What is the pattern of the fresh electricity dealers in e-commerce

January 2, 2013, because of financing difficulties, based in Beijing, fresh electricity business excellent vegetable network to seek transfer. Founder Ding Jingtao said the transfer price is expected to be around 1.5 million. Excellent vegetable network in the business of the dilemma but can not block the enthusiasm of the capital to the fresh electricity dealers, countless capital in the two years into this field. Jingdong, Su Ning all announced the live fresh channel on the line, Taobao is a lot of farmers compete with the platform of exerting force. Shun Fung optimization in 2012 relying on the advantages of logistics to kill into the fresh electricity business, while the media gene of the original network team relying on the hype "all orange" and a cannon fire. What is the pattern of the electronic business in today's e-commerce, how the problem is, and how it will develop in the future?

What is a fresh electricity dealer

Fresh electricity business is simply to sell vegetables online, including fruits, vegetables, meat, seafood and other fresh agricultural products. In the past, fresh products mainly through the traditional market/supermarket to the common people of millions of households in the basket, distribution channels are mainly through similar to Beijing, such as the new large wholesale markets wholesale transit. From the origin to the hands of the people, may have experienced 3 to 4 fare increase link, long-distance transport and preservation, the links are numerous opaque, cold chain is missing, people often can't eat the freshest food. And with E-commerce, agricultural products may be directly from the origin to the people's home, and even a lot of vegetables and fruits are green pollution-free, nor with any chemical reagents for preservation, the whole cold chain, rest assured and safe.

Good health of fresh electricity dealers

Fresh electricity business has three big positive

1. Gross profit margin is high, the gross profit of seafood is above 50%, ordinary fruit 20%, frozen meat also wants 20% to 30% gross profit

2. Fresh is the necessities of life, the market demand is big. At present, the proportion of electronic commerce accounted for less than 1%.

3. High repurchase rate

The problem of fresh electricity dealers

1. Fresh and difficult to save, easy to wear in transit. The loss rate of the general fresh products can reach 10% to 30%, while the average product loss rate is less than 1%. There is an exaggerated saying is that farmers to plant 3 kg of Chinese cabbage, to your hand inside a catty is good. There are many reasons for the loss, in addition to transport storage, human losses are also an important reason. According to open a fresh supermarket kitchen easy times boss Shen Junwei said: Clearly is a good one cabbage, placed in the supermarket customers must be out of the leaves to be stripped off a little before buying, this is the habit of long-term formation. Also do fresh electricity business, excellent vegetable network also encountered is obviously the original ecological cucumber, but customers think the goods are not good and the loss of return. Therefore, the fresh electricity business practitioners, if there is no way to reduce wastage, the loss is almost certain.

2. The delivery time of fresh goods is high. And ordinary express different, if no one in the home can be a day to distribute. and fresh goods if the delivery time is not accurate, it will cause food can not be eaten. There must be someone in the house, and many young people are working nine to five, completely staggered the regular delivery time of the distribution company.

3. Logistics costs are high, with average logistics costs of 15% to 20%, and some up to 30% to 40%. Take me personally to visit the Yuyao red Bayberry for example, 30 yuan a catty of the top red Bayberry, 2 kg, with Styrofoam and ice pack packaging, plus the next day to distribution, packaging and logistics costs in 45 yuan, the boss Taobao retail price of 128 yuan. Earn 23 Yuan. But think about it, China has a few people can eat up 2 Jin 128 yuan of red bayberry?

4. Low standardization of products, the awareness of the common people have yet to be improved. The standardization of Chinese agricultural products is lower, the same is 3 kilograms of pork, fat or thin, what part of the price of meat, goods, cooking needs are much worse. But the electronic commerce often cannot let the populace see the kind, therefore the natural purchase experience will not be good. At other times, the common people have been under the line of the perfect channel, but are chemical methods to save and fooled. such as oranges to wax, so that the color is consistent. The electric dealer is delivered to an original ecological orange, but may be regarded as a bad goods and returns.

Fresh O2O

The problems faced by fresh electricity dealers in China are completely different from those of the US fresh electricity dealers. This is the difference between the two countries of agricultural farming methods, and social life form of the national conditions are related. First, American agricultural products from the field began to standardize the level is very high, many categories of agricultural products such as Sunkist such as well-known brands, while in China, consumers are not too strangers fresh brand. Second, the American family purchase planning is very strong, often do not buy has been, a purchase is a week of food and clothing used to buy, so the U.S. customer demand is good forecast, and the Chinese consumption of randomness is very strong. The third American, most of the middle class, lives in a suburban villa, and the distribution car is sent along a lap of the Villa area; so it seems that the cost of labor is high in the United States, but in fact, compared with wages, the cost of electricity distribution is not too high. And China is living in Matchbox, to distribution to households, up and down, now the labor costs are not cheap. Because fresh is the life must, the special vegetables in the United States price is far higher than the Chinese price, therefore compares, is China's fresh logistics distribution cost to occupy compared to the United States. and fresh electricity business enterprise business difficulty is far higher than the United States.

To solve the problem of fresh electricity suppliers, in China, the O2O approach may be more in line with China's national conditions. The reason is very simple, O2O compared to E-commerce, has the following advantages

1. From distributed distribution to centralized distribution, placing orders online and taking goods offline. For operators, cost reduction. The goods purchased need to be centrally distributed to one location in the community without the need for door-to-door delivery of additional costs (the final cost is the consumer). In addition, customers can also be very flexible time to pick up goods.

2. In addition to the cost, O2O another advantage is that offline storefront actually provides the function of localization service. For example, if the customer is dissatisfied with a product, can be face-to-face and in-store service personnel pointed out, and the issue of goods in the electricity business sometimes do not know is the issue of express delivery or issue. In the end, only consumers suffer.

At present, there are many practitioners in the field of fresh O2O pioneering, some companies trying to and offline convenience store cooperation, set up in the convenience store freezer, the user online orders of goods put in, the consumer line up and down single, offline convenience store delivery. Another more radical pattern I see is the Direct Line shop.

For example, online consumption and community more developed in Shanghai, Kitchen easy times in Shanghai Zhabei company around the pilot opened 7 offline shop. As long as the ordinary people on the line, you can take the goods online. Even a spring onion can be bought in this way, and the price is even cheaper than the supermarket and the vegetable market, and there is no logistics cost.

Every day before 3 o'clock in the afternoon, the kitchen is located in the Zhabei Distribution center will be the day of the various orders processed, and then by the distribution car unified sent to seven outlets. Some of them are semi-finished products. A fish, for example, is priced at 10 yuan. When the consumer gets the hand, this fish is in the afternoon just kill the old Lin to the viscera. This is what most electric dealers can't do at the moment.

Because each kitchen easy station (distribution station) is a community of radiation, to a certain extent, offline distribution shop replaced the function of the vegetable market. Community residents do not need to run to 1, 2 kilometers away from the market and supermarkets, and at home can get the necessary dishes. Kitchen Easy times store and a common small convenience store is no different, inside are cold storage. People take their hands from the cold chain to the refrigerator, which also enhances the people's consumption confidence.

Kitchen easy times the entire management of the store with IT system management. Every day from the backstage of any order, the first time can be seen in the kitchen easy station. Customers as long as the door to report their own in the kitchen Easy Times card number, you can find the corresponding goods from the refrigerator shelves. This is the more advanced way to buy vegetables so far, to solve the online order delivery, while also satisfying some of the inherent buying habits of customer demand. After several years of groping trial run, the kitchen is now a monthly development of 2-3 of the speed of the promotion.

Some people ask, what is the difference between this and a mini vegetable market? There is a difference, and these stores don't charge any cash under the line. All the customers who want to buy fresh in the time of the kitchen must buy the card and recharge it beforehand. Offline after the delivery, the amount of natural deduction, until the balance is not enough to inform users to continue to recharge. This is a completely O2O model.

In my opinion, in the long run, the O2O model can not only solve the common people's thirst for original ecological products, but also reduce the transaction and distribution costs of an excellent model. Another advantage of the kitchen model is the local service. China has a vast territory, each region has a different appetite, taste and purchasing power. So it is impossible for a company to take all the Chinese, who can do a good job of local services, who will be able to serve the vast majority of consumers in China.

Summary: My observation of the fresh industry

1. Chinese people should be affordable. Can not only sell expensive, sell high-end, otherwise small market do not do. It turns out that only cock silk to buy the products have the opportunity to make a big market, fresh is the same truth.

2. Do not expect to do the whole category, the whole category is dead.

3. The long-term development of the fresh electricity supplier is actually a long-term process of the standardization, systematization and Internet of agricultural products.

4. For the producers of fresh electricity, it is essential to understand a basic principle. Your cost structure is completely different from the farmer's cost structure. Similarly raises the chicken, the farmer hundreds of only goes to the mountain inside puts, this is called the Idle resources utilization. If the operator of an electric dealer buys a chicken, it is hard to pay for it. If you don't understand the cost structure of the farmers, the producers of fresh electricity will die badly.

5. In the long run, online and offline will become a new whole, the line will not be completely replaced, especially in the localization business. O2O in the fresh field may have better prospects than the electric business (fresh need to see goods, need service, need to communicate) while the fresh electricity business is more suitable for platform-type operation by the farmers skip dealers to direct the origin of the sale (pre-order), etc., relying on the cat, Jingdong platform, but it is difficult to become an independent platform.