New retail leader comparison: Ali, Jingdong, Tencent

After two years of turmoil, the new retail market has gradually calmed down, and the concentration of the fresh market after the big waves has been further enhanced. The contest between the giants continues. Emerging models represented by Ali's Box Horse Fresh, JD's 7FRESH and Yonghui's super species have also begun to adjust their development strategies in a rapidly changing market, and new retails are once again filled with smoke. As a knowledge service organization that pays close attention to the new economy and new finance, Tappear will focus on the fresh market and analyze the market competition situation of Box Ma Xiansheng, Jingdong 7FRESH and super species from multiple dimensions. After more than two years of big waves, many new retailers of "box-like horses" have lost out on high input costs and lack of fresh supply chain capabilities, and the fierce competition between fresh and new retail has become a giant. The contest. Ali's box horse fresh, Jingdong's 7FRESH and Tencent's Yonghui super-species became the representative of new retail, but there are significant differences in the specific development. This article will compare the box new life, super species and 7FRESH from the store coverage, supply chain system construction, logistics and warehousing construction and private brand construction, in order to explore the development of the new retail.

First, BATJ fresh new retail layout

Since the concept of “new retail” was put forward in 2016, it has spread through the slogan of box horses. For a time, a lot of new retailers have come out in a short time, and Internet giants are rushing to enter the market. “New retail "In the past two years, it has become the focus of attention in the market. As far as BATJ's offline new retail layout is concerned, each family uses fresh food as an entry point to expand its new retail network while building its own platform and strengthening investment in other fresh players in the market. Build. As the grasp of new retailers in the layout of new giants, the role of each self-built platform is different. Baiyou is an e-commerce project that Baidu is incubating. There is no more news on the market yet, so this article is mainly Discussions on box horse fresh, 7FRESH and super species.

Box Ma Shengsheng is the new leader of Ali's new retail. It is also the pioneer of the new model of “supermarket + catering” in China. Ali hopes to open the offline retail layout by box horse, broaden the flow entrance, and build the line through the deepening of the sinking market. A new ecology that merges with the upper and lower lines. 7FRESH is also a model for the new retail of Jingdong Line. However, the ultimate goal that Jingdong wants to achieve with 7FRESH is not only to compete for offline customers, but to finally realize the empowerment of B. It is hoped that this platform will be JD's advanced supply chain. Technology and other capabilities are open to the public and exported. For super-species, it is more about the innovation and exploration of Yonghui's business model from traditional retail, and it is a change to cater to new consumer demands. Therefore, although the three are all in the same mode, the focus and target positioning are quite different, and the differences are gradually revealed in the actual development process.

Second, the development of box horse, super species and 7FRESH

1, store coverage: box horse far ahead

In terms of the number of stores, Box Ma is far ahead of the market. At present, there are 190 stores in the country. The core first- and second-tier cities have basically achieved full coverage. There are more than 80 super-species, mainly in the first-tier cities and core second-tier cities. Compared with the former two, 7FRESH has a large gap in the number of stores, currently only 19. Compared with the end of 2018, in the store expansion in 2019, the box horse still maintains a rapid growth rate. Up to now, Box Horse has added 81 stores in this year, an increase of 74% from the end of last year.

Judging from the regional distribution of stores, the regional expansion strategy of super-species and box horses is similar. Both of them focus on East China and focus on expanding areas such as South China, North China and Southwest China. However, compared with box horses, it still has a great advantage. Box Horse has achieved full coverage in all regions of the country. Box houses have expanded to 23 cities across the country, covering almost all core cities in each region. . The development of super species is slightly less than that of box horses, especially in the Central China market, where super species and 7FRESH have not been involved. Comparing the box horses and super species, the 7FRESH, which started late, is obviously at a disadvantage in the layout of the store. At present, 7FRESH is mainly focused on the North China region, and its development in other regions is still weak.

Although the number of stores may not be directly proportional to the actual operation, for offline retailers, the quality of business districts and stores is limited, and the location of the store will directly affect the passenger flow of the store, so Under the premise of serious product homogeneity, merchants who have taken advantage of the early position will naturally enjoy the dividend of the customer flow to a certain extent. Although there are not many supermarkets in the super-species, the strong store network such as Yonghui Supermarket and Yonghui Mini can provide internal support to a certain extent, while 7FRESH has to face the market loss caused by slow expansion. The reality. However, as far as the proportion of online orders is concerned, there is still a big gap between the super species and the box horse fresh and 7FRESH. At present, the online orders of super species account for only about 30%, and the online revenue contribution of Box Ma has exceeded 60%.

2, the upstream and downstream integration of the supply chain: the strength of super species

As far as fresh products are concerned, the brand characteristics of the products themselves are relatively vague, and the characteristics of the production areas are more important. To differentiate the products, it depends on the channel expansion and supply chain management capabilities of the enterprise. At the same time, the supply chain Construction capacity is also an important factor affecting the profitability of retail stores. Regardless of how the model is innovated, the essence of retailing is always to reduce costs and increase efficiency. For fresh retailers, there are two main ways to reduce costs. First, optimize the supply chain of the whole process from the source to reduce unnecessary The middle link reduces the procurement cost; the second is to build a large-scale procurement system and improve the bargaining power of upstream suppliers to ensure the high quality and low price of the products. The fresh supply chain construction of Box Horse, 7FRESH and super species is among the best in the industry. All three companies use the direct production and “buy-hand” innovation model to optimize the supply chain system, but the three supply chains are built. The direction is slightly different. In contrast, the Yonghui fresh supply chain that super-species relies on has an incomparable advantage in terms of chain channels and management capabilities.

Super species focus on the integration of upstream and downstream, and vigorously develop the depth of the supply chain. On the one hand, Yonghui continuously integrates the upstream supply chain by means of a unique shareholding or acquisition, increasing the control and initiative of upstream suppliers and the ability to control product quality. At present, Yonghui has nearly 30 direct mining bases in the world, with dozens of source countries, and deep into Norway, Canada, Australia, Chile, New Zealand, France and other countries, and many well-known international companies and associations, Norwegian seafood. The Bureau, the Norwegian seafood group Leroy, and the Marine Stewardship Council (MSC) have established strong cooperative relationships. On the other hand, in the downstream procurement side, Yonghui combined with the retail leaders in various regions to form a large-scale procurement system, further improving the bargaining power of upstream suppliers, and strengthening the control of product quality and price from the source. While deepening the supply chain, Box Horse continues to extend its supply chain from a breadth. On the one hand, Box Horse has continuously increased the construction of the direct mining mechanism internally, and promoted the optimization and integration of the supply chain by establishing production bases and deepening the source of product production.

On the other hand, box horses and rookies, hungry, build a logistics system, in which the production, land-warehouse, warehouse transfer, warehouse-point warehouse four links with the rookie, store-consumer links and hungry cooperation In order to promote the construction of a supply chain system covering the entire industry. And 7FRESH further promotes the supply chain to deepen through external empowerment. 7FRESH realizes the opening and sharing of JD's supply chain and technical capabilities through joint store opening, etc., in order to increase the expansion and extension of the supply chain.

On August 23, 2019, Jingdong 7FRESH and the 14 Great Lakes Regions of the country jointly upgraded the hairy crab industry alliance, and opened up the whole industry chain capacity for all alliance members, thus achieving omni-channel sales and network-wide promotion.

3, logistics and warehousing construction: 7FRESH slightly better

The new O2O retail model of “catering + supermarket” and “online + offline” pushed the timeliness of logistics and distribution to the high-demand development stage divided into units, the characteristics of fresh goods and the 3 km of the pioneer box horse. The precedent of minutes delivery is to make minute-level distribution a standard for fresh and new retail, and behind this high-distribution capability is the test of supply chain capabilities, logistics and warehousing capabilities. Judging from the three benchmarks of box horse, 7FRESH and super species, Box Ma has built a logistics system and established a default industry standard for 3 km and 30 minutes of distribution. The Jingdong logistics system supported by 7FRESH has strong competitiveness. On October 15, Dada-Jingdong came to the home to release the omni-channel implementation plan of the supermarket, further accelerating the empowerment and application of Jingdong Logistics in the industry.

The super-species also innovatively launched the Yonghui Living Satellite Warehouse to support the distribution needs of online and home business. At the same time, it also used the Jingdong home to realize the delivery of online orders. In 2018, it also adopted the drone distribution in China. However, compared with the former two, the Yonghui super-species under the main attack line is not very good at building online performance capability, and it is still slightly weak in the construction of logistics and distribution system.

4, own brand building: box horses, super species have their own characteristics

From the perspective of development model, Box Horse Fresh, 7FRESH and Super Species all adopt the innovative mode of “supermarket + catering”, and the target group is basically coincident. In terms of business settings, the three companies are also consciously Make flexible adjustments based on different scenarios or regions. On the whole, as a promoter of “new retail”, Box Mashengsheng has relatively more experience in the exploration of the format and the exploration of the market because of the early entry into the market, so he can respond more quickly to changes in the market. Adjustments, especially in the so-called "filling the pit battle" this year, the development of the small market, mainly in the box horse mini, box horse station, box horse food market, box horse F2, etc., is still hot in the sinking market, and gradually The service boundary of Box Horse is expanded from fresh to full category. Super species has also gained traction in the exploration of new business models. In the first half of this year, the super-species expanded the retail scene to an airport with a large passenger flow. The first brand experience store of “catering + home” mode was officially opened in Shanghai.

In comparison, 7FRESH is still based on Qixian Supermarket. The new formats of “Seven Fresh Life” and “Seven Fans” announced before have not yet landed, but recently Wang Lei, head of 7FRESH, said in an interview. 7FRESH will open a new store in cooperation with Muji and plans to launch a market format next year. In addition, the differentiation of products is an important factor in the core competitiveness of fresh retailers, and the construction of private brands is an important way to create differentiated products. Box Horse has always attached great importance to the construction of its own brand. The “Daily Fresh” series has been successfully recognized by the market, and the “Alpine Fresh” series is also constantly enriching its product range. According to the data released at the Ali Investors Conference in September, as of the end of August 2019, the EBITDA of the store opened for more than 12 months has been turned positive. From August 2018 to August 2019, the GMV on Box Horse Line The proportion climbed from 51% to 61%; during this period, the same store GMV increased by 13%, and the average operating cost of stores decreased by 30%.

Super species also inherits Yonghui's own fission characteristics, and constantly breaks through the innovation of internal products and brand building. The eight major workshops, Yonghui private kitchen and other series of products form the unique "net red" feature of super species. However, as far as 7FRESH is concerned, 7FRESH belongs to JD.com's offline fresh food store. Its own brand is consistent with the online “Jingdong Fresh” and is now on display in the store. The main products are “Jingshen Fresh” and Jingdong’s maternal and child brand “First Love”, which is slightly insufficient in the innovation and creation of its own brands.

Third, the summary

Comparing box horses, super species and 7FRESH, all of them have their own persistence in the development of new retail, and they also have outstanding advantages and characteristics. Box Horse has great advantages in data, technical capabilities and brand building, and has strong adaptability to market changes. Since the beginning of this year, Box Ma has also joined the battle for the sinking market. Focusing on the expansion strategy of “one big and four small”, we will continue to expand the range of products and services while innovating the business format, and expand the ecological layout from the fresh entry to the whole category. It is being expanded step by step.

Super species has a strong Yonghui gene, which is slightly superior in terms of supply chain capabilities and offline retail operations. It relies on core capabilities to continuously expand business scenarios, and has formed a unique business style and network red temperament. Development is still sticking to the high-end line, but in the sinking market, new formats such as Yonghui mini and Yonghui market life are still strong opponents of Box Horse. 7FRESH relies on Jingdong's collaborative development mechanism, which has obvious advantages in warehousing and logistics, and is conducive to the realization of its B-end enabling goal. However, in terms of its own development, it is still the main business of Qixian Supermarket, and it is still insisting on The quality-free expansion strategy, although plans are underway to open stores with other companies, there has not been any significant progress in the development of the sinking market.