From the online and offline and business model analysis of how to transform the convenience store

Author: Pinto Business Review - Allen Huo Source:联商网2016-02-05 08:45:57

一、行业背景

We habitually take 2012 as the first year of the mobile Internet, the transformation of the entire business model is no longer dominated by the pure online Internet or offline traditional retail stores to dominate the development of the economy, the Internetized Commodity sales are far from reaching the level of China's entire retail consumer market. In addition to the formation of consumer habits, more needs to be the convenience and personalized goods as a barrier to competition in the industry.

In the 1990s, we defined the essence of the Internet as the "link", which is the link between people and information, through a network cable to solve the demand for information and efficient matching. This behavior is a single structural development of point to line. To today's Internet we pay more attention to the "mutual" element, mutual is interaction, the actual nature of the main body has changed, the source of all information is all the way between the person and the person's initiative to produce, by the person as the point of information dissemination. Such information or content access is through an ecosystem network organically linked together, everyone is the output of the information on the network, people get information path is more short, more time-sensitive, more dissemination. People's demand for goods and services is also more simple, easy to operate, passive consciousness gradually developed, treating the same thing will not waste too much time, prompting the work or life time gradually fragmented, static, high transport transformation.

The traditional retail industry through the O2O mode of convergence, favorable to alleviate the online e-commerce and physical stores of the competitive situation, while the Internet high information access to the timeliness and cross-regional nature of the Internet is the Internet's own advantages, but also its disadvantages, the user can not be the first time to experience the quality of the goods themselves and value-added services to bring the value of the only through the text of the picture of the description of the perceptual awareness of the attributes of the goods. The arrival of the O2O model is also the best choice for online commodity landing, this model will be the degree of convenience of commodity information, rich and diversified output of differentiated services and a perfect blend of good experience, the full mobilization of the user's seven feelings and six desires, all-round to meet the user for the trust and participation in the experience of the feeling!

Second, the background of the project

From the production of goods to the sales of circulation channels and the time to reach the hands of consumers to measure the last kilometer distribution solutions. Until today purely e-commerce enterprises are not only platform-based competition, but more commodity differentiation, non-standardized commodities, unified sales service, logistics system, warehousing capacity, organizational structure, team management competition. Online goods and services are also gradually integrated into the offline system to form a closed loop O2O.

On-line commodity display and payment mode has the significance of trans-era, off-line scenario-based consumption and social commodity trading is the new consumption mode which is incomparable to online. The establishment of a scenario-based consumption model is the only powerful weapon that can compete with online e-commerce. In the future, who is closer to the user, who will be able to control the user's psychology, the relationship with the user, the process of maintaining this strong relationship is the process of constant influx of money.

The essence of logistics and distribution is to solve two major blocks: one is "distribution" and the other is "delivery". For the distribution and delivery to organize a set of methods that can be realized on the ground.

The significance of distribution; reduce distribution costs, meet the timeliness, control logistics enterprises warehousing and distribution capacity, optimize the geographical distribution mechanism, and enhance the customer's experience of the degree of commodity services.

E-commerce enterprises to solve the last kilometer distribution services are mostly taken as the following partnership:

Third, the business model

1, the physical experience store to establish

Venue to set up

The traditional business is concerned about the geographical flow of the factors, the absolute business district or residential area is undoubtedly crucial to the establishment of the store decisive role, he is a natural way of obtaining the traffic Sharp weapon, the site should be placed in the surrounding office buildings and residential buildings near the location, convenient transportation, preferably interchange stations, young families and white-collar work gathering lots, the surrounding commercial support is perfect, relatively little competition in the same industry. The experience store requires 60-100 square meters, business area and experience leisure area accounted for 50%.

Service crowd

The competition between the physical convenience stores in the pure sense is very large, the traditional merchandising moved to the mobile Internet is the trend, not simply to catch up with the fashion, but to make the goods and services more simple and convenient. So to take a traditional retail + Internet road. Most of the popularity of the Internet object is tending to the younger state, they have a solid Internet software operation and network payment trust habits, but also the absolute owner of the family wealth. For the older uncles and mothers, they have relatively more time, high price sensitivity, poor brand dependence and price-oriented. It is difficult to cultivate Internet selection and payment. So the service crowd is set between 25-40 years old, with strong consumption power, a sense of dependence on the brand, and young people with repurchase habits.

User needs:

1, from the level of geographic location; the user needs to solve two immediate needs, the first is the need to produce the same goods in the nearest distance of his activity range of preferential prices to drive their purchasing behavior, the second need is the geographic location of superiority and distribution of timely response speed is the focus of the user's consideration.

2, from the point of view of the types of commodities; users need to use instant commodities to meet the material needs of the moment in a short period of time, for example: buy cigarettes, spices, buy water, buy meals and other behavior. These commodities have a *** with the same attribute is immediately immediately occur, such commodities as a re-enough to meet the highest rate of commodities to meet consumer demand, so we often see the traditional super promotional programs are high-frequency with low-frequency, low-frequency commodities in the high-frequency commodities around to pull the sales of low-frequency commodities. (Low price with high price is also the usual sales method of e-commerce enterprises) Users can buy standard products in addition to a certain range of small stores, in fact, users prefer to buy branded non-standard products, it is the existence of non-standard products to the convenience store to bring more profit precipitation. Only gradually increase the number of non-standard products and self-supporting goods sales is the convenience store where the biggest profits.

3, from the distribution speed of timeliness; now the convenience store is through the "full delivery" activities throughout the distribution of standard conditions, through the distribution of timeliness to solve the user's understanding of lazy and convenient, with the speed to measure a convenience store to the user to bring the experience of a good or bad. Traditional convenience stores not only from the quality of the product range and differentiation to meet the user, but also to provide more efficient delivery services to increase user stickiness.

Competition risk:

Let's take a look at the business competition faced in traditional convenience stores.

First of all, the husband and wife convenience stores; opening distance gradually small range, store and store distance is getting closer and closer to the serious homogenization of goods, as a commercial office buildings or neighborhoods around the easy to find in a few hundred meters around us there will be the existence of a convenience store, these small stores relying on the natural flow of people and geographic location to carry out their own business, the sale of goods are directly purchased from the local wholesale market. The difference is the difference in profitability, with rent and staffing being a major component of the cost.

Second, branded convenience store chains; most of these convenience stores are from Japan or China (7-11, Wing Fai, and Express), which not only occupy good locations but also have a larger square meterage of stores than the husband-and-wife convenience stores. Commodity procurement is directly supplied by the back end of the supply chain, in the procurement cost and billing period have a unique advantage, perfect selection, logistics, return and exchange mechanism makes these brand chain stores can effectively control the marginal cost, in the composition of the goods 30% of the self-supporting goods, that is, their own brand, the traditional convenience stores in the profit of a single product between 20% -30%, self-supporting brand profits up to 40% -50%. 50%. The unified process management and service is the husband and wife convenience stores do not have the conditions.

In today's O2O prevalence of these brand stores using the scene of marketing, no longer purely in a short period of time with the user only once the sale of the relationship between consumption. But to create a variety of scenes to promote consumption motivation, placed in the leisure area to provide users with a place to communicate and talk, the flow of users into the dine-in users, in the commodity category, not only to sell pre-packaged food, as well as self-supporting lunch lunch and leisure processed food, and even in the business hours to do 24 hours, as well as the night delivery mode.

Solution:

First, from the store on the transformation; decoration style to be different from the traditional convenience stores, such as decoration with warm colors decoration style and light music to create a shopping atmosphere. The establishment of the experience area, experience area is dedicated to the user recreation place can eat, can communicate, the store set up a wireless network for users to access the Internet, experience area to display business promotional products for free for the user to taste, feedback product opinions, can be bought and sold on-site must immediately produce a paid behavior.

Second, from the perspective of the goods themselves to measure; convenience store merchandise is composed of two major blocks, one is the standard product, one is non-standard products. The standard product is either from the network or offline competitors can buy the goods, this kind of commodity branding has been formed, we understand the quality and price of the commodity itself, the only motivation to buy is the price concessions delivery convenience. Often such commodities themselves do not have much profit, in the shopping frequency of high-frequency goods. Non-standard products are not standardized personality self-supporting goods, these goods itself is not a strong brand, volume model is not suitable for such goods, such goods in addition to the quality of the product itself and the need to store operators to promote and sell.

Third, to increase the high profit instant delivery of goods; such as fresh food, fruits and vegetables such as food commodities itself by the degree of freshness of the impact, you can cooperate with such e-commerce enterprises to do the last kilometer of offline distribution of the pick-up point, provide refrigeration and preservation services, not only can charge a portion of the cost from the enterprise can also be used to take the goods of the user to bring the sale of other commodities. If you are in a residential area and have back-end purchasing resources, you can consider the sale of some of the fresh commodities self-branded.

Fourth, the "lap"; convenience stores can survive and increase revenue sources can also be specialized in solving the last kilometer distribution of commercial companies, such as courier companies. Earn instead of sending parcels and picking up parcels on behalf of the service fee. This will be able to attract more users to the store through this program, as long as the store can generate other goods sales and services. Cooperation with large e-commerce as a large e-commerce platform to solve the last kilometer of the tentacles, directly to the user's family, e-commerce cost-effective goods and offline sales prices synchronized development.

Fifth, increase the service consumption nodes; this will be the traditional convenience store transformation feasibility of action, go with the community service third-party business cooperation for them to provide door-to-door service venues. Such as manicure, massage, laundry, merchandise ordering services to earn service fees and site use fees, to provide offline advertising space for enterprises to obtain the entrance of offline users. For service type enterprises to do the graft, expand their own traffic and consumption amount.

Sixth, the WeChat public number and shopkeeper private micro-signal set up; the core of O2O not only lies in the online or offline for goods and services for a display and experience, the more important issue is to control the payment method, from where to pay from where to get the flow of the entrance, this point must be thought to understand, if the payment link on the WeChat public number, naturally, is the flow of the offline for the line! Or online goods through the online order, online payment. Then offline pickup or delivery, such a set of O2O mode is established. Seize the payment entrance is also the top priority of BTA, there are entrances to traffic can be derived from other ecosystems. The significance of the public number is to bring together more people around the community, so that they form a community, the formation of their own circle on the network, will have **** the same values of the people through the goods or through the activities of the people will be gathered in a unified community. Here can be exchanged to discuss what happened in the community, some of the feelings of life and some of the neighbors for help and other information. At the same time, the public number to manage and serve the surrounding population, the public number as a customer service and call system is the best function.

Once the trust system and the flow is established, the self-owned mall on WeChat will play a role, and users can place orders directly on WeChat and have them delivered by the convenience store, which will immediately play a role in terms of timeliness, convenience, and variety of choices. At the same time, self-managed products will be an important part of the profits of this system. Convenience store is a property with the owners of the bridge and link role, the public number of the first time to release the announcement of the property information, so that owners understand the property notification status when leaving home. The establishment of private micro-signal to manage service users is also an important part of the use of the circle of friends to present the latest activities and promotional products, WeChat itself is based on the circle of acquaintances to do the purchase and sale transactions, when there are activities or new product promotions, the user naturally the first time to respond to the action, but also through WeChat to notify the user of parcels to the store information, so that the customer feels that their own things have someone to keep, to increase the sense of security!

This is the first time that we have seen a new product in the market.

Seventh, the establishment of community; in recent years social e-commerce in the field of e-commerce is a latecomer, people's trust, circle, interest, security needs gradually increased. Convenience stores as the user in a fixed place in and out of the most consumption area, should be the area of the crowd through the WeChat group way to integrate together, so that easy to communicate management services and organize offline activities. The community as the closest to the user of the Internet using tools, can be a short time to establish trust, closer to the distance between the product information brand and the user, here is also the first hand to get the user's concerns and needs of the direct channel, but also the feedback center of the opinion. It is also a feedback center for opinions. It is also a channel for activities and content dissemination and sharing in WeChat public number. At the same time, the online community is also for the offline community to serve, the establishment of the experience area is for the community to meet offline to carry out small salon service place. Here there is more cohesion, a sense of participation, interactive topics. As long as there will be *** the same values of the crowd to form a circle, in the circle to disseminate valuable content can increase the degree of user loyalty, so on the sale of goods and services when you can quickly produce purchase behavior.

Profit model:

Regularly hear a lot of people say that money is not good to earn, in fact, not good to make money, is not the way operators think with the progress of society with the development of the vision to look at the problem. The original experience is applied to the implementation of new things in the direction of the development of traditional enterprises with the system and experience to guide the development of existing enterprises, belonging to the resource-based business strategy. The Internet companies put more consideration on the control of user needs, personalization and differentiation as an important part of the competition between enterprises. The way of thinking of traditional enterprises is destined to be incompatible with the modern Internet business logic, such as businesses in order to seize the user, with the form of free to obtain users, such a way is not desirable, in fact, free is also a form of charge, but this temporary free to get more users in a short period of time, and then the user will be paid for the management of the fees and profits. The Internet has a classic saying called "wool in the pig, the dog to pay the bill," the hidden logic behind it is to tell us that the essence of the Internet business profit is not to rely on the commodity itself to profit but to rely on the added value and value-added services to provide differentiated competition to obtain profits.

Look at how to go to profit:

A. Mass consumers into membership consumers; members of the presentation of two ways: one is the recharge full of how much money to send how much money, such as recharge 500 to send 50 yuan. The other is annual membership, as long as the user is a member in our place can enjoy all the goods and services of the relative preferential discounts. For example, annual membership is 188 yuan, to the store all goods are 10% off. Design of such a membership system is to give up the profits of the goods themselves to rely on the development of membership fees as the store's profit model, the advantage is that once you lock the user, the user will not go to your competitors to go shopping there. Then with the holiday activities "full reduction, coupons, red packets, points, sharing, gift bags, discounts," and other activities to increase the frequency of users to the store and the number of orders, a short period of time to pull up the operation of the indicators.

B. Establishment of private labeling; private labeling, as an important part of traditional offline store profits, is a reasonable alternative to standard product profits. The future will rely on brand premiums to catalyze the development of new industries. For example, when the volume level is large enough, the rigid standard product labeling production to do OEM. the most can become the development of private label is fresh food, because the fresh food industry itself does not have a giant enterprise, and by the limitations of its own freshness conditions, so that the advantage of the origin is too centralized, the advantage of the non-origin of the bottleneck in the transportation and warehousing interventions, so the price is soaring. Such as origin in the dragon fruit 1 yuan a catty, to the north on 5 yuan a catty. There is a certain difference in price alone, not to mention the brand premium, so these problems can be rationalized through small stores. Owned brands will play a vital role in the last kilometer of convenience store distribution.

C. Display and show fees; charge third-party merchandise display and show fees for third-party online attraction, offline experience, users can take online or offline free payment method. Convenience stores are used as the entrance for information landing, and the information of different industries will be pasted and displayed inside and outside the store to collect a certain amount of advertising fees and service fees.

2, the central warehouse + idle resources timely delivery

In the target population concentration area to establish their own company distribution warehousing centers, this program is the face-to-face scenario marketing placed at the end of the sale of goods, the distribution process and rapid response to the full release, when the business model and profitability model by the limitations of the industry itself, it is necessary to consider the change in thinking and the establishment of their own marketing Channel change strategy. With the reduction of inventory commodities and rapid wholesale sales of commodities to increase cash flow reserves, rely on the transformation of commodity volume level, unified distribution and management, brand **** enjoy the way to reduce the marginal cost of doing business, improve efficiency. The business model and soft management to the operation of the strategic level, with light assets and saving means to establish warehousing and timely delivery to improve the industry's competitive barriers, the price factor is no longer the only criterion for customers to consider.

Large-scale purchasing or for suppliers to provide sales or warehousing channels, on the one hand, can reduce the cost of procurement costs on the choice of suppliers and cooperation on the dominant resource position, control of the return time and suppliers to give preferential welfare activities, which in turn, to enhance the organization of the merchant or user activities in the image of the independent brand as well as the share of sales of homogeneous goods in the retail market. On the one hand, the two sides to take the cooperation **** win way to do long account period, with free warehousing to go on behalf of the sale of goods to obtain profits, and within a certain period of time on the goods of the checkout settlement. These are favorable conditions for catering to suppliers to cooperate in sinking cash flow. On the other hand, the settlement of store rent, staff costs, management, procurement, logistics, services and other aspects of the costs associated with the costs incurred. At the same time, the distribution response time has become the biggest constraint of this model.

Solution:

A. Take the central warehouse as the connection point, do the extension of B2B. The procurement of goods for retail merchants wholesale distribution sales, combined with the merchant system on the platform for the order, for the national merchants to carry out unified distribution of goods and ordering services (Shenzhen to do the pilot MVP trial and error) for the merchants, the procurement advantage lies in the price advantage, timely delivery, to help merchants to establish the WeChat public number, the purchase of goods entrance and payment entrance. Through LBS technology, users can directly search for the nearest convenience store for online order delivery. With e-commerce "full reduction, coupons, points, red packets, gifts, discounts and other concessions to stimulate the incentive to buy. The future plan is to cut into the community O2O through community e-commerce and just-in-time delivery.

B. Take centralized warehousing as the merchandise delivery platform, and make use of idle human resources to carry out one kilometer of delivery service in the surrounding area. Group buying such a business model is known as the originator of the O2O business model, the most representative is the United States, Hungry's third-party platforms such as this, the way to raise the user's purchasing habits is to be presented through the subsidized way, such a platform if you don't change the business model, simply go to rely on subsidies or the use of commodities itself to get the user transaction frequency to buy is sure to die, and has been relying on subsidies is never see the end. In the end. As a third-party platform should be in the central kitchen, unified standardized commodities, unified service process management, as well as their own distribution team to improve the competitive barriers with competitors. Central warehousing for the supply, production, research and development base, recruiting idle human resources for one kilometer distribution, but also with third-party distribution companies to cooperate in time delivery, such as: Dada, line one, Knight and other companies specializing in distribution cooperation. Sales channels are publicized through large third-party platforms (Meituan, Hungry, Koubei, etc.) as well as local foodie communities and groups. When consumers form the order delivery, we will have the opportunity to contact the consumer the first time, this time will be our own WeChat public number, APP and preferential policies the first time to give consumers and pull new action, the formation of their own ecosystem.

Through the commodity trading link, for merchants and users to establish a capital account, the platform management of the capital account withdrawal time, so that the prototype of Internet finance can be formed, the platform for merchants and users in a certain amount of time consumption of the amount of money and trading commodities for the big data statistics, the results of the statistics sent to the platform merchants or users, and then statistics on the consumer's purchasing habits and the frequency of commodity use, for the new products and the new products. The newest addition to the list is the newest addition to the list, the newest addition to the list, the newest addition to the list.

Fourth, the summary

Whether you do Internet products or do traditional store management, today the first thing to consider is the user thinking, product thinking, iterative thinking, innovative thinking, extreme thinking, the products we design and business ideas accurately positioned to the user, to consider what we actually serve the user? Where are the users? In what way to get users? And how to retain our users? At the same time, we need to consider the differentiation and advantages of our own projects and competitors, to solve the user's pain points? These pain points are real pain points or pseudo-pain points, the value itself is generated by the commodity or by the commodity premium, the user to meet not only the material needs, more in the spirit of the need to start.

The five core elements of the Internet: people, information, content, goods, services. Any business model of the landing and implementation are centered around these five points, a product or a project is good or bad to be in the social development of high-speed momentum, to use resources to integrate existing industries, the rational maximization of resource allocation. Digging deep into user needs, solve user pain points, the past price-led sales of goods over to the brand, quality, logistics, after-sales service as the core sales target, and then by the quality of the target over to the experiential consumption and differentiation of the new consumer model of business. 2016 is the Internet deep into the traditional enterprises landing a year. Traditional enterprises + Internet is the way of Daxing, this time + Internet as a tool in order to better serve traditional enterprises, the future of all industries will be the industry of big data, are looking for new business ideas on the road to data-based operations, in the exploration of long-term development of enterprises invincible treasure still need to look for on the road to change to meet the changes. The final winner must be through the phenomenon of insight into the essence of human nature of the enterprise.