O2O or organic food electric dealer Lifeline

Source: Internet
Author: User
Keywords O2o

 Following the March "Willow Peach" in Chengdu, April 15, Lenovo's "Good Life" micro-letter Mall officially opened, this is the first micro-letter to achieve micro-letter payment of fruit shop. Shun Fung preferred leader Li recently also disclosed that the line one year of Shun Fung Optimization has completed a nationwide distribution network of warehousing, and in more than 10 cities to establish a cold chain distribution system. During the same period, the cat, Taobao, Jingdong, shop 1th, Amazon and other electric giants are also in the fresh power.

Thanks to the giant's entry and layout, it has been trapped in the distribution of high cost and quality difficult to ensure the production of fresh electric business chain quickly improved. and fresh category of high-end products organic food also ushered in the best opportunities for development, most enterprises choose the entry point is O2O.

Liu Huanqi, founder of the O2O, a professional research expert, said, "O2O makes organic food such high quality products finally come to an end." "The time is ripe is also the organic food Enterprise active layout O2O, seizes the electricity merchant market the biggest impetus." But from the industry characteristics, organic food enterprises do O2O, the biggest difficulty is how to use O2O characteristics to solve the consumer's trust in organic food.

The complete matching of agricultural product electric quotient

Agricultural electricity dealers have more than 3,000 enterprises in the competition, the Giants have also been killed, the market will soon become the Red Sea from the blue Sea. On the contrary, organic products because of brand, price and other factors, competition is relatively not fierce, is expected to become the new blue ocean of agricultural products.

In the gongchenglvede of various traditional industries, what is the next hot-spot category? The answer to the Qing branch is the agricultural electricity dealer.

The latest report from the ~2025 venture capital club shows that China's cold chain food demand will grow from 200 million tonnes to 450 million tonnes in 2012, with an annual compound growth rate of 18.8%. The report also pointed out that the average gross margin of fruit and other fresh foods in 40%, and users repeat the purchase rate is high, the next 3-5 years is likely to be the next hot commodity category.

The group also came to the conclusion from the investment field data. According to the group's data, VC investment in agriculture in 2013 was worth $16.08 million trillion, the latest 5-year high. Meanwhile, the mainstream data of agricultural electric dealers show that the "Modern Agriculture" project, which is combined with Internet, has become the mainstream of agricultural investment, and the investment scale is increasing gradually.

Agricultural products have not developed these years, far behind the home appliances, clothing, mother and child, and other categories of logistics and quality control are two aspects.

The difficulty of e-commerce logistics operation of agricultural products is the high cost of single distribution. Statistics show that in an E-commerce transaction in the customer unit price if it is 100 yuan, the logistics cost of agricultural products will be accounted for 25%~40%, in contrast, electronic products, clothing logistics costs only 5%. According to this data calculation, if the customer unit price below 200 yuan, the agricultural product electricity trader basically is in the loss condition. This is the case, the electrical business development for many years, in agricultural products, there have been enterprises in the trial, including the industry giants, but most of them are in a loss. Second, the cold chain logistics is imperfect, the quality of agricultural products in the distribution process is difficult to guarantee.

Since most of the agricultural products are fresh, the circulation of the cold chain must be carried out. The whole cold chain has the problems that the hardware equipment can't keep up with the development of the industry, but also the human factors of the execution. For example, fresh products in the trunk transport should be opened throughout the refrigeration equipment, but some drivers to save costs, often midway does not open refrigeration equipment, exacerbated the loss of fresh products, this is quite common phenomenon.

Data show that China's fruits and vegetables, the cold chain circulation rate of meat and aquatic products is only 5%, 15%, 23%, the majority of fresh produce still under normal temperature under normal commodity distribution mode in operation, while the European and American developed countries poultry cold chain circulation rate has reached 100%, vegetables, fruit cold chain circulation rate is also over 95%. Because of the imperfect of the cold chain logistics, the circulation loss rate of agricultural products is as high as 25% to 30%, which has also become a challenge for the development of China's agricultural products dealers.

2012, the agricultural product electric dealer started exerting force. This year, with Lenovo and Feng's phased achievements as the symbol, the giant's accession and layout of agricultural products to develop the market base began to improve and mature. This also provides the foundation for the electronic business of the higher end organic food in the agricultural products, some experts even think that 2014 may become the organic food enterprise concentrated exerting power electric quotient "year One".

It is understood that the agricultural products have more than 3,000 enterprises in the competition, the Giants have also been killed, the market will soon become the Red Sea from the blue Sea. On the contrary, organic products because of brand, price and other factors, competition is relatively not fierce, is expected to become the new blue ocean of agricultural products.

The crisis of trust in organic food

It is difficult to obtain the trust of consumers only by the certificate and test report on the website.

Organic products in the past sales, the biggest problem is trust, "organic food is not organic" news often in the newspaper, undermining its consumers in high quality price high-end image. Organic food in the development of the electricity business process, the biggest problem is also trust, only on the website of the enterprise hanging on the certificate, testing report difficult to obtain consumer trust. As a result, organic food sales on the internet has been bland not fire. Liu Huanqi, founder of the product network, said that the o2o of the organic food dealers is the biggest significance is to solve the trust problem.

O2O allows consumers to learn about organic food in advance prior to purchase and to make an appointment for offline experience. When the experience is successful, these consumers will bring the Word-of-mouth effect to the enterprise, also can obtain more user's trust. At the same time, enterprises can also use O2O to make consumers have a common interest in forming a small circle, for the user organizational chain. At this time, the consumer to the brand more viscous. This is the ideal model of the O2O era.

Liu Huanqi said: "Seeing for the real, organizational circle, when the enterprise to the organic food as a way of life to spread, the price is no longer the main factor in its purchase, when the organic food as a higher-end product of agricultural products high quality price characteristics to better reflect." "Liu Huanqi believes that the expansion of organic food production base and the rich category, the cold chain distribution system, and so on, these are the same as the electric business era to do, trust this key point is O2O can solve the problem."

The practice from the enterprise also confirms Liu Wan Haze's viewpoint. The world's largest supplier of organic ginseng Jilin Plus one indigenous Products Co., Ltd. (hereinafter referred to as "plus one") in 2009 after the start of domestic sales, has been to Wal-Mart, Metro, Hua Rundang and other terminal channels, only last year began to increase sales power. According to the company's brand retail business Department general manager Li Joshe introduced, organic ginseng than ordinary plant ginseng in the ginseng taste, taste and other aspects of the difference is very obvious, but only on the website description is difficult to let consumers have intuitive feelings. Gay approach is through the O2O way, the consumer to their own sales terminals to experience, and then form a purchase, or through the line up and down a single form of subsequent consumption.

Of course, the user taste after the "light" does not mean that will continue to spend, how to let users continue to spend is a greater challenge. To solve this problem, add one way is to increase consumer interaction, encourage consumers to write their own experience in the micro-credit microblogging and other social media, companies will be based on the number of users in the circle of posts to give the corresponding reward.

In order to adapt to this line of online interaction needs, and currently a separate development of a set of client software, including the line of all users, now the system has nearly 50,000 people, of which the formation of duplicate consumers accounted for more than half. Through the O2O, plus a not only to achieve the line with the same price, but also to avoid falling into the price war, to ensure that the unit price per gram has been high in the forefront of the industry. Li Joshe said that this is also the result of a desire, because if the price war, the sacrifice of profits, which is high cost and limited production of organic produce can not afford.

Imagination Space of channel Union

Another way to do O2O can greatly improve efficiency, expand the radius of logistics, solve the cost problems.

According to the relevant departments forecast, 2015 China's organic agricultural products consumption will reach 24.8 billion ~594 billion market scale, thereafter will be 15% annual growth rate. This means that the future of organic produce is very market potential. How to seize this market?

At present, the O2O model only solves the problem of trust, but there are many problems to be solved in the organic food electronic business. E-commerce Marketing experts believe that the agricultural products to solve the standardization of food, cold chain logistics and safety issues, O2O to solve the organic food line under the integration of the problem, but the organic food electrical business to succeed, offline Kungfu is the key. Offline entity stores, can solve the experience, delivery and delivery problems, but also a guarantee of confidence. When consumers know that there is a physical store, there is no need to worry about buying expired, adulterated or even unqualified food and after the sale of no door, will increase the confidence to buy. From this can be seen, offline entity store is also the key to the success of organic food O2O. Last year, the start-up failure of the fresh electric dealers run fast, in summing up the reasons for failure found that the establishment of the Internet thinking enterprises only pay attention to marketing, but ignored the line terminal coordination, became a source.

Online channel, Li Joshe that, from the traditional channels, the current organic food sales terminals are weak. Although upstream production side is now not a problem, but the sales terminal is still short board, in addition to Ultra, is open in the community's specialized stores. If these specialized stores sell only one company's products, the low sales are simply not enough to support the cost. At present, a lot of big electric business sites are jointly with the ground sales channels, and jointly improve the power of logistics and distribution capacity. In the future, if the electric business website, supplier, ground channel share an information system, an entity terminal can also sell many enterprises ' products, common drainage, share cost, "change the idea to do O2O can greatly improve the efficiency, expand the radius of logistics, solve the cost problem." "Li Joshe said.

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