Month: November 2019

With the help of Alipay, can Baijia achieve the “bend beyond”?

[Before]In 2008, Dalian Zizi Island successfully implemented cross-border marketing, and switched from traditional fishery to FMCG, which triggered a hot debate in the industry.
Nowadays, Sichuan Baijia, a leading domestic fan industry, has begun to try cross-border marketing, but it has only shifted from traditional fast-discovery channels to online online sales.
This time, the combination of Alipay and the launch of “White House Food City”

has important implications for both the development of e-commerce in the food industry and the expansion of traditional industries in e-commerce.
　　The convenience of fans, Sichuan flavoring, and Sichuan snacks were sold online. The fan-studded move of Baijia fans surprised many people and was considered a commercial hype.
However, in the view of Chen Zhaohui, president of Baijia, this may be an important way for white fans to achieve cornering.
　　It is understood that under the dual pressure of financial crisis and rising costs, the growth of Baijia has been significantly slow, and annual sales have stabilized at around 300 million.
In the competition of traditional sales channels, due to the natural slow heat attribute of fan products and the short-term profit-seeking nature of dealers, the market promotion of Baijia has been delayed, and the market share is in line with Master Kong, Uniform and White Elephant.The distance of the enterprise has not been significantly shortened, and the sales have not effectively opened the gap with followers such as Guangyou and Daohuaxiang.
What makes Chen Zhaohui even more embarrassing is that although the popularity of Baijia is very high, consumers often cannot buy goods because of insufficient distribution.
This problem is more obvious in the promotion of the sub-brand small town story.
I wanted to use the traditional channels to detonate the industrialization of special foods, but I couldn’t make it to the left. The White House finally jumped out of inertia and began to seek a network break.
　　Following the launch of Baijia “direct marketing supermarket” in Taobao, Excellence and other well-known shopping websites, Baijia recently reached a cooperation with Alipay to jointly promote Baijia’s sales website “White House Food City”.
Baijia believes that traditional industries have always neglected online channel sales, while Alipay has the advantage of 50 banking networks, and more than 200 million registered users of the network will become loyal consumers of white fans.
A box of white fans online shopping package shipping costs can also be nearly 20% cheaper from books, digital products to clothing, cosmetics and even diamond rings, cars, online shopping range is almost unlimited expansion.
But when someone proposes to sell food online, the first reaction of most people is, is this feasible?
Looking at rice at Chen Zhaohui, this is not only feasible, but also brings direct benefits to both consumers and white fans.
　　 Chen Zhaohui calculated the account, the same product, if sold through physical channels, including entry fees, dealer commissions, promotional fees and other marketing costs can account for more than 50% of gross profit margin, the maximum net profit margin is 20%, and network marketingThe cost is only half of the above traditional channels. When the unit price is more than 5% cheaper than the physical store retail price, the average net profit margin can reach 20%, and the maximum net profit rate can reach 30%.
Therefore, online sales are a happy way for manufacturers to be happy and consumers willing to do so.
　　The reporter saw that on the Baijia Food City website, convenient fans and hot pot sauces are sold in boxes, and one box is for sale. Except for Hong Kong, Macao, Taiwan and foreign countries, free shipping is available in other areas.
Take Baijia’s “A Kuan” hot and sour wide powder as an example, the market price of the whole box is 87 yuan, and the online purchase is not only delivered to the door, but also no additional shipping costs, the total price of the whole box is 72 yuan, which is cheaper than the offline purchase.Yuan, the discount is nearly 20%.
Introducing Alipay to solve the payment problem For Baijia, online sales can bring more than just lowering the cost of sales, making it easier for consumers.
The degree of control over the sales channel is the top priority of food enterprise marketing.Sometimes it is even a bottleneck for large-scale expansion of enterprises.
There are more than 130 items that Baijia currently has open, but even in Chengdu, where the channel is the strongest, there are more than 60 types of large supermarkets.
In many supermarkets in first-tier cities, there are fewer than ten kinds of products that Baijia can distribute. It is far from the traditional leading brands like Uni-President and Master Kong, but this is precisely the advantage of online sales.I don’t think I want to buy it online.”
　　The network can provide a completely different platform, and the massive amount of Internet information can allow White House to show all products to consumers.
Chen Zhaohui said, “Once this market is opened, the potential market size is unmatched by the traditional channels of opening up one or two regions.
Moreover, the cost of establishing an online store is not high, including the construction of the sales platform and the transformation of logistics, warehousing and management service processes behind, and the total cost does not exceed 1 million yuan.
But how to let consumers find the White House Food City and complete the final purchase, Bai Jia also explored for a while before stepping on the rhythm.
The core of e-commerce is the combination of information flow, capital flow and logistics.
Baijia launched a free shipping policy in logistics, which solved the problem of logistics to a certain extent, but payment has become a major bottleneck in Baijia Food City.
The rate of order churn caused by inconvenient payment cannot be underestimated. This is also the recent incident of Chen Zhaohui.
At the beginning of the opening ceremony, Baijia Food City only opened the payment method of bank remittance transfer. The bank account number given is only CCB and Bank of Communications.
For consumers, remittances across the bank are not only inconvenient, but also bear additional transfer costs.
　　In July, Baijia fans reached a cooperation with Alipay, the largest third-party payment platform in China, and introduced Alipay as the payment method for Baijia Food City.
Before the introduction of Alipay, Chen Zhaohui’s idea was to open more bank transfer rights. After the introduction of Alipay, he was pleasantly surprised to find that access to Alipay is almost equivalent to accessing more than 50 banks and more than 200 million users.Can meet the payment needs of most potential customers of Baijia.
　　Li Weiyu, Alipay’s public relations department, said in an interview with reporters that “this process reflects to a large extent the traditional food companies’ understanding of e-commerce business. In the online shopping market, the application of Alipay has become the most versatile solution.
“B2C direct sales or subversion of traditional sales rules. Data show that in 2008 the national food industry’s total vertical sales of the network is only 30 million yuan, while the domestic online retail sales totaled 120 billion.
　　”On Taobao and other websites, the sales of specialty foods led by online sellers have long been formed, and the total amount has even exceeded the total size of 30 million direct sales of food enterprises.
Li Weiyu said that the food industry today is quite similar to the clothing industry.Before the clothing B2C website such as VANCL formed a certain scale, the clothing was already one of the main sales items on Taobao.

However, at the beginning of the establishment of VANCL, every tens of pieces of clothing network sales have encountered many questions about the climate, but in 2008, VANCL’s ease of over 100 million has become a force that can not be ignored in the clothing industry.

“There is no market, but traditional food manufacturers have not exploited this market.
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“Some people think that, like the convenience of fans, the consumption of such foods as Sichuan flavors, urban singles, students, etc. account for a large proportion, these people are also deep users of online shopping.
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The view that online convenience foods are not feasible is actually to see the appearance characteristics of the convenience food price, and ignore the advantages of the network channel itself in specific and large-area coverage.

Combined with basic services such as modern logistics and Alipay, this area can completely cross-border enterprises that subvert the traditional industry pattern.

　　According to Baijia, by 2010, the expenditure generated by the network channel will grow geometrically, reaching 50 million, accounting for 20% to 30% of the total proportion, becoming an important supplement for consumers to buy white brand products.

Chen Zhaohui said optimistically, “If you look back on some days later, selling instant noodles online and selling sauces is actually no more novel than selling shirts online.

The ‘VANCL’ in the food industry may be among the first companies.