What Are The Problems Faced By Self Operated Import Electric Providers?

Take the mother and child self operated importing electricity supplier honey bud baby and the comprehensive self operated import electricity supplier Amazon China as an example to discuss the difference of the strategic mode of the self operated import electricity supplier, and discuss some problems needing attention in the construction of the rear end, the front end and the brand.

The honey bud baby website was formally launched in March 2014. It is the largest self import import and export retail business in China.

In March 2015, honey bud baby first launched a price war in the mother and baby industry.

According to honey bud baby, the sales promotion volume exceeded 300 million yuan on the 3 day of the month.

In 2013, the honey bud baby was awarded tens of millions of investment in the real fund and the Huaxing Angel wheel; the B round was completed in June 2014, the Sequoia leader, the real fund and the Huaxing Huaxing investment company; in December of the same year, it completed a $60 million C round of financing, H Capital, and Sequoia.

The honey bud baby which uses the flash sale to cut into the mother infant market mainly adopts the self import mode.

Honey bud baby's proprietary GMV occupies 85% of its total GMV, and the rest comes from the POP platform.

The POP platform of honey bud baby is an invitation system, which is only open to the brands of clothing textiles and home department stores.

Therefore, we can basically think that honey bud baby is a self operated electronic business platform.

In the medium and long term, the strategy of honey bud baby is not confined to the mother infant industry, but the main platform for the consumption of the middle class families in China.

Specifically, honey bud baby wants to import and attract women from the middle class families on the platform through the maternal and child entry into the decision-making process of China's middle-class families, and to provide them with more abundant self import online classification businesses on this basis.

That is to say, the flash buying mode is just a means to cut the p boundary electricity supplier by honey bud. The future self classification store is the core of its retail mode. The category of mother and infant is only the stage strategic focus of incremental development at this stage, and the real direction of the future is to become one of the important hub of the middle class consumption.

Logically speaking, the middle class family's daily consumption decision maker is usually mother / wife; mother child product category is a natural opportunity for middle-class families to upgrade their consumption (Chinese middle-class families attach great importance to children's consumption).

Therefore, we believe that honey bud baby's strategic logic is reasonable.

For the mother and infant category and the mother and baby industry itself, honey bud baby has adopted the practice of "lifting height and lowering the price", trying to improve the overall value upgrading and cost structure optimization of China's maternal and infant brand and retail industry through efficient cross border supply chain control scale system.

In an exclusive interview, Liu Nan, honey bud baby CEO, said: "our three year goal is to supply China with good global goods and to match the cross border trade chain. The five year goal is to push the upgrading of China's mother and baby industry, so that domestic brands can be upgraded automatically."

Once the honey bud can really force the domestic brand upgrade, we believe that the proportion of imported brands will gradually give way to domestic brands.

At that time, it will not only be an import retailer, but also a comprehensive consumption platform for both domestic and foreign high quality and low price consumer goods.

The same way to do maternal and infant electricity provider's Beibei net has adopted a very different development path from honey bud baby.

Let's compare the pattern of babe net with honey bud baby.

The third party market POP platform flash buying mode is adopted instead of proprietary mode.

The main user group of Beibei network is the vast majority of four or five line cities. Relatively speaking, the main user group of honey bud baby is currently from a second tier city.

Beibei net was established in April 2014; in August 2014, Beibei won mutual injection of RMB 150 million yuan, such as mutual show electricity supplier, Gao Rong capital and IDG, etc. in 2015 January, Beibei net got more than $100 million of investment in the C round of financing, with a valuation of US $1 billion.

According to January, the monthly GMV of Beibei network has exceeded 200 million yuan.

From our observation, the strategic direction of Beibei net is more dynamic stratification of consumer habits, instead of upgrading the industry structure of the mother and baby industry by guiding the upgrading of consumers' future needs.

The so-called customary stratification means that the consumption habits of domestic milk powder and children's clothing vary greatly.

Becknet has a better understanding of consumers' current cognition and demand for different categories, but may need to make their strategic orientation more oriented to the future rather than simply accommodating consumers' immediate needs.

Or, we may need to take the initiative to break or change the behavior patterns of consumers, and promote consumption upgrading in a reasonable way.

If too much emphasis is placed on consumers' existing consumption habits, they may miss the overall opportunity for consumption upgrading.

From our point of view, the path of consumption upgrading by "urban infiltration of rural areas" is more reasonable and logical than that of "rural encircling the cities".

From the business mode, the two have their own rationality and adequate market development space, but from the perspective of promoting the overall upgrading of the industry, the pattern of honey buds may be more different.

Of course, it's even harder to walk.

If the development goes smoothly, the cross border supply chain system built by honey bud baby based on consumer demand may build a long-term economic moat for it.

The advantage of Beibei net is to grasp and build a SKU distribution with sufficient width to the domestic brands. The hierarchical "sub business" mode is more conducive to the formation of its financial advantages in the short term. In relative terms, the advantage of honey bud baby lies in the efficiency of its self run cross border supply chain and the synchronous product selection solution starting from the gradual upgrading of domestic users.

These are two very different ways of playing. We can not jump to a conclusion which is better or worse, but honey baby's future values seem more dominant.

Amazon China: foreign purchasing capability needs to match native thinking

This is a major milestone in the development of China's self import electric business.

2014.8.20 Amazon China Shanghai free trade zone and Shanghai letter signed memorandum of understanding

2014.10.29 Amazon opens six overseas direct mail service to China

2014.11.11 Amazon opens trial run service for "offshore outsourcing" store

2014.11.25 Amazon holds the first black Friday "overseas shopping festival" in China

2014.11.28 Amazon's "offshore outsourcing" store is officially launched.

2015.1.20

Imported Australian Australian wine

2015.3.16 "Amazon official flagship store" formally launched

2015.4.7 Amazon "offshore purchase" landing mobile APP terminal applications

It can be seen from the list that the expansion time of Amazon's import and retail business to China is almost entirely coincided.

Basically, Amazon's self import business is divided into two parts: "offshore purchase" and overseas direct mining + Free Trade Zone bonded warehouse.

Niu Yinghua, vice president of Amazon China, said in an interview that Amazon China's proprietary import business is a combination of "long short boxing".

Overseas purchase can bring "vast" selection, with a huge long tail, which meets the users' demand for category "multi", and constructs the width of supply chain and selected products. The import direct mining and free trade zone bring the selection of high turnover rate and high purchase frequency to meet users' demand for "fast" category, and build the depth of supply chain and selected products.

We have recognized Amazon's overall strength in the global sourcing and logistics system over the years. But for the giant market like China and Japan, which is very different from the West and Japan, whether these supply chain advantages can really play a role may also depend on the extent to which Amazon can sink locally.

If there is no way to grasp the market development stage from the bottom demand of consumers and the habit of mobile terminals, the quality global cross border supply chain system may not be fully effective.

At this stage, China's consumer acceptance of cross-border shopping and consumption habits can not support the classification of online shopping mall mode.

I believe that for many new users, users' awareness of the local high quality brands is obviously not enough. When buying foreign goods, there is a sense of powerlessness in "drawing the sword four."

That is to say, the vast quantities of goods at this stage are more icing on the cake than the best way to cut in.

The simple form of shopping mall at this stage may be questionable for the acquisition and retention of users.

Amazon China may need to consider attracting a large number of loyal mobile end users through a specific category of sustainable repeat purchase, that is, the flash purchase form of sustainable repeat purchase.

We should seize the opportunity to upgrade consumption through specific categories and cultivate users' scale.

At this stage, the classification mall as the main entrance may be a more appropriate step.

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Problems and trends faced by self operated import providers

1) fluctuating risk of policy

The risk of policy fluctuation does not mean whether the government should promote the overall policy direction and determination of the import retail electricity supplier. It is said that if there is a policy fluctuation, whether there will be a misjudgement of the policy window and the mismatch of policies in the supply chain and category layout, which are preparing to enter the fast track of development.

Once this happens, it may have a significant negative impact on a start-up company.

Therefore, a good grasp of the overall policy, department policy and regional policy may be of vital importance at the present stage for the self operated importers of heavy assets.

Only in this way can logistics and category layout be more effective and risk avoided.

2) control of cross border supply chain.

The control of cross border supply chain is divided into two aspects: efficiency and safety.

Efficiency is reflected in the control of all aspects of procurement, warehousing, logistics and customs clearance, and this is also an internal part of the import business.

We are not going to expand here.

In terms of security, in addition to the vouchers of cross border logistics announced and displayed by the self operated electric providers.

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