Giants fight for new retail, daily fresh and live monthly accounted for 50% of the industry

Click to follow GPLP, the first new media in the field of venture capital, please don't miss the text | Wang Wei

Trustdata's newly released data shows that in the first quarter of this year, the advantages of the first echelon of the fresh e-commerce industry became more apparent. Among them, Daily Excellent has continued to lead the industry with MAU, which accounts for 50% of the industry.

There are also many netizens who ask GPLP Jun, who have been in the first echelon for three years and even continue to lead the industry. What is the difference between daily and fresh food? As a rising star in the fresh e-commerce industry, why can the daily fresh food be able to Get the favor of Internet giant Tencent and many investment institutions?

According to the data, daily excellent fresh food was established in November 2014, and in December 2014, it was awarded the investment of 5 million US dollars by Guangxin Capital and Yuanxiao Capital;

In May 2015, Tianyou and Xianxin received a $10 million A round of investment from Tencent and Guangxin Capital;

In November 2015, Daily Excellent was awarded RMB 200 million B-round investment by Tencent and Zheshang Venture Capital;

In April 2016, the daily excellent fresh won the investment of 220 million RMB B+ in Yuanyi Investment and Huachuang Capital;

In January 2017, Daily Excellent was led by Lenovo Venture Capital and Zheshang Venture Capital's management fund, Tencent, South Korea KTB, Yuanyi, Huachuang Capital and the investment of 100 million US dollars C round of financing;

In March 2017, daily premiums completed a $230 million C+ round of financing, led by Tiger Global and Yuansheng Capital, and Time Capital participated in joint investment.

What is the reason for this? Today, GPLP Jun will talk to you about the business logic and value of daily goodness.

The giants frequently add code to the fresh e-commerce industry to become a climate

The characteristics of the consumable and vulnerable categories are destined to experience the bumpy and even big waves of the development of China's fresh e-commerce industry, but the consumption and growth potential of this market cannot be denied.

According to iResearch's “2018 China Fresh E-Commerce Industry Consumption Insight Report”, the transaction volume of China's fresh e-commerce market in 2017 was approximately 139.13 billion yuan, a year-on-year increase of 59.7%. And, from 2013 to the present, this market has maintained an average annual growth rate of more than 50%. This year is 2018, and the transaction size is expected to be close to 200 billion yuan. It is expected to exceed 300 billion yuan in 2020. The entire industry has been explored, developed at a high speed, shuffled, and entered the stage of transformation and upgrading.

From the establishment of the first fresh e-commerce company in 2005 to the establishment of fresh fruits and vegetables, to the founding of organic products in 2008, to the new retail enterprises emerging in the mobile Internet era, despite the industry continues to wash The brand, the ever-increasing size of the transaction, still allows the industry to see hope, and the explorers are still numerous.

The opportunity is also an important factor in the factors that affect the success or failure of entrepreneurship. For the fresh e-commerce industry, in addition to the supply chain, warehousing, logistics and other links, it is extremely important for users to develop habits.

Benefiting from price advantage, product richness and convenience, statistics show that fresh e-commerce is gradually accepted by consumers, and user satisfaction in 2017 is concentrated in the high stage of 8-10 points (10 points highest).

An important reason is that from the decade of 2015 to 2025, after 80, 90, and 00, they will gradually become the main force of fresh consumption. They are very familiar with the Internet and hope to have more convenient shopping channels for fresh food. , instant delivery speed, quality products.

For this reason, the fresh e-commerce industry began to gradually increase its volume after nearly a decade of slow development.

Based on the vast growth space of the fresh-food category online and the high-frequency, just-needed purchase characteristics, fresh e-commerce has frequently gained capital favor, and Internet companies have continued to increase their yards. BAT not only enters through the investment method, Alibaba (investment easy fruit fresh), Baidu (investment in China, I buy net), Tencent (multiple rounds of investment in daily fresh), Ali and Jingdong's self-operated battle (Box Ma Xiansheng VS 7FRESH) has spread to the offline.

Vertical-type fresh e-commerce companies want to survive the competition of the giants, but also need to have more advantages.

Therefore, a new generation of fresh e-commerce needs innovation in terms of market, demand, mode and path.

Of course, they are also under greater pressure – as an Internet company, not only must they understand operations online, but they must also go deep into the supply chain and warehousing logistics.

Daily business logic

According to statistics, the loss of fresh foods in China is about 20%-30%, most of which occurs during the circulation of products, and is about 3%-5% abroad.

From this point of view, although the early fresh e-commerce can solve the problem of information asymmetry to some extent through the Internet, the key commodity circulation links have not been overcome.

As a mobile e-commerce focused on quality fresh food, the daily selection has been multi-pronged – supply chain, warehousing logistics and operations have to change.

In terms of genes, Xu Zheng, founder and CEO of Daily Fresh, was the general manager of Lenovo Jiawo Fruit Business Unit and was responsible for business strategy, investment M&A and operation management. This experience makes it more understandable to agriculture.

To this end, the daily business model, we can be referred to as "all categories of selected goods +1 hours speed to cold chain logistics + social membership system operation."

1) Logistics: Innovative “front warehouse” to increase the cost

The logistics dimension, the daily excellent and fresh established a two-level distributed warehousing system of “urban sorting center + community front warehouse”, in which the front warehouse is deep into the community, and each front warehouse covers a radius of three kilometers. The advantage of this is that it guarantees the fresh quality of the goods and the one-hour delivery speed.

Looking at domestic e-commerce, whether logistics is necessary to build and operate on its own, there has been a lot of controversy.

Looking back, this kind of investment is an infrastructure construction. As long as it is willing to invest in the early stage, it will take time to stabilize and stabilize. In the medium and long term, it will establish barriers to competition and greatly improve service and timeliness.

Jingdong Logistics is almost the best case.

Jingdong began to build its own logistics in 2007. In the past ten years, logistics has become an important advantage of JD.com in its comprehensive e-commerce platform. From the next day to the next day, and then to the day (211 limited time) or even 2 hours, the speed of the entire e-commerce logistics industry.

Jingdong also opened up the gap with Tmall in the logistics dimension with its faster speed and better service. With the improvement and speed of the logistics network, it has also broadened its business prospects.

Its announced fourth-quarter and full-year results for the fiscal year 2017 show that as of December 31, 2017, JD.com operated a total of 486 large warehouses with a total area of ​​approximately 10 million square meters. During the 11·11 period last year, Jingdong Logistics' open business orders achieved a 200% increase. In the next five years, Jingdong Logistics will account for more than half of its open business revenue. According to the information of Jingdong Logistics official website, as of August 2017, the “Jingzhida” service has covered 246 cities, accounting for nearly 75% of the national cities.

The ability of cold chain logistics is especially important for fresh produce.

In the past three years, Daily Excellent has invested in the construction of cold chain logistics infrastructure. With the innovation of the pre-storage model, it has also achieved overtaking in corners and has become a rising star in the field of fresh e-commerce.

The "1818 China Mobile Internet Industry Development Analysis Report" released by Trustdata shows that in the first quarter of this year, the monthly live users of the fresh e-commerce market reached a maximum of 3.05 million, and the advantages of the first echelon became more apparent. Daily Fresh is not only leading the industry with the leading MAU. The users of this platform are relatively average in the first and second tier cities, and are gradually infiltrating into the third-tier cities.

It is precisely because of the daily pre-emptive warehouse model that can reduce the cost of cold chain on the one hand, and accelerate the distribution speed on the other hand, subverting the traditional perception that logistics is “faster and more expensive”.

2) Goods: All-category SKUs

In the merchandise dimension, daily goodness enhances user stickiness through membership, and focuses on all-category SKUs. It draws on the membership strategy of Costco, the world's seventh-largest retailer, the largest chain-owned warehouse store in the United States.

It is understood that there are two hard rules in Costco:

First, the gross profit margin of all commodities does not exceed 14%. Once this figure is higher, it needs to be reported to the CEO and approved by the board of directors;

Second, facing external suppliers, once it is cheaper than Costco elsewhere, its merchandise will never again appear on Costco's shelves.

To ensure quality, Costco told suppliers that Costco and any other Costco supplier would not cooperate with it for at least three years in the event of a product failure.

In addition, in the choice of SKU, Costco active SKU only 3800, which means that there are only 1-2 options for each segment of Costco, only those with the "explosive" potential are allowed to be put on the shelves. This reduces the cost of user selection and also enhances the user experience.

Open the Daily Fresh App and you will find that in the case of fruit products, the products are mostly small-sized packages, and each product only provides a small selection. Behind this strategy is to let experienced professional buyers go deep into the global production area and select only high-quality sources.

In this regard, Xu Zheng once said that Wal-Mart is a trade-oriented business, and the appeal is full of people with a large amount of low prices; Costco is a production-oriented business, the goal is to select the products of each category, occupying the most superior position of consumers' tastes. And the daily fresh and delicious is the production-oriented business, providing users with one-stop fresh shopping service through the product selection strategy of the whole category. While covering 11 common categories of fruits, meat, eggs, fish, vegetables, fast food, dairy, snacks, etc., only the “best options” are provided under each category.

3) Operation: Socialized membership system precipitates users

In the user operation dimension, Daily Excellent also draws on Costco's membership strategy, and optimizes the sharing strategy and pays attention to word-of-mouth communication for the characteristics of domestic social networks.

In a nutshell, with the selection of SKUs, users are precipitated through membership, and social interaction is used to achieve lower cost customers.

It is understood that in November 2017, the daily premium has fully upgraded the membership system, and launched the privileges of exclusive members, exclusive cashback, 1 hour and exclusive customer service. In addition to insisting on user thinking and doing accurate user portraits, Daily Fresh also emphasizes content marketing and insists on user growth through word-of-mouth communication.

"We saw in the WeChat background that the number of daily users is in Beijing, Shanghai and other cities. The number of users has already accounted for 80% to 90% of WeChat users in the same city." Xu Zheng said that between users The social density is high and the user system is different. If a brand's users are 100 million people, there are networked communities and social networks, and the difference between the two brands is a multiple of the square compared to another 100 million people.

At present, with the increasing popularity of WeChat shopping ecosystem and small programs, social membership has more room for development.

For the daily good and fresh, it is through the breaking of the industry rules and innovative business model, from product, logistics, operation and other aspects to improve, in order to continue to "contrarian" financing, and in a few short years, won the giant Tencent shares.

The help behind: Tencent and the giant chess game

Since the end of last year, around the new retail, the outside world has seen the opening of the box horse fresh and 7FRESH online. Another important signal is that Tencent is adding to the retail territory.

In the “Tencent Department” retail camp, its offline partners have been increasing, including Tianhong Department Store, Carrefour China, Wanda, Yonghui Supermarket 601933, stock bar, BBK 002251, stock bars and other supermarkets and department store operators, as well as clothing companies Haishu House 600398, stocks. On the online, in addition to Jingdong and Vipshop, the e-commerce platform of this camp is a more worthy target, which is the daily excellent and fresh daily convenience of the new retail background.

Up to now, Tencent has participated in many rounds of investment in daily fresh and good, and the A round of financing for daily convenience and convenience purchase was led by Tencent. In February of this year, WeChat Payment also signed a cooperation agreement with Daily Excellent Convenience Purchase, which became Tencent's first cooperative enterprise in the field of smart unmanned retail.

The small program ecology emphasizes the connection and empowerment of offline scenes, and the daily convenience and convenience purchases provide purchase services through small programs, and the cooperation is natural.

If we can understand that Tencent's investment and Mobai are to seize the offline payment portal, then Tencent's idea of ​​daily convenience and convenience is exactly the same. This scene is similar to the high frequency of the travel field.

According to the public information, as of now, the daily excellent convenience purchase has laid more than 30,000 high-quality points in 30 cities across the country, covering the office scene. In the future, it is expected to accelerate the expansion of 300,000 high-quality points in 50 cities across the country, and plan to achieve coverage of all the scenes on the road, public places and so on.

What is more noteworthy is that Tencent's support for daily goodness will be more reflected in the strategy and resources.

From this, we can imagine that the near-field retail network, which is gradually created by daily fresh and convenient daily convenience, will play a great role for Tencent to seize the offline retail scene and become an important part of Tencent's smart retail layout.

In addition, from the perspective of realizing the business closed-loop, daily excellent convenience and convenience to purchase unmanned shelves of goods through small programs is also one of the paths for Tencent to realize the flow of traffic, right in the middle of the giant's mind.

For the daily fresh, after solving the logistics problem, and then solving the traffic problem through Tencent, it will further develop and consolidate its market share in the fresh e-commerce field. Why not?

In October 2016, Ma Yun proposed that the era of pure e-commerce will soon end. In the next ten or twenty years, online and offline logistics must be combined to create a real new retail.

In November 2017, Tencent announced that it will accelerate the opening of the retail industry and launch a “smart retail solution” to empower the majority of brands, offline retail platforms and commercial real estate institutions to explore the complete path of digital transformation in the retail industry.

In 2018, the changes in the retail industry will only be deeper and more visible. This time, the online and offline bundles are deeply bundled, and the retail layout of Tencent and Ali's split-net network will be larger and more intricate.

Therefore, the investment in daily goodness is to capture a new model. After all, the big changes in the retail industry will promote more innovative exploration. And in this fast-changing world, how will new retail evolve? The curtain may have just been opened.

This article was first published on WeChat public account: GPLP. The content of the article belongs to the author's personal opinion and does not represent the position of Hexun.com. Investors should act accordingly, at their own risk.

(Editor: Zhang Yang HN080)