Daily Fresh Product Analysis Report

In recent years, the growth rate of fresh food e-commerce has been very fast, especially in recent times, community group buying has been in the limelight; especially the impact of the epidemic in the first half of this year, which has made the development of fresh food e-commerce even faster.

On July 23, 2020, MissFresh announced the completion of a new round of financing of 495 million yuan. This round of financing was led by CICC Capital and China Renaissance Capital served as the exclusive financial advisor. This is also the largest financing in the fresh food delivery industry.

When it was first founded in 2014, MissFresh, which carved out a niche in the fresh food e-commerce industry with its "forward warehouse" model, ushered in its own new retail 1.0 era; since then, it has been committed to getting closer to both the source of production and consumers, and in 2019 it upgraded to the "forward warehouse" 2.0 version, thereby breaking through the 10 million monthly active users mark on the APP, firmly ranking first in the fresh food e-commerce industry.

MissFresh's core business model has also attracted the attention of a group of investors. As of August 2020, MissFresh's nine rounds of financing have raised a total of 10 billion yuan. Recently, in the "2020 Hurun Global Unicorn List" released by the Hurun Research Institute, it ranked 108th with a valuation of 20 billion yuan.

So, what has made MissFresh successful and enabled it to take the lead in the fiercely competitive fresh food e-commerce market? What is the development status of the entire industry?

This article will analyze MissFresh’s perspective and give you an overview of this fresh food e-commerce unicorn and the operating logic of the industry.

This article will analyze from the following aspects:

Industry Analysis
Competitive product analysis
User Value Analysis
Business value analysis
Product Iteration Analysis
Product structure analysis
Operational Analysis
Summarize

1. Industry Analysis

Fresh product e-commerce, referred to as fresh food e-commerce, refers to the direct sale of fresh products such as fresh fruits, vegetables, fresh meat, etc. on the Internet; with the rapid development of the Internet, online grocery shopping has also become a way for consumers to enjoy life.

In recent years, fresh food e-commerce has experienced explosive growth.

Qichacha data shows that as of October 2020, there were 16,800 fresh food e-commerce entities in operation in my country, of which 2,139 were self-employed, accounting for 12.7%; at the same time, there were 33 financings in the fresh food e-commerce industry this year, and the industry market size is expected to reach 404.7 billion yuan.

Why does this phenomenon occur? What will be the future development trend of fresh food e-commerce?

Below we use the PEST model to explore the reasons behind this.

1. Politics

In May 2015, the State Council issued the "Opinions on Vigorously Developing E-Commerce and Accelerating the Cultivation of New Economic Driving Forces" to promote the creation of a relaxed development environment for e-commerce and promote innovative ways of serving the people's livelihood.

In July 2015, the State Council issued the “Guiding Opinions on Actively Promoting the “Internet Plus” Action” to support new agricultural operators and agricultural products to connect with e-commerce platforms, actively develop a production-based-sales model, and promote the development of e-commerce for agricultural bulk commodities.

On August 31, 2018, the Fifth Session of the Standing Committee of the Thirteenth National People's Congress voted to pass the "E-Commerce Law", which will come into effect on January 1, 2019.

In August 2019, the General Office of the State Council issued the "Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption", guiding e-commerce to cultivate new consumption, expand online and offline sales channels for ecological products, and promote the healthy development of the new retail industry.

In December 2019, the Ministry of Finance issued the "Notice on Promoting the Interconnection between Farmers and Merchants and Improving the Agricultural Products Supply Chain" to further strengthen the interconnection between farmers and merchants, improve the agricultural products supply chain, improve the efficiency of agricultural product circulation, and meet the needs of agricultural product consumption upgrades.

In March 2020, Xi Jinping called on society to reduce the flow of people and work together to fight the epidemic in his speech at the meeting on coordinating the prevention and control of the new coronavirus epidemic and economic and social development. This undoubtedly set off a wave of online transactions in the "contactless delivery" model.

2. Economy

1) Economic foundation empowers the industry’s survival

According to data analysis from the National Bureau of Statistics, my country's GDP has increased year by year. By 2019, the GDP had reached 99,086.51 billion yuan, an increase of 7.8% over the previous year. At the same time, residents' consumption levels have also risen, increasing by 8.6% over 2018.

In the first three quarters of this year, the per capita consumption expenditure on food, tobacco and alcohol of the national residents increased by 5.5%, accounting for 30.5% of the per capita consumption expenditure. It can be seen that "food" still accounts for a large proportion of people's daily consumption.

Therefore, with the good economic situation and increased consumption capacity, people have a huge demand for safe and healthy fresh products, which has also led to more and more funds being funneled into this industry to empower its development.

2) Potential user groups provide momentum for industry development

The China Internet Network Information Center (CNNIC) released the 46th "Statistical Report on the Development of China's Internet". The report shows that as of June 2020, the scale of mobile Internet users in my country reached 932 million, and the proportion of Internet users using mobile phones to access the Internet was 99.2%. The resulting demand has also given fresh food e-commerce a huge potential user base.

3. Society

1) The younger generation is the main consumer of fresh food delivery

Data shows that among China's main consumer population in 2020, those born in the 1990s, 1980s, and 2000s were the largest, accounting for 17.3%, 15.7%, and 12.6% respectively; the education and growth experience of the post-90s generation have prompted their consumption behavior habits to gradually become internet-based.

At the same time, the young generation born in the 1980s and 1990s are in the golden age of striving for their careers. They live a fast-paced life and have no extra time to spend on purchasing fresh products offline. All these have prompted them to become a large consumer group of fresh food e-commerce.

2) Frequent food safety issues have attracted public attention

Recently, the situation of food safety supervision and management in my country has been very serious. Domestic food safety incidents such as Sudan Red, Clenbuterol, and Melamine have occurred frequently, arousing widespread concern from the public.

How to buy safe and reliable fresh food is an urgent problem to be solved. Consumers who are not confident about the fresh food on the market are looking for a fresh food platform that can provide safety guarantees to purchase ingredients, which has also catalyzed the development of fresh food e-commerce.

3) The COVID-19 pandemic has changed our lifestyle

In addition, during the epidemic prevention period in early 2020, due to the restrictions on offline purchasing channels, fresh products with high frequency, rigid demand and difficult storage characteristics were in short supply, so people who were accustomed to offline consumption also turned their attention to online platforms.

Fastdata data shows that in February 2020, fresh food e-commerce grew by more than 50% month-on-month. In June 2020, the number of monthly active users exceeded 71 million, a year-on-year increase of 75.4%.

After the epidemic, the user scale of fresh food e-commerce platforms remains at a high level, and people's habit of online fresh food consumption is gradually being formed.

4. Technology

The innovative development of a series of technologies such as big data, 5G, mobile payment, and cold chain has brought new vitality to the fresh food e-commerce industry.

In the Internet age, big data is used to analyze consumers' psychological preferences to more accurately match users' shopping pain points and stimulate steady growth in online consumption, which of course also includes fresh food.
The rise of mobile payment methods and the development of 5G have made consumers' online experience more comfortable, and the way of fresh food delivery to homes has improved the quality of life of the majority of consumer groups.
The cold chain logistics of fresh products has become a major problem restricting the development of the fresh food e-commerce industry due to many factors such as the difficulty in controlling the source of products, high transportation costs, and complex product categories. Therefore, the innovative development of cold chain logistics construction has reduced merchant costs, effectively broadened the fresh food e-commerce industry chain, and provided new guidance for corporate marketing.

In summary, factors at all levels have jointly promoted the rapid development of the fresh food e-commerce industry. So what will be the development trend of this industry in the next few years? Is there enough room for development?

According to Analysys data, the number of active users of fresh food e-commerce has grown steadily in recent years, and the penetration rate of active users across the entire network has increased from 2.0% in 2017 to 4.2%; the average growth rate in the same period of 2019 exceeded 20%, and the number of active users in the first quarter of 2020 increased by 65.7% compared with the same period.

In the past decade, the financing scale of the fresh food e-commerce industry has exceeded 150 billion yuan. In the first half of 2020, the financing amount was 15.01 billion yuan, exceeding the total financing amount for the whole of last year. More and more funds are being invested in this market, injecting a shot in the arm for its development.

With the increase in the penetration rate of e-commerce users and the formation of online shopping habits among users, fresh food e-commerce has become a vertical industry with great growth potential in the mobile shopping field. The huge potential dividends have attracted the favor of a large number of investors, and also proved that the future development momentum of fresh food e-commerce is promising and there is still a lot of room for development.

2. Common business models of fresh food e-commerce

1. Forward warehouse to home delivery model

The forward warehouse is actually a warehousing and distribution model. The regional storage center is used to store a large number of products directly purchased from the source, and the goods are supplied through intelligent analysis of the demand within the radiation area of the forward warehouse.

Forward warehouses are generally located in areas with dense user populations, integrating storage, sorting and distribution. After a user order is placed, shipment is arranged directly from the nearest forward warehouse, ensuring delivery within 30 minutes within 3 kilometers.

Advantages: The forward warehouse does not need to be open for business, the location is flexible, and the layout cost is low; the distribution chain is simplified, reducing cold chain costs and product losses;
Disadvantages: The initial preparation and construction of storage centers and forward warehouses requires a lot of capital support, and the storage costs are high;
Core players: MissFresh and Dingdong Maicai.

2. Platform-to-home model

The platform invites offline merchants to join the platform to provide sources of goods, becoming the intermediary between offline supermarkets and consumers. Merchants obtain a large number of user orders through the platform for product sorting, and the platform dispatches riders to pick up and deliver the goods, ensuring that the delivery time is within 1 hour and the coverage area is around 3 kilometers.

Advantages: Generally, large supermarkets have a wide variety of products, and the platform does not need to set up a separate storage area, saving costs;
Disadvantages: The supply is provided by cooperative merchants, and the quality control is poor;
Core player: JD.com.

3. Supermarket + catering model

Offline stores integrate supermarkets, warehouses, and restaurants to create a one-stop shopping experience for consumers.

Directly purchased products are stored in stores. Consumers can either purchase them in store, place an order online and pick them up in store, or place an order online and have the store quickly sort and send riders to deliver them. The service covers an area of 1-3 kilometers and delivery takes 30 minutes.

Advantages: It meets the needs of user experience consumption and introduces a more sticky group to the online world;
Disadvantages: Store operations increase operating costs and product prices are higher;
Core player: Hema Fresh.

4. Community group buying model

Community group buying is generally done with the help of an online platform, with the group leader creating the group and being responsible for the group’s user operations and product operations.

Products are sold through online promotions, and after users place an order, they can be delivered to offline stores or picked up by themselves; generally covering people in nearby communities, the delivery time is controlled within 1-2 days.

Advantages: low inventory logistics costs and obvious product price competitiveness;
Disadvantages: The product category is single, and product promotion depends on the marketing methods of the group leader;
Core player: Qianxianhui.

3. Competitive Product Analysis

Driven by the epidemic, the fresh food e-commerce industry, which had been slowing down, has quickly ushered in a period of vigorous development. At the height of the 2020 storm, only by seizing the opportunity can one gain a firm foothold, and major platforms have also identified consumer demand and are gobbling up their own market share in their own ways.

Among them, online supermarkets such as Yonghui Supermarket, RT-Mart, and CR Vanguard have won a large number of user groups due to their greater offline brand influence; while merchants such as Meituan Maicai, Ele.me, JD.com, and Taoxianda have attracted a large number of consumers by relying on the corporate effects behind them; these have brought considerable competitive pressure to a series of platforms such as MissFresh, Dingdong Maicai, and HEMA Fresh, which mainly use the emerging manufacturer operation model.

According to the latest Jishu data, based on comprehensive user scale and financing strength, platforms such as JD.com, MissFresh, and Duodian are in the first tier of fresh food e-commerce, followed by HEMA Fresh, Dingdong Maicai, etc. in the second tier. Other platforms with lower market share are in the third tier.

Since Dingdong Maicai and MissFresh both belong to the "forward warehouse + home delivery" model, they are direct competitors.

The following article will analyze the growth paths and business models of the two companies in detail, and deeply reflect on the rise of fresh food e-commerce.

1. Dingdong Shopping

Growth Path:

In 2014, Dingdong Community was established, focusing on family community services.
In 2017, based on three years of experience in exploring family and community services, Dingdong Community finally chose the specific family service direction of family grocery shopping. It successfully transformed into Dingdong Maicai and was based in Shanghai. In May, the APP of the same name was launched. In the same year, it received Pre-A round investment from Gaorong Capital.
In 2018, Dingdong Maicai received six consecutive rounds of financing within a year, including from well-known venture capital companies such as Sequoia Capital, Today Capital, and Tiger Fund, all the way to the B+ round.
In 2019, the business scope began to expand from Shanghai to other cities in the surrounding Yangtze River Delta region and then south to Shenzhen. It started to build a warehouse and operate in Hangzhou at the beginning of the year. By the end of the year, Dingdong Maicai's monthly revenue had reached 700 million, and its annual GMV exceeded 5 billion. At the same time, it completed the B4 and B5 rounds of financing under the leadership of Star Capital.
In March 2020, Dingdong Maicai announced that it would move out of its hometown Shanghai and enter Beijing. The first batch of 18 forward warehouses will be opened in Beijing, and will gradually cover the entire city in the future. On April 21, Dingdong Maicai officially opened for business in Beijing.

Business model: City wholesale procurement/direct supply from brand suppliers + community forward warehouse + instant home delivery

Product sources: Fruits and vegetables are not easy to transport over long distances, so they are purchased wholesale in the city. For fresh meat, brand suppliers are mainly selected.

Transportation and storage: Dingdong Maicai adopts distributed warehousing, with the forward warehouse built 1 km around the community, with a starting price of 0 yuan and free delivery, and the delivery will be made within 29 minutes after the user places an order.

Product categories: 1700+SKUs, also focusing on selected categories, but the main focus is on ingredients for three meals, covering all product categories such as vegetables, fruits, meat, poultry, eggs, and seafood.

Operation model: Mainly offline promotion, the "invite and get gifts" activity encourages old customers to bring new customers.

2. Daily Fresh

Growth Path:

As one of the fresh food e-commerce platforms most favored by venture capital, how did MissFresh develop into a unicorn with a valuation of 20 billion?

Based on Qichacha data, the following will explore its growth path:

In November 2014, MissFresh quickly became a leader in the fresh food e-commerce market with its "forward warehouse" model; in December of the same year, MissFresh received a US$5 million angel round investment from investors including Guangxin Capital and Yuanjing Capital.
In May 2015, it received US$10 million in Series A funding led by Tencent and Guangxin Capital.
In November 2015, the 2-hour express delivery service was launched and received RMB 200 million in Series B financing led by Tencent. In April of the following year, the company completed a RMB 230 million Series B+ financing led by Yuanyi Investment, thus successfully completing the Series B financing.
In January 2017, the company completed a US$100 million Series C financing, with Lenovo Capital and Zheshang Venture Capital leading the new round of financing.
In March 2017, it received another US$230 million in the C+ round of financing, led by Tiger Fund and Yuansheng Capital, and announced that it would invest 300 million yuan in the office unmanned shelf project; in December of the same year, it received another US$500 million investment in the D round.
In September 2018, MissFresh received another $450 million in financing led by Goldman Sachs, Tencent, Time Capital, and Davis Selected Advisers. At the same time, the proportion of its own brands increased to 50%.
In July 2020, MissFresh announced the completion of a new round of strategic financing of US$495 million. This round of financing was led by a fund under CICC Capital and jointly invested by several other institutions. This round of financing is also the largest financing in the fresh food delivery industry.

Recently, with the support of Tencent Smart Retail's "All-Touchpoint Retail", MissFresh announced the official launch of the "Smart Fresh 100 Billion Plan", aiming to create "smart marketing", "smart logistics" and "smart supply chain", and is expected to grow into a 100 billion-scale fresh food retail platform within three years.

Business model: city sorting center + community forward warehouse + home delivery.

Product source: on the one hand, it comes from the place of origin, on the other hand, it comes from cooperating agents or manufacturers.

Transportation and storage: Suppliers or places of origin supply products to regional storage centers, which are then distributed to various forward warehouses. Finally, riders deliver the products within one hour based on user needs. Currently, the limited number of forward warehouses available daily has been upgraded to version 2.0 of 300-400 square meters. Regional classification not only includes refrigerated, frozen, and normal temperature areas, but also adds functional areas such as Little Red Cup Coffee and fresh produce.

Product categories: There are 12 major categories, and only 3,000+ SKUs are carefully selected in the forward warehouse to ensure daily needs while reducing selection time.

Operation model: Based on social fission and membership system, acquire operational users and enhance user stickiness.

4. User Value Analysis

Looking at the upstream, midstream and downstream of the fresh food e-commerce market industry chain, the main participants are suppliers, consumers and platforms. As shown in the business logic diagram of Daily Fresh, suppliers transport products to the platform's storage points, and the platform then sorts and delivers them according to user orders:

If fresh food e-commerce wants to gain a foothold in this market, it must simultaneously meet the needs of suppliers to sell products and the needs of consumers to purchase target goods.

Next, we will explore the specific content of the needs of these two parties and how MissFresh can match their pain points more accurately.

1. Supplier

The latest food consumption standards of the State Council show that my country's total demand for fresh food is estimated to be 420 million tons. Compared with the annual fresh food output of more than 1.11 billion tons in 2018, it can be seen that the entire fresh food market presents a situation of structural oversupply. At the same time, fast-moving consumer goods suppliers are also looking for new sales channels due to the outdated traditional supermarket model, forced promotions, overdue accounts and other reasons.

This article first analyzes the traditional sales methods of fresh and fast-moving consumer goods to see if we can get some inspiration:

1) Traditional wholesale market

Output : When self-producing suppliers grow vegetables and fruits and raise animals, they often control the scale based on their own experience and are unable to use scientific data to predict and control production. This may cause product unsalability and loss when there is oversupply.

Customer acquisition : Most upstream suppliers are small farmers and cooperatives with limited commercial operation capabilities and insufficient customer sources.

Sales : At the same time, in the traditional industrial chain, products will go through intermediate distributors, intermediate wholesalers and other roles between being shipped by suppliers and picked up by consumers. In such a complex supply chain system with layers of profit-making, suppliers' profit margins will be squeezed to a very low level, and product quality will be difficult to guarantee after multiple logistics transportation.

2) Direct supply from large supermarkets

High fees : Some merchants on the market rely on their channel advantages to charge suppliers a variety of high and unfair fees in order to squeeze suppliers’ profits and reduce their own sales costs. This is a disadvantage in the supermarket partnership.

Random returns : In actual supply and marketing relationships, supermarkets will conduct returns or exchanges if they find products of poor quality, which is a normal thing in itself; but the characteristics of fresh products such as easy loss and difficulty in storage will cause slight damage to the products during the supply process, which will increase the supermarket's return and exchange rate and increase the cost burden on suppliers.

Long account period : Overdue accounts seem to be a typical phenomenon in the retail industry. In order to facilitate subsequent transactions, some merchants will choose to repay in installments. Failure to repay in time increases the pressure on the supplier's capital chain.

3) We-media marketing

As there is an oversupply of fresh products, some suppliers will use the power of self-media to promote their products and sell them on platforms such as Taobao and JD.com. Of course, whether it is inviting well-known anchors to promote the products or using soft-text promotion, it requires a lot of capital investment. For suppliers with small sources of goods, this method seems to be not worth the cost.

2. Consumers

MissFresh has a huge user base, and these users often purchase fresh food online for different purposes. The factors that can influence users' decisions to purchase on fresh food e-commerce platforms are consumers' pain points.

Combining Analysys data, we analyze the pain points of fresh product consumers and find that they can be summarized into the following aspects:

Many product categories: Most consumers will not spend too much time buying food, so it is very important to be able to buy all the necessary goods at once in the same scenario. This requires the seller's product categories to meet basic life needs.
Convenient and fast shopping: Office workers lead fast-paced and stressful lives, and they need to get the products they need quickly and efficiently. The proportion of lazy homebodies is getting higher and higher, and enjoying life without leaving home is what many groups expect.
Product safety and high quality: As the quality of life gradually improves, people generally pay attention to the hygiene and health of food. The frequent exposure of food safety incidents in recent years has also made the public pay more attention to food safety. The first- and second-tier white-collar groups with certain consumption power are often people born in the 1980s and 1990s, and they are willing to pay an acceptable premium for the quality of life.
Affordable product prices: For most workers working in first- and second-tier cities, cooking can not only provide them with healthy and nutritious meals, but also save money. When purchasing ingredients, they also want to buy high-quality products at a lower price.

In short, consumers want to get guaranteed fresh products efficiently and conveniently. In real life, there are several ways to buy fresh products. Let's see if they meet the user's pain points:

1) Street vendors

Roadside vendors are the mobile fresh food stalls that we often encounter on the roadside or at the entrance of residential communities. They satisfy the desire of users to buy vegetables and fruits on their way home; but they generally only sell a few types of products, and the quality varies greatly.

2) Vegetable Market

A wet market is a place where various small vendors concentrate on retailing fresh products. Because the rental cost of the venue is lower than that of a supermarket, the products can be sold to users at a lower price. With many vendors gathered together, there are many kinds of fresh products to choose from, some of which include fresh local live fish and shrimp.

However, the vegetable market has fixed opening and closing hours, which is not suitable for office workers who have no spare time; the source of vendors cannot be managed in a standardized manner, and the quality of products cannot be guaranteed; it can only provide convenience to surrounding residents, and the degree of user restrictions is high.

3) Large supermarkets

Shopping at chain supermarkets usually occurs in scenarios where families or small groups make collective purchases. Supermarkets have a wide variety of products that can basically meet all users' fresh food needs and are suitable for consumers living within 3 kilometers to purchase daily necessities in one stop.

However, on the one hand, supermarkets have limited business hours, usually opening at 8 am and closing at 9 pm, which cannot meet the time needs of office workers; on the other hand, large supermarkets are generally opened in relatively prosperous areas of residential clusters, with obvious geographical restrictions and limited radiation areas, making shopping time-consuming and labor-intensive. At the same time, the high cost of store operation leads to a high unit price of goods.

4) Traditional e-commerce

Traditional e-commerce refers to fresh food merchants entering platforms such as Taobao and JD.com. Users can buy reasonably priced fresh food products by comparing prices from different stores, which meets consumers' demand for convenient shopping.

However, under this method, the product categories are relatively small, often limited to some fresh fruits and vegetables that are easy to transport, as well as vacuum-packed meat products; moreover, the original manufacturers generally require consumers to purchase a large quantity of products at one time, and improper storage will cause waste; finally, traditional logistics takes a long time, which will affect the freshness of the goods.

Overall, these daily purchasing methods have more or less met some of the needs of users, but they all have their own shortcomings.

3. Daily Fresh Platform

From the above analysis, we can see that the needs of suppliers are mainly to answer a series of questions such as how to shorten the product supply and sales chain to increase profit margins, how to obtain long-term supply orders to solve the problem of unsalable products, and how to solve bad cooperative relationships with merchants; while consumers are concerned about how to buy fresh products quickly, efficiently and economically. How can we better meet the demands of suppliers?

Let’s analyze how MissFresh plays a role between suppliers and consumers.

1) For suppliers

Three 0 plans:

As early as 2017, when it announced that it had received its Series C financing, MissFresh announced its “Three Zero Plan” to support upstream high-quality suppliers, namely “0 fees, 0 returns, and 0 account periods.”

At the same time, MissFresh has invested more funds to increase support for upstream high-quality fresh produce producers, hoping to fundamentally rebuild new standards for agricultural and commercial cooperation through the one-stop service policy of the "Three 0 Plan" and completely change the traditional retailers' long-standing problems with suppliers in terms of "high fees, random returns, and long payment terms."

"10 Billion Club" Plan:

On September 17, 2020, MissFresh officially launched the "10 Billion Club" plan, which is to invest 10 billion in the next five years to support 10 billion-level cooperative suppliers and empower them in six major areas.

The six empowerments include: R&D empowerment driven by big data for precise development of segmented categories, channel empowerment that covers all scenarios of consumers with "ultra-fast delivery + next-day delivery + on-site delivery"; through C2M order agriculture, using data to guide the entire production process and promote data empowerment for the upgrading of the large agricultural industry chain; adopting a weekly settlement policy with leading suppliers and providing inclusive financial funding empowerment to partners across the entire chain.

2) For consumers

many:

In terms of product selection, MissFresh follows the logic of "wide categories, high-quality products, and small sizes".

First, we try to cover all categories as much as possible, expanding to high-frequency consumer goods such as fruits, vegetables, meat and eggs, dairy products, snacks, and alcoholic beverages; second, we select about 3,000 SKUs while ensuring variety; finally, we sell them in the smallest possible packaging to ensure that users can purchase multiple products at one time.

quick:

An ultra-fast cold chain logistics system of "city sorting center + community forward warehouse" has been established in more than 20 major cities across the country. The forward warehouse does not need to be open for business; therefore, the site selection only considers factors such as user density and regional cost, penetrating into the city's capillaries, which is extremely conducive to the "last mile" fulfillment and delivery to end users, and providing users with self-operated selected fresh food delivery service in as fast as 30 minutes.

good:

MissFresh has established food safety rapid testing laboratories in North China, East China and South China, and professional quality control teams implement 100% batch testing of fruits, vegetables, meat, eggs, poultry and aquatic products. Before all fresh produce is put into storage, it must undergo multiple inspections such as sensory, sugar content, hardness, as well as rapid tests such as pesticide residues, veterinary drugs and banned additives residues. If the test fails, the product will be refused entry.

In addition, there are checkpoints such as transportation and arrival inspection for multiple checks. If during transportation, the outer packaging is severely squeezed and deformed, the outer label falls off, or the temperature does not meet the standard due to the failure to use refrigerated or frozen vehicles in accordance with relevant regulations, MissFresh's on-site quality control will refuse to accept the goods.

Province:

In the upstream of the industrial chain, MissFresh has reached customized cooperation with many large suppliers, and then directly reduced costs by 10%-15% through the direct procurement model; in the midstream of the industrial chain, relying on intelligent supply and demand algorithms, it conducts personalized operations for instant replenishment of forward warehouses, achieves low losses across all categories, and replaces the work costs of traditional fresh food store managers. These cost savings are all provided to consumers by MissFresh in the form of low prices.

At the same time, MissFresh implements the principle of high cost-effectiveness and is willing to drive daily retail sales with low-priced fresh produce and outperform the market with gross profit, which is in line with the needs of users who pursue cost-effectiveness.

To sum up, the platform builds a bridge between suppliers and consumers, giving suppliers a good cooperation experience and users a good consumption experience. In addition, MissFresh is still tirelessly seeking better ways to meet the pain points of both parties, which is why it is favored by all parties.

5. Commercial Value Analysis

MissFresh's core business is to sell various products on the platform and generate revenue from this. This figure will directly affect the outside world's judgment on its long-term cash flow generation ability, thereby affecting whether it can win the favor of investors and whether its future development is long-term.

GMV: Gross Merchandise Volume, refers to the total transaction amount within a period of time.

As a revenue measurement indicator for e-commerce platforms, GMV can be expressed as follows:

GMV = number of registrations * conversion rate * average order value

Then GMV is directly proportional to the number of user registrations on the platform, the proportion of paying users and their average payment amount over a period of time. The following article will analyze how MissFresh increases GMV based on these three indicators.

1. Increase the number of user registrations

At present, it is very difficult for fresh food e-commerce platforms to make short-term profits relying on fresh food sales revenue. If they want to achieve sustained revenue growth, continuously attracting a large number of new users to register is the guarantee for all marketing models to work. So how does MissFresh increase the number of user registrations?

Generally speaking, there are two channels for attracting new customers: paid channels and free channels.

1) Advertising (paid channels)

Online Promotion:

Brand cooperation series : launched the "10 Billion Club" plan, reached strategic cooperation with supplier brands such as Jiujiuya, General Mills, Mengniu, and Wall's to expand the platform's visibility; jointly created the "5G Era for All, Groceries Delivered to Your Home in 30 Minutes" campaign with Huawei Mall; cooperated with Beike to promote the Blue Ocean Charity Action.

Celebrity promotion series : Daily Youxian founder Xu Zheng and others jointly launched the "Celebrity X President" Qingteng Market Simulcast Plan with Zhao Wei; invited well-known bloggers in various fields to shoot a series of short films on "What's in Daily Youxian".

Video promotion series : produced the brand film "Make Life More Vivid", promoting the idea that women in their 30s should not be stereotyped, which resonated with the audience; "A Fresh Dish Every Day", using tempting dishes to attract new users to follow the official account; during the epidemic, shot a documentary short film "Our Heroes" to pay tribute to ordinary workers and touched countless people.

Offline promotion:

Offline advertising: More than a thousand billboards occupy the streets of Beijing and Shanghai. MissFresh uses the most direct action to invite "200 million Chinese to use MissFresh" and share the high-quality services of the "cloud refrigerator"; offline promotion also includes riders' special clothing, car body advertisements, community bulletin board advertisements, etc., which have invisibly created a certain influence for the brand.

Unmanned retail: The "unmanned retail" project launched by MissFresh - MissFresh Convenience Store, has now entered office buildings in major business districts, covering large, medium and small enterprises. While satisfying the convenient shopping needs of white-collar workers, it also increases the number of potential user registrations for the APP.

2) Social fission (paid channel)

Social fission:

Smart Operation: With the support of Tencent Smart Retail's "full-touchpoint retail", MissFresh has devoted itself to creating "smart marketing"; full-touchpoint operation enables precise delivery of social ads in Moments, greatly optimizing its direct connection efficiency with users and reducing the cost of attracting new users by 30%; by leveraging the social attributes of mini programs, MissFresh has achieved rapid social fission, and the GMV of the mini program has increased by nearly 400% month-on-month.

3) Product reputation (free channel)

The consumption of fresh products is very frequent and necessary, but precisely because of this characteristic, a user's experience will provide important reference value to those around them.

If satisfactory services can be provided in terms of supply, category and delivery time, a good reputation will be built among the user base over time, which will bring in more target users; on the contrary, if food safety problems occur with the product or delivery is delayed, bad news will spread far and wide, and the good reputation built over a long period of time may be destroyed.

In terms of quality control, MissFresh adopts multiple safeguards such as strict purchasing standards, rapid testing laboratories, and quality control personnel;
In terms of categories, the forward warehouse 2.0 version provides more than 3,000 kinds of goods. The Little Red Cup Coffee, Live Fresh and other functional areas can also provide users with freshly ground coffee, live fish and shrimp and other goods;
In terms of delivery, after receiving an order from a user, the sorter will use a barcode scanner with a storage location system to quickly locate and pack the goods, and then hand them over to the delivery person to complete the delivery. It usually only takes a few minutes from order receipt to shipment, which greatly guarantees the promise of 30-minute delivery.

MissFresh’s service level is very high in itself, and coupled with the more categories and services brought by the Forward Warehouse 2.0, it has formed a very good word-of-mouth effect, which has also brought it a steady stream of customers and ensured a steady growth in the number of user registrations.

2. Improve user conversion rate

After a user registers as a new user of Daily Fresh, the purchase path for the first purchase is:

Home page - Search list page - Product details page - Shopping cart page - Checkout page

According to the funnel model, we know that after each link, a part of users will be lost. So how does MissFresh stimulate consumers to make the final settlement in these links? The following analysis starts with the user purchase process touchpoints.

1) Platform homepage

Exclusive page for new users: New users of MissFresh will see a pop-up box with exclusive red envelopes for new users after logging in for the first time. Generally, the discounts are larger and valid for a shorter period, and the scarcity of opportunities is used to stimulate consumers' impulse purchases. At the same time, exclusive trial prices for new users are launched to give users the pleasure of "getting a bargain", lowering the psychological threshold for new users to purchase.

Platform homepage: In the era of information explosion, the retention time of each message is very limited. If there are not enough selling points to continuously attract users' attention, it will be difficult to guide users to take the next step.

When users buy fresh products, they are concerned about factors such as delivery, quality, and price. Therefore, MissFresh predicts user concerns in advance and provides information such as "fastest delivery in 30 minutes", "direct sales from global origins", and "one-stop shopping at low prices every day" to make users feel at ease to purchase products.
The page also has sections such as Today’s Flash Sale and Today’s Fresh, with the aim of creating a sense of scarcity among consumers and promoting quick ordering. The product list page also uses the herd effect, with the indication “23,000 people have bought it”, to create a popular atmosphere for the product and further increase the conversion rate.

2) Search list page

The conversion rate of the search list page reflects the platform's search efficiency, the match between search results and user psychology, etc.

MissFresh’s search list page is divided into a search box, first-level product categories (top), hot-selling recommendations and second-level product categories (bottom left), the corresponding category’s best-selling list, and a single product area (bottom right).
These designs are conducive to "shopping" and "buying": users without specific needs can click on the hot-selling areas or rankings at will to see what everyone is buying, thereby increasing their desire to consume while experiencing shopping in the supermarket; on the other hand, users can quickly search for target products through first- and second-level category restrictions, which reduces the operation process, reduces the difficulty of decision-making, and increases users' willingness to buy.

3) Product details page

On the product details page, MissFresh provides users with a safe channel, where they can directly see the professional test reports of the target products and establish consumer protection. At the same time, it clearly gives the delivery time range, which is conducive to dispelling users' doubts about quality and delivery.
User purchasing behavior is easily influenced by social circles, and sharing and comments from other users will enhance consumers’ purchasing confidence;
Adding buyer profiles and warm tips creates a warm feeling close to life scenarios; creative copywriting allows users to easily understand the selling points, characteristics and value of the product, such as "a hot yellow heart under yellow skin" and "there is a potato lover around everyone", which gives young users enough emotional resonance;

4) Shopping cart/checkout page

When the user adds the product to the shopping cart, the page will again emphasize information such as "delivery in as fast as 30 minutes", "7 available coupons", etc., showing the platform's concession, and is equipped with a prominent "de-checking" button to enhance the user's willingness to settle;
The settlement page is the interface where users are about to pay. First, you can flexibly choose the delivery time in delivery to enhance consumers' sense of control and allow them to get the products at the time they need the most; secondly, the platform clearly lists the discount amount of the product and the amount of red envelopes used, giving users a "super cost-effective" psychological feeling in terms of discount strength, reducing the process of consumer choice;
The cashier supports mainstream mobile payment methods in the market, avoiding payment obstacles encountered during settlement to the greatest extent, allowing consumers to successfully complete a series of operations and place orders successfully.

3. Increase average order value

In fact, the platform's average customer price is affected by two factors: the amount of a single purchase and the frequency of user purchases.

MissFresh has taken measures in both aspects, so let’s analyze them in detail below.

1) Single purchase amount

Free shipping: We all know that there is a common consumption phenomenon among social groups - psychological accounts. They resist spending on shipping costs and will try every means to collect orders and free shipping; Daily Youxian will also prompt on the shopping cart page, "No basic shipping costs if you pay 39 yuan in actual payment, but it is still XX yuan short of it", and provide the "to-order" function, which is very easy to increase the user's single purchase amount.
Coupons/red envelopes for full discounts: Through activities such as super value exchange, discount discounts, and half price of the second item, guide users to buy more and make more money, creating a cost-effective user value while increasing the average customer price.
You may like: adopt big data analysis to clearly understand consumers' shopping habits, intelligently recommend products that may be interested in and items that you often buy, save time in choosing and reduce the process of users thinking about decisions.

2) User purchase frequency

Membership system:

For users, joining a member can get more discounts and better services; for enterprises, the membership system ensures the purchasing power and loyalty of the member group, and plays an important role in promoting consumption, increasing user stickiness, and inspiring word-of-mouth communication. Therefore, fresh food e-commerce is more keen to establish its own membership system due to the high frequency and low consumption of repeated purchases of products.

This is true for Daily Youxian. 85% of its revenue depends on paid members. On almost every interface of the platform, copywriting such as "limited time of 7.5% off, saving 866 yuan more than a year" and "2,000 products are being discounted" creates scarcity and cost-effectiveness, guiding users to open members.

After the user opens a membership, the platform will invisibly increase the user's consumption frequency with various member rights, converting uncertain consumption behavior into certain payment behaviors, thereby increasing the user's purchase frequency.

Save wallet: Insight into users' greed for cheapness, launch a wallet saving activity, pay attention to the topic of "Purchase a total value of 35 yuan red envelopes for 0.99 yuan", and promise to make a return on the money; after purchasing a wallet, the conditions for using no threshold/full red envelopes are that only one order can be used. If users want to use the remaining red envelopes, they need to place another order, which will increase the user's repurchase rate.

I often buy: After the user clicks on the search box, the "I often buy" section will appear below. After clicking on the corresponding product, you can directly purchase the relevant products again to avoid re-selecting; so for users who often purchase certain products, this will reduce the burden of choice and speed up the purchase process.

To sum up, Daily Youxian has taken various measures to increase user registration number, conversion rate, and customer unit price; and according to the latest data, it can be seen that the average annual consumption of Daily Youxian repurchasing users on the platform is 2,580 yuan, and the average annual consumption of member users reaches 3,940 yuan. It has achieved the goal of 10 billion GMV in one and a half years in cooperation with Tencent Smart Retail. These figures show that these measures have achieved good results and have also won the attention of investors.

6. Product Iteration Analysis

We all know that real user needs are constantly discovered and satisfied during the process of users using products, and users will always have new needs. Therefore, in-depth analysis of the product version iteration rhythm can help you understand how this product can gradually meet user needs and go through various stages of the life cycle.

In order to explore the product iteration logic, the following article summarizes all the iterations of the core versions of MissFresh from V1 to V9.8.95 as follows:

According to the curve distribution of daily Youxian daily downloads, it can be seen that the development of the product is similar to the "S-shaped" curve, so the following analysis is divided into three stages:

1. Phase 1: Cold start period

From V1.0.0 to V2.0.0, it is in the cold start period of Daily Youxian. This stage mainly explores the initial user experience, further exploration of user needs, function exploration, product positioning, etc.

As a fresh food e-commerce platform, in order to optimize users' consumption shopping experience, it has successively added coupon types expansion, support baby coupons, and add shopping cart discount tips and other functions; at the same time, in order to avoid users from being unable to obtain products smoothly due to delivery address issues, and the platform can reduce delivery costs, and the precise selection of delivery address and adding displays in multiple regions have been added. These are all functions to help users complete the optimization of purchase paths.

After the basic functions can help seed users complete a series of ordering operations, they need to start expanding the scale of new users, that is, launching the "group buying activity" in V2.0.0 version, but this is just a small test of socializing.

2. Stage 2: Growth period

Since the beginning of 2016, MissFresh began to shift its core goals to attracting new products and retention. Through a series of iterative optimizations such as social new products, member upgrades, and broadening new functions, it has experienced a slow growth period and a high-speed growth period.

1) Slow growth period

From V3.0.0 to V4.8.0, MissFresh mainly explores operating methods that suit it in terms of social fission, membership system, function expansion, etc.

Social fission:

With the gradual improvement of basic functions, the user scale urgently needs to be expanded. On the one hand, the intensity of inviting friends to receive rewards ranges from receiving coupons to 50 yuan and then to 60 yuan. In V4.2.0, it has been redesigned to a 100 yuan coupon gift package for newcomers. Driven by interests, old users continue to recommend the platform to their relatives and friends to create momentum for fission. On the other hand, in order to make newcomers willing to be invited to register, newcomers also enjoy cash rewards or super value gift packages and other benefits.

Improve retention rate:

Membership system: The membership system plays an important role in promoting consumption, increasing user stickiness, and encouraging word-of-mouth dissemination. The threshold for ordinary users of Youxian to convert to member users has been continuously lowered, and the conditions for placing two orders are relaxed to downloading the APP to register as a member. At the same time, in order to maximize the effectiveness of the membership system, exclusive rights are also used to attract the increase of new members and promote consumption of old members.
Value storage function: The stored value benefits will be increased to 1,000 yuan and get 50 yuan, and 110 yuan will be received when charging 2,000 yuan, which will improve user stickiness and repurchase rate.

New features exploration:

Continuously optimizing the user experience in all aspects is also a way to maintain user retention. As of October 2016, MissFresh has launched online customer service and refund functions to optimize after-sales service; the new "National Delivery" channel has broadened the business area and expanded its brand influence nationwide.

The "Search" function can facilitate users to find the target product more accurately; the "Evaluation" function is launched to enhance consumers' confidence in purchasing products.

2) Rapid growth period

After the precipitation of the slow growth period, the number of users of Daily Youxian has shown an explosive growth. Retaining new products has always been the main theme of the growth stage. MissFresh has also been committed to improving its membership system and optimizing new products activities.

In terms of membership system, new members' rights and interests are upgraded, and they can enjoy product discounts, order cashbacks and exclusive customer service at the same time, and are still being optimized.
In terms of social fission, users can transfer red envelopes, give membership experience cards to friends, and also get red envelopes with luck, buy goods in groups, and other activities; the activities of newcomers have also been further upgraded, from giving gift vouchers of 100 yuan with 100 yuan with exclusive reserved value to 39 yuan for newcomers who place an order of 39 yuan and get 39 yuan for cash.

In terms of daily discounts, with the main goal of increasing customer unit price, the value-for-value exchange function is enabled to increase the user's single purchase amount, and red envelope coupons are also launched to increase the frequency of users' purchases.

As the user scale gradually grows, the importance of reputation becomes increasingly prominent. Daily Youxian has gradually made improving user reputation a priority, and has added various new functions by tapping into new needs feedback from users during product iteration.

In terms of quality, consumers have paid close attention to food safety in recent years. In response to the pain points of users' demand for product quality, the query function of fruit and vegetable product quality inspection report was launched, and then the query operation was optimized and upgraded to a safe detection label.
In terms of delivery, the real-time positioning function of delivery staff has been added to allow users to control their product delivery process in real time; in order to reduce the loss of user caused by insufficient product inventory, the delivery function of sold-out products is added; and during the epidemic, in order to avoid the potential for infectious risks caused by users, in response to the national call, the "contactless delivery" model was proposed to make users more at ease.
In terms of product sales, first, the product pre-sale function is officially launched, which can use order data to estimate user needs, reduce inventory backlog, and reduce storage costs; secondly, if fresh food e-commerce wants to break the inherent impression of selling fresh food products only, it must gradually transition the single model to the fresh food supermarket model, thereby convenient shopping and Youxian supermarket are launched.
In terms of after-sales, the problem that accompanies the sharp increase in user volume is the emergence of various new problems. Daily Youxian has added an opinion feedback portal, which can not only improve the after-sales service experience, but also discover new demand pain points in these user feedback.

At the same time, it also adapts to the hot topics of the era of "Baobei Youth" and launches Huabei Payment to optimize the user experience to the greatest extent in terms of details.

3. Stage 3: Stability period

At this time, the user scale tends to grow steadily, so the core work of the platform at this stage is to optimize detailed design, actively retain users, and at the same time explore new growth explosion points.

For example, if the product is out of stock, you can choose to continue shipping the remaining products or cancel orders, enhance phone privacy protection, etc., which continuously perfect the user experience from the subtle points; Daily Youxian also uses the interactive gameplay between users to add the "Ta" recharge function to improve the activity of retaining users; in exploring new directions, Daily Youxian has begun to turn its sales targets to groups, and has launched the enterprise in-app purchase function, etc.

4. Conclusion

To sum up, in the cold start stage, MissFresh mainly focuses on the realization of users' basic needs, polishes the user experience on the consumer's shopping path, and on this basis, it begins to explore social fission and gradually enters the growth stage.

Daily Youxian began to shift its core goals to attracting new users and retention through a series of operational operations such as new people's rights, member upgrades, and social fission, and the number of users increased by multiple levels.

When the user scale tends to grow steadily, the development of MissFresh has entered a mature stage. At this stage, the platform continues to optimize the detailed design and actively retain users. The above is the overall iteration step of MissFresh.

7. Product structure analysis

In product iteration analysis, the above article analyzes the development steps of Daily Youxian from the perspective of functional iteration. Next, we analyze what user needs these functions meet and how they are distributed throughout the APP.

Below is the structure brain diagram of the Daily Youxian product of V9.8.95 drawn using Xmind:

For the convenience of analysis, the following text re-examines the product structure of Daily Youxian according to users, scenarios, needs and functions, and obtain the following table:

1. Overall analysis

The main target users of fresh food e-commerce are consumers themselves, so the platform must build the entire structural framework of the product based on matching consumers' pain points.

Obviously, there are three consumption scenarios for consumers to buy fresh food products:

Have a comprehensive understanding of the target product information before shopping;
Confirm the order during settlement and learn about the platform's discount details;
After shopping, control the delivery and after-sales service.

Scene 1: What content will users care about before shopping? What functions does MissFresh meet these needs?

When users use a new fresh food e-commerce platform, they may want to know the platform's business qualifications and other related information. Therefore, they can directly view it through the "Qualifications and Rules" button on the homepage to use this platform with more confidence.
For consumers who have already determined the target product, the fastest way is to directly search by entering keywords. The search box at the top of the homepage plays a role in fast locking; at the same time, clicking on the search box will also show popular searches and "I often buy", which is also the effect of quickly selecting products through intelligent data analysis of users' psychology.
For consumers who have not yet determined the target product, the banner carousel, today's flash sale, hot sales rankings and other contents on the homepage can help users provide purchase references in terms of price, popularity, etc., and accelerate the ordering process; in addition, Daily Youxian has also added the "What to Eat" community special edition, encouraging users with cooking skills to share their food cooking methods, and also provide some reference and help to users who don't know what to buy and eat and how to make them.
In addition, based on the consideration of food health and hygiene, and the difficulty of fresh food products is easy to store, users will always be uneasy about the quality; in response to this, Daily Youxian provides a safe channel on the product details page, and you can see reports on verification and testing by third-party institutions. Professional testing reports will greatly increase users' confidence in consumption.
Since each user has different requirements for delivery time, the delivery time will be prompted on the product details page and the final settlement interface, which will allow users to have a concept of time during the selection of products and settlement process, avoiding the negative experience brought by urgent orders.

These functions are mostly concentrated on the home page, product details page, etc., and the operation steps are simple. This design allows users to confirm the target product 1-2 steps after opening the APP. When viewing the details page, you can also see the security channel and delivery time at the same time. This allows users to complete the purchase process of the target product with the minimum operating cost.

Scenario 2: What new needs will arise when user settlement? How does the APP ensure that users place orders with peace of mind?

All fresh food e-commerce companies compete in the market and will launch a series of discount activities. Users will inevitably compare orders to ensure the cost-effectiveness of the current order. Obviously, users want to quickly see what red envelopes/coupons are on the platform and whether it is suitable for current orders. Therefore, the platform provides an available coupon portal on the shopping cart interface for users to view.
In fact, users do not want to pay for shipping. Most people will choose to control the consumption amount within the range of free shipping. According to this, the platform has added the function of order-compiling in shipping prompts and coupons. It can quickly collect orders and free shipping, and shopping carts can add and delete items immediately; similarly, the same is true for filling up the orders and discounts.
In order to meet the various payment habits that consumers may have, Daily Youxian supports various payment methods such as WeChat, Alipay, Huabei, Cloud Flash Payment, and stored value to avoid hindering users' ordering process.

The functions related to placing an order are reflected in the shopping cart interface, and the final confirmation operation can be completed without jumping the interface; when you click to check in the final, the delivery time and all discount items will also be displayed to ensure the smooth execution of the settlement action.

Scenario 3: What needs do users have after shopping? What new features has the platform launched?

When a user has just placed an order and has not yet delivered it, it is inevitable that he will encounter problems such as using the wrong red envelope/forgot to use it, buying the wrong product/more/less, and selecting the wrong address. Therefore, after just placing the order, the order details will appear in the My Order Area in the "My" special edition. Users can cancel the order in time as needed to make another order again, avoiding the time-consuming process of finding problems after they have been delivered.
During the delivery process, you can also view the delivery information to grasp the progress of product delivery in real time, so that users can feel more control.
After receiving the product after delivery, the product may be missed/incorrectly sent or dissatisfied with the quality. At this time, you can find the after-sales/refund function in the "My" interface, and you can also find customer service at the bottom of the page for help; if some customers have the need to issue invoices, you can also click "Invoice" on the My Order Interface to issue invoices.

Summary: The above analysis shows that in the above three scenarios, Daily Youxian can meet the needs of consumers well, and users pay different attention to certain functions before, during and after shopping; carry out reasonable layout planning, minimize user operation costs on the basis of complete functions, and have a clear structure, which is a product that can provide reference value for other platforms.

8. Operational Analysis

Since its launch in 2014, MissFresh has been focusing on moving forward steadily according to the established development track. After its growth period, it has broken through the 10 million monthly active users of APP, ranking first in the fresh food e-commerce industry.

How did MissFresh accumulate these large number of stable and continuously growing users? In addition to doing a good job in the product, operation is also an indispensable part.

The above article has actually analyzed the main operating methods, so below will briefly sort out some important operating activities of Daily Youxian according to the AARRR model.

1. Acquisition

1) Account operation and promotion

MissFresh’s Douyin short videos, Xiaohongshu, and WeChat video accounts mainly publish healing food videos and brand promotional videos to enhance the brand’s popularity and influence.
The official Weibo account mainly publishes the latest operation trends, including holding theme promotions, promotions of new partners, etc. At the same time, irregular lottery activities will be held to attract users' attention and register to download the APP by giving away stored value cards or physical prizes.
The official account platform publishes various activity information, including subsidies and discounts, lottery winning lists, etc.

2) Cooperation and promotion

In June 2019, MissFresh joined hands with Tencent to hold a strategic cooperation press conference. Relying on the support of Tencent Smart Retail’s “full touchpoint retail”, it officially launched the ZhiFresh 100 billion plan that integrates “smart marketing, smart logistics, and smart supply chain”.

In February 2020, we collaborated with Lenovo Xiaoxin to launch the "Love Gift Package" to share loving stories during the epidemic.

In April 2020, the Institute of Feed Research of the Chinese Academy of Agricultural Sciences and Meituan Youxian held a signing ceremony to launch high-quality customized fresh products to the market to meet people's healthy living and consumption needs, and explore the construction of a green animal production system.

In June 2020, the signing ceremony of Jiujiuya & Daily Youxian strategic cooperation was held in Beijing. The two parties reached in-depth strategic cooperation on the category upgrade, new flavor research and development and omni-channel expansion of Jiujiuya leisure braised food.

In July 2020, Coca-Cola signed a strategic cooperation agreement with MissFresh. The two parties will integrate their respective advantageous resources and carry out in-depth cooperation in terms of business expansion, marketing strategies, data sharing, etc., and jointly explore retail model innovation in home scenarios.

In September 2020, we reached a strategic cooperation with Tencent Maps, Knight Card, etc.

In November 2020, mobile developer service provider Aurora and MissFresh reached cooperation in digital and intelligent operations; Aurora will use artificial intelligence to help MissFresh fully understand user needs, push and operate messages based on analytical data, improve user stickiness and activity, and realize personalized smart marketing.

3) Celebrity promotion

In June 2020, Zhao Wei helped the CEO of Youxian live broadcast debut.

4) Help public welfare

In March 2016, it helped Liquan County with 70,000 tons of apples unsalable, and on the basis of strict requirements for in-stock and delivery, it helped farmers to the greatest extent.

In November 2017, Meiji Youxian helped adoption day and launched a public welfare fund called Awkward juice to help stray animals spend the winter.

In November 2018, we signed pairing assistance cooperation agreements with Yanyuan County, Sichuan and Ziyun County, Guizhou, respectively, which is also the continuous implementation of the "four-one" industrial poverty alleviation model of Daily Youxian.

In March 2020, 10 female stars including Zhang Jingchu, Qin Lan, Tan Zhuo, Ma Su, Huang Shengyi, Xiong Naijin, Jiang Kaitong, Li Sheng, Liang Yuan, Zhao Ke jointly released public welfare posters, advocating the concept of "eating at home" life.

In August 2020, MissFresh assisted the Cyberspace Administration of Qingdao Municipal Committee of the Communist Party of China in issuing an initiative to "practice economy and oppose waste" to the whole society in the form of a television public service advertisement.

5) Promotional film

In February 2020, the epidemic documentary short film "Our Heroes" paid tribute to the ordinary heroes who still stick to their posts in the empty city of Beijing.

In April 2020, the 5th anniversary short film of Youxian Daily "Thank you for your three meals and four seasons", showing the best wishes of Youxian members.

2. User activation (Activation)

In terms of operation, the main ways to promote vitality by daily freshness are:

Actively carry out various festival activities discounts, such as mid-18 mid-18 promotions, Double Eleven events, Mid-Autumn Festival gifts, Mother's Day special offers, etc.;
The “what to eat” community shares food tweets. While users receive rewards, the platform also increases user activity;
The activity information of the "Today's Flash Sale" and "Today's Fresh Meat" sectors will prompt consumers to stimulate consumption due to the urgency of time.

3. User Retention

After achieving a certain user scale, it is crucial to ensure user retention rate.

Daily Youxian mainly improves retention rate through its own membership system. Member privileges include a series of rights such as member exclusive coupons, exclusive product exclusive price, exclusive member day, double points rebate, unconditional refund for unsatisfied unsatisfactory, and priority delivery;
You can get points every time you place an order, and the points mall can use points to exchange for goods or red envelopes for full discount;

These will attract users to give priority to using Daily Youxian orders and gradually develop usage habits.

4. Increase revenue (Revenue)

How does MissFresh achieve sustained revenue growth? This part of the content has specific content in the commercial value analysis in Section 5, so I will not repeat it here.

5. Recommended communication (Referral)

In fact, recommended communication is social fission. As the most effective way to acquire customers, it will run throughout the entire life cycle of the product. The method of increasing the number of users mentioned earlier is actually the recommended communication method:

IX. Conclusion

Through the overall analysis of Daily Youxian in multiple dimensions, the following conclusions can be drawn:

1) The four aspects of politics, economy, society and technology have jointly promoted the rapid development of the fresh food e-commerce industry. With the increase in the penetration rate of e-commerce users and the development of users' online shopping habits, the future development momentum of fresh food e-commerce is optimistic, and there is a lot of room for development.

2) Based on the overall user scale and financing strength, MissFresh ranks first in the fresh food e-commerce; it adopts the forward warehouse + home delivery model, with direct product source procurement, strict quality control, selected categories, and timely delivery. It is in a leading position in the fresh food market and has a valuation of 20 billion yuan.

3) In terms of the upstream, middle and downstream of the fresh food e-commerce market industry chain, the main participants include suppliers, consumers and platforms; fresh food e-commerce needs to meet the needs of suppliers to sell products and consumers to purchase target products at the same time, build a bridge between them, give suppliers a good cooperation experience, and give users a good consumption experience.

4) Commercial value will affect the outside world's judgment on the platform's long-term cash flow ability. Daily Youxian increases the number of registrations through advertising, offline publicity, shaping good reputation, etc.; stimulates user consumption and improves conversion rate by stimulating user consumption at every step of the user's shopping path; increase customer unit price through a series of activities such as full discount, value-for-money exchange, member rights and red envelope distribution; these measures have achieved good results and have also won the attention of investors.

5) The overall iteration rhythm of Daily Youxian is clear and progresses layer by layer. In the cold start stage, it mainly focuses on the realization of users' basic needs; through a series of operational operations of new users, membership upgrades, and social fission, new users are acquired, and the number of users increases by multiple orders; when the user magnitude tends to grow steadily, the development of MissFresh has entered a mature stage.

6) It can meet the needs of consumers well in all three scenarios, and according to the degree of attention of users to certain functions based on the different levels of attention of users to certain functions before shopping, during settlement, and after shopping; carry out reasonable layout planning, minimize user operation costs on the basis of complete functions, and have a clear structure, which is a product that can provide reference value for other platforms.

7) Daily Youxian can accumulate a large number of stable and sustainable users. In addition to doing a good job in products, operational work is also an indispensable part; the work carried out in attracting new products, promoting activation, retention, etc. complement each other and jointly promote the development of the platform.

In summary, this article analyzes the reasons behind the rapid development of MissFresh from seven parts, including industry, competitors, user value, commercial value, product iteration, product structure, and operation; it can be seen that in the process of product launching to stability, every task is very critical, and no product can be successful at will.

10. Future Outlook

Having written this, you can basically answer the question asked at the beginning of the article: What has made Daily Youxian, making it the leading position in the fresh food e-commerce track where many people compete for? We have explored its past, so what will its future be?

The following article uses the SWOT model for systematic analysis, hoping to draw effective conclusions from it:

1. Internal Strengths

Online fresh food allows people to enjoy the delivery service of buying groceries at home without leaving home, which can break the previous time and space restrictions of buying groceries in vegetable markets and supermarkets; consumers can choose the required products according to their actual situation and arrange the delivery time.

Daily Youxian builds a bridge between suppliers and consumers, and can meet the needs of both at the same time, which is the main reason why it has developed rapidly.

Direct source procurement and selected categories provide consumers with a "good and fast" one-stop shopping experience for all categories of fresh food.

It has a strong, capillary-level intelligent chain forward warehouse logistics system and the ultimate global supply chain capabilities, which makes MissFresh have strong sustainable growth capabilities.

2. Internal Weaknesses

Online fresh food cannot provide an immersive shopping experience, and consumers cannot personally experience the freshness of the products or the quality of the products, and conduct online shopping just by relying on their trust in the platform.

Due to the limited capacity of forward warehouses, selected categories cannot meet the needs of some consumers to choose and compare in the purchase decision process and the needs of life users at one time.

3. External Opportunities

The combined influence of policies, economy, social culture, technology and other factors has affected the great development of fresh food e-commerce. With the increase in the penetration rate of e-commerce users and the development of users' online shopping habits, fresh food e-commerce has become a vertical industry with great growth potential in the mobile shopping field, and there is still a lot of room for development.

Traditional supermarkets and vegetable markets have dual limitations of time and space, which has led to a large number of users giving up time-consuming and laborious offline shopping, which has brought a steady stream of user growth to online fresh food.

The population of third-, fourth- and fifth-tier cities in China exceeds 1 billion, and the blue ocean market is greater than that of first- and second-tier cities. In addition, the impact of the epidemic has subtly changed people's lifestyles, and the huge demographic dividend provides huge development opportunities for online fresh food.

4. External Threats

At this stage, the target users of fresh food e-commerce are mainly concentrated in first- and second-tier cities. With the development of the country's experience, the consumption level in low-tier cities continues to increase, and the potential of the sinking market will also lead to more and more new players emerging in fresh food e-commerce.

The competition among existing players is fierce, except for the emerging manufacturer model Dingdong Maicai, Hema Fresh, etc., which are catching up quickly; offline supermarkets are aiming at the online market and joining the online e-commerce team; while Meituan Maicai, Ele.me, JD.com, Taoxianda and other merchants rely on the corporate effect behind it to attract a large number of consumers. These all bring competitive pressure to MissFresh that cannot be underestimated.

Even problems such as "not fresh" and "not instant delivery" will have a certain impact on the brand reputation of MissFresh, affect people's impression of the platform, and hinder subsequent operational work.

Through the above analysis, we can see that if you want to develop better, in addition to continuing to persist in building the company's smart chain technology and supply chain capabilities in the place of origin, I think we will also start from the following directions:

1) Establish a special department to handle user negative reviews, use the best service to reduce negative reviews, and maintain a good reputation of the brand.

2) In combination with the background of artificial intelligence, can we try to open the VR channel to achieve the purpose of users visiting the forward warehouse, and set up some gameplay methods such as clicking on the product to trigger hidden benefits during the shopping process, and can also use this as the operation theme direction.

3) There are divided into Oware and Oware. Oware is located around Oware. Oware's Sku should be as large as possible to reach the supermarket scale; when users have special needs that exceed the inventory category of small warehouses, ship goods from Oware to meet the pain points of one-stop daily use within the cost control range, and gradually develop fresh food e-commerce brands to online supermarket brands.

4) Currently, fresh food e-commerce players are basically attracting individual consumers. Daily Youxian can vigorously develop enterprises, family purchases, etc. in parallel, increasing revenue and expanding scale from another breakthrough point.

Author: Xu Meile

Source: Xu Meile

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