99% of investors don't understand the lead position

Xu Xin has high hopes for fresh track. When the O2O fire in 2014, today's capital saw a lot of projects, nail art, hairdressing, home economics, fresh, takeout, etc. Xu Xin believes that this model should seize the high-frequency category, become the entrance of traffic, this category is either takeaway, or fresh. She asserts that the fresher wins the world, and the field will move out of the big companies.

02

It was around 2016 that investors really noticed the uniqueness of the front-position pattern.

Since the end of 2015, fresh electricity suppliers have closed down, and daily good fresh has been affected. Despite the endorsement of Tencent investment, Xu Zheng also judged that the pre-position mode was about to run through according to data such as re-purchase and retention, and daily fresh still could not finance money. Zhang Ziquan, a partner of Time Capital, has seen daily good fresh, but he does not know how far the pre-position mode can go and does not dare to invest.

And the numbers that many investors struggle with are not repurchase and retention rates, but GMV. The GMV data of Daily Youxian has no advantage with other platform projects, and continues to increase investment in membership and pre-positioning, and investors are not optimistic about it. Xu Zheng does not recognize the views of investors, also do not want to brush the amount, so mortgaging the real estate to solve the urgent needs. But before the loan even arrived, new investors were found.

In 2016, Yuanyi Investment led the B+ round of Daily Youxian, which was led by Wang Jun, who was also the CFO of Daily Youxian later.

Wang Jun believes that China's e-commerce circuit will definitely produce a super consumption platform, and the traditional advantages of the existing giants can not be directly reused in the field, and the infrastructure used is different from those of Jingdong and Ali. Daily fresh meets the needs of users for fresh online consumption "better and faster", the business model has obvious efficiency advantages, Wang Jun felt that it is worth betting, and joined Daily Fresh in March of the following year, in charge of corporate strategy and capital, but also manages Daily Fresh East China business, participate in the battle line.

Another key investor is Wu Haiyan, managing partner of Huachuang Capital. She used to be the assistant CEO of Dunhuang Network (an online foreign trade trading platform, the invested enterprise of Huachuang Capital), and has invested in many e-commerce projects, and has a good understanding of the e-commerce industry.

When the fresh electricity suppliers were fighting, Wu Haiyan did a lot of research and found that the retail logic of the fresh track was different from that of the standard and semi-standard products - the upstream was not manufacturing, the scale and standardization of domestic agriculture were relatively low, and the procurement management was difficult to do with the existing electricity supplier logic, and at the same time, the storage and distribution link could not be solved with mature express solutions. There are problems, there are gaps, this is the opportunity for startups.

She saw a lot of companies, but all feel that the model is not good, before the Spring Festival in 2016, Wu Haiyan met Xu Zheng, and threw out more than 20 questions about the company's operation, Xu Zheng answered with different figures. After talking for about an hour, the two went to Huachuang's office to meet with several other investors and business leaders, and within 10 days, Huachuang Capital completed due diligence and gave detailed feedback on Daily Youxian.

"The real value comes not from the short-term sales flow and orders, but from the unseen, the hard work of laying out the new infrastructure that Daily Yuxian did at the time, but also its real value, which is what Huachuang thought it was particularly different." Wu Haiyan said.

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As investors track and observe, the front-position pattern is also evolving.

Due to the small scale and low degree of standardization, the pre-warehouse mode still had problems of high procurement cost, high fresh consumption rate and high performance cost. In 2015~2016, the pre-warehouse fresh retailers represented by Daily Excellent Fresh and U shopkeeper optimized various links.

First, reduce attrition rates through digital management. The system algorithm is used to predict according to the market situation, so as to flexibly deploy the goods in the pre-warehouse, and adopt different storage methods for different goods. Soon the loss rate of the leading position dropped from an average of about 10% to about 2%, and in the best case it could reach 1%.

Secondly, through direct sourcing to reduce procurement costs. In 2016, the company has achieved more than 60% direct sourcing from the place of origin, some of which are direct sourcing from the place of origin, which saves 30%-40% compared with the market procurement cost. At present, Ding Dong buy fresh food direct purchase amount accounts for 75% of the total purchase amount; The daily yield of fresh fresh is 93%.