Fast Fading Brand Online, Offline And Integrated New Retail Opportunities

2019, no matter retail or big business, almost all of them are looking for opportunities in innovation and change.

Many sunken markets and thriving groups, represented by the community group buying, jitter / fast short video platform, are growing up with good sellers such as good beef, Simba and so on.

Against this background, China's super convenience stores are seeking changes and breakthroughs in 2019. The most representative events include digital shoppingmall boxes, Mali open doors, Suning's acquisition of Carrefour, Costco & ALDI Shanghai business, and Ali's "old city transformation".

Suning Carrefour's marriage and Amoy's "old city transformation" are based on online incremental business exploration of physical stores.

Carrefour president of China said that Carrefour integrated into the Su Ningquan scene retail ecological chain, "home business will become an important source of growth in the future". Carrefour's home business will be tasked with Suning shop, and the "1 hour" life circle of Suning will be built with the "1+N" circle effect and the ability to perform.

In December last year, Gao Xin, CEO of retail sales, said that the proportion of sales in 2020 would reach 20% or even more than 25%. This year, the proportion of business on the RFA line is only 6.5%. That is to say, in December, Everbright will have nearly 20 billion of online business opportunities. At the same time, WAL-MART, Yong Hui, Wuming, Hualian and other traditional Shang Chao are also on the force line to the home business.

　　 As a Brand Company in the fast growing industry, how to deal with business opportunities to grasp the channel change?

If we look at the causes of channel change,

　　 1, users, especially young and middle-aged users, have already formed a large scale of shopping habits on the mobile phone end and the habit of paying for freight for "convenience".

Since 2012, community O2O, all kinds of electricity providers, American group / hungry, and fresh retail formats such as daily fresh and so on, have cultivated the "home consumption" behavior of the consumers in the second tier cities in China in 8-10 years, from the early no threshold freight subsidy to the free shipping conditions of gradually increasing the yield per unit area, and users are gradually willing to pay for door-to-door service.

It is really necessary to mention the convenience of community convenience stores. If users are willing to pay for the goods delivered to the home as long as they continue to be less convenient than the convenience store, then the community convenience stores we are seeing now lack competitive commercial value.

It can be concluded that the online and offline integration of refined community convenience stores, which contain fresh, fast moving goods and selected imported commodities, will gradually replace the hypermarket model based on the needs of the community. "1+N" mode, 1 is the "fresh front-end warehouse + food processing warehouse", and N is a community convenience store within the range of 3-5 km. It may be one of the main forms of the near end retail service in the second tier cities in 3-5 years.

　　 2, the transformation of Supply Chain Based on the warehouse form has been opened.

Taking Gao Xin retail as an example, Huang Mingduan said in an interview with business observer that sharing inventory with cat super is one of the four major businesses of. The so-called shared inventory, which is shared with the Ali super share store, that is, the warehouse of the big fat store is the cat's inventory. The cat has been introduced through the flow. After finding the nearest Rd. warehouse, it can deliver the goods to the store within 1 hours or half a day based on the LBS traffic distribution. The cat overtakes 1 hours to reach the consumers who mainly cover the 5 km range of the big RH Mart store. The cat can cover over 5-20 km of consumers in the supermarket for more than half a day.

The cooperation between business partners such as Da Yun FA, Sanjiang, Xinhua and cat Chao has aroused great excitement in the industry. We should soon see that more business super stores such as Carrefour and Yonghui will realize the integration and transformation of the online and offline integrated supply chain with the concept of shared inventory. By then, the promotion of home business will further drive the scale change of user behavior, including the mental development of middle-aged and elderly users.

Next, we will see that the growth of home business has great incremental opportunities for what categories to go up and down quickly.

User behavior change + supply side (supply chain) change (1 hours service), in the fast drying many categories, I think the beverage beverage business growth space is the largest.

In many consumer goods categories, so far, the low penetration of e-commerce should be the beverage industry. There are two main reasons why the beverage industry has long been outside the electricity supplier business: first, beverages are instant needs, and thirsty will soon have to drink water. They can't wait for the mobile phone orders to be delivered in a few days. Secondly, the profit margins of the beverage dealers are low, and the logistics cost of the electricity suppliers is too high. Even if the consumers want to buy a box of drinks on Tmall, they will not give up the freight at the convenience stores at home.

But today we see that the O2O near service mode based on LBS store store warehouse not only reduces the logistics cost greatly, but also can meet the short time demand for drinking, whether Coca-Cola's cannon, NFC's juice, JDB, cold tea, coconut milk or milk, drinking water, beer and so on, all have very large business growth space, but we need to subdivide the scene in the home business to train users' minds.

Secondly, grain and oil rice noodles also have larger growth space. The service provided by half an hour and 1 hours provides food for many people to cook at home at the right time, and helps the housewives to buy more grain and oil and rice noodles.

In addition, cold chain, quick frozen fast food, cold chain yogurt / fresh milk and other commodities will also have a lot of growth opportunities in half an hour or 1 hours.

In fact, in this business's incremental banquet, any category or brand is likely to enter the user, understand the user and act in the process of changing the user behavior, and get a place for its products in the user centered intelligence of the home business.

In the past 1 months, chatting about this topic with old friends such as JDB, farmer Hill spring, RIO, circle Asia Group and so on, for any opportunity, any company would like to try, but such changes are too advanced. Many companies are talking about how to behave in a muddled way, so let's talk about some of my suggestions below.

　　 1, organization guarantee: there should be special organization to purchase the next store and the operation of O2O platform.

First of all, the online operation team (platform operator, customer operation personnel, etc.) that increases the incoming business in the KA channel management organization. This scheme is relatively fast now, but it can test the learning ability of KA organization leader.

The second is the transition plan, which is set up by e-commerce / new retail, KA management and marketing department to set up a project group. The lead project is mainly based on e-commerce / new retail, and the key KPI is to enhance the online home business GMV and its proportion (at the same time contrast competition). The direct responsibility of the scheme is general manager or CEO.

　　 2, the cost input should be changed. The cost input structure of KA channel customers with online home business needs to be changed. In the past, the packaged cost input method needs to be separately invested according to the "Online + store" mode of KA customers, and the targeted cost can be operated.

The logic of cost changes is that the users' minds of home businesses need to be cultivated. Various mechanisms on the platform need to be tried through continuous cooperation with the platform providers before they can finally come to the operational methodology suitable for their brands and their own products.

　　 3, marketing strategy integrates synergy among differences: There are differences in product strategy, price strategy, promotion strategy and so on in the same KA customer's online store and store business, but in general, the same organization needs to integrate and cooperate.

Specifically, what packaging products are purchased from home businesses, what products are packaged on the main shelves of the store business, how the price strategies of different packaging products are, how specific price strategies to different rhythm marketing activities, how to channel push strategy, how to integrate online and offline resources with platforms, and so on, need to be differentiated and integrated. This requires Brand Company to constantly grope out its own methodology system in practice.

　　 4, user research is fundamental: Apart from the formulation of marketing strategy and the integration of cost allocation, the addition of the marketing department is more critical to understand and analyze the changes in consumer behavior behind the home business and behind the store business. According to the monthly and quarterly changes, such as packaging strategy and promotion strategy, it will "operate" its own layered users.

For retail platforms, there are new customers, old customers, active users, and inactive users. For brands, they also need to differentiate and operate different layered users based on LBS stores. The development of Internet technology has made it easier for us to reach users. However, targeted operation strategies, such as how to promote A brand old customers to buy B brand new products, need us to act and try to sum up in practice.