Do not touch the community and adhere to the line to do agents of the Magic Friend Pet Network

Pets are sometimes like family, so many people treat their pets like family members and take out a lot of money for them.

Li Stare, it is such a user.

2007, he founded the Magic Friend Net, through the agent obtains the pet supplies source, constructs the on-line channel, sets up four distribution warehousing base. Although only to do the agency, to do channels, but the network of Friends is very eye-catching results, last year's sales of 200 million, the rapid supply chain to make its gross margin of more than 20%, more than one times the peers.

Proxy right is the threshold

June 2007, Li set up a magic friend net, specializing in the electronic business of pet supplies. At the beginning of his creation, he gained the angel investment of 51job founder.

Perhaps Li did not think, 5 years later, he can call himself "Friends of the network is the domestic online and offline the largest pet product retailer." "Operators more than 4,000 kinds of pet products, the net sales of the Magic Friend is 200 million yuan," compared with the second in the industry, I estimate at least twice times. ”

The reason for this scale, Li rely on is actually very simple, do agents, their own focus channels. That is, the upstream supply link, the Magic Friend net currently does not own the brand, basically relies on takes the brand the proxy right. At present, it is holding more than 70 manufacturers of nearly hundred brands of proxy, is said to be domestic to get the most agent of pet products sellers.

However, it is not easy to negotiate with the brand to get the agency right.

Take Tianjin as an example. "Li said that the big brand practice is usually to find an agent in Beijing, in Tianjin to find an agent, a region will only give a quota, because the same region with more agents will" fight ", but hurt the brand," whether to get the right to proxy, itself is a threshold. "Let him remember, is once had to eat the door, before there is a small overseas brands, in Beijing, the annual sales of almost 500,000 yuan, the devil friend Nets to talk about the agency to do 3 million of the amount, is still refused," just talk about money is not enough. ”

Magic friends can get a lot of agency rights, a major factor is the network and experience. Originally, friends of the founder of the team, an earlier in the pet products industry has been a professional for many years, opened a pet products chain stores, so far in Beijing also retained 3 offline stores, has a strong industry contacts and brand resources. When he and Li together to start a business, the original brand business resources brought over.

Later, the Magic Friend network constantly expand users, and then to the user volume and brand negotiations, to snowball the way gradually formed this year's proxy power advantage. In recent days, the Friends of the network won the B-round investment, Sumitomo Group, one of the investors also has the pet industry's international brand, can integrate with them.

Fast Supply Chain

Magic Friend Net was established at the beginning, in Beijing area by catalog sales to do promotion, other places to use E-commerce. From the purchase data, Li found that the directory sales of users sticky is relatively high, the list of monthly distribution will "remind" users to continue to buy, is not the catalog sales promotion? He had thought about it and was defeated in the end. "The early stage of the catalog sales cost is greater, such as the need to expand the service team, so that assets become heavier, online sales from the beginning of the cost control in place." ”

In fact, online sales can also speed up the supply chain of the Magic Friend network. Users can buy new products at any time, do not wait to get the catalog before making a decision,

In the recent round of financing, Sumitomo Vice President Zhiwei said that its supply chain efficiency is very high and the profit margin is higher than the average level of the same industry.

Zhiwei's words dot the core of the business model of the Magic Friend network.

"We are now in Beijing, Shanghai, Chengdu, Foshan and other four places set up a storage base, radiation different areas of the cargo configuration." "In the pet product industry, this is definitely a big one," Li said. In addition, the more important is the inventory rate. "Magic Friend Net inventory rate is about 20 days, 6 million yuan of goods can turnover, the industry's general standard is 40 days, store up the volume of up to 20 million yuan." Therefore, the Magic Friend Net inventory turnover rate is relatively fast. ”

Rely on fast supply chain, the Magic friend net accumulated nearly 500,000 members, customer price is two hundred or three hundred yuan. 80% of customers are individual users, 20% are enterprise users, such as pet hospitals, pet supplies stores.

Although the agent to do the channel, but Li revealed that the net gross profit margin is generally about 20%, "this year's sales should be able to reach 300 million." By this reckoning, the net's gross margin is around 60 million this year.

Do not touch the community and offline

In addition to the network of magic friends to do channel mode, pet product sales There are other models, of which the most representative is community-oriented e-commerce and imitation of the United States PetSmart do "E-commerce + offline shop" model. However, Li said positively, "the Magic Friend net will not touch the community, also will not do the entity shop online." ”

He said that the network of Friends of the team are mostly doing internet marketing, they know that E-commerce and community is the same thing, DNA is different. Even when a highly popular community sells products, users subconsciously doubt your professionalism. For example, many reading forums have been introduced into E-commerce, but many users will still be directly on the Dangdang, the truth is the same. ”

As for the offline shop, Li that such a model is "unworkable" in China. He explained, "The time and place is wrong." "70% of households in the United States have pets, 1.3 times times the size of the population, and a potential 70% of the people around PetSmart's physical stores are prospective customers," he said. In China, Beijing is the place where more pet dogs are kept, about 10% of households, and less in other areas. Consumption density determines that there is no PetSmart mode in China. And time, the main body of the Chinese pet is 30-40 years old consumer strong crowd, they accept the net purchase mode, this from Taobao and other e-commerce growth can be seen, the domestic PetSmart probably didn't grow up on the line mall to kill.

"Therefore, the network will not do their own community, do not do offline shop, will only choose to cooperate with them." Li said, also some people suggest the magic friend to go up to do own brand, but after consideration, still decided to temporarily do not do, own brand Maori although higher, but also will and agent brand conflict. "Just want to focus on the channel, do a good service." He joked that Wal-Mart, Carrefour channel so large is mainly in napkins, toothpicks, fresh film and other small commodities to do their own brand, friends of the network need to cultivate channels.

Entrepreneurship Clinics

Guest: Shi Ming investment director Huang eat channel profit

At the end of 2008 I received the Business plan for the Magic friend, who was a small man, until 2011, when its size was made to be a round of investment, and this year it was voted B.

On the agency, some people worry that agent mode can not control the product initiative, so there is no price advantage to attract users. But the wife actually all know, brand many times do not like to change agents, as long as this agent can make the market bigger, why to change? Frequent change of agents, can only damage the reputation of brand dealers, but also affect the next agent. Magic Friend Pet Network take agent right, is to sell the number of words, step-by-step from some brands of city agents, regional agents to the national agent. Do business, you can not eat all the profits of the industry chain, the location of the Magic Friend network, is to eat the channel cake.