Rural e-commerce "cloud" goes up
Related reports show that in the first half of 2019, a total of 225 financings for e-commerce occurred. Among them, rural e-commerce, township social e-commerce and e-commerce logistics are favored by investors.
Why does the e-commerce investment favor the “earthy” rural e-commerce field? Hou Enlong, president of Suning Tesco, said that the majority of towns and regions are not highly digitized and the online penetration rate is less than 20%. With the acceleration of urbanization consumption upgrade and the “home appliances going to the countryside” policy already implemented in some regions, the market has great potential.
Liang Yongzhi is an ordinary farmer in Wanwei Village, Jiangping Town, Dongxing City, Fangchenggang City, Guangxi Zhuang Autonomous Region, and the owner of Suning Retail Cloud Boutique in Jiangping Town. In 2002, Liang Yongzhi opened the first appliance repair shop in Jiangping Town. In 2014 and 2018, a second traditional electrical appliance store and a third Suning retail cloud store were opened.
Now that you have opened a traditional electronics store, why choose a new e-commerce retail store? Liang Yongzhi said that under the traditional retail model, the inventory and logistics costs of the rural e-commerce market are high. At least one million yuan must be invested in the early stages of opening a store. Moreover, the inventory has been held down and the capital turnover has been slow.
Is there a better retail model that does not take up too much capital and can avoid risks? Logistic and warehousing support is provided by large-scale Internet e-commerce platforms such as Suning.com. Entrepreneurs have created Suning retail cloud stores for rural consumer groups in townships and villages. The products are stored in Suning ’s warehouses. Peacekeeping service is supported through Suning Logistics. This "entrepreneur + Suning mid-backstage" model is called the "Suning retail cloud model."
"The store belongs to the entrepreneur, and uses the franchise model 'OEM' Suning. Suning provides supply and logistics support, and provides free assistance in store decoration, personnel training, etc. This model not only saves the entrepreneur from purchasing inventory in the early stage. A large amount of funds also provide mature logistics support for consumers to quickly place orders for delivery. The surrounding urban residents and farmers in various administrative villages place orders before 9:00 on the same day and receive the goods on the same day. Sales in the store in the first half of 2019 The amount is more than 3 million yuan, and annual sales are expected to exceed 10 million yuan. "Liang Yongzhi said.
Gu Wei, vice president of Suning Tesco Group, believes that the retail cloud model is the "four-control" development logic of controlling goods, controlling goods, controlling stores, and controlling data. First of all, large-scale e-commerce companies will centralize all inventory, so that franchisees do not have any inventory pressure. Where is the profit point? The reason is that large inventory costs are eliminated. Therefore, franchisees "sell one and earn one." Secondly, many rural home appliance retailers do not have the money to build an IT system, and large e-commerce companies such as Suning provide complete system solutions. In terms of store operations, daily maintenance and after-sales services, Suning will also export more free training and technology.
At present, Suning Retail Cloud adopts a new model that sinks to the township market, rural market, and urban community market, which has greatly reduced the inventory costs of township and township merchants, and accordingly increased sales. As of early June 2019, Suning Retail Cloud has opened more than 3,700 stores, covering 30 provincial administrative units across the country and more than 3,000 counties.
Another major problem in developing rural e-commerce is logistics. In towns and rural markets, sending household appliances such as refrigerators, televisions, and washing machines must not only have the ability to be installed once, but also the ability to go up the mountain and the sea, otherwise it will cost several times the cost of the city.
Farmer Xu Yongfu of Gongche Town, Fangchenggang City, Guangxi Zhuang Autonomous Region joined Suning Retail Cloud Boutique in March 2018. At first, some nearby fishermen came to buy electrical appliances and required that they be delivered to fishing boats and installed. Some e-commerce companies shook their heads after hearing such a request.
After setting up a retail cloud boutique, Xu Yongfu borrowed the resources of Suning Tesco to train logistics service staff and quickly established a six-person distribution and acquisition service team.
"The retail cloud that grafted Suning's smart retail supply chain, finance, logistics, and technology resources to the rural e-commerce market has become a new species in the current township market." Xu Yongfu said.
According to Huang Jianchao, manager of retail cloud operations in Suning Tesco Nanning Region, based on the calculation of 6 after-sales and distribution jobs created by each retail cloud boutique, more than 1,200 franchised stores in Guangxi can create 7,200 jobs, driving the per capita of rural migrant workers. Increased income by more than 3,000 yuan.
Zhang Jindong, chairman of Suning Holdings Group, said that the upgrade of rural consumption is not only an upgrade of consumer quality and personalization of consumption, but also an upgrade of services and experience, an upgrade of online and offline, and simultaneous development of markets at all levels. The rural e-commerce market has gradually become a new track for the development of various industries. Today's rural e-commerce market is ushering in the best start-up period. The owner of Suning Retail Cloud Store is not only the most important partner of the rural e-commerce market, but also the main body of mass entrepreneurship in the county and township markets. .