Who is singing the bad news of the fresh food industry, sinking the market cannot give Yipin fresh food the core potential

，，。

@

，Fastdata，20112020，1500。1B+，，Weee!3D。，，。

，，，，；，。、，。

，，。

，2014，“++”，2013，，。

To this end, this article will disassemble the dark horse player Yipin Fresh from the supply chain to the store model in the fresh food industry, and try to answer the following questions:

1.

Why can Yipin Fresh Food do a good job in sinking the market?

2.

Compared with peers, what is the difference of Yipin Fresh?

3.

From the perspective of the industry, what are the hidden worries that Yipin Fresh will face?

01The sinking road of Yipin Fresh

01The sinking road of Yipin Fresh

Before the rapid development of Yipin Fresh Foods, Pinduoduo has completed the market education of the elderly consumers and price-oriented psychological populations in the sinking market.

Pinduoduo has successfully opened the next stage through the rapid fission of WeChat and the M2C minimalist supply chain model.
The e-commerce outlet in Shenyang Market has also paved the way for other players with strong connections to produce fresh food e-commerce.

In the era of mobile Internet, users and traffic have become necessities for various platforms to seize.

This is no exception for Yipin Fresh.
However, what Yipin Fresh has to face is not only the industry market share competition between community group buying and fresh food e-commerce, but also the inherent pressure of individual fruit and vegetable supply stores and vegetable markets next to the community.

Unlike Hema Xiansheng, which focuses on cold chain and in-store dining, the main competitiveness of Yipin Xiansheng lies in its low price advantage, which captures the user's price sensitivity psychology of "good quality and low price".

In terms of the SKU volume in the store, Yipin Fresh is between the small convenience stores in the community and Hema and large supermarkets.
In other words, Yipin Fresh does not have the richness of species.
Absolute advantage.

How to fight the price war and how to maintain profitability while the price is lower than the average individual fruit and vegetable supply store? On this point, Jiang Jianhui from Yonghui Supermarket has already given the answer:

For any company engaged in commodity retailing, grasping the supply chain from the source is the best way to save costs.

By grasping the supply chain at the source, and then according to the commodity market, buyers and sellers make reasonable prices in the market, which not only reduces traffic costs, fulfillment costs and loss of fresh food, but also caters to the price needs of consumers in the sinking market.

For this reason, Yipin Fresh has directly purchased and contracted production capacity by paying a deposit to the upstream, and then grading at the production area, and establishing a sorting center and a processing center.

In addition, Yipin Fresh also has its own breeding base, planting base and seafood wholesale market, and at the same time does toB-end wholesale and toC-end retail.

This two-pronged and integrated operating model has helped Yipin Fresh to integrate the supply chain and ensure the stability of cash flow.

That is, it will not cause excess inventory due to changes in consumer demand, and it will be able to obtain timely and accurate information through wholesalers.

This means that in terms of obtaining information sources, Yipin Fresh has a misplaced competition with traditional retail producers, and the forward-looking information flow allows Yipin Fresh to stand out from the competition with vegetable markets and supermarkets.

, And know what kind of fresh products users want.

In terms of logistics, Yipin has established a warehousing and distribution center in each city.
Through its self-built logistics system, it has ensured that the processes of planting, breeding, transportation and entering the counter are completed by itself.
This is quite similar to Jingdong Logistics and Jingdong.
The relationship between shopping malls.

In terms of store model, Yipin Fresh has inherited Yonghui's partner approach.

The clerk in a Yipin fresh food store, including the manager, the cashier, and the vegetable seller who shouted at the counter, may be partners.
The advantage of this model is that while mobilizing the enthusiasm of employees, it also brings different business methods to Yipin stores everywhere.
The decentralization model enables employees to have more autonomy, and the sales method will be closer to Yipin Fresh.
Target audience-people rooted in the kitchen.

It is worth noting that Yipin is also significantly different from fresh food retailers such as Hema Xiansheng in terms of product standardization.

Hema uses standardized and refined packaging.
Consumers can only choose from the packaged products.
However, in Yipin Fresh, consumers can purchase products selectively in quantity according to their needs to satisfy In the sinking market, consumers do not want to go to the vegetable market but can obtain the desired low-priced goods, that is, allowing consumers to quickly complete the purchase action within the "last mile" range.

02 Increasingly fierce Red Sea market

02 Increasingly fierce Red Sea market

According to Porter’s five-force competition model, companies in the market often face pressures in the following aspects:

1.
The bargaining power of the supplier; 2.
The bargaining ability of the buyer; 3.
The pressure of competitors in the industry; 4.
The pressure of potential competitors; 5.
The threat of substitutes.
These five types of pressures are also what players in the fresh food industry need to face together.

After the realisation of small fresh food businesses has become an industry outlet, more and more players have entered the game with the favor and support of capital.

This is not a good thing for Yipin Fresh.
In fact, before a large number of competitors entered the game, Yipin Fresh faced the inherent threats from the vegetable market, large supermarkets, individual fruit and vegetable shops in the community, and community convenience stores.
The main product of Yipin Fresh: vegetables, fruits and vegetables.
In front of an independently operated vegetable market that is a self-contained vendor, the advantage is not great, only the convenience of the last mile is negotiable.

In addition, fresh food companies that focus on product segmentation such as Hema Xiansheng and Qian Auntie are pressing for Yipin, and both of them firmly occupy the customer group who pursues quality of life in first- and second-tier cities.
The implication is that no matter whether it is in the retail of seafood or black pork, there are giants standing.
This also explains why Yipin cannot break through the sales of pork and seafood, and it is still struggling in the fruit and vegetable area.

In terms of online channels, according to Fastdata data, in the first half of 2020, more than 25% of consumer goods will be purchased through e-commerce platforms.
Among them, the proportion of online fresh food consumption is less than 5%.
Fresh food e-commerce still has a broad market.
The market space has yet to be explored.
The obvious feature is that in 2020, JD Daojia has a successful IPO; Dingdong Maicai has opened 18 front-end warehouses in Beijing; Meituan has entered the community group purchase; Ali retail has entered the market.

Industry insiders said to Xinmo that it will be difficult to really open up the situation in the future if it is purely a store operation.

Compared with Dingdong Shopping, which focuses on fresh food e-commerce, Yipin does not have the first-mover advantage of online channels.
Compared with Hema, Yipin does not have the ability to respond quickly and the natural flow of Ali.

Even if Yipin Fresh puts more effort into offline stores, the number of stores is far from reaching the expected standard.
In 2019, Yipin once claimed that it would complete the opening of 1,000 stores by the end of the year, but the final effect was far from the same.
At present, Yipin Fresh's stores are mainly concentrated in second-, third- and fourth-tier cities.
The spread of the stores is relatively small, and the influence of the brand is still insufficient.

Tencent's "fresh food + community group buying" enterprise is the best choice for prosperity.
It already has 80,000 stores in Hunan alone, which is several times that of Yipin.
According to the official data of Xingsheng Optimal Selection, in 2019, Xingsheng's annual GMV (total turnover) exceeded 10 billion yuan, and the average daily order volume exceeded 7 million orders.

In terms of the number of stores alone, Yipin's freshness is beyond the reach.

From an operating point of view, Yipin Fresh now only relies on the sinking of vegetable categories and the misplaced competition of competing products.
Taking into account market pressure, the profit point will not be too high.
The operating expenses of large-scale stores are fixed, even though the partnership mechanism The binding store staff model can maintain a certain degree of stability, but the category cannot be expanded, and there is not enough market share, and subsequent continuous operating pressure still exists.

Therefore, although Yipin Fresh Foods has embarked on the train of Tencent and has the escort of capital, in the future, if Yipin does not improve its own operational capabilities and truly establish the core moat of the brand, it may not be impossible to be abandoned by capital.
At that time, Yipin's departure may be the old story of Yunchu.

03Where is the fresh food industry?

03Where is the fresh food industry?

From the current development trend of the fresh food industry, there are two paths for the fresh food industry: one is a differentiated business strategy, and the other is a more subdivided track, that is, the expansion of single products to all categories.

A more subdivided track is like Aunt Qian, who uses pork to start a market brand, starting with a subdivision track, and then gradually spreading the category SKUs, and finally becoming a comprehensive fresh brand.
However, with this refined operation method, the customer group it faces is a relatively high-end customer group.
The pursuit of quality of life for this part of the population is far more sensitive than price sensitivity.

Therefore, this model is not suitable for the fraternity fresh food that currently focuses on the sinking market.

However, the path of differentiation may be something players in the fresh food industry can try.

First, different products can be selected through different regions, and different category SKUs can be set up.
In this regard, the Friendship Fresh Food that adopts the partnership system has a greater advantage;

Second, players can adopt the model of self-built logistics system and warehouse management system to ensure the freshness of the goods sold in the store.
This is a capital-heavy game and requires a period of deep cultivation;

Third, cooperating with e-commerce SaaS to establish independent self-built stations is the choice of most fresh food companies, thus ensuring the dual radiation of online and offline corporate brand power;

Fourth, by building its own supply chain to ensure quality and reduce prices, at the same time, it can respond to market information in a timely, accurate and sensitive manner through changes in consumer market conditions, and make timely adjustments to the supply chain to form a high-quality closed loop.
The efficiency of integration is extremely high.

In terms of supply chain, it is not easy for China's fresh food e-commerce companies to do well.
Due to unpredictable weather conditions and changes in the consumer market, it means that the supply chain needs to have a certain degree of anti-risk ability, and increasing the input of the supply chain becomes a heavy asset model, which is very likely to drag down the enterprise Capital chain, these are issues that need attention.

China's fresh food industry is still on the way, but Yipin Fresh is lucky to be the first to seize the gap in the sinking market.

Source: New Eye

Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

xianjichina.
com">Return to Xianji.
com to see more