Internet veterans subvert Traditional bakery industry, make O2O cake brand annual revenue 80 million

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The bakery market in Shanghai is 10 billion, and the "intruder" from the Internet, Wu Zi, has cut its tens revenue in just six months. He said he is "doctrine", learning jobs and Lei, the Internet in the explosion, the fan economy, interactive, extreme products such as thinking into the traditional cake field, bringing subversion.

Wu Zi used the Internet's thinking model to reconstruct the "pure Internet concept of the Cake brand", in the traditional baking industry to create a new model, his "ultimate Cake" now sales 3 million, is expected this year's revenue will be as high as 80 million.

(Aries cake)

Following is the serial entrepreneur, the ultimate Cake founder Wu Zi Feng Dictation (I Black Horse finishing):

Internet veterans, starting with SP

I was a computer science student at Shanghai University and a minor in business administration. After graduating in 2001, a short trip to Germany, but found that studying abroad is not suitable for their own, so after three months returned home.

After returning home, just learn is the computer, at that time also is the internet industry, the rise of their own more interested, so joined an internet company to do voice value-added services (SP). I start from the technology, do job, write Gateway. I stayed in that company for about half a year.

Then I went to the famous optical communication to do online games "Legend 3," The wireless business owner, I experienced a light through the 30 employees to 300 employees of the 10-month great leap Forward, when the monthly income of light to reach 20 million, the entire wireless business end is I am responsible.

Then I was in Shanghai local media Oriental Network also did two years of media, at that time, the public did not understand the internet, my monthly salary has reached 15000, my girlfriend's mother to my girlfriend said: "You must be cheated, which can have more than 10,000 wages."

I left there at the end of 2005, and I've been starting a business since then.

First bucket of gold: Did the Internet café advertising, did the first hand tour

2004, 2005 is actually a lot of today's famous Internet companies entrepreneurial start-up period, when the Shanghai Internet industry also broke out the entrepreneurial tide, I and a good friend out of the company.

My first company is to do is the Internet café advertising, because I have been in the online games, the former Internet cafes is the front line of the market, they have a large demand for Internet café Advertising, I have some advertising customer resources. Plus my former company "Oriental Network" is the party committee propaganda Department, the early Internet cafes are through the Ministry of Culture to license, some internet cafes and Oriental Network has business contacts, I put the resources of the previous integration.

I developed a software, one end in the Internet café, one end is remote server control, the computer in the Internet Café boot page, browser and desktop placement ads, and the owner of the Internet Café split. In fact, this is an "Internet café version of the media." Later, industry reorganization, as well as network management software is prevalent, we look at the market development prospects are limited, 2006 at the end of the company to 2.5 million U.S. dollars to sell the price of Shanghai's largest internet café media company, "Green Power", the life of the first bucket of gold.

Because the cost of the end trip is too big, I started to do hand tour first. 2008 we began to do function machine hand tour, is a lot of original game code to change the skin pre-installed into the function machine, this is also rely on SP mode to make money. We give a similar MTK mobile phone pre-installed on the game, users directly on the phone to play, and then through the text to buy the game props, and mobile phone manufacturers 37 divided. At that time it was very cool to do 10 million or 20 million of the water per month.

But do this margin is too low, first SP billing operators to charge, and revenue 70% to be divided into mobile phone manufacturers, water 10 million or 20 million profit is 1 million or 2 million, the gross margin is lower. Coupled with the smart machine's big line, Tencent and other giants involved in the tour, we gave up the strategy of the enterprise, at the end of 2012, the company's price of the above billion sold out.

Baking Electric Dealer

Although many startups have made me financially free, I was a 80-year old, and I didn't want to invest and meet more challenges in my early 30. I just want to do something again, I think the electric business is the direction of the future Internet, I want to be in one of the power of vertical electric business, the Giants are difficult to come in that vertical mode.

What is the direction of the vertical electric dealer? I think based on several aspects: The giant is not easy to enter, gross profit margin and high customer price, can have stories to tell. Because I have invested in a friend's bakery before, so I know the industry. I found the cake, the baking industry, exactly the three features I thought about.

For example, you go to the good to buy a 8-inch cream cake, at least to pay 150 yuan, but in fact, the cost of the cake only 15~20 yuan, that is, the cost price of the cake is actually only 10%-15%, which is the traditional industry, one of the lowest cost. Bake the industry's gross profit margin is very high, the industry is very traditional, and outsiders do not know the industry's high gross margin. The Internet that information transparent has not entered this industry, we all adhere to the industry rules, quietly earn money.

I think since the baking industry is so high margin space, then must be able to use the Internet thinking to integrate it. A piece of tiramisu 15 yuan, may cost is a piece of money, which can operate the space is too big. I do not like the traditional business, even if the cake chain mode growth is too slow, and I do not know how to shop, I use the Internet model to subvert the traditional industry. Starting from 2011, I and a few friends put in millions of to do.

2011 we made a www.999cake.com, is a cake mall, that is, "cake version of Jingdong", when all the brand of Shanghai cake is above, we can directly door-to-door. After six months to find this mode is not good, because the cake product itself is still traditional, the user has no special feelings. and traditional cake for ordinary consumers, directly in the surrounding cake shop to buy it, they basically do not have the habit of online consumption cake. In fact, we simply moved the traditional cake online, which is difficult to succeed.

Ultimate Cake: Exploding money, vermicelli economy

Later I want to do a real "internet cake", October 2013 began to build its own Internet cake brand "ultimate Cake", which has borrowed from the Lei small-meter mobile phone success model. Six months less than the "ultimate cake", the daily order has reached 1000, more times reached 3,000. The "Ultimate Cake" now has a more than 3 million monthly revenue and is expected to have 80 million of sales this year. The team expanded to 300 people.

The market share of bakery in Shanghai is 10 billion, of which the cake accounts for 40%, which means that the market of cakes in Shanghai is about 4 billion of the share. I think 80 million of the sales is only 1% of the market, the future of this brand can do more share. I hope that 80, 90 of young people, want to order the cake on the internet to think of my brand.

In my mind, a successful internet brand is not about moving traditional stores online. But in this field you have to have a whole set of Internet solution thinking, from the place order to the goods to the user hands, you have to use the Internet to refactor, your team must have Internet thinking.

Products to the bottom of the pursuit of the ultimate, to do "blasting money"

Our "Ultimate cake" is a pure Internet concept brand, we sell only 12 "constellation cake" each year, 12 cakes corresponding to the 12 date of the sale, after this constellation can not buy this constellation cake. "The ultimate cake" Each constellation month only concentrate on doing a constellation cake, each cake to make a shortage of "burst money."

For example, March to the beginning of April is the Aries month, then I only sell the white sheep cake. We will incorporate the various elements of Aries into cake making and packaging, and even hire a constellation to analyze what flavors and packaging the Aries like. I even spent more than 10,000 a month to hire a constellation division, I did not know the constellation before, then know that the original Constellation Division is also to test the certificate. We will be more extreme with the constellation Division, Constellation Division also gives us a constellation cake products with a lot of inspiration, such as the Aries switch to Taurus Standard Time is April 22 12:17, then our entire site on this standard time switch, not too early, it will appear particularly extreme and professional.

Because I do not have traditional baking experience in product production. "Extreme Cake" specializes in the development of the Hong Kong-listed company Kristin Cake Vine Wu as our VP (Vice President), Vine Wu is China's top ten baking teachers, led the baking team of 500 people. Now lead the "ultimate Cake" team of 20 people to make cake products.

I think the internet thinking, the first is the system, the second is the service, the third is the concept. In fact, the interconnection does not change the product itself, but can change the service mode. Cake production process is not complex, is a process, we use the raw materials are basically the same, want to use the production process and raw materials in the baking industry to stand out is not possible, so we are in the cake service, philosophy and user experience up and down.

All the details will be very important to us, we pack the atmosphere, to the Prada packaging standards, and send stainless steel knives and forks, free shipping. Our each cake price only in 50~100 yuan, in the early stage for the brand, the production extremely exquisite Aries cake price only is 58 yuan (close to the cost price), suddenly detonated the market.

Logistics

I think it is necessary to build the logistics of the cake:

A, cake fragile, need their own special logistics system to ensure that the cake delivery process is not damaged, to ensure user experience.

Second, cake Logistics is not necessarily fast, but to be punctual. For example, if a user is going to celebrate birthday with friends at 7 o ' clock, you must arrive on time at 6:30, too early or too late.

Third, the logistics can also communicate directly with users, because logistics personnel can collect the most front-line user feedback is what the user's service experience is very complete.

"The ultimate cake" now logistics has more than 40 employees, we only have a Jiading online experience shop. We have a central kitchen with 10 cold chain stations for distribution coverage in Shanghai. Cold chain station cost is not high, a freezer plus a computer. We make good cakes in the morning, then we use the six handlebar cake to each cold chain station. We basically order to produce, the day of all the Orders digest. If you can't digest it, return the cake to the factory for unified recycling.

Fan economy, user rating management, interactive

Apple and Millet let us know, the core of the Internet enterprise is how to have a group of fans, the traditional baking industry do not know who their consumers are, only in the crowded places open shop, very blind.

"Ultimate Cake" first find their former 50~100 loyal fans, and then cultivate them, give them the idea of "extreme cake", or even free "feed" them, send them cakes to eat. These 100 fans, we don't want to make money, but leverage their social networks. We will select carefully and find the inflammatory grassroots to enter our core fan group of 100 people.

Shanghai has about 60,000 "ultimate cake" fans. As long as the fans share their activities with the social network, they can join us for free. "Cake Test" will be launched next month to launch several options for the constellation cake, let fans try to eat and then vote, choose their favorite cake. Myself, as well as the "extreme cake" product staff and fans 0 distance contact, listen to their products the most authentic advice, and so fans are willing to interact with us.

We let the fans vote, they get the user excited, they get a sense of ownership and they're willing to be part of it.

Compared to the traditional bakery industry, we play the constellation Cake and interactive concept, very advanced, no one to follow us. Constellations let our cake have a story to tell, users will have expectations of the cake, there will be dramatic tension, they will expect the next constellation cake in the end what kind of? Put yourself and people around the constellation into cakes, interaction will let users of the product emotional injection, our fans will even actively promote our products to the people around, will also look forward to the next constellation cake in the end what kind of, we send the stainless steel knife and fork will even have constellation logo, fans can also participate in our offline activities to the next sale of the constellation cake to advise.

We have our own membership system and we manage our fans hierarchically. The more you buy, the higher the level, and the privilege of the advanced user. We also use the pre-sale model, may be the cake will be in short supply, we only produce a certain amount of cake a day, to create the appropriate "hunger." The traditional cake does not let the user have "the heartbeat feeling", we can, because the user injects the emotion, has the anticipation, and may participate in the cake production. We found that when it comes to switching the constellation cake, the number of visits to the site can even rise from hundreds of to tens of thousands.

We are now making the ultimate cake, not a cake company, or simply put the cake on the internet to sell, we want to create a new Internet baking service experience. We want to change the traditional baking mode of service. Simply ordering a cake on the internet to go home to eat, then I do not think that this is the real meaning of the internet cake.

The subversive power of the Internet

Now the traditional cake companies have a lot of opinions about us, think we messed up the market, but I think subversion will always come, in the internet age can not be long-term existence of such high (50%), we quietly make money in the industry. There are already some traditional cake companies imitating our model.

China's Bakery market is about 100 billion, compared to northern China, the south will prefer to consume baking, cakes, in the future we first to the Yangtze River Delta region development. As long as our model is established, we can replicate the expansion in every city like McDonald's.

(Wuzhi)

(Author: I black horse @ Wesse)