High risk low return fresh electricity quotient: Gambler's game

High cost, fast pace, heavy assets, low return

Because the electricity trader, the consumer lets oneself break the promise again and again. Do not go to the net to buy 3C, expensive items to be tested, finally went to buy, Jing Dong Red, do not go to the net to buy clothing, clothing does not try how to wear, and finally went to purchase, where the guests are bright, not to the net to buy fresh, fresh not to pick how to eat, and finally to buy, fresh electricity business hot.

May 2012 Shun Fung Optimization online, June Amazon China launched Fresh-born channel, July 18, Jingdong Mall covered fresh food, on the same day, the sale of organic green foods originally live online line. After hesitating for a long time, the electric business finally riveting enough strength, enter domestic still have no successful case of fresh field, this is a gamble.

The last bet of the electric dealer

More than consumers are changing their determination, the electric business is also suffering from the struggle of indecision: on the one hand they are crazy to expand the category, to become "Network integrated shopping Mall", on the one hand, and slowly dare not touch the field of fresh food, decisively put it blacklisted. Because of fear, not because consumers do not dare to buy, but because they do not dare to sell.

"Fresh areas, the entire supply chain and market costs are too high." Said Ruzenwang, an observer for the electricity business. And easy to view analyst Shou send the view, fresh areas of high logistics costs, even if there is logistics resources may not be able to laugh to the last. The reason why the electric dealer finally dabbled in the fresh field is because it has a lot of difficult places.

In a sense, this is more like a risky bet. Prior to the Tuo tuo workers, Jia Mai, one hundred grams, such as a group of independent vertical electric operators to test the water ahead of time, they are not easy to live. "This is not a simple business model, otherwise the cat, Jingdong has already done." "Shou sent to the analysis.

2-Day Limit inventory turnover

The original Life Network is a manufacturer of fresh electricity to sell domestic organic green food mainly, run imported foods. Han Xiaolong, its marketing manager, introduced: "A bottle of organic milk for 9 days, in the inventory placed to the 5th day, it must be disposed of." He said that the distribution will be delayed for 1 days, if the consumer after the purchase if placed 1-2 days, milk will be broken.

Entering the field of fresh food will face many new problems, the biggest challenge is the freshness period. From the procurement, warehousing, delivery of the entire link must be controlled in the freshness period. According to Han Xiaolong Introduction, the original Life net products, the best freshness period generally not more than 14 days. "After the product expires, we sometimes digest the internal staff." ”

These links include fresh picking, transport vehicles to the cold storage, cold storage, consumer orders, order regionalization processing, inventory shipments, consumers receive products seven steps, the entire cycle must be completed in the freshness period. "From the moment the base was picked up, the countdown to the freshness period began." "Han Xiaolong said.

According to Han Xiaolong introduced, to fresh vegetables, for example, from picking to storage generally for 1-2 days, they in the library can save up to 2 days, that is, the entire inventory turnover of 2-4 days, which is already a limit. Shun Fung preferred brand director Baomin also said that in order to ensure the absolute freshness of food, from the consumer orders to the receipt of goods, has been shortened to 2.5 hours the fastest.

Risk of food loss rate

Fresh food order volume is large, today's order is 200 orders, tomorrow may be 1000 orders, which also led to increased inventory uncertainty. affect the consumer net to buy fresh food of many factors, in which the weather change is a big reason: the weather is good when out of the possibility of relatively large, rainy weather on the net to buy a higher proportion.

According to Han Xiaolong introduced, because the volume of orders caused by the loss of cost, sometimes up to scores. This is more risky for a fresh-electricity supplier on the line: less operational experience and unpredictable traffic flow. However, there is also a benefit, that is, the initial order is not large, there will be no shortage of stock.

In order to more scientifically statistics orders, the original Life network in the distribution time has been adjusted. The order before 9 in the morning will be shipped with the previous day's order; In the middle there is a distribution buffer time, the day before the order can provide a reference for the purchase quantity for the second days. On the other hand, delayed delivery will bring more time cost to consumers.

In fact, the wastage cost of the traditional fresh retail is even higher. Take vegetables as an example, from the base to pick up through the first agent, level two agents, and then by the hand of the retailer to reach consumers, during the logistics layer transmission caused by the loss of the proportion can reach 30% to 40%. But under the high loss of profits, traditional retailers are still profitable.

Regional Purchasing Regional Sales

At present, there are obvious regionalization features in domestic electric power suppliers covering fresh category. Store 1th, Jingdong Mall fresh food sales area, mainly limited in Shanghai, Guangzhou, Beijing, the three major cities, and Shun Fung optimization, the original Life network is temporarily limited to the Beijing city (within the five rings or within six rings). The reason why they do this is mainly to take into account the logistics factors.

Logistics has become the standard for the electrical business, for fresh food, logistics must be "high". Fresh food using cold chain logistics, transport, inventory in all aspects must be fresh. According to the previous Tuo Tuo workers related to the responsible person revealed that its logistics cost of 30-40 yuan per order.

According to Han Xiaolong Introduction, the original life of the net cost a little lower: 30 yuan or so. Shun Fung preferred brand director Baomin also said that the site upfront investment costs are very large, mainly used in cold storage. Located in Shanghai, the main farm organic vegetables production and marketing, the person responsible for the media, the distribution cost accounted for its vegetable final price of about 20% (now may have changes).

Considering these factors, the original Life network to promote regional procurement, based in Beijing. The North Garden, located in Yanqing County Feng Ying, is the main sourcing base in Beijing, which is a 6-hour drive away. Of course, they will regularly visit the buyer to the country, in Hubei Enshi also have their procurement base.

Micro-profit is difficult to reach high cost

In many people's eyes, the gross profit of fresh food is especially thick. Baomin told reporters that Shun Fung optimization of the current profit is very low, and Han Xiaolong said that the original life net gross margin is only 30%, this value is lower than the traditional retail. The traditional fresh retail links are many, but the profit is also very high, of which 80%-90% is occupied by intermediary channel operators.

The current cost of life network is mainly three: first, the logistics costs, the second is the human cost, the third is the cost of loss. Generally speaking, the wastage rate of the Ruzenwang is 20%. The reporter calculates a moment, originally the gross profit of the net of life is 30%, if according to this standard, equivalent to 20% loss cost, only then left 10% profit margin.

Han Xiaolong said logistics costs accounted for about 10% of sales. Apart from the normal distribution, the original Life network will sometimes from Hubei Enshi 6 hours by air, direct fresh food sent to Beijing inventory. Reporters from the Huasheng logistics company to understand, generally from Wuhan (more than Enshi to Beijing distance of about 200 km) 6-hour rush to Beijing, in the goods more than 100Kg under the premise of the price of 10.5 yuan kg.

According to this situation, fresh electricity dealers must also undergo a period of "burning money". "The cost of logistics (distribution, warehousing) of fresh electric power suppliers is difficult to control in 10%, which is generally higher than 10%," said Ruzenwang, an observer for the electricity business. He also said that for the raw electricity business, 30% of the gross profit is indeed a little low, if the cost of consumption is more reasonable.

The business model of heavy assets

Fresh electricity Dealer's heavy assets performance at two points: first, the cold chain logistics cost is high, the second is the more downward touch industry chain longer.

Because of the high cost of fresh cold chain logistics, it can not demand too much for consumers. In the distribution of charges, Jingdong Mall is in the order of more than 39 yuan, that is, free shipping (less than 39 yuan to receive 5 yuan freight); Tuo Tuo workers, the original Life network, Shun Fung optimization are in the consumer shopping less than 200 yuan in the case, charge 10 yuan distribution fee.

This means that each time the consumer orders, the fresh electricity business will first loss of 10-20 yuan of logistics costs. Han Xiaolong said that the original Life Network parent company (originally Workshop Technology Co., Ltd.) has a "micro-mission" logistics company, now for the original Life network to provide logistics services, so the cost will have advantages.

Han Xiaolong admits: "The current Web site soon, the previous year is to test whether the business model to comply with the market, from the profit is still relatively far." But he told reporters, "When the own brand is done, we will be truly profitable." "Private brands can boost gross profits, but they will reach the top of the industrial chain, such as farms and farm houses," he said.

This path, Shun Fung optimization appears very cautious: "There is no such intention." Baomin said, Shun Fung preferred main imports of food, there are domestic organic green food, the ratio of 20% to 30%, but the future will be fully diverted to import food. "Now are mainly procurement, will not be involved in the upper reaches of the industrial chain." ”