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Robin Islam
Apr 07, 2022
In PACKAGING TIPS
Affected by the epidemic, many industries have fallen into a slump, but the fresh food e-commerce industry has ushered in a geometric series of growth in user volume and transaction volume. In addition to offline shopping, the convenient mode of "online purchase + offline delivery" is also favored by more and more consumers. According to a survey by iResearch, the scale of China's fresh food retail market will exceed 500 million yuan in 2020. The entire market has a large traffic dividend, and fresh food e-commerce has naturally become one of the most promising investment sectors for investors. As an emerging track in the e-commerce industry, many leading companies and small and medium-sized fresh food e-commerce companies have entered the game one after another, launching new competitions. However, the current situation is not optimistic. Most of the participants are showing a trend of opening high and moving low, which is inseparable from the characteristics of the fresh food market itself. 1. It is difficult to make money With the development of the fresh food e-commerce industry, the high cost of pre-warehousing, cold chain logistics, and food preservation, as well as loss-making promotions to attract customers, have increasingly become the main factors restricting its profitability. From the perspective of the layout of fresh food e-commerce, although the front warehouse guarantees terminal distribution, it is also an indisputable fact that its operating cost is high. The emergence of the front warehouse fills the market gap between large supermarkets and convenience stores, trying to meet the consumer demand of "complete goods + last mile". However, compared with supermarkets, front-end warehouses have insufficient categories; compared with convenience stores, their operating Phone Number List costs are higher, and fresh food requires refrigeration and preservation equipment, which may lead to the problem of low income and high cost. Generally speaking, at least 1500 SKUs are required to meet the needs of ordinary families, and most of the current front warehouses cannot well meet the SKU carrying capacity required by ordinary families, and they cannot be compared with large supermarkets with tens of thousands of SKUs. If it cannot provide a rich variety of commodities, it will be difficult to capture consumers, and it will be even more difficult to guarantee profits. From the perspective of transportation and preservation, the high cost of cold chain logistics and food preservation is also a major pain point that plagues the development of the industry. According to the data of the my country Federation of Things Cold Chain Committee, the current refrigerated transportation rates of fruits and vegetables, meat, and aquatic products in China are 35%, 57%, and 69%, respectively, while the average refrigerated transportation rate in developed countries is as high as 90%. Due to the “broken chain” of transportation, transportation costs and high loss of ingredients, fresh food e-commerce companies either choose to expand costs to improve the level of cold chain logistics, or suffer losses that cannot be sold for low-quality fresh food, both of which require a lot of financial support.
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Robin Islam
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