Ali Retail Outlets In Addition To Traffic Advantage Value?

The reporter asked several times to disappear quickly.

Do they care about retailers' competition?

Supermarket,

To compete in online and offline supermarket business first, who will be more optimistic?

Their answers are highly consistent and of little concern.

First of all, branding profits are not blindly subsidized.

Second, the competition between retailers is only the result of a bigger plate. The smaller the size of a household, the less likely it will be.

Finally, in terms of mode, whether it is proprietary mode or platform mode, it has no practical significance for brand operators, and has not fundamentally improved.

Because even if it is self-employed, the brand will have to recover the payment, and it will need to be settled after the actual sale is completed, which is not much different from the existing distribution system.

Some brands say they are watching the changes in the B2B market closely. They believe that these changes may "pform" brand distribution channels.

The area of B2B is attracting attention.

First, the market concentration of upstream suppliers is improving, and the major brand businesses are also facing greater performance pressure.

They want retailers to help them sink in low cost channels and "control" the purchase of large number of "husband and wife shops" and other channels, so as to seize the market share of localized small and medium-sized brands, as well as "family workshops", and create sales increments.

Two, the existing distribution channel mode of brands has many levels, resulting in high channel costs.

However, it is difficult for brands to push the channel reform through themselves. Because of the multi-level differences in the Chinese market, it is necessary to reduce the risk of sales and inventory.

At the same time, a large scale reform of the original system has led to great rebound and high cost.

Therefore, if a large retailer can "integrate" the scattered retail channel resources such as spouses and shops, the brand may only have to supply to retailers, thus cutting down some distribution links and reducing the cost of channels.

Or do large-scale operations to reduce channel costs.

Based on this, a series of reports on retail B2B mode and business progress will be launched in the near future, from Ali retail to Jingdong new channel, from big to B2B business to Yonghui supermarket.

In this issue, I interviewed Guo Kunkun, general manager of Ali retail business department.

Guo Kunkun shared some progress and views of Ali B2B business.

1, fast food products low gross profit.

The logic of self financing of B2B products that earn intermediate profits can not go through.

2, B2B needs considerable investment, and retail positioning is ecological.

One is to do B2b2C, and to sell it to a couple shop.

3, the biggest appeal of brands is the data link on the entire B2b2C link.

Because brands want to know more about data, so as to improve products and efficiency.

4, the core competitiveness of the retail sales mode is in the commodity structure and in the service mode.

5, retail market development is mainly based on three to six line cities.

By the end of this year, one hundred thousand retail outlets will be covered.

6, B2B concept and B2C concept is different, B2C link can be reduced, B2B is not the same, every B link has value-added, can not be replaced.

7, do not replace dealers, only supply chain efficiency, cost structure optimization.

Positioning B2b2C to sell goods for husband and wife shops

It

Question: offline traditional grocery stores and retail stores are very scattered. How does Ali cut in?

Guo Kunkun: retail is not something built out of nothing.

The 1688 is to do wholesale. Every month, there are hundreds of thousands of stores in the 1688 batch of goods, small shop is our customers.

But the original is just doing online services, now extended to the ground services, deep ploughing channels to do more meticulous, providing more intimate services.

Other companies may have come to see the draught. We have plenty of small shops on the line, doing what we found and forming such a market.

Question: what is the market positioning of the retail market? How big is the investment?

Guo Kunkun: it really needs a lot of input.

But we are not just B2B.

What we do is ecologicalization. First, we should do B2b2C.

Ecologicalization must take care of the core values of all participants in the ecosystem.

Respect the core values of each party and clarify the relationship between them so that they can build together.

No company can build this system vertically in China in this field.

Do you think it's possible? I think it's too difficult.

Platform can ensure the maximization of the interests of small businesses.

What is the core of B2b2C? It is launched around the interests of small businesses.

Business is designed at the port of a small store.

Supply is not purely for supply, but for profit.

For example, to provide value-added services for small shops, we know that the situation is very valuable.

At present, there is no retail supply chain of B2b2C like this.

Either pure or B2B or B2C, there is no platform supply chain.

So there are many variables.

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Question: what is the core competitiveness of retail?

Guo Kunkun: first, the commodity structure, the first is the service mode.

First of all, to do B2b2C today, the retail store is nothing more than sellin and sellout.

Most companies sell goods to retail outlets only.

There are not many businesses that can help retail outlets sell - "sell out."

The retailer has invested a lot of manpower and material research here.

We hope to use the Internet to help them solve the problem of selling goods.

Ali has 150 million days of mobile phone Taobao users, live millions of Alipay users, these two huge traffic entrance, so that retail outlets do not need to buy traffic.

Therefore, through our help, the shopkeeper can serve the consumers well.

Second, we should let retail stores keep up with all kinds of new personalized consumption demands under the upgrading of consumption.

At the level of commodity structure, Ali has the biggest advantage. Imported food, agricultural products and good products can make the structure of small shops more reasonable.

Mining data value

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Question: as for the fast food products, the gross profit is very low, where does the retail profit come from? Will it benefit from the commodity price difference?

Guo Kunkun: we didn't want to earn very high profit margin at all.

FMCG itself is low margin, and cake is so much. How can it be made? It's unrealistic.

Therefore, the self financing logic of B2B business to earn intermediate profit can not be solved.

Question: what part of the money do retail outlets earn? What are the values of branding?

Guo Kunkun: to do ecology, we must understand the core demands of every role participant in the ecosystem.

The biggest appeal of brands is the data link on the entire B2b2C link.

Because brands want to know more about data, so as to improve products and efficiency.

And data is the advantage of Alibaba.

It not only helps brands and distributors conduct 2B business, but also tells brands where to sell.

It is the most difficult business to do small businesses, and the cost of human resources is the highest.

Therefore, this is the value point for brand dealers.

The second, third to six tier cities may be the blank areas for many brands, which are not willing to sink in the past. Now, the combination of Ali retail and small stores can help brands realize the channel sink, and the cost of manpower is less, but the outlets are more than the original ones, which is the value of Ali retail to the brand.

When the logistics has a certain agglomeration effect, the logistics cost will also decline.

Third, after the cooperation between branding and retail, we will take a look at the scale effect of Ali, give better quality and lower price, and the brand association will make its own choice.

Question: what incremental value can the retail outlet bring to the "husband and wife shop"?

Guo Kunkun: the direct income and invisible income contribution brought by the value added income contribution. Invisible income means that after the service increases, consumers can enter his store.

We are constantly testing the store's "home service" (home delivery) and "store" service (bringing people to the store).

We have tested the store in Lianyungang and Bengbu, and have already conducted two rounds of tests.

Now we think that this link exists and is feasible.

This is the value of data.

For example, the original customers of the community store are all in the community, and the residents next to the community will develop into users, and the business will be expanded.

Question: how do we design the logistics platform for retail outlets?

Guo Kunkun: logistics is the most important thing in the supply chain of fast moving products, but logistics is not the most important determinant.

The definition of logistics is defined as platform.

For example, dealers are willing to do, dealers can do their own logistics, dealers do not want to do, can be handed to us to do; dealers have strong logistics capabilities, and even docking with my system, and even

You can help me distribute other products.

The latter is currently being tested.

It will not "kill" dealers.

It

Question: so far, what business progress has been made in Ali retail?

Guo Kunkun: retail outlets have been pushed away in Zhejiang, Anhui, Hubei, Jiangsu, Jiangxi and so on, and the whole country is divided into large areas, mainly from three to six cities.

By this year, one hundred thousand retail outlets will be covered.

In terms of brand names, it seems that all brands are already working together if they are settled.

At present, the problem of branding can not be considered.

Basically, one hundred percent of us are willing to contact.

No contact, appointment meeting is also basically full.

At present, what is the most fundamental problem? How to guarantee the price of goods together with brand dealers and distributors?

As long as this problem can be solved, there will be no difficulty.

Question: will you "kill" dealers?

Guo Kunkun: of course not to replace dealers.

The main body of retail pactions is branding, or brand dealers and retail stores.

The platform does not have the pricing power, does not earn the intermediate price difference, does not intervene in the store service, nor will it change the original supply chain and the hierarchical mode.

We will not do anything that brands do not want to see, dealers do not want to see.

Our platform supports the brand's own mode.

We can make their models more efficient, faster, more efficient and cheaper, but they will not replace some of their roles.

The B2B concept is different from the B2C concept. The B2C link can be reduced. B2B is different. Every B link has added value and can not be replaced.

Dealers first cash pick up, to help brands maintain a cash flow reverse.

After picking up the goods, dealers are also responsible for warehousing, distribution and shop maintenance, which are the value of dealers.

If these values are replaced, it seems that the cost is reduced. But who will do all the services provided by the original distributors, such as delivery, distribution, service and so on? All we need to do? Ali becomes the biggest dealer in the country. This is impossible.

We will never do such a thing.

There is nothing to reduce the value of intermediate links, but to optimize the supply chain efficiency, optimize the cost structure and enhance efficiency.

In the past, if 1 brands were required to maintain 1000 salesmen to cover Hangzhou, the development of 600 +100 partners could cover Hangzhou.

That's what we really want to do.

Question: then, how to define the role of "city partner"? How is it going?

Guo Kunkun: City partners are similar salesmen of brand businesses, mainly selling services, commonly known as "push".

However, generally push the past is to serve a brand, retail pass is to integrate multiple brands, upstream has a brand dealer, dealer resources "big pool", city partners to develop their own shop, promote retail platform service, shop owner has the need to find goods and orders on retail outlets.

City partners receive a 1-10% Commission on goods and services pushed by the Commission. The Commission comes from the return of merchandise sales and the return of services.

Just like pushing and contracting these small shops, all the commodities are provided by Ali, and the shop next to the city will always belong to the city partners.

For example, a brand originally needs 1000 salesmen, and now there are 600 retail outlets through Ali, which can save a lot of costs.

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Problem: retail outlets do not break the original distribution system.

How can retailers establish price competitiveness?

Guo Kunkun: we will tell the brand, we will maintain your front price, but we will also maintain the store's purchasing advantage.

The two seem to be hard to balance, but in fact they can be achieved.

The retail outlet should reflect a comprehensive factor, not only the price advantage.

What is the most important concern of shopkeepers' purchase? Maybe it is quality, safety, service and so on.

Price is the most obvious thing.

But what retail outlets offer him, the things that he returns to the store may be more advantageous than the cheaper 50 Fen or 20 Fen, and the shop can earn more money.

So, who will the shop choose?

Question: what specific return?

Guo Kunkun: there are too many ways.

For example, it can be divided into small shops and small shops.

Individual retail stores used to be unable to get the accounts, and the purchase was usually cash in cash.

This is also through continuous testing.

Frankly speaking, the fun of this is that many things can be integrated.

Can be linked together.

The first round of financial services will be launched before the end of August.

Then every month there will be new things coming out.

Question: what is the innovation of retail financial services?

Guo Kunkun: it's better to play.

For example, interest may be lower than others, or even interest free, depending on our own decision, which is more suitable for market demand.

To tell you the truth, I do not see any time to release the account to the store today, because the retail store is very unstable.

We also have data from Ali to help with credit reporting, which is impossible for other companies to do.