After returning to the countryside to open a store to sell brand tail clothing encountered obstacles, the most common thing that Wang Xing, the "bao mama" in 93, did was to observe the consumption habits of young people around him. On March 25, she told Nandu reporters that young people who entered the factory during the day and bao moms with full-time babies did not have time to visit the supermarket and pursue exquisite life, and online shopping was the best choice. "In order to drain the store and let more young people see their own shop, last year, my husband and I discussed it and changed to a courier station, and at the same time accessed a number of community group purchases to realize cash."
Located in the central part of Henan Province, Chaoyang Village is one of the well-known industrial villages in the county, with ceramics, sanitary ware, plate, casting, food and other industries. The village is also one of the county's e-commerce representative villages. Among them, food, sanitary ware, etc. have been upgraded to the whole country with the help of e-commerce and gradually improved logistics infrastructure. This not only retains many young people in the surrounding villages, but also attracts some people to return to their hometowns to dig for gold. Wang Xing is one of them. This year's Spring Festival, the order volume of platforms such as Duoduo buy vegetables once broke into the top ten in the county, with an average daily order volume of more than 600 orders, becoming a major source of income.
The digital upgrading of the rural market is becoming the main battlefield for Internet companies to invest. In order to open up counties with large market potential and markets below the county level, since last year, major platforms have chosen to build a more efficient warehouse allocation system to reduce transportation costs and improve commodity turnover. Taking Pinduoduo, which has re-invested in agriculture, as an example, with the development of the grocery shopping business, the consumer demand and the supply chain will be localized and efficiently matched, the investment in warehousing and cold chain will be increased, the new system of digital agricultural product logistics will be built, and the production and marketing value chain of agricultural products will be improved.
The express station accesses a number of platforms such as Duoduo to buy vegetables and provides comprehensive services for surrounding villagers.
Express stations access new formats
As a heavy online shopping user, Wang Xing, who began to buy and buy at 17, returned home after marriage, the first direction of entrepreneurship was to open a store. At the end of 2019, Wang Xing deliberately opened the store in Chaoyang Village, which is commercially developed. She told Nandu reporters that the main street in the village is dotted with large and small cosmetics, clothing, catering, husband and wife shops and other shops, as well as seven or eight medium-sized supermarkets. "There are many factories in the village, the transportation is convenient, and it is a small commercial center in the surrounding villages."
The shop was named a premium outlet, and it sold branded tail goods clothing that she had brought from a large tail goods factory in Guangzhou. In her opinion, the price of the brand tail goods is lower than the genuine product and the quality is guaranteed, and the sales volume should be good. After opening a store, it was found that this model to shop goods, inventory pressure, need time to accumulate consumers. However, in the rural market, older consumers do not shop online, are not familiar with brands, and only care about prices.
In order to attract young consumers who love online shopping and are willing to spend money, Wang Xing, who has done express delivery distribution in Zhengzhou, consulted with her husband and prepared to do a courier station. She said that this is a reference to the internet company's way of play, first find traffic, and then find a way to monetize yourself.
In recent years, the state has continued to pay attention to opening up the last kilometer of "express delivery into the village", and this year it will also write "express delivery into the village" into the Central Document No. 1, proposing to accelerate the layout of rural logistics express outlets, implement the "express delivery into the village" project, and encourage the development of "multi-station integration" of township passenger and freight postal comprehensive development. At present, 98% of the townships in the country have realized brand express delivery directly, more than 80% of administrative villages have achieved direct express delivery, and online shopping products have entered the village to the household faster.
Wang Xing told Nandu reporters that in recent years, with the perfect layout of logistics express outlets, Chaoyang Village and many nearby villages have set up express delivery stations or rely on existing mom-and-pop shops to distribute express delivery, and villagers do not have to go to town to pick up express delivery. Seizing the opportunity of express delivery into the village, Wang Xing last year accessed a number of platforms such as Duoduo shopping. She mentioned that factory workers pick up dishes by the way when they get express delivery after work, without pressing goods and smashing funds, and can provide comprehensive services for surrounding villagers.
Off-site orders are a new trend
After changing the way of thinking, community group buying has become the key business of Wang Xing. "I've always wanted to do community group buying, and I was making tail goods when I was in the Hundred Regiments War before, and I didn't have time." Wang Xing observed the consumption habits of express delivery and friends around him and found that many post-90s mothers did not have time to visit supermarkets and relied on online shopping to get the family's living needs. When shopping online, today's rural youth pursue quality and brand, but the price cannot be too high. Do not blindly follow the trend of short videos, bloggers, as far as possible to create a refined life for themselves.
She told Nandu reporter that the community group purchase delivery time is fast, the goods are rich, the price has certain advantages, can cover office workers and price-sensitive elderly people, and harvest a group of customers with high repurchase rate in a short period of time. It is understood that Wang Xing once accessed 6 platforms last year, but with changes in the policy environment, the rapidly expanding community group buying ushered in a new round of reshuffle period, and players have withdrawn or adjusted the direction of business. At present, she only keeps two platforms such as Pinduoduo. During the peak period of holidays, the order volume exceeded 600 orders, and the monthly income exceeded 6,000 yuan. In the off-season, it remained at more than 50 orders, and the single volume was relatively stable, with a monthly income of more than 2,000 yuan.
Judging from the background data of buying more vegetables, users are mostly post-80s and post-90s as family pillars, with a high proportion of women, who love to buy fresh, meat, snacks, daily necessities, etc., with strong purchasing power; post-60s people are diligent and thrifty, often buying oil, rice, noodles, vegetables, etc. In addition, more and more people who work or do business outside the home buy more vegetables to place orders for the elderly at home, forming off-site orders. They are worried that the elderly in the family are not willing to spend money, or will not use smart phones, directly after buying more vegetables and placing orders, and then let the family pick up the goods.
"There are girls who marry far away from home, and regularly buy meat, fruits, milk and other supplementary nutrition for their mothers. There are also people who work in Guangdong and Xi'an, who rarely go home within a year and rely on buying more vegetables to take care of their families. Wang Xing found that such orders are relatively fixed every month, and the unit price of customers is 100 to 200 yuan per month. During the holidays, they also buy gifts for their relatives and friends.
Pinduoduo localizes consumer needs and supply chains to efficiently match them.
Construct a special logistics system for agricultural products
County-level cities and towns with large consumption potential have long been the main fronts for the sinking of community group purchases. According to data from the Ministry of Commerce, rural online retail sales exceeded 2 trillion yuan in 2021, reaching 2.05 trillion yuan, an increase of 11.3%. In terms of per capita consumption expenditure, according to the National Bureau of Statistics, the per capita consumption expenditure of rural residents was 15916 yuan, an increase of 16.1%, higher than that of urban residents.
Although the rural market has great potential, the commercial network of the county and below is the short board and weakness in the entire circulation system. The ministry of commerce launched a county-level commercial construction action last year with 16 departments, that is, to build and transform a number of commercial outlets, integrate and upgrade a number of logistics and distribution facilities, optimize and expand the circulation channels of agricultural products, and continue to expand the coverage of rural e-commerce with the comprehensive demonstration of e-commerce into rural areas as the carrier.
In order to open up a vast rural market, the Internet platform has built a warehouse allocation system in the sinking market to solve the problems of prominent logistics costs and difficulty in sinking supply chains. In terms of agricultural logistics, Pinduoduo has begun to explore the field of agricultural product logistics innovation. Chen Lei, chairman and CEO of Pinduoduo, believes that the logistics of the next decade depends more on point-to-point delivery than on the central radiation model of the past decade. This more flexible system can be achieved by taking into account a combination of truck delivery times, warehouse locations, route planning and more. Rapidly maturing technologies such as self-driving cars and robots, coupled with advanced computing technologies, will usher in a new phase of logistics.
The latest financial report data shows that in the past year, the Pinduoduo platform has generated a total of 61 billion orders, an increase of 59% year-on-year. According to Liu Jun, vice president of finance of Pinduoduo, under the "zero commission" of agricultural products and the strategy of re-investment in agriculture, the increase in agriculture-related orders on the platform is particularly significant. This provides the foundation for Pinduoduo to use advanced computing and real-time data to complete smarter route planning and identification.
It is understood that since August 2020, with the development of the grocery shopping business, Pinduoduo has localized and efficiently matched consumer needs and supply chains. Through continuous heavy investment in warehousing and cold chain, great progress has been made in the construction of a special logistics system for agricultural products.
In addition, at the beginning of 2022, Pinduoduo will provide a "more buy vegetables" collection service system for sites with express delivery business qualifications, help accelerate the "one-point multi-functional" of rural logistics express outlets, develop village-level delivery logistics integrated service points, accelerate the implementation of "Internet +" agricultural products out of the village and into the city project, and promote the establishment of a long-term and stable "production and consumption docking" relationship.
Chen Lei said that Pinduoduo has developed and optimized algorithm design, data analysis and cold chain logistics. "We have also applied for a number of patents, hoping to promote them widely in practice and help logistics providers improve efficiency and reduce costs."
Producer: Nandu Business Data News Department
Written by: Nandu reporter Huang Pei