After e-commerce accounts for nearly 24.3% of the whole social retail market, the giants are looking to the offline blue ocean.
On June 19, the 21st century economic news reporter learned that Alibaba has established a local retail business group. The business mainly includes tmalls supermarket, private brand, supermarket and the new retail sector of hungry mall, which is still in the process of internal integration. Alibaba did not give more details.
Prior to this, Suning and Jingdong have successively launched their own retail formats in the same city. Suning mainly focuses on Suning small stores, retail cloud stores, Su Xiansheng, Suning supermarket, etc., and acquires Carrefour China, so as to develop a new concept of one hour life circle. Jingdong mainly supports its Jingdong home and 7fresh Jingdong convenience stores. Since last year, meituan has also started to engage in offline business, and its flash purchase business has grown significantly during the epidemic.
The competitive layout of the giants made the local retail industry a new opportunity for competition in the second half of the e-commerce industry. Kuai Jiaqi, founder and CEO of dada group, said in an interview with 21st century economic reporter on June 5 that Chinas e-commerce has developed rapidly for nearly 20 years and many excellent enterprises have emerged. Even so, with only 20% market share in the retail industry, the remaining 80% will be the biggest opportunity.
The retail field tests the platforms traffic, performance and supply chain. Who can win?
Target local retail
On June 16, nearly 100000 offline stores and many brands of Jingdong home linkage platform launched the 618 promotion. This year, the number of physical retailers participating in the promotion is significantly higher than last year, and covers more third and fourth tier cities. Data shows that from June 6 to June 14, Jingdongs home sales increased by 138.8% year-on-year, and the cumulative distribution orders of dada express increased by 73.4% year-on-year.
Under the epidemic situation, instant retail in the same city plays an indispensable role in maintaining the stability of the consumer market and meeting the rigid needs of residents.
The arrival of the epidemic has also accelerated the digital process of offline retail industry. A person from the investment industry told the 21st century economic report that at present, most of the retail sales in the same city are concentrated on fresh food, drugs and supermarket categories. The vegetable market is a high-frequency transaction, but no better profit model has been found. The drugs are just needed at night and have no impact on consumers consumption habits. Therefore, the focus of the platform is to pry off-line super market. Chain store super is a strong side. As a platform, neither JD home nor meituan can get higher commission.
It is reported that the commission ratio of takeout and online car Hailing industry is relatively high, the commission ratio of takeout is about 10% - 20%, the commission ratio of online car Hailing is more than 20%, while the commission ratio of commercial express delivery platform is 5% - 10%, most of which is about 7%. E-commerce platform attaches more importance to supermarket than buying vegetables and medicines.
According to the prospectus of dada group, from the perspective of business, related businesses of JD are still the main net income of dada. From 2017 to 2019, JD contributed 56.7%, 49.1% and 50.5% of dadas net income respectively, while Wal Mart brought 4.6%, 13.0% and 14.9% of its net income.
After Kuai Jiaqi went public, he said that Jingdong home business is still in the investment period. The income of Jingdong home mainly comes from the Commission, promotion fee and the expense paid by consumers, while the expense is composed of the riders freight and the subsidy to consumers.
However, while e-commerce giants are aiming at offline, many businesses are also turning to online, accelerating their own digital and e-commerce transformation. The novel coronavirus pneumonia affected the global retail industry in the first half of this year. E-commerce, live broadcast and other digital economic platforms, to some extent, have promoted the recovery of retail industry. According to the data released by the National Bureau of statistics, in May this year, the total retail sales of social consumer goods reached 3197.3 billion yuan, down 2.8% year-on-year, 4.7 percentage points lower than last month. From January to may, the national online retail sales reached 401.76 billion yuan, an increase of 4.5% year on year, 2.8 percentage points higher than that from January to April.
Among them, the online retail sales of physical goods reached 3373.9 billion yuan, an increase of 11.5%, accounting for 24.3% of the total retail sales of social consumer goods; among the online retail sales of physical goods, food and consumer goods increased by 37.0% and 14.9% respectively, while clothing goods decreased by 6.8%.
Master the voice of quality control and SKU
It can be said that dada Jingdong familys dependence on Jingdong and Wal Mart has laid the foundation of its supply chain in the past six years. At present, both meituan and Alibaba are in off-line shopping malls and supermarkets, but it is very difficult to break through, because the e-commerce platform needs to form a voice in quality control and SKU (the unit of inventory in and out measurement). According to 21st century economic news, RT mart, a retail giant with 414 stores nationwide, will take over the management right to Lin Xiaohai, vice president of Alibaba group and general manager of retail channel. Lin Xiaohai will be CEO of RT mart and report directly to Alibaba CEO Zhang Yong. Huang mingduan remains CEO of Gaoxin retail and chairman of RT Mart China. According to the financial report, in 2019, Gaoxins online business accounted for 15%, an increase of nearly 90% compared with 2018, which is enough to see the changes brought by new retail. Huang mingduan, CEO of Gaoxin retail, said that it is expected to exceed 20% in 2020. After the senior management adjustment, it may further accelerate the coordination and connection with Alibaba.
According to the analysis of CICC, Gaoxin retail is constantly expanding the cooperation with ALI, developing projects such as Maochao shared inventory and community group purchase, which is expected to form a retail service network system covering all channels and multiple scenes, and continuously improving market share. With the continuous strengthening of Alibabas strategic position in the citys retail business, the possibility of further cooperation between the two sides will not be ruled out in the future.
For Alibaba, what it integrates is a series of offline retail resources, and the mode also adds direct purchase from a single consignment. However, there is still a certain threshold for the control of SKU. The reason why meituan and hungry do take out scale up to tens of millions of orders is that the number of SKUs of the merchants is small and the corresponding cost is low. But there are many commodities in the supermarket, ranging from hundreds to thousands of SKUs. Carrefour, Wal Mart and other giant chains even have more than 20000 SKUs. It takes a long time to pack goods, and the cost of picking goods is also increased. It also tests the performance of the platform. A series of short boards such as out of stock, packaging and after-sales need a long time to be supplemented. Further analysis of the above investment bankers.
At present, offline supermarket is also starting to sell its own apps and small programs online outside the platform. According to Yonghui supermarkets financial report, in 2019, the sales of Yonghui supermarkets home business reached 3.51 billion yuan, a year-on-year increase of 108%. By the end of 2019, Yonghui life app and small programs had covered 24 provinces, with a monthly life of 5.06 million yuan; in the first quarter of 2020, Yonghui supermarkets home business realized sales of 2.09 billion yuan, a year-on-year increase of 2.3 times. However, due to the expansion of super species, Yonghui yunchuang once lost money.
At present, even with the participation of Alibaba, meituan and other giants, how to run through the profit model and how to further upgrade and improve the service of local retail is still the biggest problem for the platform and businesses.
(author: Tao Li editor: Bao Fangming)
Source: Zhang Zutao, editor in charge of 21st century economic report_ NT5054