Red children to break through the sale of imported milk powder

Absrtact: Recently, Su Ninghong children, Jing Dong, Tian Cat and other electric dealers set off a large promotion of maternal and infant category, which imported milk powder to become a leading role. In this respect, Su Ninghong children General Manager Pan Min in the "Daily economic news" Reporter interview, read the way, line down the canal

Recently, Su Ninghong children, Beijing-east, the cat and other electric dealers set off a large category of maternal and infant promotional activities, which imported milk powder to become a leading role.

In this respect, Su Ninghong Child general manager Pan Min in the "Daily economic news" Reporter interview, read the way, offline channels in the import of milk powder procurement needs to be Shengar, and the source of electricity from the supply chain sources of purchase, thereby compressing the middle of the logistics costs and channel costs, so the electrical business in the field of imported milk powder has "subversion" the original channel capacity.

Channel change has arrived at the node

Data show that the milk powder industry has begun to change the channel.

According to a study published by AC Nielsen, the importance of Chinese infant formula in traditional retail channels, mother and child channels and E-commerce was changed in 2013, with traditional retail channel sales still reaching 36%, but sales were down 4%, and maternal and infant channel sales rose to 42%. Sales grew by 15%, while E-commerce accounted for 22%, but sales rose by as much as 50%. In view of this, the report clearly points out: "The strong growth trend of the electric business Channel, will make the electric business channel catch up with the traditional retail quickly, become the mainstream sales position." ”

It is worth noting that even the milk powder enterprises have abandoned the traditional channels, dedicated to the electricity business channels. For example, in the end of 2013, New Zealand infant milk powder Enterprise Rui Shengrui announced that in the Chinese market will completely withdraw from the traditional sales channels, the use of electric dealer sales model.

The increasing importance of the electric business channel leads to the increase of the opportunity of the electric business enterprise, correspondingly, the control of the electric business channel of the milk powder enterprises is decreasing.

"Daily economic news" reporter in the interview found that the milk powder business channel control began to weaken.

In addition, compared to the traditional channels under the line, the electric business channel also has the ability to adjust prices.

Pan Min points out that offline channel in the import of milk powder procurement, usually through the brand of China's general agent, the city agents as well as channel agents and many other links, each link will at least get 3%~5% Commission, the whole down, conservative calculation will be more than from the factory directly to the price of the goods out of the 10%~15%.

Other practitioners point out that in the Chinese market, the cost of infant formula is up to 20%~40%, far higher than other countries 4%~14% level.

The competitive advantage of the electric dealer is to enlarge the market share by compressing the channel cost and reducing the cost, which will eventually save the money to the consumers in a relatively lower price.

As close as possible to upstream supply

Dairy expert Dingmian has repeatedly disclosed to the media, the main reason for the high price of imported milk powder is not the tax factor, but the milk powder in the retail shelves before, after a number of middlemen were the result of a layer of charges. Dingmian has publicly pointed out that the domestic largest brand of infant milk powder production costs accounted for only 20% of the terminal price, the remaining nearly 80% for the cost of production.

A person in the industry has a media explosion, imported milk powder cost structure, of which "offshore cost" accounted for only 25%, "after the cost of" accounted for 75%, the latter mainly from Shengar channel costs.

The above statement has not been supported by authoritative investigation data, but the various claims about the excessive cost of the milk powder sales chain have not been stopped.

At present, including Red children, Beijing-east and other vertical categories or comprehensive electric dealers, are trying to through with the milk powder brand enterprises to seek direct cooperation to subvert the traditional mode chain. In this regard, Analysys think-tank analyst Liu Menglei in the "Daily economic news" Reporter interviewed that this approach is affected by two factors: the power of the power manufacturers and milk powder brand business strategy. Some brands for brand protection do not develop online shopping channels, do not release authorization; for the brand to accept online sales, "The power of the power of the platform determines its voice in the negotiations."

It is worth noting that the electricity business to strengthen the field of milk powder competition, there may be another layer of strategic layout considerations-pry the whole mother and child market.

In this respect, Liu Menglei also put forward the risk warning. She believes that for all types of electrical business, to ensure that the mother and child commodity category of wealth is the primary task. "Milk powder sales profit is not the highest", the sale of imported milk powder but need to invest a lot of cost to maintain supply chain and logistics, so as to cut and even control the mother and child market "is not wise."

In addition, there is a Beijing-east, red children and other electrical business channels can not evade the problem, that is, the product is true and false.

On this issue, Pan Min said, at the proprietary level, Su Ninghong children will be in the merchandise storage links to check the seal of milk powder and the validity period. Packaging can not be damaged is the storage premises, then there will be strict sampling mechanism, in addition to the milk powder will usually be divided into three cycle monitoring. For example, the shelf life of a milk powder is 18 months, the standard is the milk powder in the first 1/3 validity period, the sales standard is the first 2/3 of milk powder validity. When the milk powder from the shelf life of only the last 1/3 cycles, the warehouse will be "Frozen" goods, no longer sales.

"Cross-border direct mail" to the open platform

In the original imported milk powder business thinking, most of the current use of consumer electric business strategy is "proprietary + Third-party Merchant" Mixed mode. One of the most from the "source" cooperation to reduce channels, logistics costs, Cross-border direct mail business is entrusted to third-party businesses, such as the Cat International "Global Flash Shopping", Suning open platform of "overseas e-purchase", Beijing East "overseas purchase" are so.

In Pan Min view, Taobao purchase upstream sellers opaque, credibility needs consumers to identify, once the problem is more troublesome to defend rights; personal Hai due to the process of transshipment, from the order to receive goods may experience 3-4 weeks; cross-border direct mail business is the behavior between companies and companies, third party merchants customs clearance and clearance in line with national regulations, Higher credibility.

At present, the consumer electric power companies to absorb the third party to settle in, its original intention to expand the commodity category of consideration. It is important to note that, as the supervision of the third party is not as direct as the proprietary platform management, in the merchant services, merchandise quality, logistics distribution and after-sales service and other links exist short board.