Online Supermarket "No. 1th Shop"

In recent times, in young and fashionable white-collar people, suddenly There is a "No. 1th shop" of the website is very hot.

Honghao, who is engaged in sociological research, is doing a project on formula milk, a respondent strongly recommended to him shop No. 1th, and said that she has been from shop 1th to buy formula for children to drink, not only the price is also cheap, and convenient, can replace shopping, but also open the invoice card, and issued " Never go to the supermarket to carry the milk "sigh."

In the first anniversary of the establishment of shop 1th, thousands of netizens in the 1th shop in the website forum active message. In addition to praise the sound of complaints, more for the "Shop No. 1th," the development of ideas, they do not make their own efforts to put forward their own thoughts, and some even serious professional like business planning, the situation is not like the interaction with consumers, but it seems to be a seminar between managers.

At Fudan University School of Management held in the International Forum on E-commerce, Gege, 1th, the chairman of the store made a report, attracted a lot of research e-commerce scholars flocking to the report hall listeners such as clouds, a mass of people stood a large, the exchange of questions.

The web site has long been known to the public, why the establishment of only one year's "1th shop" site received so much attention and hot? What is the difference between this e-business philosophy?

Growth process: To be the first to eat crabs, to build online "Wal-Mart Supermarket" mode

November 2007, the world's top 500 companies Dell former China regional president Liu Junling and the original global procurement Vice President Gege abruptly announced the departure, since then disappeared in the public eye. In the 2008, they returned to the public eye, turning from a professional manager to an entrepreneur, "zeroing in" and announcing that it would be "a cheaper online supermarket than a supermarket" in China.

The first person to eat crabs appeared, shop number 1th since the birth.

Use the mouse to go shopping in the supermarket. Shop 1th is to build the model is the online "Wal-Mart", so that users can be "more than the price of supermarkets" to buy food and beverage, home appliances and other goods, based on the supply of necessities of life.

"If you simply build an online supermarket concept, no. 1th shop can not compete with the online supermarkets such as Carrefour and other large supermarkets." "Gege hope that store 1th will bring consumers more than just online shopping.

Shop 1th has crossed the vertical e-commerce platform phase, do not lock a narrow specific industry, but innovative to put forward "home" as the business theme, sales cover all kinds of goods closely related to home, including food and beverage, beauty care, home appliances, kitchen cleaning, mother and child toys and other major categories of products.

"Shop No. 1th is positioned as ' home '. We want to create value for customers, our products are cheaper, and secondly we free door-to-door. Only if you create the value of their satisfaction to customers, your business will be recognized by customers. Store 1th offers a new way of life for customers. It is this change of lifestyle that brings customers different experiences and values. ”

Gege introduced that the average gross profit margin of the supermarket industry for 20%-25%,1 store stores and a large number of personnel, more distribution and packaging, the cost of a lower than the traditional supermarket 3%-5%.

To this end, shop number 1th directly to the price of the competition aimed at Carrefour. Consumers will be rewarded if they find and report that the prices of the products they buy are higher than those of Carrefour.

On the website of Shop 1th, the online promotion and direct advertising (EDM) for merchants also accounted for a significant proportion of the profit contribution, which could also replace the cost of shelves and posters for traditional supermarkets.

Gege said: "The global financial crisis for us is an opportunity, because consumers are more sensitive to the price of goods, and business e-commerce efficiency and low cost can fully reflect its advantages." But we are also acutely aware that the halo of the past over our heads is fading, and we need to truly transform into the founders of the enterprise and start from scratch. ”

The 2009 Chinese shopping website Word-of-mouth ranking showed by netizens, store 1th as a new person has ranked third in Word-of-mouth rankings, Gege revealed that the 1th store per month is at an average of not less than 40% of the speed in the rapid growth, the line of products close to 20,000, the number of 1th stores in the beginning of this year has exceeded 400,000 people, The average number of items purchased per order is 16.7 pieces.

And such a new business model has been favored by VC, according to the introduction, No. 1th Store has completed the second round of wind investment financing.

Growth Secret: Background Logistics management system is the core competitiveness

"The pace of development in recent years is 9%~10%. And Amazon's E-commerce, these years at about 30% per year at the speed of development. "Gege said.

Gege is an industry recognized logistics management expert, prior to his work at Dell, he served as vice president of the Amazon world, transforming the global Logistics management system of the Amazon, reducing the cost of the supply chain while increasing commodity availability, and accumulating decades of experience in sourcing and supply chain.

In his view, breakthroughs in the field of E-commerce should come from the supply chain and business model, unless entrepreneurs and venture capitalists are willing to spend more time and money on network technology, management systems, information services and other content research and development, otherwise it is difficult to obtain subversive new technology, at most, only some of the changes are modified.

When he decided to set up "store 1th", he had just visited major software vendors, including SAP and Oracle, but he found it difficult to really adapt to the unique business model of "online supermarkets". Gege finally decided to develop the backstage supply chain management system. Try to create a set of "others can not be copied" characteristics of the background management system. As a result, the company's first employee is the chief technology officer.

"This is a very high starting point for us, and I believe this is the ultimate core competency of store 1th," he said. Gege said, considering the future expansion, the system should have a very high flexibility characteristics, not only the details of the processing requirements are high, but also the future of the national distribution networking system to do the advance design.

For the difficulty of operating the business website, Gege said, "tens of thousands of commodities, different shelf life, different commodity value, when inventory should be early warning, when the replenishment." From the supplier's purchase, procurement, arrival, to warehousing, shelves, and then shipped, but also related to the management of financial, capital flow, member returns, etc., is a very complex link. Without an advanced system, there is no effective management and business expansion. ”