PPE

Changing business model and looking for an alternative “breakthrough” for traditional retailers

more and more shops are pouring into a block with limited capacity. There is no doubt that the original business volume is also divided less and less. As a result, some “restless” block owners do not want to continue to keep the same business, and begin to break through the radius of the block sales circle to seek new profit space. 1n many industries of Taiyuan City, there are already some such shops secretly trying to change from “business” to “business”. But it’s not so easy to get out of the small circle. 1f we only rely on low-cost network, telephone and logistics distribution, and do not have enough attractive goods and services, then this way which is very easy to be copied by peers is obviously difficult to achieve such a “breakthrough”

a “business” has become a “business”

Zhang Kang’s Caiwei cosmetics discount store has been open in Taiyuan Wuyi Square for nearly three years. 1n Taiyuan, similar shops are distributed in the streets and communities

like Zhang Kang’s cosmetics discount shop, if it can be rooted in a block for two or three years, such a shop will at least make a steady profit even if it doesn’t make much progress. But just two years after opening, Zhang Kang added a new online shopping service in the same city on the basis of physical discount stores. On February 17, Zhang Kang and his partner Wu Yonghui were busy perfecting the new online shopping platform system in the narrow warehouse of the cosmetics store

the online shopping platform actually went online around New Year’s day last year, but Zhang Kang didn’t dare to promote it in a big way due to lack of manpower. Nevertheless, he still received a lot of business on the 1nternet. He often stayed in the shop, so he pedaled his electric car to deliver orders from the 1nternet

the change from “business” to “business” is also the beginning of his expansion of the sales scope of block stores. Zhang Kang calculated that in the past three years, he has accumulated two or three thousand members and customers, half of which are from around May day square. Although there are not many orders from the 1nternet every day, since the online shopping platform was launched, the scope of delivery has extended to several other urban areas of Taiyuan City, which has given him a lot of confidence

Li Xiaolin’s Pepsi help 1nternet chain convenience store almost quietly appeared on the streets of Taiyuan. What makes those customers who often patronize convenience stores curious is that there are more words of “1nternet” in convenience stores. Since last September, Li Xiaolin has successively opened six such convenience stores in Taiyuan. However, he is very clear that it is not realistic to rely solely on the traditional business model of community convenience stores to realize the idea of “small stores, big sales”

“generally speaking, the radiation range of a traditional convenience store is within 500 meters to 1000 meters, but now there are more and more convenience stores, and the traditional range has been shrinking.” He said that in order to achieve a wider range of sales coverage, independent convenience stores can only build more stores, but the superimposed cost is very high

Li Xiaolin doesn’t plan to spend all his money on physical stores. His mind is on e-commerce, and physical stores are just his platform to realize “small stores, big sales”. His idea is to connect these convenience stores through the e-commerce platform, so that it doesn’t need too many stores to cover the whole urban area of Taiyuan

the convenience store itself is not very different from other stores around, but in addition to physical operation and display publicity, Li Xiaolin’s 1nternet convenience store also provides about two kilometers of door-to-door delivery. According to the current plan, the scale of each convenience store is about 100 square meters, and a single store is equipped with five staff, including one or two delivery staff. When orders are busy, other clerks can also serve as delivery staff. As a result, the 500 meter sales circle has virtually expanded to about two kilometers

like traditional convenience stores and cosmetics stores, Chen Xiang has opened a pregnancy and baby shop in the community for two years. The reason why Chen Xiang decided to expand his sales circle is that he began to buy milk powder imported from Europe. He noted that although there are many companies purchasing imported milk powder online, there are almost no physical stores in the local area, and consumers’ acceptance of this is not very high; However, the local pregnant and infant stores and milk powder franchised stores do not provide imported milk powder purchasing, so he decided to use imported milk powder purchasing business to bring more business to his small stores

different from the general consumption demand of pregnant and infant stores, it is impossible to rely only on customers from nearby communities for purchasing imported milk powder. Chen Xiang also chose to use the way of online shopping in the same city to promote his imported milk powder purchasing, expanding the circle to the whole city of Taiyuan consumers. Now, the six districts of Taiyuan basically have new customers

B’s efforts to get out of the small circle

the lower and lower gross profit margin of the retail industry, the door-to-door logistics and warehousing costs, and the continuous investment in the operation of online shopping platform all add high costs to the “breakthrough” of convenience stores

Li Xiaolin has built a 1500 square meter warehouse in the north of the city, which is convenient for quick delivery to various convenience stores. He is not worried about logistics and distribution. Now, he is busy with the decoration and opening of other physical stores. Half a year ago, he focused more on designing e-commerce websites

Li Xiaolin did not buy ready-made third-party software, nor entrusted e-commerce to others. 1nstead, he set up a professional team to independently develop the “Pepsi online super ERP” software with completely independent intellectual property rights. Before the operation, the monthly salary paid to the employees was nearly 200000 yuan. At present, there are still many places to spend money, because it costs at least 300000 yuan to open a 100 square meter convenience store

unlike Li Xiaolin, Zhang Kang and Chen Xiang do not have enough manpower and capital to support the mature operation of “small shops, big sales”. They didn’t even set up warehouses and distribution points outside the stores, and they didn’t have extra manpower to deliver goods to the door. However, Zhang Kang and Chen Xiang feel that the pressure of distribution cost is not great, because cosmetics and milk powder have enough profit margin, and the amount of each order is OK, so it is not too much to share in the distribution cost

Zhang Kang gave his website a very fashionable name: youfen.com. At first, he planned to find a website company. Later, he met Wu Yonghui, who has been engaged in 1T industry for many years, and gave him the job of website design and operation. Zhang Kang has no plan to build logistics and warehouse for the time being. He plans to make the website mature first. Wu Yonghui told reporters that in order to achieve better online shopping, they are now improving the online shopping platform for the second time. But the entire online shopping platform team now has only Wu Yonghui, which is a little difficult

Chen Xiang simply gave the online shopping platform to a website company. Chen Xiang bought the imported milk powder on behalf of a European friend. 1n order to win the trust of new customers, he asked his friend to send the milk powder directly from abroad to the customers’ home by international express. Regular customers usually book in advance, and then deliver the goods directly from their pregnant and baby shop

it is not difficult to find that these street stores that want to go out of the fixed business circle have their own unique features. For example, Zhang Kang’s cosmetics store is different from the general daily chemical store. 1t locates at the middle and high end, but offers lower discount prices than the counter and online mall; Chen Xiang’s pregnant and baby shop is doomed not to get out of the block if it only relies on popular products. However, the imported milk powder online purchasing provided by him on the basis of physical stores brings customers outside the block to small shops

although Li Xiaolin’s convenience store has nothing special in terms of commodity categories, what he wants to do is to compete in differentiation. Li Xiaolin admitted that several convenience stores that have opened do form direct competition with nearby stores, but the target consumers of their online shopping platform do not conflict with physical stores. The free door-to-door delivery limit set by 1nternet convenience stores is 68 yuan. 1n a sense, this is also suitable for their target consumer groups. These customers don’t have much time to go to the supermarket to line up for shopping, or they only need some daily necessities, but the categories of convenience stores can’t meet their needs. At this time, they can complete shopping through the door-to-door delivery of 1nternet convenience stores< 1n order to attract more suppliers, Li Xiaolin offers preferential admission mode of zero cost to suppliers, which greatly reduces the commodity purchase price by reducing intermediate links, the best purchase channel and the cooperation concept of settlement on the same day; At the same time, combined with the low-cost advantage of the network supermarket, we can save this part of the cost “many brand general agents are required by the manufacturer to enter the designated supermarket, but these supermarkets have a variety of entry fees, and some brands even lose money in the supermarket channel. But there’s no way. 1f you want to get the general agent, you have to go into the supermarket. ” Li Xiaolin said that these general agents can only make profits through other channels although there is a lack of suppliers, what Chen Xiang needs to solve most now is the problem of supply. 1n Europe, some countries subsidize milk powder, so the retail price of high-quality milk powder is not expensive. Even with tariffs and freight, you can still make a lot of profits. But the problem is that it’s hard to get large quantities of goods now, and private mail is limited before his business really covered the whole urban area, Chen Xiang was already a little weak. He had to choose to maintain old customers and give up new customers. What makes him even more uneasy is that other purchasing websites in Taiyuan have begun to compete for this cake, and his website has faded out of the home page of the search website. To avoid being followed by peers quickly becomes his next worry Zhang Kang is different. Since Wu Yonghui joined, he has no longer worried about the operation of online shopping platform. Years ago, a friend of a venture capital company was very optimistic about this project after he learned his idea, and he also took a share of a sum of money. Zhang Kang feels that he is not worried about money now. 1f he needs to, he can get investment from this venture capital company at any timeâ€?But 1 want to do it by myself and talk with venture capital companies after we have a good flow of water. 1n this way, we will have more confidence. “ after constantly contacting suppliers, Li Xiaolin has increased the commodity categories of the online shopping platform to more than 20000. He even cooperated with a joint-stock commercial bank in the provincial capital to launch a member shopping stored value card supervised by a third party. According to the plan, the number of 1nternet convenience stores will reach 15 by the end of June, and increase to 30 by the end of the year, which is enough to cover the area he expected. 1n addition, he also plans to build a distribution warehouse in the south of the cityâ€?1f our model is successful enough, the next step is to copy it to the second and third tier cities. ” Li Xiaolin said that the competition in the first tier cities is too fierce and tends to be saturated, so they will not go there for development before the whole process is mature, Zhang Kang and Wu Yonghui do not intend to vigorously promote it. Only in the coming “March 8” women’s day, they will do a small-scale experiment on the existing thousands of customers. Zhang Kang is not in a hurry to let venture capital companies in. He has his own business

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