In June this year, he tried the community group buying mode. Due to the high proportion of team leaders share and low order volume, he had to return to the vegetable market and continue to set up stalls to make a living.
Liu Kunlun to 21cbr reporter to resume the business of community group buying, where is the difficulty of running through? These are also the model problems that giants want to overcome.
In the face of the high subsidies from the giants, he said that if we continue to cook for five years, there will be no need to set up a stall to sell vegetables.
The following is a self-report of the editor:
Failed group buying venture
Since 2013, I started to do vegetable business in Chengdu. Before that, I did wholesale business of pepper, purchased from the origin and then distributed it to others. Last year, I lost money, but I didnt do wholesale this year. I mainly set up vegetable stalls in Wenjiang District of Chengdu City and did retail business, mainly selling lettuce and tomatoes.
Now the vegetable stall can sell more than 1000 catties of vegetables a day, with about 3000 income. It takes care of three people with their parents and does not employ outsiders to help. The vegetable market is small. There are more than a dozen vegetable stalls with a monthly rent of 2000 yuan.
In June this year, I joined the army of community group buying. If I did well, I would like to close offline retail stalls and only do online distribution. I carried on for four months and ended up in a loss.
I started the community group buying project with the encouragement of my internet friends. There are a lot of old customers, so we directly set up a wechat group, add some owners in the surrounding communities, and cooperate with the leaders of other communities.
I cooperated with a total of 5 team leaders. When they entered in June, the market leaders in Chengdu had a very high share, generally more than 25%. I didnt care too much about it and gave them a 35% commission. Later, the proportion of shares was too high, resulting in the final did not make money.
Community group buying mainly sells vegetables and fruits, including onion, ginger and garlic. It has 20 or 30 categories. When you want to purchase vegetables, try your best to match them.
At the beginning, I expected to have a sales volume of seven or eight hundred kilograms a day. It is found that the best time for business is only two or three hundred kilograms. One team leader can bring more than 40 orders. Its not that the team leader doesnt sell hard, but its hard to promote the sales of vegetables. Users dont want to store too much, they want to eat fresh every day.
Even if a group leader brought more than 40 orders, he could not make money.
I have calculated that a leader can bring 63 orders a day, which is about 700 yuan of revenue. In addition to cost, commission, packing and distribution, the gross profit is about 100 yuan. If you sell more than 700 yuan at the vegetable stall, the gross profit must be more than 100.
If you want to get a competitive price in the place of origin, you have to pay a large amount of deposit. Only when a certain amount of goods is pulled, can the transportation cost be covered. If the users sales volume is not up, the goods will be overstocked and have to be disposed of to other customers at a low price.
Young people do not cook by themselves. They come into contact with customers. More than 80% of them are middle-aged and elderly people. Chengdu people love to go shopping. Their parents have nothing to do but look after their children and cook three meals a day. These people have a lot of time to go shopping in the vegetable market, where they can buy the cheap and good dishes.
Four difficult thresholds
There are many reasons for the failure of group buying project in community.
First, draw percentage;
There are only two or three people in my retail stall. I have to allocate another one for distribution. The vegetable stall cant turn around. Another person to do distribution, the cost is too high, not enough to earn his wages. I havent rented a warehouse yet. I have my own stall as a small warehouse. Otherwise, the cost will be higher.
Third, return and exchange goods;
Community group buying users cant see the arrival of goods, which is very important and affects the experience. For example, if a user wants three green lettuce, and you deliver a two green one, you wont find you next time. The prices of the two kinds of lettuce are also different.
Although my project is not large in scale, I also encounter a difficult return and exchange problem. Eggplant is placed in the stall, and it is exposed to the sun. If it turns into a flower skin, the user will have to refund it. Originally, this single eggplant can earn a piece, and finally lose 5 cents or a piece of disposal.
The cost of lettuce in the field is 1 yuan to 1 yuan 2 jin. If you pull it back and sell it for 2 yuan, you have to remove the leaves, and the gross profit is only 45 cents. The loss of lettuce and other green leafy vegetables has basically reached 40% to 50%, and there are still vegetables that can not be sold out. These are all places where money is lost.
I found that when individuals go to the community group buying, fresh food and fruit, the two kinds of profits are more likely to lose. If the profits are too small, they still rely on agricultural and sideline products, such as native chicken, duck, fish, bacon and so on. These products have high profits.
I know a person who sells bacon. Through group buying in the community, it can sell for 120000 yuan a day. The wholesale price of bacon here is about 30kg. He can sell it for 45-50 yuan, and he can also give the regiment a higher commission.
If you dont have a good reputation for selling by-products, you wont be picky about the quality of agricultural products.
Didis community group buying orange heart optimization has also entered Chengdu. I judge it is not easy to do. Of course, it has capital support. At least in Chengdu, the same is true of aunt Qian, who keeps throwing money and makes huge losses in a single store. My apprentice opened a shop in Pidu District, next to Aunt Qian. She went to see it many times and lost tens of thousands a month.
Even if the population density of the community is high and the distribution cost is reduced, in my experience, it is not easy to run smoothly. I live in a community with hundreds of households and thousands of people. There are community group buying in the owners group. Every day, there are only five or six families ordering vegetables. The target customers are mostly middle-aged and elderly people, mainly in Chengdu. There are a lot of idle people who spend a lot of time shopping in the vegetable market. Users of Beijing, Shanghai and Guangzhou may not have so much time.
Its hard to sell vegetables
Before the Internet giant enters the fresh food massively, the vegetable business is not easy to do.
Group buying in the community is just a fire, and now the impact is very limited. The main reason is that fresh supermarkets and community stores are opened more frequently, and users try to make it convenient to purchase at home. There are fewer and fewer traditional vegetable markets. Chengdu is also developing a new type of farmers market. If it is transformed well, its competitiveness may be restored.
I have also been stationed in Jingdong home, and the quantity is usually not much. The highest order is more than 20 orders a day. There are three or four potatoes and two lettuce. You have to install everything for him. One person should be specially assigned to meet the order of Jingdong home. Ten kinds of vegetables, earn a few dollars, far better than selling one or two more people in the vegetable stall, and then stop.
From the perspective of entrepreneurial experience, if the giants continue to invest, there may also be opportunities for them to make money: there are many young people in big cities, and there is no shortage of users; they often discount and promote their products so that the price advantage is large, and they can be sold out with less consumption; if the distribution and product quality are well solved, the repurchase rate can be improved.
In terms of product price, some old customers recommended an app to me. The limited potatoes cost 9.98 kg. Its really cheap to pick them up in the community. Ill buy them myself. Its not very fresh, its not delicious, its not cheap. The local potatoes in Chengdu sold at our stall cost more than one yuan a kilo.
Compared with community group buying, our biggest competitive advantage is only fresh, and the others cant compete and can only accept it.
Some time ago, orange heart also took four times of goods from me, such as white radish and so on, about several hundred catties. I talked about it with a young man, and the quantity was not very large, so we didnt cooperate with each other in the future. At this stage, it does not have the advantage of upstream price, it is estimated that it is difficult to achieve a first-class wholesaler.
In any case, Internet companies hold users in their hands and have a large number of them. Purchasing direct supply from the origin can affect the upstream industry chain. Take fish as an example, pull one or two varieties from the production area and sell them directly to users at low prices, so the giants have more advantages. If there are only a few oligarchs in the vegetable industry, they will have great pricing power, and even the income of farmers in vegetable bases will be affected. Therefore, if we really oppose monopoly, monopoly will only make the social stratum more and more divided. As giants of community group buying, I understand that their main business growth is slow, so they have to dig for the next outlet. Community group buying is not fresh, it is drainage, so it is convenient to sell products with large profit space in the future. If we keep throwing money into it and burning it for 5 years or even longer, we vegetable vendors will certainly have to do nothing. Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679
In any case, Internet companies hold users in their hands and have a large number of them. Purchasing direct supply from the origin can affect the upstream industry chain. Take fish as an example, pull one or two varieties from the production area and sell them directly to users at low prices, so the giants have more advantages.
If there are only a few oligarchs in the vegetable industry, they will have great pricing power, and even the income of farmers in vegetable bases will be affected. Therefore, if we really oppose monopoly, monopoly will only make the social stratum more and more divided.
As giants of community group buying, I understand that their main business growth is slow, so they have to dig for the next outlet. Community group buying is not fresh, it is drainage, so it is convenient to sell products with large profit space in the future. If we keep throwing money into it and burning it for 5 years or even longer, we vegetable vendors will certainly have to do nothing.