The O2O revelation of British electric quotient Argos model: replacing inventory with information

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2014 is the year of Chinese O2O, there are important business opportunities. Britain's most successful electric Argos, which covers 2/3 of British households, has adopted a different business model from traditional retailers and has used various means to satisfy consumers ' different modes of consumption, a model that China has never had before.

How do they do it? What can we draw from it?

Implementation of "Offline catalog sales +B2C++O2O" Three-mode integration

1, store directory-type sales: More than 700, customers to the shop directory, to determine the goods, payment, store back to the huge warehouse delivery;

2, the customer: Customers in the site orders, the store from the mention, can be door-to-door but charge;

3, O2O service: The website can inquire about the store merchandise inventory nearby, understand the discount and then shopping.

Reference value

First, the customer positioning accurate and strong relationship:

According to statistics, the United Kingdom about 2/3 of the family has a Argos directory, focusing on household consumption as a unit, commodity category with a polymerization effect, the spring and autumn two seasons, Argos will be based on the situation to launch a new shopping directory, not regularly introduced promotional items catalog. Argos can attract customers another important reason is that it is a very complete range of goods, covering high, medium and low-grade multiple price, regardless of men, women and men, can find their own satisfied with the merchandise. In addition to not selling food, it operates almost all-encompassing goods, a total of 17,000 varieties and quality regulation. Especially in the sale of toys, small household electrical appliances and household electronic products as well as furniture, gold and silver jewelry and sports leisure products, Argos sales performance is considered to be not comparable to other vendors.

Revelation: O2O to customer positioning, commodity category positioning to meet the needs of the family.

Second, store shopping convenience

Customers from the catalog to select goods, terminals to check inventory, fill in the form of payment, the number of queues, to collect, check the merchandise, complete the transaction, the entire process of not more than 10 minutes.

Revelation: O2O offline experience must be convenient.

Iii. replacing inventory with information

Argos's store operations are completely different from traditional outlets. There are no items in the lobby of the store, and all the goods are stored in the store behind or upstairs. Consumers can flip through the store's shopping catalog to select goods, which are readily available in all stores, and customers can take them home and pick them up. All the products sold in these written materials are detailed description, and with the product code and color map to facilitate the comparison, it is necessary to provide consumers with the most authentic, perfect information.

Revelation: Whether it is catalog marketing or store terminal experience shopping, or mobile internet shopping, the essence is to use information instead of inventory.

Establish multi-channel information communication with customers

Argos provides customers with a variety of communication platforms to facilitate their easy shopping anytime, anywhere. Customers can choose to go to the Argos store, visit its electric dealer's website, send mobile messages, or call a 24-hour toll-free service hotline. A variety of shopping channels to meet the different consumption patterns of demand, to provide customers with the greatest convenience.

Revelation: O2O needs a diversified customer experience to cater to the needs of different customers.

V. Store PERSONNEL structure

Argos entity shop staff is very few: collect the silver 2-3, not busy time on 1 people, take the goods counter 2-3 people, the backstage warehouse area logistics personnel than the front desk more.

Revelation: O2O is the core of the backstage, the front desk is more from the customer experience angle is thinking, the end of the future O2O is the essence of logistics.

Vi. Warehousing Logistics Pattern

Argos has 1 DCs (distribution centers), 4 RDC (regional distribution centers), mainly responsible for the distribution of stores in England and Wilsney Argos. There are also 2 transshipment points, one located in Ireland, Rep. Of and the other in Scotland, responsible for distribution of Ireland, Rep. Of and Argos stores in Scotland respectively.

This "three-dimensional" logistics network structure, is O2O necessary resources.

Revelation: China's big platform to push the O2O service network, requires more than three levels of warehousing distribution network, this aspect has not many electrical dealers.

Vii. Supply Chain Visualization: To realize the end of inventory information open query

Argos realize the terminal inventory visualization, the customer can through the online platform or offline store terminals, query any Argos store commodity inventory, the location of the store, commodity prices and other information, which makes a lot of people who do not want to go shopping is very convenient, can visually query store inventory information. If there is inventory, you can purchase directly under the order, if not also can be a single, Argos will guarantee the arrival within 1-2 days.

Argos can also indicate delivery time and quantity through the network to UPS, requiring priority to Argos's RDC distribution, and can track the status of these goods online. Through this program, Argos optimizes inventory management and controls Inventory cost. So far, 35% of Argos's supply is provided by UPS for Third-party logistics distribution.

Revelation: O2O Mode of inventory dynamic information visualization, Synergy is the key, especially the replenishment information visualization, the traditional Chinese retail and electric dealers are basically not.

Eight, upstream supply chain integration, build own brand strategy

Argos in order to prevent the same kind of goods different merchants price war, focus on its own brand of commodity management. Through the use of strict supplier evaluation system, select the agents or product manufacturers of goods, demand them to market demand for the production and packaging of goods, assessment indicators include specifications, style, color, shape, packaging, etc., and the use of Argos trademarks. As a result, many of the goods sold by Argos cannot be bought in the same way outside, and it is difficult for customers to make direct price comparisons.

Argos's own brand operating strategy has three kinds:

First, Argos put forward the production and design of product requirements, suppliers on-demand design, production, rich style, so can provide a variety of styles of market demand, the price can also make customer satisfaction. Meet the needs of large-scale and personalized.

Second, because Argos set the strategy of long-term development with the suppliers, they have a closer cooperative relationship, while Argos become the largest retailer, they also increase the commodity market share of these suppliers;

Third, it is this strategic relationship, the supplier can not only fully guarantee the price competitiveness of the goods, but also fully guarantee the Argos commodity margin.

Revelation: Take the advantage of channel to integrate upstream, do supply chain master, set rules.

Ix. Comparison of orders and service data

From the 2012 Argos sales data, directory-type marketing accounted for 48% of sales, online orders accounted for 28% of sales, store sales and services accounted for 90%, the end of the distribution home is only 9%.

From these data can be seen at the end of the experience shop service to bring the sales volume is an important proportion.

Revelation: O2O is not selling products, but also through service to drive member experience.

Ten, Argos and peer Tesco supply chain comparison

Argos's idea of managing the UK's top-ranked food chain, Tesco, is also evident. Tesco's annual sales of more than 3 billion euros, in the United Kingdom has more than 600 stores, operating 40000 kinds of goods, mainly from more than 2000 suppliers. It also through the integration of suppliers, establish long-term cooperative relations, share market information, optimize supply chain management, enhance competitiveness. This shows that this is the retailer and the supplier long-term strategic partnership, through the sharing of market information, the common face of customer demand, the two sides in the modern commercial competition to achieve a winning goal.

Revelation: O2O Channel Business is a three-dimensional supply chain integration pattern, the end must be accurate pulse market demand, scientific inventory strategy, online information under the coordination and open to customers, this is the key to success.