How to grow quickly and profitably regionally

Another difference is the small size of the product packaging. Many fresh e-commerce products are "volume", the reason, on the one hand due to high logistics costs, the need to pull up the customer unit price, on the other hand, fresh food distribution and packaging requirements are high, full box sale can reduce packaging costs.

Because of the front micro warehouse closer to the customer, most of the products only need to be loaded into the handbag during distribution, reducing the packaging cost; At the same time, although small specifications are purchased less, different products are purchased more, a small amount is bought more, the customer unit price is not affected, and it also meets the needs of users for food richness.

Through this pattern design, Daily Youxian is presented in front of users with a rather lightweight image: a small number of selected products, small size packaging for convenient consumption, and fast delivery in 2 hours... This is a very attractive product and service for a specific consumer group.

Latecomers break the market

With a good product and service, the next problem is to expand the market. The current fresh electricity suppliers are in a period of fierce battle, even if the overall market is still rising, but there are already signs of regional and phased mature markets in first-tier cities. In this case, if the latecomers want to break the game and become the main competitors, in addition to the support of funds, they must seek innovation and breakthrough in the way of transmission, so as to reduce their own entry costs to the greatest extent.

The marketing of Daily Youfresh is basically a three-step process: the seed users are relatives and friends from the founding team; Base users come from co-marketing; After having a basic customer base, Daily Fresh has done more promotion by relying on mobile social networking to let old customers bring new customers, such as the introduction of sharing red envelopes, and the number of new customers and orders is very considerable.

Through the analysis of the user portrait, it can also generate different promotional promotion scenarios, this form of marketing, more accurate, more efficient, and less costly.

Previously, Delicious 77 had a large number of advertisements in the subway, such a practice is not only expensive, but also inaccurate. At the same time as the marketing period, if the promotion is more accurate, more efficient, and less expensive, you can win the market opportunity.

Regional profitability under sophisticated operations

At present, the penetration rate of fresh electricity suppliers is 2-3%, and there is still a lot of room for growth, so the enterprise strategy is more important to expand the market than to seek profit. But if there is no profit model, can not see the profit expectation, it is difficult to seek financing, once the money is tight, it will soon fall down.

Through exquisite operation management and cost control management, Daily Youxian has achieved positive cash flow and regional profits.

Back to the 300 select SKUs. Streamlined SKUs can greatly reduce two aspects of operating costs: on the one hand, explicit warehousing and logistics costs; On the one hand are the hidden costs of managing operations, which include procurement, IT operations and marketing.

Another way to reduce costs is to convert variable costs into fixed costs, so that the marginal cost decreases as the number of orders increases. For example, the refrigerant packaging cost of each product is a variable cost, which will increase with the increase in order volume, but the cold storage cost is a fixed cost, and with the increase in order volume, the cost of each product will be reduced.

It is through the design of total warehouse + micro warehouse that more variable costs become fixed costs. Usually, fresh express needs to pre-cool the product, add ice, put it into the foam box, and finally pack a layer of express carton, which is because the goods need 1-2 days in the way of distribution, if not the packaging work, it is likely to affect the quality of the product.

In contrast, each micro-warehouse of daily excellent fresh radiates a distribution radius of 3 kilometers, and it takes less than 2 hours to distribute the goods from the micro-warehouse to the customer, and most fresh products do not need cold fresh packaging in this case, only a handbag can be used. In this way, most of the variable cost of packaging is transferred to the fixed cost of cold storage, and with the increase of order volume, the amortized cost is very small.

At present, there are many enterprises in the market using the total warehouse + warehouse model, which is a challenge for inventory management, especially the inventory of fresh products. The inventory of the warehouse is too much, which will cause loss and occupy funds; Less, it is easy to lead to shortages, and will make consumers dissatisfied, so a more accurate cover forecast is particularly important for the warehouse model.

In the founder team of Daily Best Fresh, COO Zeng Bin used to serve as the key account manager of Southern China retail and the general manager of flat panel Division in Lenovo, and he is familiar with sales forecasting models. CEO Xu Zheng is also a math professional, the two people according to the characteristics of the fresh industry and operational data, developed a new algorithm and replenishment model, can make the inventory turnover days of conventional goods to 1 day, warehouse shortage rate reduced to 10%.