Shun Fung Trans-boundary food dealers: back to the tree is not bad money

Shun Fung Group, which has always been "not bad money", has recently been linked with capital to consider financing matters. Shenzhen Electric Shock Commerce Co., Ltd. founder Shangxiang said, Shun Fung has been with Hong-yi Investment, CITIC Industrial Fund and other domestic investment agencies contact. He concluded that Shun Fung financing was meant to be a strong supplier of electricity.

In this respect, Shun Fung Express official response said that there has been capital to find shun Fung negotiations, but Shun Fung did not sign any agreement with any capital.

According to a PE insider to the reporter confirmed that there are indeed several investors to seek shun Fung to negotiate investment, but Shun Fung financing is still in very early stage. Prior to the investors only and the financial leaders have had contact, has not seen Shun Fung founder Wei. "Shun Fung has two business needs of money, one is to build a convenience store, E-commerce." ”

Shun Fung in the Chinese mainland E-commerce platform, is the June this year on the line of Shun Fung optimization, the main high-end imported food, currently only for Beijing services. For financing rumors, Shun Fung Optimization President Liu in the interview with Caixin reporter said, shun fung do need funds, will maintain an open mind, but do not want to pull investors in the exploratory phase, but hope in the mold after the mature, and then absorb external investment to join.

There are divergent views on Shun Fung's cross-border electrical business. The bullish people believe that shun Fung in the field of logistics and distribution advantages, it is helpful to expand to the electric business field, especially the fresh food which demands high delivery speed. The empty person thinks, shun abundant lacks the internet gene, in the electronic commerce operation, the supply chain control aspect lacks the experience, whether in the electric trader fierce competition wins, still remains to be observed. However, this does not prevent it in the electrical business group during the winter still by a number of large PE attention.

Liu to reporters, E-commerce is Shun Fung Group's strategic emerging business, "Shun Fung optimization is inevitable, and must be successful." Wei also hopes that Shun Fung will be able to explore new business models and build a Food Network platform.

Wei is one of the most secretive private entrepreneurs in China, and his exposure to the public is extremely low. After deciding to enter the electric business, he only in his circle of friends to search for some, and soon locked the original in the Ministry of Liu.

"We've been friends for more than 10 years. Liu told reporters that at present, the preferred business progress, he will report directly to Wei, and Wei also every month will pay attention to the development of Shun Fung optimization. Although he did not do the electricity business, but his greatest skill is a businessman's vision. Liu to finance new reporter to say.

Why do food electrical business

From the express industry across the border into the first step of the electricity business, Shun Fung selected is the vertical food field, rather than large-scale construction of integrated electric business platform. Liu to finance new reporter disclosed, this choice background is shun Fong many big customers are electric business enterprise, shun Fung worry, if do comprehensive electric business platform, will express business customer relationship cause harm. Therefore, Shun Fung does not do a comprehensive electrical business.

Shun Fung eventually targeted the target in the field of food and electronic business. On the one hand, the number of food in its courier network is very small, not with both customers, partners to form a direct competition, on the other hand, other such as 3C, home appliances, clothing and other fields have become the Red Sea, but the food electric business or blue ocean. Although the mainstream electric platform is also optimistic about food business, but more through the open platform to cooperate in the way to do, the purchase and sale of the food-electric dealers only 1th stores, Cofco I buy nets, easy fruit nets and a few.

There is no doubt about the market demand for food consumption. According to data from the National Bureau of Statistics, food consumption accounted for 36.3% of the expenditure structure of Chinese urban household consumption in 2011 (usually called Engel coefficient). Cofco I bought online marketing director Charcoal that, due to the variety of food and electricity merchants and convenient distribution, the future of food dealers in online shopping in the ratio may even be higher than the Engel coefficient. Charcoal Introduction, Cofco I bought network now marketing network has covered the whole country, this year's sales target is 600 million yuan, than last year, less than 300 million yuan sales increase 1 time times more. Currently can reach the daily order quantity.

From Alibaba's cat shopping mall, food sales also showed a rapid growth trend. At present, the Cat shopping mall in the food category sales accounted for about 4%, and the first three quarters of the year's Food sales growth of 150%. Cat Mall since the second half of this year began to focus on the introduction of large imports of food traders, focus on creating alcohol, imported food and other categories.

In the framework of the food electric business, shun Fung optimization further lock the scope to the highest gross margin of imported food, the goal is to become China's most professional, the largest import Food Network platform. In charge of Shun Fung Optimal operation of Beijing Shun Fung E-commerce Co., Ltd., is Shun Fung Express Group's independent settlement subsidiary, the end of 2011 in Beijing set up a registered capital of 10 million yuan, the main business scope for food sales.

"Preferably more than 80% of the SKU (inventory unit) are imported food, the future import brand will be more than 90% of the proportion." "Liu clearly said Shun Fung preferred not to sell a large number of domestic food. Nor does he worry about the size of the market.

According to his introduction, Beijing well-known high-end shopping malls new light world underground BHG supermarket, main import food, single shop annual sales of more than 100 million yuan. The number of BHG SKUs is about 2000.

According to the U.S. Food Industry Association's forecast, China's imports of food sales will be 15% annual growth rate, by 2018, China will become the world's largest consumer of imported food, the domestic import food market will reach 480 billion yuan.

Cofco Food E-commerce Director Ying in an interview that the biggest advantage of Shun Fung is to have a large number of high-end customer resources Express, and therefore have the conditions to choose high-end imported food as the entry point of E-commerce, which can be called "advantage fit." If Shun Fung can be a good customer experience, the future can provide more categories, business may be bigger.

Ying that food belongs to fast-moving consumer goods, repeat the purchase rate is high, suitable for e-commerce. The customer conversion rate of the food is also high, the customer will not be like the electrical appliance around, the food conversion rate is 5%, but the electrical appliances only 1%. But the food electric business industry is not developing well at present, the market share is not big. Because from the consumer, food is the most easy to get the goods, go out is a supermarket convenience store, readily can buy, and from the merchant, the food is not good to do, the overall gross margin is low, high freight, there are shelf life problems, and other than other electric dealers more difficult to do. For the food electric business, the future needs most is the industry chain all parties work together to reduce the logistics cost. I bought the net although backed by central Enterprises Cofco, has a strong supply chain advantage, but the logistics and distribution is inferior to shun Fung excellent glare according to the new reporter understand, I bought Nets in Beijing, Shanghai's main urban areas are self-built logistics, other areas rely on a more mature third party logistics system. Earlier this year, I bought a net from the SoftBank fund to introduce a $ hundreds of millions of investment.

An insider at a large electric business platform commented to the Caixin reporter that shun Fung preferred to import food into the electricity business, should be considered imported food has a higher gross profit rate and customer unit price, "in accordance with the quality of service, the category of gross profit margin in more than 30% can not lose money." In addition, the choice of imported food, food safety is also more assured.

According to Liu, at present, Shun Fung optimization line nine categories, including fresh, mother and child, nutrition, grain and oil, wine, snack food, SKU number in 5000-6000, the end of this year will increase to 8,000 or so, Next year will be around 15,000, the future operation maturity will be 20,000-30,000, and large supermarkets, the total number of food SKUs.

"At present the average customer unit price is above 200 yuan, the peak period daily sales hundreds of thousands of yuan." "Liu revealed that, since the line, monthly sales growth is more than 50% per cent;

Backed by a big tree

Shun Fung optimization currently only for the Beijing area to provide services, the team of about 800 people, set up 10 departments, of which warehousing and distribution staff of about 400 people. In the early days of construction, the group was optimized not to use the company's Shun Fung Express distribution resources, but independently built a set of logistics and distribution system to rent warehouses, purchase vehicles, recruit distribution personnel. In Shunyi Airport Logistics Park, preferably rented a more than 8,000 square meters warehouse, can support its 12,000 SKUs, purchased 100 distribution vehicles, can support daily 3,000 orders. Its warehouses, vehicles are equipped with refrigeration, refrigeration equipment to distribute fresh food. Liu did not disclose the specific input of the logistics system, but only the purchase of vehicle costs in more than million yuan, "the overall investment is very large, not suitable for the general entrepreneurial team." ”

At the beginning, Shun Fung preferred only to call the Shun Fong management staff and operating experience, so that shun Fong fast high-quality style to continue. Shun Fung optimized distribution staff told the new reporter, they will be Beijing five ring divided into nine large areas of 69 districts, each district has a distribution car. Full talent three shifts, 6:50 A.M. from the Shunyi car, the customer representative in 9 points unified to the next single customer call to confirm whether receive goods. 1 o'clock in the afternoon and 5 points there are two shifts in distribution, community distribution vehicles do not return to the Shunyi warehouse, according to the needs of the nine regions in the distribution hubs waiting for the extension of the delivery of goods, delivery after delivery. "At present, we can guarantee that the order can be delivered on the same day before 4 o'clock in the afternoon." The above distribution staff said.

Liu to reporters that at present, Shun Fung optimization can do fast delivery, or because it is still in the initial stage, daily orders are small. Future orders are likely to challenge the distribution capacity, and will also consider building a fixed transit point. At that time, Shun Fung optimization will borrow shun Fong network and marketing capacity development. At present, Shun Fong business has expanded to Hong Kong, Macao, Japan, South Korea, North America and South America. And shun Fung preferred main imported food, plan to borrow Shun Fong network for direct mining, and Shun Fong customs, inspection team is also very mature.

More importantly, Shun Fung optimization can occasion play the marketing function of Shun Fung Express network. According to Liu revealed that Shun Fung optimization will be online under the DM (direct mail) way of directory marketing. Only in Beijing, Shun Fong has more than 4000 distribution teams, the number of customers served daily as high as hundreds of thousands of. Shun Fung will be online under the combination of themes, festivals to do some product books and catalogs, relying on the rapid delivery of the distribution team DM marketing. Next, will also be in shun Fong packaging materials on the printed on the preferred advertising, printing quantity will also be hundreds of millions. If there is a short period of time the order surge, shun Fung optimization can quickly be in addition to fresh products to transfer to the Fung-Feng fast delivery. On the online side, Shun Fung's preferred plan is to engage in a food-related interactive community, to incorporate cultural and community factors, to guide and circle the target population while pushing mobile app and pad-side products.

In fact, many investors and peers also believe that Shun Fung to do the biggest advantage of the electric dealer is that it has accumulated a large customer data, but also relatively high-end customer data, if they can be good analysis of these customer data and use, will help the electrical business quickly find the target customers. Liu predicted that after the online distribution of power marketing, shun Fung Optimal sales can grow more than 5 times times next year. Thus, by the end of next year or the beginning of the year, the Beijing market is expected to usher in profit points. "Less than 10,000 orders per day can make a profit." ”

Liu that the gross margin of imported food is higher than other categories, and the repeat purchase rate of food is high. In addition, although Shun Fung optimization of each single logistics costs higher than other electricity, but after the order-intensive, the logistics cost of gross profit ratio will plummet, because the consumer of the food electricity business people relatively concentrated.

Shun Fung Optimization Model in the Beijing market to explore the formation, will be in the national one or two-line city replication. Liu revealed that Shun Fung plan in the next three years to five years to expand to 30 cities in China, the basic coverage of one or two-line major cities.

At present, Shun Fung optimization in Beijing's investment entirely by Shun Fung Fast Transport group Investments. Whether future expansion will introduce more external capital, Liu said, would look at the group's capital-level arrangements. He believes that in Beijing, Shanghai, Guangzhou, Shenzhen and other first-tier cities, have a grasp of the rapid realization of profitability.

Supply chain control challenges

The major integrated electric business platform for the development of a wide range of open platform for food business, is because from the early stage of product procurement to the later inventory sales distribution, food business to the power supply chain control capacity, operational efficiency are higher than other areas of the threshold and requirements, which is also shun Fung optimization challenges. In short, food, especially fresh food, can easily expire. Therefore, the food manufacturers must be able to effectively control the supply chain, solve the inventory problem.

In this respect, Liu said, Shun Fung Excellent tired supplier qualification audit, as far as possible to choose the domestic distributor and other large suppliers. At present, Shun Fung optimization has hundreds of suppliers. At the same time, the product will be sampling, especially fresh products, once found any problems will be all down the shelf. Imports of food, shelf life has been more than half, will not be in storage, domestic food shelf life of more than One-third, also not in storage;

Procurement, in addition to the future use of Shun Fong Network for direct mining, Shun Fung excellent pressure will choose to associate with large international traders. Liu revealed that the preferred will be to introduce a wine traders to do joint ventures, pricing, share profits. The wine trader buys more than 6 billion yuan a year in Bordeaux, France, and the wine category is over 10,000 SKUs, and China's online channel will be the exclusive partner. Preferably responsible for online sales, while the other side is responsible for the entire wine supply chain.

One of the main difficulties lies in grasping the commodity stock, especially the fresh food, grasping the reasonable stock cycle and reducing the storehouse loss is very important. Liu revealed that Shun Fung optimization on this approach has two, one is to strive to improve the turnover rate (that is, the one-month dynamic sales of goods accounted for the proportion of all operating goods); Because the food has the shelf life, the storehouse loss is unavoidable, but reduces the loss the key is enhances the operation ability.

The essence of e-commerce is retail, and the essence of retail is the best combination of gross profit ratio and dynamic sales rate. When food is moved, inventory turnover will be faster. Liu to Caixin reporter said, select the beginning, due to small sales, inventory cycle is very long. Now it has gradually become a reasonable range, close to the supplier's account. Account period varies by category, some category account period up to several months, and some fresh products account period is short to several days. And the gross margin also varies from category, overall, grain and oil gross margin is relatively low, wine and other gross margin is higher, the average gross profit of imported food can reach about 40%.

"Supply chain control will be the most important part of each competition, but this is the internal strength, outside people are not easy to see." Ying, chief executive of Cofco Food and commerce, said.