Hou Yi opened the box horse to the Jingdong headquarters gate, Liu Qiangdong how to do?



Exact news, Hema fresh will open two consecutive stores in Beijing in early January, respectively, Yizhuang store and small camp store, of which Yizhuang store just opened near Jingdong headquarters.

We all know that 2018 will be the year of the new retail war. And New Year's Day just passed, a hand-to-hand drama will be staged!

Shop is not a day or two thing, presumably Jingdong has long understood the matter. In the face of competitors who open to the door, how should Jingdong respond? I can't help thinking about it.

At present, new retail is hot, and the Internet giants and traditional retail giants have joined, which will make the new retail war in 2018 exciting. However, many retail people around me believe that the leading advantage of Hema Fresh as a new retail pioneer will erode the foundation of Jingdong's fast delivery.

This is not a judgment, as Jingdong's potential biggest competitor, Hema fresh, its birth is actually related to Jingdong, and there is no shortage of dramatic stories in the business field.

Hema and Jingdong's "hatred and love"

The basic law of the Internet project is high frequency to eat low frequency, the highest shopping frequency of the category is of course fresh, fresh, it is likely to win the future e-commerce traffic entry, but it has been proved that the traditional B2C center warehouse is not suitable for the management of public fresh goods, so far there is no successful case, because of its high logistics costs, low commodity abundance, difficult to keep fresh, slow delivery.

Jingdong Liu Qiangdong was personally responsible for the O2O project, to build "Jingdong home" into a core similar to wechat in Tencent. The purpose of "Jingdong Home" is to win the fresh category and create the most frequent e-commerce APP, which has great strategic value.

However, the development of "Jingdong Home" is not smooth, and finally, after the merger of "Jingdong Home" and Dada, the previous core management withdrew to Jingdong Group, and finally, the strategic project of "Jingdong Home" became a divested business.

Hou Yi, as the founding general manager of Jingdong O2O division, has nearly 30 years of retail experience, and has always adhered to the nature of business in practice, believing that only heavy mode can do a good job in fresh electricity business, but his concept has not been realized in Jingdong.

Later, Hou Yi won the approval of Ali CEO Xiaoyao and the investment of Ali Group, as well as the strong support of Alibaba's research and development, membership system and Alipay, and today's hot Hema Fresh.

Why was Box Horse finally born in Ali and stirred up the traditional retail market in China? This is a question worth thinking about.

The first store of Hema Fresh opened in January 2016, and its business model was quickly recognized by the industry, and many imitators followed. Among them, at the end of 2016, Jingdong will open two new format stores in Beijing, Jingdong's new format store is called 7fresh, and the preparatory process has gone through several twists and turned, after more than a year, it opened at the end of December 2017, and it has been half a year since Hema Fresh entered Beijing.

If Hema eventually surpasses the advantages of Jingdong Express delivery, successfully wins the first largest and highest stickiest fresh category, occupies the entrance of e-commerce traffic, and is likely to become a super APP in the future, then the story will be more dramatic and wonderful.

Box horse PK Jingdong, which is higher?

Careful comparison, you will find that the speed of the box horse makes Jingdong embarrassed. Box horse hit a point, rapidly expand the category, logistics network quickly spread and sink, forming the core competitiveness of e-commerce.

Jd invested heavily in self-operated logistics back then. Although the investment is huge, but with the speed of delivery there is passenger flow.

Now, like Jingdong, Box horse is creating a more advantageous express delivery network, Jingdong is 211 half a day, and box horse is the fastest 30 minutes free delivery. Jingdong is good at operating standard goods, while Hema is good at operating public fresh goods, and the stickiness and re-purchase rate of fresh goods are far beyond the standard. The super APP that Jingdong has been trying to create is likely to be realized by Hema and realize the cross-border surpassing of the Internet.

Less than two years from the opening of the first store, Hema has entered Shanghai, Beijing, Shenzhen, Hangzhou, Ningbo, Guiyang, Suzhou 7 cities. At this rate of development, it is expected that in just a few years, Hema will be able to cover major cities across the country, build a fast distribution network, and form a large-scale effect. At this time, Jingdong half day will be the full impact of the box horse 30 minutes free delivery, under the effect of high frequency eating low frequency, the box horse future erosion of the Jingdong market, the author believes that it is a natural thing.

Although the box horse is also the logic of establishing a fast delivery network, but relative to staying in the Jingdong B2C model, the box horse is already a more efficient new retail model:

1, box horse profit and loss model is healthier, the biggest feature of the new retail is the box horse offline traffic is basically free, and relatively stable, and Jingdong needs to spend a huge amount of market costs to buy traffic from various channels, box horse this year revealed that some stores have been profitable, and Jingdong continued to lose money for many years. For example, the loss of 9.4 billion yuan in 2015 and 5 billion yuan in 2014, according to this calculation, the efficiency of Hema to establish a express delivery network is higher than that of Jingdong;

2, the box horse experience is better, compared with Jingdong's increasingly high free shipping threshold, the box horse is the fastest 30 minutes free delivery, no threshold of the amount of delivery, the main fresh goods, unconditional returns, refund Alipay real-time account. It is said that even box horse consumers are not satisfied with the refund of goods, even without proof, these Jingdong are difficult to achieve, and Jingdong can operate goods, box horse can gradually expand category business. The author previously saw information that the conversion of box horse consumers to the online as high as 35%, while the conversion rate of Jingdong online is only about 2%, the gap is large, which makes people marvel at the magic of new retail, box horse APP's future imagination is very large.

3, supply chain control ability, Liu Qiangdong once proposed the "ten sugarcane theory", that Jingdong has more control over the supply chain, so it will get more benefits, but Jingdong only does the middle and back part of the ten sugarcane, and does not involve the front-end research and development, production, brand part, in essence, Jingdong is just a channel provider. Hema has established a strong food research and development system, built a central kitchen and launched many private label products.

4, higher operational efficiency, according to Jingdong's financial data, Jingdong 16 years of average cost per single order 13.2 yuan, if it is cold chain transportation, as far as the author knows, the average cost of about 20-30 yuan. The author has calculated the cost of the box horse, because there is no trunk line, sorting and packaging consumables, it is estimated that its cost is much lower than Jingdong, and the cost is lower in the case of better experience, which is the core competitiveness of the retail industry.

Sum up

Box horse fresh new store opened next to Jingdong headquarters, the author believes that this is the box horse began to launch a positive impact on Jingdong, but also side shows that box horse has the confidence to challenge the giant.

In any case, as a reader, this opening drama is wonderful enough, box horse PK Jingdong, new retail PK traditional e-commerce, may be one of the most important commercial battles in China's retail industry in the next 10 years