Four keywords for new retail

Why is the discussion circle about new retail everywhere and intensifying in 2018? If we look back at the evolution of new retail throughout 2017, we can find that all channel sales are directed to new retail, and this will be a turbulent market in the future. According to a survey of 25 large fresh food retail market companies, including Through visits to stores and community fresh food supermarkets, four key points were interpreted based on the perspective of C-end users.

Multiple dimensions of consumption patterns

Today's customers, almost none of them, only shop online and never go offline. It doesn’t say who is the online customer and who is the offline customer. Customers "shuttle" back and forth between different online and offline scenes. They are no longer exclusive to "one" channel or which scene. They are users of various scenes and omni-channels. Therefore, to create a better scene, it is necessary to provide more different "touch points" to meet consumer needs. For example, the overall online share is now around 20%, but you can see that the overall online growth rate is declining.

multi-level consumers

Nowadays, consumers have formed an increasingly diverse and multi-layered group. For example, the shopping lists of single people and new families are different from those of the elderly. The population of single people and the number of young families are continuing to increase. Based on this background and demand, you will find that the entire market is very inclusive and diverse, and can accommodate many and large business formats. Therefore, fresh food is a big market worth RMB 4 trillion, and everyone has great opportunities.

Keyword interpretation

"standardization"

At present, if you want to connect users and consumers, you must do fresh food. Because fresh food can bring high-frequency conversions. Fresh food is a "key category" for anyone who wants to acquire users, and is a "key category" for anyone who wants to enter the high-frequency consumption field and enter any scene. Therefore, we must pay attention to fresh food. At present, fresh food has also reached a good development trend. Why? Based on these points. First, the continuous transformation of standard products. With the improvement of the supply chain, you can see that all community fresh food stores and hypermarkets are working towards standard products, and investments are also underway.

"Central Kitchen"

1. Welcome the consumption upgrade. Fresh food.

The younger generation has emerged. Those born in the 1980s and 1990s have begun to "buy groceries." They want to begin to have the right to purchase fresh food at home, which means that a new consumption upgrade has taken place. They need to buy fresh products, semi-finished products, and chef-oriented catering products that are easy to cook more easily and quickly. This is driven by the demand for fresh food.

2. The central kitchen can create greater added value.

A central kitchen means that your product is unique and unique and difficult for competitors to copy. You have your flavor. Such unique and non-replicable self-owned products mean that it can generate higher user expectations and greater stickiness for the audience. Stores can make higher gross profits and have more opportunities to cover the "last mile" logistics.

3. The uniqueness and non-replicability of central kitchen products is also the basis for the "travel" between online and offline scenes.

Nowadays, if you want to make fresh food, you need an APP. The cost of acquiring customers for APP is very high. With unique and in-house fresh food products, this gives consumers a reason to open the APP and increases the probability of consumers clicking. It can have lower customer acquisition costs and higher stickiness than competitors.

4. The meaning of the central kitchen is semi-finished products and chef-oriented catering, and the distribution end allows users to "pay the bill".

For example, takeout platforms require consumers to pay a delivery fee of about 10 yuan for food delivery. This is easy for consumers to understand and cultivate. But if you simply send a few bottles of water, drinks, or buy some snacks, they are all standard products, and consumers will be charged a 10 yuan delivery fee, which consumers are not willing to accept. Therefore, it is easier to cultivate consumers' consumption habits by providing some semi-finished products, or catering or cooked food products, because there is added value in them.

"Digitizing"

Why digitalization? Because if data cannot be retained for fresh products, you will not be able to understand customer needs more accurately, and thus you will not be able to create more value-added things. For example, financial products based on consumption, or customized products based on consumer needs, which means that a major premise is that digitization must be done. After digitization, the high-frequency traffic of fresh food can be realized due to the existence of consumption data. The digitization of fresh food is also a process from "non-standard products" to "standard products", and it can also be used as a consumer finance and marketing tool. The most important point is,

Digitalization has three values:

First, identify the customer. After digitization, consumers can be identified and an evolutionary process from "acquiring fresh food customers" to "identifying customers" can be completed.

Second, precise service. With high-frequency customer acquisition, the next step must be to identify customers (consumers) and provide accurate services. This is the basis for digitalization to generate added value and profit revenue. Only by identifying consumers can we provide goods and services more accurately, reconstruct the supply chain, guide product selection, and better control losses. Identifying consumers digitally means that traffic has better monetization value, which can help establish consumers' credit files and help develop businesses such as consumer finance. The high-frequency attribute of fresh food can tap more profit space.

Third, improving operational efficiency can also reduce operating costs. For example, some retail companies have established a digital system, digitized their work processes, quantified people, and improved human efficiency. For example, "store patrols" and other tasks can be completed in the office, and there is no need for so many "store patrol personnel" in the past. We think this It’s brought about by digital processes.

"convenience"

We believe that the core of future competition will be competition in convenience - whoever can bring greater convenience to consumers will have greater advantages. Where is convenience mainly reflected? We think there are three points.

First, closer to consumers

Why have a large number of community fresh food stores sprung up in the past two years? Everyone is making a fuss based on community entrances and getting closer to consumers. It’s all about convenience.

2. Online delivery has risen to “minute-level delivery”

From "half-hour delivery" to "19-minute delivery" now, fresh food demands earlier and faster, and people want to get many products earlier.

3. Easy to cook, fresh food

In order to allow consumers to reduce cooking time and shopping time, fresh food stores are standardizing products and providing a large number of semi-finished products, making it easier and more hassle-free for consumers to prepare a meal without spending too much time shopping and cooking. . In the past, consumers would pursue cheaper prices. In the future, how big will the price difference of 10% be for consumers? Not much difference. What everyone is comparing is how you can help me save time and how you can help me obtain convenience. Convenience will compete in the future market. Summary: To seize the four trends of future competition in the community fresh food market, we need to make good standard products, make good central kitchens, make digitization, and make convenience.

Summary: In the near future, the following trends will inevitably lead to community fresh food competition: product standardization, central kitchens, digitization, and convenience as much as possible.