I. Industry background
We habitually take 20 12 as the first year of mobile internet. The transformation of the whole business model is no longer dominated by the simple online Internet or offline traditional retail stores, and the sales of goods based on the Internet are far from reaching the level of the whole retail consumption market in China. In addition to the cultivation of consumption habits, more convenient and personalized goods are needed as barriers to industry competition.
In the 1990s, we defined the essence of the Internet as "connection", which is the link between people and information, and solved people's demand for information and efficient matching through a network cable. This behavior is developed from a single structure of point to line. In today's internet, we pay more attention to the "mutual" element, that is, interaction, and the actual subject has changed. All sources of information are actively generated between people, and people are the sending points of information dissemination. The acquisition of these information or contents is organically linked through an ecosystem network. Everyone is the producer of these network information, and people's access to information is shorter, more timely and more disseminated. People's demand for goods and services will be simpler and easier to operate, and passive consciousness will gradually develop. They will not waste too much time on the same thing, and the time needed for work or life will gradually become fragmented, static and operational.
By moving closer to online and offline, the traditional retail industry can help ease the competition between online e-commerce and physical stores. At the same time, the timeliness and cross-regional access to high information on the Internet are the advantages and disadvantages of the Internet itself. Users can't experience the quality of goods and the value brought by value-added services at the first time, but can only perceive the attributes of goods through the description of words and pictures. The arrival of online to offline is also the best choice for online products to land. This model perfectly integrates the convenience of product information, rich and diverse differentiated output services and beautiful experience, fully mobilizes users' secular desires and fully satisfies users' sense of trust and participation experience!
Second, the project background
The solution of the last mile distribution is measured by the circulation channel from commodity production to sales and the time to reach consumers. Until today, pure e-commerce enterprises are not only platform-based competition, but also competition in product differentiation, non-standardization of goods, unification of sales and services, logistics system, storage capacity, organizational structure and team management. Online goods and services are gradually integrated into the offline system, forming an O2O closed loop.
Online commodity display and payment methods are of great significance across the times today. Offline scene consumption and social commodity trading are new consumption patterns that online consumption can't match. Establishing a scene-based consumption pattern is the only powerful magic weapon that can compete with online e-commerce. In the future, whoever is closer to the user will be able to control the user's psychology and have a relationship with the user. The process of maintaining this strong relationship is the process of continuous influx of funds.
The essence of logistics distribution is to solve two major problems: one is "distribution" and the other is "distribution". Sort out a set of methods that can be implemented in the field for distribution and delivery.
The meaning of distribution; Reduce the distribution cost, meet the timeliness, control the warehousing and distribution capacity of logistics enterprises, optimize the regional commodity distribution mechanism, and enhance the customer's experience of commodity service.
Most e-commerce companies adopt the following cooperative relationships to solve the last mile distribution service:
Third, the business model
1, establish a physical experience store.
Site establishment
Traditional business pays attention to regional people flow factors. The absolute commercial area or residential area undoubtedly plays a decisive role in the opening of shops. It is a natural weapon to obtain traffic. The site should be located near the surrounding office buildings and residential buildings, with convenient transportation. It is best to transfer to the station, where young families and white-collar workers gather. The surrounding commercial facilities are perfect, and there is relatively little competition in the same industry. The experience store requires 60- 100 square meters, and the business area and the experience leisure area each account for 50%.
Serve the public.
In a simple sense, the competition between physical convenience stores is very great. It is a general trend to move traditional commodity sales to the mobile Internet, not only to keep up with the fashion, but to make goods and services simpler and more convenient. Therefore, we should take a traditional retail+Internet road. Most of the popularization targets of the Internet tend to be younger. They have a solid trust habit of internet software operation and online payment, and are also the absolute owners of family wealth. For older uncles and aunts, they have relatively more time, higher sensitivity to prices, less dependence on brands and are price-oriented. Internet selection and payment are difficult to cultivate. Therefore, the service crowd is set at 25-40 years old, with strong spending power, a sense of dependence on the brand and a habit of repurchase.
User requirements:
1, from the geographical point of view; Users need to solve two urgent needs. First, they need to generate the preferential price of the same commodity within the nearest distance of his activity range to drive their purchase behavior. Second, geographical advantages and timely response speed of distribution are the focus of users' consideration.
2. From the perspective of commodity types; Users need to use instant goods to meet immediate material needs, such as buying cigarettes, condiments, water and rice. These goods all have the same property, that is, they happen immediately. As the commodities with the highest recovery rate, this kind of commodities meet the needs of consumers. Therefore, we can often see that the traditional promotion schemes in Shang Chao are all high-frequency and low-frequency, and low-frequency goods are placed around high-frequency goods to promote the sales of low-frequency goods. (Low price and high price are also the usual sales methods of e-commerce companies. In addition to buying standard products in a certain range of small shops, users actually prefer to buy non-standard products of brands. It is the existence of non-standard products that bring more profit precipitation to convenience stores. Only by gradually increasing the sales of non-standard goods and self-operated goods is the biggest profit of convenience stores.
3. From the timeliness of delivery speed; Nowadays, convenience stores run through the standard conditions of distribution through the "full delivery" activity, solve users' understanding of laziness and convenience through the timeliness of distribution, and measure the quality of experience brought by a convenience store to users with speed. Traditional convenience stores not only satisfy users in terms of product quality and differentiation, but also provide more efficient delivery services and increase user stickiness.
Competitive risk:
Let's take a look at the commercial competition faced by traditional convenience stores.
One is a convenience store for couples; The distance between shops is getting smaller and smaller, and the distance between shops is getting closer and closer. The homogenization of goods is serious. As a commercial office building or residential area, it is easy to find convenience stores hundreds of meters away from us. These small shops rely on the natural flow of people and geographical location to carry out their own business. All the goods they sell are directly purchased from the local wholesale market, and they earn the profit by earning the difference. Rent and personnel are their important component costs.
Secondly, brand chain convenience stores; Most of these convenience stores are from Japan or China (7- 1 1, Yonghui, Quik). Not only do they occupy a good geographical position, but the square meter of the store is also larger than the convenience store for couples. Commodity procurement is directly supplied by the back end of the supply chain, which has unique advantages in procurement cost and accounting period. Perfect product selection, logistics and return mechanism enable these brand chain stores to effectively control marginal costs. From the perspective of product composition, 30% are self-operated goods, that is, their own brands. The profit of traditional convenience stores is between 20% and 30%, and the profit of self-operated brands can reach 40% and 50%. Unified process management and service are the conditions that couples convenience stores do not have.
Nowadays, with the popularity of O2O, these brand stores have adopted scene marketing instead of simply spending with users once in a short period of time. Instead, create various scenes to stimulate consumption motives, place leisure areas to provide places for users to communicate and talk, and turn mobile users into catering users. In terms of commodity categories, it not only sells prepackaged foods, but also sells self-operated lunch boxes and leisure processed foods, even with 24-hour business hours and night delivery mode.
Solution:
First, transform from the store; Decoration style should be different from traditional convenience stores, such as warm color decoration style and light music to create a shopping atmosphere. Establish an experience zone. The experience area is dedicated to providing users with places for leisure and entertainment, where they can eat and communicate. This shop is equipped with wireless network for users to surf the Internet. The experience area should display the promotional products of the merchants for users to taste for free and give feedback on the products. Those who can buy or sell on the spot must pay immediately.
Second, from the point of view of the commodity itself; Convenience stores have two major products, one is a standard product and the other is a non-standard product. Standard products are products that can be bought from online or offline competing products. The branding of such products has been formed, and everyone knows the quality and price of the products themselves. The only motivation for buying is preferential price and convenient delivery. Often this kind of goods itself does not have much profit, and they are considered as high-frequency goods in shopping frequency. Non-standard products are personalized self-operated goods without standardization, without good branding, and the quantity model is not suitable for this kind of goods. This kind of goods not only have excellent quality, but also need to be promoted and sold by store operators.
Third, increase the instant delivery with high profit; Commodities such as fresh food, fruits and vegetables are affected by freshness. We can cooperate with such e-commerce, do the self-raising point of the last mile of offline distribution, and provide refrigeration and fresh-keeping services, which can not only charge some fees to enterprises, but also bring sales of other commodities when users pick up the goods. If there are back-end procurement resources in residential areas, you can consider the sales of some fresh goods with self-operated brands.
Fourth, "holding thighs"; Convenience stores can survive, increase the source of income, and also cooperate with commercial companies that specialize in solving the last mile delivery, such as express delivery companies. Earn service fees instead of delivering and picking up packages. In this way, more users can be attracted to the store through this scheme, and other goods and services can be produced as long as they arrive at the store. Cooperation with large-scale e-commerce as a large-scale e-commerce platform to solve the last mile of tentacles, directly extended to users' families, e-commerce cost-effective products and offline sales prices developed simultaneously.
Fifth, increase service consumption nodes; This will be a feasible move for the transformation of traditional convenience stores to cooperate with third-party enterprises serving the community to provide on-site services. Such as manicure, massage, laundry, commodity ordering and other services, earn service fees and venue use fees, and provide an offline for enterprises to obtain offline users. Make wedding clothes for service-oriented enterprises and expand their own flow and consumption.
Sixth, the establishment of WeChat official account and clerk's private micro-signal; The core of O2O is not only the online or offline display and experience of goods and services, but also the more important issue is how to control the payment, and where to pay, you can get the traffic portal. This must be understood. If you put the payment link in the official WeChat account, it will naturally be online drainage or online goods will be placed online and paid online. Then pick up the goods or deliver the goods offline, so that a set of online to offline is established. Seizing the payment entrance is also the top priority of BTA. With the inlet flow, other ecosystems can be derived. The significance of official WeChat account is to gather more people around the community, let them form a community and form their own circle on the Internet. People with the same values will gather in a unified community through goods or activities. Here we can exchange what happened in the community, some feelings in life and some help from our neighbors. At the same time, the official WeChat account is used to manage and serve the surrounding people, and it is the best function to use the official WeChat account as a customer service and calling system.
Once the trust system and traffic are established, the self-operated mall on WeChat will play a role. Users can place orders directly on WeChat, which will be delivered by convenience stores. Timeliness, convenience and diversity can play an immediate role. At the same time, self-operated products will be an important part of the profits in this system. Convenience store is a bridge and link between property and owners. The official WeChat account publishes the announcement information of the property for the first time, so that the owner can know the notification status of the property when he leaves home. Establishing private micro-signal management service users is also an important part. We use our circle of friends to present recent activities and promotional products. Wechat itself is a trading transaction based on the circle of acquaintances. When there is an activity or a new product promotion, users will naturally respond to this action at the first time. At the same time, users can also be informed of the parcel arrival information through WeChat, so that customers can feel that their things are kept and feel more secure.
Seventh, establish community; In recent years, social e-commerce is a rising star in the field of e-commerce, and people's demand for trust, circle, interest and security is gradually increasing. Convenience stores, as the consumer areas where users go in and out of fixed places the most, should integrate people in this area through WeChat group, facilitate communication and management services, and organize offline activities. As the closest tool to users, community can build trust in a short time and narrow the distance between product information brands and users. It is also a direct channel to obtain users' concerns and needs first-hand, and also a feedback center for opinions. It is also a channel for activities and content sharing in the official WeChat account. At the same time, the online community also serves the offline community, and the establishment of the experience zone is a place to carry out small salon services for offline gatherings in the community. There are more cohesive, participatory and interactive topics here. As long as people with the same values form a circle and spread valuable content in the circle, the loyalty of users can be improved, so the purchase behavior can be quickly generated when selling and serving goods.
Profit model:
It is often heard that it is not easy to make money, but the way of thinking of operators has not seen the problem with the development of society. Traditional enterprises simply apply the original experience to implement the development direction of new things, and use systems and experience to guide the development of existing enterprises, which belongs to the resource-based management strategy. Internet companies pay more attention to the control of users' needs, and regard personalization and differentiation as an important part of competition among enterprises. The way of thinking of traditional enterprises is doomed to be inconsistent with the business logic of modern Internet. For example, in order to seize users, it is not advisable for merchants to acquire users in the form of free. In fact, free is also a form of charging, but this temporary free is to get more users in a short time, and then pay users for management, resulting in expenses and profits. There is a classic saying on the internet called "wool is on pigs, and dogs pay the bill". The hidden logic behind it is nothing more than telling everyone that the essential profit of Internet companies is not based on the profit of the goods themselves, but on providing differentiated competition based on added value and value-added services to obtain profits.
Learn how to make a profit:
A. transforming mass consumers into member consumers; There are two ways for members to present themselves: one is to send as much money as possible, such as sending 500 yuan to 50 yuan. The other is the annual membership system. As long as users are members here, they can enjoy relative discounts on all goods and services. For example, annual membership 188 yuan, all goods in the store are 10% off. Designing such a membership system is to give up the profit of the product itself and rely on the development of membership fees as the profit model of the store. The advantage of this is that once you lock the user, the user will not go shopping with your competitors. Then, combined with holiday activities such as "full reduction, coupons, red envelopes, points, sharing, gift packages, discounts", the frequency of users' visits to the store and the number of orders placed will be increased, and various operational indicators will be improved in a short time.
B. build your own brand; As an important part of the profit of traditional offline stores, private brand is a reasonable choice to replace the profit of standard products. In the future, brand premium will promote the development of new industries. For example, when the order of magnitude is large enough, OEM will be just needed. The best way to develop its own brand is fresh food, because there is no giant enterprise in the fresh food industry itself, and due to its own fresh-keeping conditions, the advantages of producing areas are too concentrated, and the advantages of non-producing areas are disturbed by transportation and storage bottlenecks, so the prices are rising. For example, a kilo of pitaya 1 yuan in the place of origin and a kilo of 5 yuan in the north. There is a certain difference in price alone, not to mention the brand premium. These problems can be solved rationally through small shops. Private brand will play a vital role in the last mile distribution of convenience stores.
C. exhibition fees; Charge the third-party commodity exhibition and exhibition fees. For the third-party online drainage and offline experience, users can take online or offline free payment methods. Take the convenience store as the entrance of information landing, and collect certain advertising fees and service fees through pasting and displaying different information inside and outside the store.
2, the central warehouse+idle resources put in time.
Set up your own distribution and storage center in the area where the target population is concentrated. This plan is to put face-to-face scene marketing at the end of commodity sales, fully release the distribution process and rapid response. When the business model and profit model are limited by the industry itself, we must consider the transformation of thinking and the transformation strategy of establishing our own marketing channels. By reducing commodity inventory, selling wholesale quickly, increasing cash flow reserve, transforming commodity orders, unified distribution management, brand enjoyment and other means, the marginal cost in operation can be reduced and the efficiency can be improved. We should upgrade the business model and soft management to the strategic level of operation, establish warehousing and timely delivery by means of light assets and economy, and improve the competitive barrier of the industry. Price factor is no longer the only criterion for customers to consider.
On the one hand, large-scale procurement or providing suppliers with sales or warehousing channels can reduce the dominant resource position of procurement costs and expenses in supplier selection and cooperation, control the return time and preferential welfare activities given by suppliers, and then enhance the independent brand image in organizing merchants or users' activities and the sales share of homogenized goods in the retail market. On the one hand, we take a win-win cooperation way to make a long account period, and use the way of free warehousing to sell goods for profit, and settle goods within a certain period of time. These are all favorable conditions to cater to the cooperation of suppliers to precipitate cash flow. On the other hand, it solves the related expenses and costs arising from store rent, personnel expenses, management, procurement, logistics and services. At the same time, the delivery response speed has also become the biggest constraint of this model.
Solution:
A. Extend B2B with the central warehouse as the connection point. Wholesale distribution and sales of goods for retail merchants, placing orders on the platform in combination with the merchant system, and providing unified distribution and ordering services for merchants across the country (trial and error MVP is used as a pilot in Shenzhen). For merchants, the advantage of purchasing is price advantage and timely delivery, which helps merchants to establish official WeChat account, commodity purchase entrance and payment entrance. Through LBS technology, users can directly search the nearest convenience store for online order delivery. Use e-commerce "full reduction, coupons, points, red envelopes, gifts, discounts and other preferential ways to stimulate the purchase motivation. The future plan is to cut into community O2O through community e-commerce and timely delivery.
B, take the central warehouse as the commodity distribution platform, and use idle human resources to provide one-kilometer distribution service around. The business model of group buying is known as the originator of O2O business model, and the most representative ones are third-party platforms such as Meituan and Hungry. The way to cultivate users' buying habits is to present them through subsidies. If such platforms don't change their business model and rely solely on subsidies or the consumption frequency of commodities themselves to obtain users' transactions and purchases, they will surely die. If they always rely on subsidies, this will never bottom out. As a third-party platform, it is necessary to improve the competition barriers with competitors in the central kitchen, unify standardized goods, unify service process management, and its own distribution team. Take the central warehouse as the supply, production and R&D base, recruit idle human resources for one kilometer distribution, or cooperate with third-party distribution companies for timely distribution, such as Dada, Line 1, Knight and other companies specializing in distribution. Sales channels are promoted through large-scale third-party platforms (Meituan, Hungry, Word of Mouth, etc.). ) and local foodie associations and communities. When the consumer places an order for delivery, we will have the opportunity to contact the consumer at the first time. At this time, we will give our official WeChat account, APP and preferential policies to consumers for the first time, and make new moves to form our own ecosystem.
Through commodity trading, capital accounts are established for merchants and users, and the withdrawal time of capital accounts is managed by platform, thus forming the embryonic form of internet finance. The platform carries out big data statistics on the amount of money consumed by merchants and users and the commodities traded in a certain period of time, and sends the statistical results to the merchants or users of the platform, so as to count consumers' purchasing habits and commodity usage frequency, and can more accurately deliver new products to target users.
Fourth, summary.
Whether doing Internet products or traditional store management, the first thing to consider today is user thinking, product thinking, iterative thinking, innovative thinking and extreme thinking. We should accurately locate the products and business ideas we design among users and consider which users we serve. Where are the users? How to acquire users? And how to retain our users? At the same time, we should also consider the differences and advantages between our own projects and competing products, and what pain points should we solve for users? Whether these pain points are true or false, the value itself depends on the commodity or commodity premium. Users should not only meet material needs, but also start with spiritual needs.
Five core elements of the Internet: people, information, content, goods and services. The landing and implementation of any business model revolves around these five points. The quality of a product or a project, in the high-speed momentum of social development, should use resources to integrate existing industries and rationally maximize the allocation of resources. Dig deep into users' needs, solve users' pain points, shift the commodity sales dominated by price in the past to a new consumption model with brand, quality, logistics and after-sales service as the core sales objectives, and then shift from quality objectives to experiential consumption and differentiated management. 20 16 is the year when the internet went deep into traditional enterprises. Traditional enterprises+Internet is the way to flourish. At this time+Internet as a tool can better serve traditional enterprises. In the future, all industries are big data industries. Looking for new business ideas on the road of data operation and exploring the magic weapon of long-term development of enterprises need to be found on the road. The final winner must be an enterprise that has insight into the essence of human nature through phenomena.