Ali, Jingdong, Amazon all phases of the industry, why the bad news pouring in!

August 1, eat fruit to help in its micro-channel public number issued a notice, saying that with the help of fresh fruit will be officially closed on August 4th.

Fresh fruit help announcement said:

O2O subsidy wars, price competition and other products, although the fresh fruit with the help of constantly adjust the business, optimize the user experience, improve supply chain until the transition line at the store. Maybe we work hard enough, can not be one step ahead in terms of efficiency, but also underestimated the difficulty of fresh business industry. The past two years, we tried everything and no profit, but there is always ammunition exhausted one day, this day, I did not expect to come so soon.



Coincidentally, the recent clean vegetables fresh electricity supplier "Youth dish king" came the overdue wages, capital chain tight message.

This is the year to fall down or negative news came the first of several fresh electricity providers?  Xiaobian remember.

"If you love an entrepreneur, let him do fresh electricity providers, because there is paradise; if you hate an entrepreneur, let him do fresh electricity providers, because there is a hell," Apply "Beijingers in New York" phrase classic lines, the first stream all media · modern logistics News (micro letter: cn156news) small series, is a true portrayal of fresh electricity supplier industry.

It seems promising, but in reality difficult

One side is favored parties and expanding market space, like a magnet to attract capital and entrepreneurs flocked.

① booming market. Fresh electricity supplier trillion level of market potential, has maintained an average annual growth rate of 80% or more, but less than 2% online penetration.

Ereli Group founding partner Henry Yang issued "2016 China Fresh electricity supplier industry research report" shows that in 2015 China Fresh electricity supplier market transactions reached 49.71 billion yuan, an increase of 80.8% is expected in 2017 China Fresh electricity supplier market transaction size will exceed 100 billion yuan, the penetration rate of 7%.

② institutional investors optimistic. This set of data for institutional investors and entrepreneurs, and sketched out a paved with gold, and people can not refuse a wonderful prospect. Data show that in 2015 alone, 347 companies entered the market of fresh electricity supplier.

Even BAT also sit still. Ali easy to invest fresh fruit, Jingdong lead investor orchard every day, Baidu investment in the food I buy, Tencent invested excellent fresh daily.

The other side is, fresh electricity providers have not fared well.

③ negative news. Before eating fruit help, every day in late July this year, Beijing orchards close all stores in other regions Shanghai and other previously under the cloth stores have almost closed; early July, fresh love bees has been heard from since April, caught in layoffs storm , leaving tide and suppliers owed money news; in June, had a life of its fresh O2O project "would have a convenient" offline.

Amazon to get $ 20 million investment in 2014 delicious 2277 April due to funding chain problems and suspend business ......

General loss ④ industry. A widely cited data, the national electricity supplier more than 4,000 fresh profitable only 1%, essentially flat 4%, 88% a little loss, and the remaining 7% of the state is a huge loss.

This set of data, it seems that these "dead" of the enterprise, to find the best footnote.

Supply chain standardization, fresh electricity providers big pain points

9 percent loss, negative in the eyes of those who, fresh electricity providers will undoubtedly become synonymous with losses.

However, optimists see is probably another one scenario, 4% and 88% slightly breakeven deficit, meaning that 92% of companies, own a little more effort, it is possible to squeeze into the ranks of the profitable.

Optimists do have good reason, consumers for high-quality and convenient life just need does exist, low permeability is behind the broad market prospects.

In addition to just be outside and low permeability, so that a large number of entrepreneurs waging Another reason is the high frequency of consumption. "2015 China electricity supplier fresh research report" in a set of data - has formed a high-frequency users buying habits are not many, wher shopping once a week (or more) users accounted for 12.4%, half to buy a user accounting for 11.1%, while occasional users to purchase up to 65.8%, indicating that it wanted to eat at an attractive piece of cake is not easy.

However, only just need and great potential for development is not enough.

Fresh from closing the electricity supplier, the funding strand breaks seems to be common reasons for their "death".

Perhaps entrepreneurial loser should think about why the previous generosity of their investment institutions, in such a critical time, but Wujin pocketbook -

This may expose fresh electricity suppliers in the supply chain exists a common problem.

① upstream supply chain - procurement. A substantial proportion of fresh electricity providers, both claim to be "direct sourcing of origin", passed on to consumers in a fresh impression at the same time, save the intermediate circulation, maintain the price advantage.

However, this is a false proposition. In order to increase the flow rate of the platform to expand product categories to meet consumer demand. This requires cooperation with a number of fresh product origin. Category is rich, but if you do not have enough traffic to support sales of less than a single product, so that the platform lost bargaining power. There are a lot of number-only fresh procure electricity from supermarkets and wholesale markets nearby.

The most troublesome is the electricity supplier of fresh non-standardization of products, resulting from the upstream supply chain began to chaos. If the car is off the road wheels from a vehicle defect, doomed way inevitable accident; a box of fresh, improve standardization from the beginning no one, who can not protect fish products, who can guarantee price stability and value?

② middle reaches of the supply chain - transportation and warehousing. If we can do it "direct sourcing of origin", not to mention increase the procurement chain operating costs, that is, after the purchase of storage and transport, it is not a small fee.

Compared to developed countries, the proportion of cold chain transport more than 90%, only about 10% domestic. Throughout the cold chain for fresh electricity providers, is facing huge financial pressure; transportation and storage at room temperature, then push the high attrition rate of fresh products, also need to withstand higher operating costs.

Additionally, other vendors supply, distribution centers and other supply mode, also need to be fresh product to the store or warehouse, cold storage and cold chain transportation also need support.

③ the supply chain - Distribution. Statistical data show that the fresh produce can be delivered to consumers within 24 hours, re-purchase rate of 80-90%, the same day of 50 to 70% re-purchase rates, up to 30-50% of the day re-purchase rate, compared with only 3 days up to 30%.

This reflects the distribution of fresh produce demanding. Not only is the delivery time, but also for the delivery and distribution of vehicles and other hardware crisper has strict requirements.

Ensure the quality of distribution services for fresh electricity providers is a dilemma of choice: cooperate with a third party, it is difficult to ensure the timeliness and quality of service delivery; and self logistics from mentioning the point, pushing up operating costs.

In the first half, closed or those frustrated fresh electricity providers

On the first half of this year alone, more than fresh electricity supplier or business restructuring, or unable to support, declaring (temporarily) closed.

① Brand Name: fresh fruit help

Established: 2014

Close Date: August 2016. Fruits help in its micro-channel public number to make an announcement, said it would from August 4th official business.

Close reasons: in the circular, fresh fruit will help collapse attributed to fierce competition in the industry and financial strand breaks.

② Brand Name: orchard every day

Established: April 2009

Off time: in July 2016, media reported daily orchard closed some stores.

Closed shop Reason: Orchard said in a statement every day, closed shop to upgrade the service, as early as the end of 2015 will be "home every day" now upgrade to "Lightning delivery." "In 2016, the company's goods, services, a full range of upgrades, which include the company's Fresh O2O strategy."

③ Brand Name: love fresh bee

On-line time: 2014

Layoffs time: in July 2016, media reports, fresh love bees are large "discouraging" employees, the country had about 1,100 people "discouraging" to about 700 people, involved in marketing, operations, customer service, logistics and products department.

Layoffs reasons: the official response to the layoffs explanation is that "companies to optimize, restructure the sector." However, analysts pointed out that layoffs are due to the rapid expansion of urban love fresh bee business network channels lead to capital chain tight.

④ Brand Name: Socialist Workers Tootoo

Established: 2008

Executives leave: June 30, 2016, Socialist Workers Tootoo non Du CEO announced in the micro-channel circle of friends, announced his resignation from the Socialist Workers Tootoo.

Reason for leaving: unknown

⑤ Brand Name: Originally convenience

On-line time: August 2015

Offline time: in June 2016, "Life would have a" declaration "would have been convenient" incorporated "Originally life" changed its name to "speed up."

Offline Cause: strategic adjustment. It could have been life insiders say, would facilitate not closed, but the "speed up" the original pattern integrated into the life of B2C business.

⑥ Brand Name: Delicious seventy-seven

On-line time: May 2013

Closing time: in April 2016, announced the suspension of business

Close reasons: Amazon 20 million after obtaining financing, delicious seventy-seven failed to stabilize the team, the core members of the loss, internal management problems, decline in service quality, increased customer complaints. Continue to overweight logistics investment, so that the capital chain problems.