Ai Yongliang: What is the business model of Baiguoyuan? Create super products to lead the fresh e-commerce industry

With a trillion-scale fresh e-commerce industry, capital accelerates competition. Giants such as JD.com and Alibaba strive to upstream, accelerate market tightening and move closer to the head. In this competition, either become the head or become a "stepping stone". Among them, there is only one brand from the offline, even under the squeeze of the giants, it has never stopped the layout of the offline, but instead "bottom up", successfully transformed from the original offline chain format to the height of online and offline. A unified new format.

Baiguoyuan is such a magical existence. In 2018, the sales of Baiguoyuan enterprises exceeded 10 billion, of which online sales accounted for 2 billion yuan.

All this stems from the time spent in Baiguoyuan for seven years, focusing on creating super products and the establishment of a supply chain. Before Baiguoyuan became famous, the fruit chain industry remained blank in the fresh e-commerce industry. It took seven years for Baiguoyuan to make up for the vacancy. In the following seven years, Baiguoyuan began to gradually expand to all channels.

Baiguoyuan ranks among the fierce competition of fresh e-commerce. From 2016, Baiguoyuan officially entered the new retail. Until 2018, Baiguoyuan's small program users reached 13 million, with an average daily order volume of 60,000. Baiguoyuan App users have already exceeded 7 million.

With the sales of 2 billion yuan, Baiguoyuan took advantage of the trend to greet the fierce storms in the fresh e-commerce industry.

01

Hundred orchards on the move

Hundreds of orchards that have been in the offline market for more than ten years have finally stood out with the "fruit chain" format.

At that time, Yu Huiyong, the founder of Baiguoyuan, divided the fruit retail industry into 9 types: supermarkets, grocery stores, supermarkets, street vendors, fruit chain stores, distribution companies, O2O, B2C e-commerce, online and offline integration, and online and offline The next integration is the ultimate model of Baiguoyuan and has made Baiguoyuan enterprises enter a period of rapid growth.

In the future, the retail industry is destined to be an online and offline integrated enterprise, and it is impossible to survive independently, both online and offline.

The key node for Baiguoyuan enterprises to stand out in the fierce competition came from 2016. At that time, Baiguoyuan App was formally launched, using store O2O, connecting online and offline, completely opening up the membership system, and another In terms of aspects, Baiguoyuan continues to improve App functions and interactive experience. After continuous iteration of products, Baiguoyuan has established an online ecology belonging to Baiguoyuan. Among them, Baiguoyuan App, applets, communities, third-party takeaway platforms and other channels cover most users. In the scene, the store distribution expanded to about 3 kilometers.

Enterprises that want to build super products are already walking between wrong and right, and the key to creating super products is to walk in the right direction and on the right road. There are many correct directions, but they still have to combine the current situation. , Only walk on one road.

02

Seize market trends in a timely manner

The super product can only be created when the company has an organized group of users. Here, the organization attributed user refers to that the user group truly recognizes the business philosophy of the enterprise before it can be produced.

The reason why Baiguoyuan can stand out is its complete membership matrix. Enterprises can connect with users through channels such as apps, applets, and social software, so that users can perceive the services and value that the company brings to them. However, Baiguoyuan is not "satisfied", and wants to achieve thousands of people and carry out dataized and personalized management.

Today Baiguoyuan has established a membership system of up to 40 million. The main member group is mainly white-collar women aged 25 to 40, and its member consumption accounted for 90.6%, which means that for every 10 members, there are Nine members are white-collar women in this group. If you want to build a super product, you can't do without the product quality and service guarantee of Baiguoyuan. Baiguoyuan's tenets of "not good to eat, three to no return" and "only to make good fruit" are the key to making super products.

As one of the first batch of enterprises that relies on the integration of small programs online and offline, Baiguoyuan has made Baiguoyuan small programs online for more than a year and accounted for 15% of total online sales.

In 2019, Baiguoyuan launched the "Baiguoyuan + Mini Program" plan, continuously iteratively upgrading the functions of the mini program, and made more attempts for user store consumption scenarios, interactive scenarios and group purchases. Not only that, Baiguoyuan will The service "not good to eat, no return" has been extended to small programs, and a small program ecological park integrating pre-sale, middle-sale and after-sale has been established.

The most interesting phenomenon in the domestic fresh e-commerce industry is that every year companies can see many new things, and there may be super products that subvert the market, but for Baiguoyuan, what is more willing to see is constant. If the direction is correct, Baiguoyuan will quickly enter the field, otherwise, it will summarize the direction and re-examine the market trend. For companies that build super products, as long as the three major elements of users, products, scenarios and scenes are done, these three aspects Sustained innovation and improvement is enough.

03

Continue to put products online

In the highly competitive fresh e-commerce industry, different companies have different business models. Among them, Baiguoyuan adheres to the strategy of community stores, opens every store into the community, and realizes integrated store management through online and offline integration. Today, Baiguoyuan has more than 3,600 stores in more than 60 cities across the country.

In the case of Baiguoyuan sweeping the market, the only company that can compete with it is Hema Xiansheng. In first- and second-tier cities, Baiguoyuan stores and Hema Xiansheng stores have many overlapping areas, but in the long run, Baiguoyuan ’s community store model is more in line with the development trend of high efficiency and higher urban density.

The competition between the two exists in the short term. As for who can be in the head position, it is ultimately up to the user to decide who can use the product to create more value for the user and make the user eat better and more affordable. More convenient, who can create super products to become the head company.

In order to create super products, Baiguoyuan has been innovating in the field of fruit cultivation, and has continued to transform the upstream, not only introducing advanced planting theory, but even carrying out scientific planting technology. By combining the Internet of Things, big data, artificial intelligence and agricultural production, more than 1,000 fruit growing bases have been established. In addition, Baiguoyuan introduced Japan's new organic planting technology to digitize and visualize fruits for sustainable planting. Provides "Internet + Agriculture" integrated services from production to sales for products.

This series of strategies is not only for improving the efficiency of the enterprise, but the most important core is to guarantee the quality of various fruits from the source to the users. Good fruits are not selected, but grown. Super products do not appear out of thin air, but are created by enterprises with care.

The core of Baiguoyuan's creation of super products is to maintain a balance between online and offline. In this way, the enterprise will not cause the overall product quality and service to decline due to too fast online business, which will drag down the enterprise and reduce the user experience. Companies that can build super products are not interested in the short-term benefits, but the long-term correct path.

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