Recently, letv announced its entry into the fresh e-commerce market, which is expected to be launched in August 18 ". It is understood that lelife is in charge of Leeco holdings's vertical e-commerce platform network wine Network CEO Li Rui, lelife vice president by the original life network Deputy General Manager Jiang zhengwen.
Letv, which has been specialized in the online entertainment industry, wants to enter the fresh e-commerce market, which makes people feel a little bold and unexpected. Because Leeco had an indissoluble relationship with agriculture earlier. Leeco has a 3000 Mu ecological agricultural base in Linfen for planting and picking, tourism, leisure and entertainment, brewing and processing, and other commercial projects. Leeco is no stranger to e-commerce, its net wine Network focuses on the high-end wine field, but also has little achievements.
However, letv entered fresh e-commerce this time, but many experts took a breath, believing that letv may be "a lifetime ". Although fresh e-commerce and e-commerce are only two words different, they are 108,000 miles apart, because fresh e-commerce is too difficult. Many Internet enterprises have previously been able to do e-commerce, but fresh e-commerce has unfortunately become a pioneer.
Although the domestic fresh food e-commerce industry has experienced many pioneering lessons such as Youcai, tianxian, Yonghui supermarket, and the election of David, but there are still people who miss this trillion-scale potential market cake. It is no exaggeration to say that fresh food e-commerce is one of the few "virgin land" in the domestic e-commerce field, but the road to success is full of thorns. I believe that Leeco is brave enough to enter fresh food e-commerce, but it faces many challenges to succeed in the field of fresh food e-commerce.
First of all, fresh food e-businesses have extremely high requirements on product selection and procurement, which is also a complicated learning. Not to mention that most of the agricultural products in China are planted by farmers, and the quality levels are not consistent. How to ensure standardization is a major challenge. Even if we are now positioning fresh e-commerce products as mid-to-high-end fresh products, it is extremely demanding to purchase products.
In addition, due to the seasonal impact, non-standardized mid-to-high-end fresh goods are out of stock, making it difficult to form large-scale circulation. Because the origin and planting time are different, even for the same product, the taste may also be different. When a user buys an unsatisfactory product, the customer will blame the e-commerce platform for the fault, thus affecting the repurchase rate, this results in the loss of users.
Furthermore, the essence of fresh food e-commerce is to use the word "fresh", which imposes almost demanding requirements on goods storage and distribution. Because it is difficult to save, the transportation loss rate is as high as 20%. There is a fresh e-commerce account, if the customer unit price is less than 200 yuan, after deducting the product cost, logistics cost and circulation loss, there is basically no profit. However, the demand for high-end fresh food products is insufficient because the audience is too small. Therefore, the operation difficulty of fresh food e-commerce is much higher than that of e-commerce in other fields, and there are also high requirements for timely receipt, which is difficult to support return. After all, the return of goods will multiply the loss of goods, some products with shelf life can only be decommissioned.
More importantly, the cold chain logistics is the secret of Leeco. Of course, many fresh food e-businesses can use third-party cold chain logistics, but the domestic third-party cold chain logistics system is not developed, it can only be self-built cold chain, but this investment is huge and the return cycle is long, which is hard for general enterprises to accept. It is understood that COFCO's I buy network just got a financing of 0.1 billion US dollars, that is, investment in cold chain logistics. However, since the maintenance cost is extremely high after the cold chain logistics is built, the general proportion of cold chain logistics to the order cost is as high as 40%.
Although letv has just raised 4.5 billion yuan, it should not be inferior now, but this field alone has invested so much blood, letv must guard against the risks brought by expansion. I think letv's mess is too big. It not only covers the upstream and downstream industry chains in entertainment and film, but also news about the march into cars and mobile phones. Now, we have announced our entry into the fresh food e-commerce field. Whether the blind deployment can ensure that the capital chain is not faulty, and whether it can ensure that every field can be fine-tuned is a question mark.
Finally, in order to avoid serious loss and expiration of fresh food products, fresh food e-businesses usually adopt C2B marketing methods. That is, pre-sale first. After obtaining sufficient users and orders, purchase, transportation, and delivery are performed again. However, this method requires sufficient users and traffic. There are multiple options in front of letv, whether it is self-made e-commerce, cooperation with mature e-commerce platforms, or both.
I believe that, on the one hand, Leeco can consider its own e-commerce platform to sell fresh products, on the other hand, it can cooperate with the public comments on such comprehensive e-commerce, so that it can promote itself to the greatest extent possible. However, even if you are successfully engaged in the fresh food e-commerce field, I am afraid that you will not want to make a profit in year 35. letv is ready to fight for a long time.
According to the intention of letv's frequent outward expansion, its ambition is enormous, and even letv has proposed the concept of letv's life. However, during the crazy expansion, letv should also see that not all fields can be involved at will. The fresh e-commerce field is a place where countless heroes will be defeated. I think that letv is not wrong across industries, but it is likely that the probability of success will be larger if one domain is well-tuned and then the next domain is created. Blind expansion, but it is still the most difficult to chew on the big bones (fresh e-commerce), the result of letv's investment in fresh e-commerce is likely to be "nine dead ".