Liquor dealers "rude" "disruptive" innovation, drinks businessmen are helpless

Economic observer reporter lie, under the Royal root of Hong da Tianfu Chengdu, in these two atmosphere and style completely different city, a group of Internet Tatsu people are carrying out an efficient and "smart" business: Plan to spend 3-5 years to thousands of liquor chain stores to the whole country, while the market share increased to more than 10%.

Liquor merchants who are accustomed to doing business at the dinner table or in upscale restaurants do not like this kind of efficiency and "savvy". For them, this "disruptive" innovation is somewhat "offensive".

Over the past 1.5 hours, "offending" liquor merchants have repeatedly raised their "kill" wands, trying to crack down on these people and try to maintain the broken order-albeit with growing difficulty.

and savvy internet talent doesn't seem to mind refreshing the sense of being in a vicious way: marching Central plains of the 1919 wine directly to the mall issued a "either the enemy, or friends" of the battle polemic, the wine net will lay out "a war only I do not you" malicious words; looks like a low-key jiuxian net, Vowed to turn the anniversary into a liquor dealer's "double 11".

They were hailed as the altar of the industry, the adjustment of the life-saving straw, and critics back to the original, "liquor dealers, not myths, but jokes."

But in any case, the business model that rises in the deep adjustment track of Chinese liquor industry, with its "lower price, more flat channels and more accurate consumer control", for the near-deformed liquor market brought "close to consumers, return to the value of consumption origin" logic thinking.

The central question of this thinking is, "What is white wine, who should sell it, how to sell it?"

The Battle of the patterns

"In the O2O the word has not yet produced, we have been doing O2O things," 1919 Wine direct for chairman Yangling Jiang told Economic Observer, "2007, 1919 received a order from Guiyang, that is 1919 network platform to receive the first single." ”

In the liquor industry after 7 years, Yangling River in 2005 bought 1919 of the network domain name. Since then, the 1919 has undergone three important strategic adjustments: From 2005 to 2008, the main ground chain promotion and the use of telephone ordering liquor business; From 2008 to 2013, extend the entire channel including telephone, network, and after 2013, change the role of the Platform Manager to control the terminal consumption channel.

In 2010, the Jiuxian network, which was dominated by the Business-to-consumer model, was proclaimed. 5 years later, Jiuxian network is more like a "wine industry version" of Jingdong: upstream has nearly 500 wineries suppliers, Downstream has 6 warehouse distribution centers, relying on Third-party logistics for distribution.

In the three major liquor dealers, the latest set up is the Chinese wine Network, the July 2013 began to team up the electricity quotient, the advantage lies in the line layout and mobile terminal preemption. Distribution on the use of "big shop cooperation, shop to join" form, for ordinary smoke hotels and other small shops, to join the "wine chain" brand, unified completion of distribution and trading.

Peaceful and each has the three major modes of emphasis in the 2013, ushered in the era of hand-to-hand combat, "the model of the pros and cons, the development prospects and who is more suitable for wine dealers," and so became the focus of controversy. Of course, the princes of the dispute must have alliances, March just formed the "Three Kingdoms Kill" situation soon was broken, May 2014, the Wine net hand 1919 caused the industry uproar.

The biggest controversy is the level of cost control for both the O2O and the two models. As the representative mode of the traditional electric power business, there are obvious characteristics of the capital drive in the initial stage of operation, so "burning money" becomes the Jiuxian of the network. The O2O model has a natural advantage.

In this connection, Jiuxian network related person to the economic observer said, "the customer mode to solve the consumer demand for planned consumption, and O2O model to solve the consumer's immediate consumer demand." The two modes are different, and hard comparisons are clearly inaccurate.

Rai Jingyu, chairman of the China Wine Network, said to the economic observer, "as long as the relevant products have sufficient gross margin, the model can still operate and generate profits, although this operation will become increasingly difficult." It is understood that the current consumer field of alcohol is about 20% of the gross profit margin, and the Jiuxian network to the Economic observer to provide information shows that "up to now, the company has been continuously profitable for three years."

The flow of electricity to import is also a higher cost of the project, and the project needs to be repeated, once stopped, there is the risk of oblivion. In essence, the company's money to buy traffic and O2O money to buy users are essentially the same, according to Taobao published data, the current electronic business enterprises to obtain new customers cost has reached about 300 yuan.

The result of the argument is that the big three have thrown out an ambitious store expansion plan, the landing of the franchise to a certain extent can alleviate the liquor dealer's flow pressure: In the wine network will be in 2016 years or so in the country to join in the distribution of 10,000 stores nationwide, county and above the city 1 hours service; 1919 plan in 2017 years or so to achieve the layout of 2000 stores nationwide, "send immediately" plan to achieve half an hour service, and the use of "wine fast" to expand the O2O business Jiuxian network to the end of the year to complete the distribution of more than 2000 counties and cities, 9 minutes delivery.

The development model of liquor electric dealer and the way of promoting ground expansion are based on the theory that after ten years of "pseudo luxury", liquor should return to the value consumption and restore the true nature of FMCG. And in the fast-consumer products ranks, electric dealers, supermarkets, convenience stores and other places should also be a quick liquor sales channels.

This theoretical basis was supported by Zhao, deputy director of the research Department of Consumer Economics of the Ministry of Commerce, and in her view, "with the price of some liquor continuously downward adjustment, the liquor has already possessed the property of the FMCG". Shui Jing Fang Chairman Rice also stressed to the economic observer, "Chinese liquor should return to its fast-moving consumer goods, and mainly in supermarkets, hypermarkets and other shopping venues to buy and sell."

But the liquor marketing experts ouyang thousand miles to the economic observer expressed different views. "Fast-moving consumer goods demand fast turnover, low profit margins, liquor interest chain is high, obviously does not have the property of FMCG." Ouyang pointed out that, due to the neglect of the young consumer groups, "white wine has lost the atmosphere and foundation of rapid consumer goods."

"Medium and low-end wines in the product characteristics of a certain rapid extinction characteristics, suitable for appropriate distribution of the way", liquor marketing expert Zhaoyixiang said, "But the internet is just a channel, channel is not possible to change the property of the product."

The debate on the mode and theoretical basis of liquor electric quotient actually throws out the proposition that "liquor returns to consumption value". Although the solution of the proposition has no unified answer, but "liquor farewell to fake luxury goods, market-based approach to return to ordinary consumers" has become a consensus.

Distributor

This April, Deng Tao became the first partner in the 1919 New Partnership model. He told the economic Observer that he had "supported the unique business model created by 1919 and had made the worst possible profit for three years". In his view, a new business model needs to cope with changing market tests.

But to his surprise, his new cooperative tube shop operating two months, monthly turnover of 200,000, gross margin of about 40,000, the first month to achieve profitability.

and Deng Tao the same choice and wine with the cooperation of the electric business also from Beijing Fengtai Chiang Patriotic. 2013 because of "group buying business reduced, into business difficulties," Chiang's patriotic choice to join the wine network, "low cost, goods full" is the first factor he values.

Chiang Patriotic told the Economic Observer, after 2013 years of industry adjustment influence, "the most sad is not only the decline in profits, as well as sales decline, smoke hotels or dealers are facing the collapse of the situation, many businesses have changed careers, do not make drinks", and now, they look more like a formal wine chain shop. "

These two examples represent, to some extent, the stories that some dealers have experienced over the past year or so. They are unfortunate, the end of the boom era has put them in a difficult situation, but at the same time, they are fortunate, at least they have the opportunity to redeem themselves.

In the past golden decade, Chinese liquor in the growing economy and the "three public consumption" scale, forming a "universal liquor, lying can make money" of the abnormal market. The whole ecological chain is built on the basis of "blending, relationship", even the price of liquor prices are "under the banner of administrative intervention has become no reason to say." And now, "This parasitic soil is being taken away a little by the tide."

Rai Jingyu told economic Observer, with the three public consumption of the crackdown, the original based on government relations, group buying business has been difficult to recover, "prohibit consumers from bringing alcohol illegal" is increasingly widely accepted, catering industry liquor sales channels will also be impacted.

"It is only after the ebb tide that we know who is swimming naked," he said. "For those who are naked, they are likely to have no chance of redemption."

Zhaoyixiang analysis points out that the traditional distributors are divided into two kinds: one is the complete "connections", based on the relationship between officials and the government, the distribution of liquor, characterized by "no professional team, no professional stores, no real assets", these people will be the first to be eliminated; the second is experienced group buyers, relying on their own painstaking, Established a good network of resources and political and business relations, "they also have the opportunity to adjust."

Liquor industry channels have many levels of characteristics, wineries and large distributors often will not direct contact with consumers, and to O2O as the main mode of the electric quotient of the emphasis on direct contact with consumers, so wineries and large dealers direct transformation to do O2O is very difficult, which gives small and medium-sized dealers flexible choice of opportunities.

According to data released by UBS Securities, China's O2O market is over 170 billion yuan in 2013, and is expected to double in the next two years, with China Mobile internet users expanding from 500 million in 2013 to 750 million in 2017. The market potential of local O2O is evident.

For the dealers in the adjustment track, in addition to the size of the O2O market, they are more important to the appliance business platform in the business model for their own benefit points.

Although the current "physical store sales still accounted for 1919 of the total sales of more than 90%", but in the planning of Yangling River, the future will be under the Transition Line store platform management, "supply chain service fees and store management service fees will exceed the sales of goods."

In the 1919-planned direct-store partnership model, Partners will have 100% ownership and store profit margins in stores, while 1919 will provide operational services like Shangri-La, such as home and other hotel management companies, and carry out full operation of the cooperative stores and charge a fixed management fee each year.

But the story isn't all that good, for most dealers, "up and Down" is a true portrayal of their embarrassing situation: on the one hand, the upstream winery is its main source of goods, once they pour to the electricity dealers, will face the winery severe punishment; On the other hand, if they ignore the new network sales channels, Will be in a disadvantageous position in the regional market competition.

Since 2013, including Maotai, Wuliangye, including several wineries dealers are due to low-cost dumping goods by the winery punishment. Winery strong and not only this, including 1919, Jiuxian Network and other electric dealers, have been the winery's ban, punishment.

For Deng Tao and Chiang's patriotic, despite embracing the internet, they remain "ambivalent and tangled" in their hearts. What they are worried about is, "whether the appliance dealers ' policies will change and whether the charges will be increased every year, and once the future electric dealers become as strong as the winery, how to guarantee the interests of the distributors."

This means that how to deal with the relationship between the traditional dealers is also a problem faced by liquor dealers. Citic Securities issued a report that "O2O is a downstream channel of innovation, so the most likely to touch the interests of the original channel." Enterprises should do their own positioning, should not form a direct competitive relationship with downstream distributors, nor should the O2O as a discount tool.

If the choice of electric business model is the logical starting point for the return of liquor value, "dealers return to the market trading channels, based on the market rather than blending the liquor into thousands of households, and then bring the liquor sales channel Change", it is this round of liquor adjustment completed another benchmark.

Industry worries

"Only when the tide receded, will know who is in the nude swimming," this sentence can be used to describe the past decade of various dealers, can also be taken to warn the current wine dealers in the hands of the trader.

As a new thing, alcohol Shangfu appeared to show a very strong agglomeration effect, various types of electronic business sites and regional electrical business sites are flocking. According to the economic observation newspaper incomplete statistics, the current wine E-commerce Market has an independent domain name and platform of the site Vue, the rest of the independent domain name of the beverage site at least thousands of. Among them, including Jiuxian network, wine and other comprehensive wine network, such as the website, also buy nets, wine, the United States Network, wine guests and other wine specific business website, Maotai online shopping malls, Wuliangye online and other wine enterprises from the establishment of the consumer website, as well as Chinese wine business Network, China Wine Network, Chinese rice Wine Trading network, such as the Web site with a business-to-business nature.

"The market is big enough to accommodate a wide variety of business models and many businesses," Rai Jingyu told the Economic Observer, "but it is not sufficient to accommodate so many companies." "In Rai Jingyu view, the Internet economy has a giant effect, such as Taobao, Jingdong, etc. in the status of online shopping, once the Giants appear, other small companies are difficult to survive, can only face the fate of elimination."

According to the first "China Wine Industry Report", 2013 China's wine industry has increased by more than 93%, retail size reached 7.3 billion, accounting for the total employment of less than 1%. On the future share of the wine industry, the industry is still divided, but basically floating around 20%. Plus Taobao, Beijing-east, Gome and other large electric platform of the partition, this market size is obviously difficult to feed so many enterprises.

Supply chain is also the lifeline of liquor-dealers, strictly speaking, the lack of the supply chain of both the consumer and O2O are false propositions. Therefore, how to ensure the safety of the supply chain to become wine dealers "can survive, how long" important indicators.

At present, has 5 years of history of the Jiuxian network has been with more than 500 wine enterprises to reach a cooperative relationship, platform products SKU has reached more than 6,000 kinds. At the first supplier meeting in July, the Chinese Wine Network also signed a direct cooperation agreement with more than 60% wineries, which greatly eased the supply chain pressure.

has been known as the "Public Enemy of the industry" Yangling Jiang, the face of the big winery ban, but also set up 12 procurement companies nationwide procurement, the main way for "where cheap to buy." Facing the outside of the "supply chain Fragile" query, Yangling Jiang to the economic Observer said, "the worst situation is to affect the gross margin of some goods, because can be made up through third-party free procurement, the company does not affect the operation."

It is noteworthy that in this round of the impact of liquor dealers, the Big winery has been playing a "public opinion on the weak" role, although the major wineries such as Wuliangye have also opened their own platform for the construction of electricity, but basically still in the "occasional" stage, far from producing should have effect.

In this regard, Zhaoyixiang said, on the one hand, large wineries are basically state-owned enterprises, with the common problems of State-owned enterprises-inflexible, slow response;

Zhaoyixiang at the same time warned that, although the liquor dealers are shouting more lively, but its market share is indeed very small, considering that 1% of the sales are "all electric companies plus hundreds of varieties of wine to reach the volume of large wineries, almost negligible."

Therefore, the state-owned liquor Enterprise's counterattack is a problem that the electric trader has to pay attention to. Ouyang Trinidad Think, "if the state-owned winery determined to do electricity, open the Regional Network virtual agent, taking into account the resources and strength of its distributors, will be a lot of electricity to the current impact."

This on another level reflects the embarrassment of the current liquor dealers, whether it is the promotion of mobile clients or the layout of the PC side, the electric dealer for the internet groups and liquor of the main consumer groups show a significant mismatch.

From 2013 liquor dealers sold the price distribution of goods, the main network of sellers to buy low-end products, of which 50-100 of the total volume of products accounted for 40%, 50 per cent of the following products accounted for 30%, 100-200 Yuan accounted for 17%, 200 yuan and above accounted for 13%.

In view of this, "as soon as possible to find a mature industry and business model, divided into clear consumer subjects, mining potential consumer market and build their own ecological chain" is the liquor dealers must quickly solve the proposition.

In this ecological chain, the new ecological soil and industrial model will replace the already deformed interest chain, rent-seeking space will be further compressed, wine products producers, sellers and consumers will be closer to the distance. The logic behind it is "small government, Big society" social and political ecology and constantly perfect market economy.

As for the impact of liquor electric dealers to the whole Chinese liquor, Gu Jianching, director of the Wine network, said, "The electric dealer is just a sales channel, it is impossible to replace the offline." For China's large and small wineries, "all want to borrow the Internet to save, to achieve the effect of flowering is basically impossible, the industry shuffle will certainly wash off a group of wineries."

Summing up the development characteristics of wine industry O2O, Ouyang Trinidad to Economic Observer said: the development of wine industry is a "overnight" change, rather than a province-by-province ground to advance, from consumers and terminals rely on software to promote upstream, rather than today upstream industries rely on capital to push downward, is in the province (large area) O2O "Rather than the national layout of one or even two now."

Summer of August, although the heat intolerable, but for the "Big Three", it should be a good month: Rai Jingyu's team is moving, moving from Tonghui to a spacious office building, and a more powerful team is recruiting; Shang to celebrate the five anniversary with his Jiuxian network, and various promotions are going on vigorously.

As for the Yangling River, who knows what he can not tell the secret is, but, he also in the heart himself "steal" Le Days will tell people.