After being on the line, Now was already operating profitable in Shanghai, the first city in China.
According to the news that they were hungry, in September 2017, there was news that they were hungry. The new retail division was hatched internally to focus on unmanned shelf projects. The project was named "Now", and this independent brand was equipped with a dedicated team: CEO Chen Hao was the first person in charge of the supply chain of Alibaba's retail channel, which was also known as Ali Ali. According to Chen Hao, he was hungry. Now, after starting on the line, Now has already achieved operating profit in Shanghai, the first city settled in Shanghai.
Looking at the data given by Hungry Now, there are currently 150-200 million worth of points in the country that are worth laying unmanned shelves. Although the industry has experienced a period of rapid development in the previous period, the head players have only focused on 100,000 points. Therefore, according to Chen Hao, the market is very large and the industry is in a very early stage.
In January 2018, when I was hungry, I began to use a hummingbird system to support the operation of unmanned storage shelves in a small area in Shanghai. By March, the Shanghai area had all switched to a hummingbird-based replenishment mode. Chen Hao’s plan is to re-run for a while and quickly copy this model to other cities in the country.
In just six months, there have been no splendors in the capital market, and frequent news of collapse, withdrawal, and acquisition. The start-up company in this area of unmanned shelves seems to have not had a good start in the spring of 2018.
Being able to circle specific groups of people in the office and their time is an important reason why companies that are in the field of unmanned shelves bet on this track. However, it turns out that the rhythm of the laying of points, offline BD, operations, and the maintenance of supply chain and logistics, and the failure of any link, may set back the business itself that is not sexy.
What are the attitudes of the big companies that did not have big moves after the start-up companies folded? At least for now, a group of large companies that are preparing to make efforts in the new retail sector have not been deterred by the industry's temporary chaos. In September last year, there was news that it was hungry. The new retail division was hatched internally to focus on unmanned shelf projects.
At present, according to the news of being hungry, the project was eventually named “Hungry” and provided a dedicated team for this independent brand: CEO Chen Yu was the first person in charge of the supply chain of Alibaba’s retail channel. This department is also known as Ali in the Department of Alien. According to Chen Hao, he was hungry. Now, after starting on the line, Now has already achieved operating profit in Shanghai, the first city settled in Shanghai.
This once-in-a-time industry is rapidly moving toward consolidation. In the crazy days of last year, were you hungry. Now's footsteps are not so aggressive. Is this field that needs fine-grained operations an opportunity for big companies.
The "throttling" under the cooperation of resources Before this, on the platform of hunger, apart from the main business catering sales, there are always retail items such as snacks, fruits, drinks, flowers, and medicines. In December 2016, the Hungry New Retail Division was established. Chen Hao said that the current retail GMV accounted for about 5% to 10% of the total GMV.
According to a study released by Coatue in 2017, the GMV reached 6.26 billion U.S. dollars if it is hungry. If this data is estimated, the GMV of the retail business is about 3-6 billion U.S. dollars. Although the proportion is not high, the demand and growth as a business started in 2016 are real.
On this basis, the main logic to enter this battlefield is to hope that the office scene complements and coordinates the company's main take-away business. Of course, with the company's original supply chain and logistics resources, it also means that you are hungry. Now's business is more emboldened.
Among them, the supply chain system behind the new retail BU has been responsible for the B2B trading platform that has been on-line since 2016. There are dishes through the control of the upstream supply chain, to provide businesses with drinks, rice cereals, fresh fruit and other categories of supplies. Currently, there are already 5,000 food suppliers to establish cooperation, including Coca Cola, COFCO, Yihai Kerry and other brands, which account for about 1/3 of the suppliers, and the remaining 2/3 of the branded food is also a wholesaler. There are dishes in a number of major cities also have built warehousing and distribution systems, which can provide distribution from the city's Ogura to the Shinkansen.
Hungry. Now, No's unmanned shelves are in the beginning of combing whether to open a no-shelf business, Chen Hao and hungry? Management thinks that vegetables have already entered the scale of operation, this process has been established in all cities The big warehouse can support the expansion of the hungry shelf. Chen Hao said: "We do not build a system from scratch, but directly pay, and there is a scale of support, we will have better savings rates."
On the other hand, when it is hungry, a complete hummingbird distribution system has been established, which can also save the cost of unmanned shelves. Most of the startups in the industry had previously solved their distribution and replacement needs through self-built + outsourced and pre-positioned warehouses. There were also companies such as Mobs convenience and convenience bees to facilitate the store's role in current positions. However, it is difficult to establish and manage such a system from scratch. Unlike the traditional logistics where the four links and the flash delivery are located, the logistics and distribution of shelves are shuttled in the middle of office buildings, which is equivalent to entering the end of the city. If the distribution density is not enough, the cost of replenishment is high.
The current common replenishment method is through the lease of gold cup trucks in the city, and Chen Yu and the team study found that these gold cup trucks stop at about one hour each time. Each time they park, they need a waiting time of at least 20-35 minutes. 1.5 point replenishment, the value of a single replenishment is about 200-300 yuan, if coupled with warehouse leasing, vehicle leasing and labor costs, Chen Hao calculated, each single point of replenishment cost It is about 30 yuan.
What's hungry? Now's approach is to use the hummingbird station where the riders rest and train, as a transit point. During the time when the take-out orders are not too dense, the replenishment vehicles will come to the hummingbird station in cities, summon 10-15 riders and deliver goods. The goods will indicate the delivery address and specific needs. Each rider can carry 1-2 points. Bit of goods. This is equivalent to turning the distribution system into a radial network, and the Gold Cup can support more than 20 points of post-restocking at each stop.
“This is equivalent to turning the original HR serial model into a multi-person concurrency.” Chen Xi said, the overall calculation is hungry. Now the cost of a single replenishment can be reduced to 16 yuan, as low as the industry For 45 % of the total, gross profit is higher than 30%.
In this business involving too many chains, Chen Hao thinks that the biggest advantage of being hungry is instead the scale effect that has long been established, and it can also make this business “throttle-in”. "Including hummingbirds and food, because of the large scale, management costs can be shared and the cost structure is better."
Carefully "open source" from the hungry NOW given by the data given, there are currently 150 million to 200 million worth of points in the country worth to lay no shelves. Although the industry has experienced a period of rapid development in the previous period, the head players have only focused on 100,000 points. Therefore, according to Chen Hao, the market is very large and the industry is in a very early stage.
In January 2018, when I was hungry, I began to use a hummingbird system to support the operation of unmanned shelves in a small area in Shanghai. By March, the Shanghai area had all switched to a hummingbird-based replenishment mode. Chen Hao's plan is to run it over for a period of time and quickly copy this model to other cities in the country.
However, the previous plan was not an unrestrained expansion. When you are hungry, Now cares more about "cooperation." Currently serving food covers the T30 city, which is also the 30 cities with the largest amount of food-trafficking. If you are hungry, Now will also expand the city according to this scale and thinking. "In the near future, we will not rush to expand cities other than the T30. This is essentially a retail business, or whether we should go deep into the density of single areas."
From a strategic point of view, hungry and defensive no-input shelves are obviously complementary to the current main business takeaway market. Although compared with startups, large companies have relatively loose capital reserves, but retail business is generally a relatively thin business. If you blindly expand and launch a subsidy war, if you do not cooperate with refined operations, you will fall into the quagmire of burning money.
"This is not a blitzkrieg, but it should be a protracted war." Chen Hao said.
When you were hungry, the person in charge of Now, Chen Chen, was the first person in charge of Ali in China. Therefore, when operating costs are “throttling,” finding an “open source” approach to achieve profitability as soon as possible is also an issue that operators must consider.
Chen Hao said that once he is hungry, he can already make profits from Shanghai single city outlets. In addition to retail business and back-office gross profit, ads and traffic can also generate revenue. Since the brand effect of being hungry has already been very strong, many fast consumer or shopping mall brands have long been their advertisers. Have you been hungry or have you been hungry? APP has been exposed, or there is a promotion through a platform, and offline marketing. Already working with these customers, no shelves have become a new distribution channel. More importantly, what can you do when you're hungry? Now, you can combine user data that coincides with the office scene user and the takeaway business, and provide brand users with more granular user portraits to achieve the best delivery results.
In addition to advertising, hungry, Now also hopes to move offline traffic to online cash. According to the statistics of the hunger, Now, stable customers are currently placing orders 3 times a week, and the transaction frequency and viscosity are very impressive. Chen Hao has already started trying to buy a group and divert customers offline. "For example, if we bought a 20-dollar cherry on the shelf, we will guide users to buy a full box of cherry on-line at a unit price of 5 or 6 percent. The unit price will be higher and it will also pull the GMV."
Compared with the US group’s strategy of expanding its battlefield, Hungry CEO Zhang Xuhao has always stressed that his hungry mission is “focus and focus”. So the establishment of a decade, hungry, extending from the take-out platform to retail, and setting up a new retail BU, is the strategy of this strategy. Chen Hao said, "Our core business model is to help businesses on the platform to do O2O online business, so whether it is no shelf, or the whole new hungry retail BU, are trying to achieve this goal. ”
In March of this year, it was reported that Ali would spend huge amounts of money to acquire hungry, and integrate with word of mouth to become an important chain in its new retail business. In 2017, there were startup companies that asserted that this “war” on unmanned shelves will be won in 2018. In the current situation, it seems that although it is late for the big players who have more resources and are good at “increasing revenues and reducing expenditure,” they may be late, but perhaps There will be longer life.