During the repeated closures and control of the epidemic at the beginning of the year, the community business of fresh food stores was often very hot. The community was full of voices every day, and there were many people in the community who made inquiries and put together orders. However, with the stabilization of the epidemic, the popularity of the community began to dissipate, and it gradually became the “stagnant water” of the Internet that only merchants shouted every day.
As described in the title of an article of huwen in August: pulling a wechat group is the end of the era of private domain. In fact, the lack of business experience in offline passenger flow to the online private sector and the lack of business means to stably improve store re purchase are problems that almost all fresh food retailers need to face.
Take the fruit retail track as an example, has anyone found a new path?
The fruit business is sweet and bitter
Fruit retailing is a tough business.
Here, there are many players in the industry, such as chain stores, front warehouses, community group purchases, large supermarkets, and traditional farmers’ markets. Different players have different profit models, customer acquisition methods and operating costs, but they all have the same pain point – being tortured by the “delicate” fruit retail.
On the one hand, the loss rate of fruit is high. According to iResearch consulting data, the traditional fruit channel circulation needs to go through such links as the origin market, the origin wholesalers, the first batch of sales places, the second batch of sales places, and the terminal dealers. Each transportation of logistics will cause certain losses. In the retail terminal, the turnover speed directly affects the floor efficiency of the store. For example, the community group purchase industry, which is more time efficient, generally compresses the inventory through the pre-sale + next day self delivery mode to avoid the inventory loss caused by the long product turnover time.
On the other hand, the fruit retail market is highly homogeneous. China’s fruit market is characterized by a low degree of branding, and consumers only recognize the category / origin, such as Dandong strawberry and Luochuan apple. The product homogeneity of retail terminals is serious, and various fruit retail brands are more different in operation mode, with unstable customer base and low loyalty – which directly leads to the common pain point that industry players are facing difficulties in settling in private domain and promoting re purchase.
In fact, in the high-frequency and large demand fruit retail track, the players do not play much in settling user assets and improving re purchase.
The main community depends on the long-term reputation of users in the region, and hopes that users will develop consumption habits, and cooperate with friends circle, membership card storage and other basic private domain means; The main business is online, relying on various online platforms, and gradually anchoring the customer groups within the distribution radius through delivery, group purchase and other means, in coordination with the platform’s own delivery and marketing methods; As the main business supermarket, it relies on the convergence characteristics of the supermarket itself, and draws members to rely more on sales rhetoric, mainly focusing on SKU selection and cooperating with the marketing activities of the supermarket.
This is a card game that has to be played. While the bets of the fruit retail players who have been dismissed can be said to have their own advantages and disadvantages, the core goal is to maintain a stable customer base and transform the offline public domain passenger flow into the online private domain. Cooperate with sales promotion of channeled commodities and seasonal explosive products
Taking the most complicated “performance delivery” segment from online to offline as an example, due to the repeated operation pressure of the epidemic on the franchised stores, Xianfeng fruit announced that it would bear the distribution expenses of the nationwide stores from January 1, 2021, so as to reduce the burden of the franchisees, and at the same time, take this as the basis for encouraging the stores to operate online. This means that the headquarters needs to invest about 150 million yuan to combat market fluctuations.
But judging from the results, this confrontation was quite effective. Xianfeng fruit realized an unexpected increase in online orders, and the order volume of many stores was more than twice that of daily.
At present, the whole digital operation link of Xianfeng fruit has been relatively perfect. As the integrated “middle platform” of digital management, the headquarters has insight into the consumption mentality based on the data of the member CRM system to form a strategic reference, which is optimized by the business operation middle platform; As the actual terminal, the store bears the dual attribute functions of online and offline. With the digital membership system as the core, the online store takes the offline store as the front warehouse to undertake the business of self delivery and delivery to the store, while the offline store serves as the public domain of store traffic and continuously deposits user assets for the private domain of online members.
Last kilometer war
In the process of digital transformation, many retail brands often fall into a misunderstanding and lose the temperature of retail as the basis of interaction between consumers and brands. In Xianfeng fruit’s view, the core focus of digital operation should return to the service of “people”.
The pain points faced by Xianfeng fruit are: first, it needs to improve the efficiency of the store; second, it needs to precipitate the public domain traffic of offline stores to the online private domain. In view of this, Xianfeng fruit has done two things: introducing IOT equipment and launching Alipay small program at the same time, as one of the main positions of private domain operation, to help achieve global operation.
In order to improve the cashier efficiency, Xianfeng fruit is the most common payment scenario in the store. As an entry-level digital means, the common POS system has become one of the necessary infrastructure of retail stores. However, in the actual operation, there are still pain points such as operating machinery, poor interaction and limited functions, which can be called the last kilometer of the whole business digitization in the process of moving to the terminal stores.
There are many platforms in the industry that want to use this as a cut-off point to help enterprises reduce costs and increase efficiency from the consumption terminal. However, most of them are not systematic and open source enough to integrate into the enterprise’s own digital business system.
At the same time, Xianfeng fruit began to think about whether the payment scenario has the possibility of more user latitude. With the help of Alipay intelligent cash register system with IOT as the main body, Xianfeng fruit has realized the convenient ability of “one click membership”, leading the highly accidental and uncertain natural customer flow of the store to the stable online small program member flow.
Based on the open ecology of Alipay, after members are introduced into the Xianfeng fruit small program, merchants can issue coupons to consumers through the payment success page to promote re purchase, and can also obtain public domain traffic through the Alipay Star program to accurately match members and nearby users, so as to achieve effective user access,
From the recent partner conference held by Alipay, Alipay believes that the brand is the center of digital operation and management, and always needs to return to user value, focusing on the transformation to user asset management. The case of Xianfeng fruit shows that only when the user’s consumption experience is improved can the user side operation of the business have a logical premise.
For Xianfeng fruit, the essence of digitization is to continue to explore more possibilities for fruit retail. It is to dig a well one meter wide and 500 meters deep, focus on continuous deep excavation, increase digital vitality, and determine its own value in the market.
The exploration of digital deep-water area realized with the help of Alipay’s open ecology is only an attempt of global operation based on user assets. For the digitization of the whole fruit retail industry, it is only one corner. Under the premise of making the industry more refined and deeper, there are still greater industry barriers to be overcome by the market. For example, through the analysis of consumer behavior data, the demand side guides the marketing and category planning of physical stores, and even feeds the upstream supply side.
The industry is looking forward to fruit retail and telling more new stories.
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From the bitter business to the new curve, how many ways does fruit retail have to go?