wine fast", I really can not point praise.