The profit-making difficulties of wine and water utilities after the industry reshuffle

Absrtact: With the upsurge of internet investment, wine and water utilities have received a financing. Just this week. Wine vertical electric platform product still red wine got the Kai Fu Capital, with Albert, Zhejiang business investment 150 million of the C round financing. For wine and water utilities, the double 11 this year let

With the upsurge of internet investment, wine and water utilities have received a financing. Just this week. Wine vertical electric platform product still red wine got the Kai Fu Capital, with Albert, Zhejiang business investment 150 million of the C round financing.

For wine and water utilities, the double 11 this year to the industry to see its "burning Money" heat. However, in order to burn money to bring the flow behind, the profit problem has become a hurdle in front of it. "The red wine has been profitable for three years." "Zhang Huijun Red wine chairman of the South reporters said that the current product is still the profit model depends on the front-end product sales, through the consumer's repurchase rate extension to profit." "The repurchase rate of red wine is as high as 68%." "Behind this high repurchase rate, Zhang Huijun, who has worked in Huawei for 12 years, has a keen sense of the big data analysis and use."

The profit-making difficulties of wine and water utilities after the industry reshuffle

According to Zhang Huijun, 5 years of time, the compound growth rate of red wine over 100%, 2013 sales of more than 6 million bottles of red wine.

"In the product is still red wine 2010, large and small wine site has more than 200, but now basically dead." Zhang Huijun said that some of those drinks websites were also dead or stalled. For products still red wine can now usher in the third round of financing, Zhang Huijun frankly more fortunate.

Indeed, as Zhang Huijun said, after a few years, now the wine electric business camp can still be known to the industry only Jiuxian net, buy wine network, also buy wine, Chinese wine net, wine, such as a few survivors.

This round goods still red wine obtains 150 million of financing, Zhang Huijun revealed that this round of valuation in 900 million yuan. "The core of the bright spot not only in the product of the size of red wine, there are profits, this is the investors more value." ”

Zhang Huijun This word out of this round wine hydro-electric reshuffle, the industry focus on the transfer: to both scale and profit.

So what kind of electric business model can be profitable? Zhang Huijun that, B 2C vertical electric operators to follow the "three low" principle, must be high margin, gross profit of more than 50%, high value, customer unit price is relatively high, high viscosity, customers need more professional services, not easy to be integrated type of electric business vertical, at the same time is low return rate, reduce logistics costs. The real money for the company, there are many characteristics, such as the own brand, pay attention to call center and sales, channel resources support, the promotion of a single product to win the strategy. "The customer price of the wine is 360 yuan, margin between 40%-50%." ”

In the wine and hydroelectric companies, the profit model of different families. Previously Jiuxian network has also publicly indicated that since 2011 has realized the light profit. It relies on the cooperation with the winery to develop exclusive products and to help the winery to do the electricity business channel generation operations. For example, the Jiuxian network and the development of Luzhou old cellar three people dazzle, its launch in the market in just a few months, this single product that is to achieve 1 million bottles of sales.

"On behalf of the operation is not our focus, our profit model mainly from the front-end product sales." Zhang Huijun reporters to the south, in fact, a new customer to the product still wine to buy wine, magenta wine is not to make money, but through the extension of its repurchase rate, the product is still red wine can be profitable.

Heavy vertical based on user experience

"The repurchase rate for wine is 68%." "Zhang Huijun revealed. Such a repurchase rate is relatively high in the area of wine vertical electrical business. So how does red wine stick to consumers?

"In the technical field has our advantage, we do not want through simple promotion and desperately hit advertising, hit traffic to bring sales, but want technology-driven to promote customer purchase and customer experience." Zhang Huijun revealed that it will carefully analyze the user's consumption habits, and even fine to a consumer like which type of wine, consumption frequency is how much, away from the net time and so on.

In addition, it is worth noting that, compared to other operators of the liquor and water utilities under the line to open the shop, the wine is now under the line has more than 80 wineries to do customer experience to stick. Zhang Huijun that this is for red wine consumers to create a complete ecological, the core competitiveness of red wine is also in the heavy vertical.

"The core of E-commerce is products, and over the years we have been integrated upstream supply chain, with more than 500 wineries in the world to achieve cooperation." In addition, the Internet people want to have air force to do network traffic promotion, offline has a large number of customers, and enhance the customer experience. So the wine is extended from line to line, hoping to brand, channel and customer extension online. "In Zhang Huijun's view, when the platform is heavy, the barriers will be higher."

With the completion of this round of financing, Zhang Huijun also disclosed that is planning to land a new Sanbanxi, announced the launch of "tens of five billion" new strategy. However, under the billion strategy, the positioning of the magenta wine seems to have changed subtly ——— no longer confined to the wine field. According to Zhang Huijun's plan, this billion, imported wine, beer, foreign wine to achieve 6.5 billion, and imported food to achieve 3.5 billion.

Zhang Huijun revealed that such a product structure, is in the quality of red wine analysis of its and imported wine channel coincidence degree obtained. "We found that the coincidence between white wine and our original channel is only 8%, such as chocolate, Spanish ham and so the compound degree is up to 25%-30%." Zhang Huijun said that beer, foreign wine, imported food, etc. are based on customer preferences to do the extension, the future will be extended.