Experts say 99% fresh electricity dealers lose money

Source: Internet
Author: User
Keywords Electricity quotient cost high loss
Tags abstract analysys international business business is business website community cost development

Abstract: The development and popularization of E-commerce has gradually affected people's lifestyles and habits, usually in the market, supermarkets, the common raw products, are now also moved to the electric business website, online shopping basket emerged. The fresh market is huge and bright, and is

The development and popularization of E-commerce has gradually affected people's lifestyles and habits, usually in the market, supermarkets, the common raw products, are now also moved to the website, "online shopping basket" emerged.

Fresh market is huge, the prospect is broad, it is regarded as the "blue sea" in the field of domestic electric business, but because of high cost and so on, the development of the fresh electricity business is not smooth.

Painful reality

At the beginning of August, Cofco I bought the net announced to obtain 100 million dollars financing; August 11, Shun Fung optimized the cold chain distribution of the city from 11 to 48; August 24, the official announcement of the entry into agriculture, the food electric business Platform "Le Life" has been on-line testing, this series of big moves to the fresh electricity business industry ushered in a new burst point.

The pursuit of fresh electricity is undoubtedly a bright prospect for fresh-born market. China Research Network A report pointed out that the 2013 domestic fresh market scale of nearly a trillion yuan, and fresh e-commerce sales penetration rate of only 0.9%, large market capacity, low permeability marks the electronic commerce industry will be the next big Blue ocean.

However, the "Blue Sea", which is unanimously favored, is the painful reality that 3,000 of the fresh electricity dealers have almost no profit. Lichangming, a member of the China Retail Research Center, said in a recent media interview that "99% of the fresh electricity dealers are losing money".

In the past two or three years, a number of fresh electricity dealers have been reorganized or fallen. Beijing local community fresh electricity business excellent vegetable network last March issued a notice said, excellent vegetable network founder Ding Jingtao resigned from the company's CEO position, the company's legal representative changes, the original management team restructuring. As Jinan local fresh products to move on the network's first attempt, Jinan to buy vegetables network in the difficult to maintain three years later, sadly down.

Development bottlenecks

"The problem that the fresh electricity trader encounters at present is that it is difficult and easy to wear and transportation, high delivery time, high logistics cost and low product standardization." "China's well-known Internet power business expert Tingchenling told reporters.

Zhang, a senior e-commerce person, said that the development of fresh electricity dealers faced two major stumbling blocks: first, the standardization of Fresh, and the second is the high rate of impairment. "Only standardized things can be more easily processed and grade classification, there is no standardization, can only follow the path of native products, very unfavorable to open up the market." He also pointed out that China's current fruits and vegetables in the logistics process loss of nearly 30%, 100 tons of vegetables can easily produce 20 tons of rubbish, this is a shocking figure.

Analysys International analyst sing in an interview with our correspondent said, "Fresh products are not easy to store, how to ensure the quality of ' fresh ', which is related to user experience." and to achieve quality assurance ' fresh ', must be frozen preservation, cold chain logistics is the key. But the cost of cold chain logistics is very high, which is the biggest bottleneck for the development of electric business. ”

In Liu, general manager of the supply chain center of Tuo Tuo, China's cold chain logistics is still unable to meet the development of fresh electric business. "Two-stage logistics mostly to group-buying activities, the vertical electrical business mostly to meet their own needs, ordinary Express has a seasonal limit and can not guarantee quality, and professional cold chain distribution costs are very high, and the benefits of fresh electricity business is disconnected." "Liu said.

What's the way out?

In the development of fresh electric business faced with various problems, industry experts generally optimistic online and offline combination of fresh O2O mode. O2O mode centralized distribution, online orders, offline pick-up, cost reduction, offline store can provide localization services.

"In the long run, the O2O model can solve the problem of people's thirst for original eco-products while reducing transaction and distribution costs." "Tingchenling said.

Did 3 years of fresh electricity Ding Jingtao after leaving the excellent vegetable net also said, fresh electricity business still have to go O2O mode, "fresh sales have its uniqueness, different regions like to eat different, different regional sales prices are also different." Therefore, if the use of a unified mall, there will be many problems arise. O2O mode is a feasible path.

He also pointed out that the O2O model can not only save logistics costs, but also improve the user experience. In particular, the interactive shopping of micro-credit and other social platforms can cultivate residents ' shopping habits and increase customers ' stickiness.

But in the view of Analysys International analyst sing, the O2O model is worth exploring, but it depends on the combination of online and offline, for example, local community electric dealers do well. Excellent vegetable network is the first to carry out O2O model transformation of the community of fresh electricity, the current excellent vegetable network not only normal operation, but also quite popular with consumers.

It is understood that the promotion of excellent vegetable network launched entirely online, such as the establishment of community shops and vegetables convenience stores, with the entity Community stores to enter the community through the through train and so on. These activities, not only the excellent vegetable network to obtain the consumer's recognition and recognition, and to solve the "last kilometer" distribution problem laid the foundation.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.