How to grow quickly and profitably regionally

The usual gross profit margin of fresh food is 30-50%, and the daily excellent fresh can reduce the average performance cost to only ten yuan.

Although in the eyes of some people, fresh electricity suppliers are "burning money" industry, however, its emergence does make the circulation of agricultural products improve efficiency and reduce costs. Especially in some categories and regions, through the upstream and downstream both ends of the force, fresh electricity suppliers in the upstream gradually changed agricultural production and organization, downstream constantly in the consumer field to shape the brand of agricultural products.

Daily fresh is a fresh electricity supplier that has risen rapidly in the past two years, and has achieved regional profits. Will its rise and profitability stand up to scrutiny? How can the model and experience inspire the industry? The author hopes that through his own independent observation combined with the investigation and interview of the enterprise, can find out one or two.

Fast-growing e-commerce upstarts

Daily fresh was established at the end of 2014, after the development is very rapid, as of mid-2016, Daily fresh to the outside world disclosed its monthly orders of more than one million, monthly sales of nearly 100 million yuan. Unilateral data may not be used as evidence, let's look at some third-party statistical data: the following is the author in the middle of this year on the major fresh electricity supplier data statistics, the figure on the right table for all kinds of third-party statistical data, the left table for the author combined data and research to give qualitative evaluation.

Despite the prevalence of Internet exaggeration, there are few objective third-party statistics on mobile e-commerce, but from some existing statistics and official disclosures, Daily Youxian, which was established less than two years ago, has indeed developed rapidly.

Advantages in unique mode

At present, there are thousands of domestic large and small fresh electricity suppliers, from the operation model, product selection, market positioning and other aspects have shown a variety of models, the choice of different models for operational efficiency, profitability, market competition is crucial. As a latecomer, Daily Fresh draws on the experience of the former and establishes its own unique model:

1. The business model is B2C mobile e-commerce, that is, customers place orders through wechat or App, and then deliver them to customers;

2. The selection of all categories is selected to cover daily fresh needs, but the SKU is streamlined and controlled at about 300;

3. Warehousing and distribution is total warehouse + micro warehouse, two nodes and three sections of logistics. Push the micro cang front to the community and business circle closer to customers, and serve ten first-tier cities in the early stage;

4. Small size packaging, eat more and choose more, 2 hours delivery in core cities, to meet consumers' immediate fresh consumption needs.

The first point is the commercial nature of the model, and the other three points reflect their own characteristics.

Under normal circumstances, the SKU of large fresh electricity suppliers is about 3000-5000, and the SKU of daily fresh food is controlled at about 300, which means that there are only 1-2 product choices under each type of fresh food. For example, apple currently only has gala fruit, yellow Marshal and Kina fruit, and eggs only have a 15-piece package of firewood eggs.

This way of selecting SKUs has one obvious disadvantage and two hidden advantages. The obvious disadvantage is that it may not be able to meet the demands of some consumers for selection and comparison in the purchase decision-making process. The hidden advantages are bright spots: First, most of the purchase of raw ingredients belongs to the consumption behavior of light decision-making and efficiency, so the selection of products for consumers can accurately grasp a specific consumption behavior; Second, the selection of SKUs can greatly improve operational efficiency and reduce operating costs.

In the selection of fresh electricity suppliers, the author has made an empirical summary, that is, through the added value of the product and the difficulty of electricity suppliers (that is, the warehousing, packaging and logistics of the product, etc.) the product is divided into four categories, as shown in the following figure.

Under normal circumstances, e-commerce should put more effort in quadrant 1, 2 and 3 products, try to avoid quadrant 4 products. The selection of Daily Food products is basically in line with this approach.

The warehousing and distribution mode of daily fresh food is: origin procurement → city sorting center (total warehouse) → community distribution center (micro warehouse) → user. At present, the service has been opened in ten cities, and a total warehouse has been set up in North China, East China and South China respectively, and then a micro-warehouse has been set up in a radius of about 3 kilometers for the user. At present, there are about 200 micro-warehouses, of which there are nearly 100 micro-warehouses in Beijing. The two-hour service covers the main urban areas of six cities, and the two-hour service in the remaining four cities is also being laid out.