Qufei Yu: Fresh is the next outlet of category expansion

Absrtact: December 5 News, Rui Yun Zhirui CEO Qufei Yu in billion Bang Power network hosted the ninth China online retail annual meeting said, fresh is the category expansion of the next Tuyere, fresh category market permeability 9%, online multi-channel development of space and opportunities are very large

December 5 News, Rui Yun Zhirui CEO Qufei Yu in billion power network hosted the "ninth China online retail annual meeting," said, fresh is the category expansion of the next Tuyere, fresh category market penetration rate of 9%, online multi-channel development of space and opportunities are very large. To do a good job, first, must have a model, planning their own in the fresh industry to assume what role, in the end to become a brand provider or to do a platform. In addition to do a good job of the selection, the need to solve the inventory of information and data issues.

It is understood that this Congress was held on December 4 in Chongqing Empark Grand Hotel. Meeting around the "real economy how to occasion" the theme of the annual meeting, respectively, "Big situation:" Good? "," Electric business industry: OK? "," Mobile electricity dealer: can? "," online retail: Will not? "And other topics have been pragmatic discussion and exchange. At the meeting, Qufei published the main "fresh industry full channel Internet opportunities and channels" speech.

(Warm tip: This article for the first draft of shorthand, to ensure that the site guests original intention, without the omission, or a mistake, please understand.) ）

Ruiyun Zhi CEO Qufei Woo

The following is a transcript of the speech:

Qufei Yu: Good afternoon! First of our team to make an introduction, today's forum is mainly fresh, we this team in the whole Cat brand service and industrial services nearly done 10 years, have done a mature clothing, mother and child, car goods these big category have done.

2014 Our point of view, fresh is the category expansion of the next tuyere. This is our service of some customers, fresh this category and everyone to do an exchange, the front several guests speak very dry, the 11 of the plan are taken out, is really very dry. I stand in the perspective of industry to give you a picture of the whole industry, compared with the mature industry, fresh industry is what the situation, foreign models and trends.

The first piece of the whole fresh industry, public data disclosed, we can look at the left of the figure, from 2008-2013 to see a number, fresh category market penetration rate of 9%. In terms of the industry, we very much agree that 2014 is the opportunity of fresh electricity business, 2013 we did, because the whole logistics problem, rookie logistics in the year of collapse, is not successful in the entire sales and flow entrance.

The first space and the opportunity is very big, gives everybody a concept, from the industry overall angle to look, the fresh industry and the category development stage is what? The fresh concept here is the fresh, vegetable and fruit fish products. This is now the basic framework of understanding of this industry, first look at the value chain of the most important issue, the first is the consumer, in the market demand point of view has a concept, consumers are actually fresh, whether it is aquatic products, live or nutritious healthy fruits and vegetables, demand and hope is what, with the Chinese online consumption age structure. Many families have been mothers, and they have moved from mature clothing consumption to health because they are starting to focus on health.

These people are the channels through which they spend their shopping and the way they choose to get information, which is different from before, and consumer demand is growing rapidly, and the problem for consumers is that there is no access or channel to find the goods I want. Online convenience stores and other places to sell, the Internet is difficult to find, indicating that consumers have a low degree of understanding of the electrical quotient, this is the reality of consumers, this is just a chance for everyone, for everyone is a good opportunity, from the demand side this is a blue sea.

This title is Fukuda car, I said you sell car run to fresh this industry to do? It is more important to look at the problem from an industrial perspective. The future no matter who do have to buy a car, have to do the trunk line car, have to do refrigerated car, also have to do express car, I do this business. With the investment and construction of various industrial technology hardware facilities to the logistics infrastructure, the reduction of this social cost is an inevitable trend. Their own enterprises to do the high cost of electrical business, within two years will certainly be resolved.

Third for vertical electric business enterprises, including Taobao Jingdong and Shun Fung, the entire platform of the electrical business, commercial products consumers do not recognize this brand, fresh brand and fresh concept is different. Now the upstream supply side is small, the industrial concentration is low, for the commercial supply side is both an opportunity and a challenge, the opportunity is to shape the emergence of rapid growth of the brand.

Second, as soon as possible to expand their volume. This year, the Double 11 fresh category is very important for a day of orchards, is the first in the fresh category, we do the first, in real sense from the online sales and the weight of the line below, the gap is not so big. In the future I think the upstream enterprises still have great opportunities, this is the whole industry chain part.

I will focus on the characteristics of each platform and development trajectory, from the time axis, the fresh development platform can be traced back to the 2005, the early fresh point on the development of the radio station is to meet a small, middle and high-end people's needs produced. It is localized, why not do the whole country? The reason is very simple, the logistics distribution ability does not support you at all. From the beginning of 2010 to 2012, like Shun Fung, the original life, a shop, cat, Jing Dong, well-known integrated platform enterprises have also been killed into this field.

I have made a summary and classification of the main domestic fresh platform, the first open platform, this is very simple, we do is traffic, which includes the day cat, Taobao. Second free base plus curtilage. Can be called the origin of enterprises, they basically have their own land, in the local area of integrated distribution resources and channels, the products directly to consumers. The third category can be called the procurement of sales sites and distribution, typical of the Beijing-East direct mining. Localization services companies, as you know very little, they are really very localized, they are in the Self-built service channel, is one of their characteristics. There is a company in the UK, they are very mature O2O service platform.

The last mode C2B mode, which is a comprehensive platform push mode. There are many enterprises in foreign countries, their own platform is to do pre-sale, only to do the pre-sale of this business model, domestic or at a relatively early stage, the earliest people did not put this matter as a business model of the essence of the core. Open platform and free platform completely 2C these two pieces, the pattern has been set, it is difficult for enterprises to rely on their own industry and supply chain to shape the second Jingdong out, this is impossible.

This platform is very familiar to the cat, in the days of fresh cats have several characteristics, the cat itself is its own large platform flow dividend, if you have done double 11 know that every year do double 11 will find that the flow of different categories in the distribution of the principle of change. This year when the double 11 sales, the Double 11 day channel was offline, is the platform itself for fresh-type eye flow, is the inevitable trend.

In the double 11 category, fresh brand as far as possible the venue of less than 20, but the total number of Taobao is 1000, food is 200. Only half of the food is raw, and everyone eats nuts, vegetables and fruits. Now the ratio is the opposite. Platform will be huge pull this flow, at the same time, for platform-oriented enterprises, will encounter a problem, the logistics cost of distribution is too high.

The second Taobao this category to adopt the model is decentralized, open platform model. Each brand delivers on its own. As a consumer, may experience very poor, such as the sale of lobster, live lobster that, still have comrades sent to arrive home died, not in transit died, the goods are not sent in a lot of community, put in the property that put a day suffocated, this is the last kilometer of logistics problem. Shanghai that case, after the double 11, 12th morning received the goods, this is the cat's own development category of the most deadly problem.

Why do you want to do this brand, day cat traffic is the real meaning of any brand online to achieve rapid growth must do one thing. We serve the most important enterprises in the country, after the double 11 activities, there are 9 different types of companies in the sea to cooperate with them, from their sales in China 10 tens of thousands of lobster case, a lot of foreign enterprises to talk to them, is the day cat this platform to bring the strategic value.

Jing-dong extended to the fresh category inside has its unique place, Beijing East do Raw fresh earlier than Taobao, more merchants than Taobao, traffic and really can make these brands in the platform to realize capacity, flow management cycle system capacity has not been established, resulting in problems. Distribution advantage in many cold chain logistics is structural, the advantages of logistics can not play out, resulting in the results of fresh in the Beijing-east this platform did not do.

Shun Fung Optimization has two trends this year, one to do their own shun Fung optimization platform, the second to do Hey shop, based on their own logistics capabilities of the cash. Sales in a single product is very obvious, the brand exposure, the overall pull efficiency of other products are basically not. Do shun Fung preferred to do business-to-business, but do not support everyone to do retail. Foreign Fresh Direct This company's model, self-built logistics and warehousing, fresh this category is characterized by its very fragile, without this foundation to do the protection is difficult.

O2O is a particularly hot spot this year, its model can be referenced, is based on localization Integration Services channel, reverse integration upstream of the farm. This brand is the British brand, it is to go to the front of the business model, including four channels, the first line of the consumer platform, with the help of outdoor advertising, above the sales of goods and merchandise two-dimensional code, consumers go to a large advertising screen scan can be a single. In addition is the supermarket channel, in the commodity selection has formed own differentiation superiority. Everyone to do their own fresh platform enterprise inside everyone needs to consider, I have seen a lot of platforms have a general problem, this platform is Taobao inside the big platform, I suggest you do subtraction, fresh category needs are accurate.

Some constraints of platform development, including the so-called high cost, profit model and the standardization of cold chain logistics. From the perspective of the whole industry development, technological innovation is a change in the channel sales model, C2B from the origin to the channel to the consumer's hands.

The future for most practitioners, the electric quotient to establish a brand opportunity. To the upstream enterprise to say everybody net enthusiasm is very high, but to net the risk solution, is needs everybody to consider, including the product dispersion, the cold chain logistics and so on. For consumers with low brand awareness, low concentration of the problem, there are two major trends, product providers can establish the brand, the second to do O2O is the opportunity to do fresh upstream is also a chance.

How to do the electricity business of fresh enterprise? First, there must be a model, what is the role in the fresh industry, is the need for their own planning, in the end to become a brand provider or to do a platform. For the product provider, a reasonable view of the value of the platform.

There is a so-called selection, at present all the problems faced by enterprises are the problem of the category, the category inside also related to the margin, related to storage conditions and other requirements. From the perspective of the future, from the brand exposure and retail, based on the spread of trust, the health of fresh electricity dealers need to focus on consideration. This year do double 11 lobster, in the circle of friends to forward many times, did not look for a large size did not look for micro-bo, I found that I forwarded a lot of friends say, I really bought. Including Lenovo's land general also said, I also bought. I give you a suggestion, I suggest that we or the honest outsourcing, many conditions are not very self-built.

Products have their own bar code, but the fruit which has two-dimensional code, is basically based on the calculation, to solve the inventory of information and data problems. To send a product to consumers, the wisdom of the Internet dream, I hope that fresh this industry, we need to do together. Thank you!