Daily Fresh Product Analysis

MissFresh is a mobile e-commerce company that focuses on high-quality fresh produce, providing product delivery and services including fruits and vegetables, seafood, meat and poultry, milk and snacks. A rapid cold chain logistics system of "city sorting center + community forward warehouse" has been established in more than 20 major cities across the country, providing users with self-operated selected fresh food delivery services in as fast as 30 minutes.

MissFresh was founded in 2014. The following year, MissFresh received a US$10 million Series A financing round led by Tencent. On October 21, 2019, Hurun Research Institute released the "2019 Hurun Global Unicorn List", and MissFresh ranked 84th. On July 23, 2020, MissFresh announced the completion of a new round of financing of US$495 million, which is currently the largest financing in the fresh food e-commerce industry. This huge amount of financing has once again pushed MissFresh to the forefront.

As a loyal user of Daily Youxian, I will analyze the reasons for Daily Youxian's rapid development from the following aspects:

1. Industry Analysis
2. Competitive product analysis
3. User Value Analysis
4. Business value analysis
5. Product Iteration Analysis
6. Product structure analysis
7. Operational Analysis
8. 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 and meat on the Internet through e-commerce. In recent years, fresh food e-commerce has developed rapidly with the support of capital, and various e-commerce platforms have sprung up like mushrooms after a rain.

Why is the fresh food e-commerce industry developing so rapidly? Below I will analyze from a macro level using the PEST model.

1.1 Politics

In 2017, the Ministry of Commerce issued the "Notice of the Agricultural Development Bank of China on Jointly Promoting the Construction of Agricultural Products and Rural Market Systems", supporting the construction of agricultural product markets and warehousing and logistics facilities, the construction of public welfare agricultural product market systems, and the construction and development of agricultural product cold chain logistics systems.

In 2018, the Ministry of Commerce, the Ministry of Industry and Information Technology and eight other departments issued the "Notice on Carrying out Supply Chain Innovation and Application Pilots", proposing to establish and improve the agricultural supply chain, combine local characteristic agriculture, give priority to important products such as grain, fruits and vegetables, tea, medicinal materials, dairy products, eggs, meat, aquatic products, and wine, based on regional characteristics and advantages, give full play to the demonstration and leading role of leading agricultural industrialization enterprises, and build a complete green and traceable agricultural supply chain system with interconnected links in all links of the entire industrial chain.

The 2019 "Notice on Promoting the Interconnection between Farmers and Merchants to Improve the Agricultural Products Supply Chain" clearly stipulates that the proportion of central fiscal funds in various regions to support post-harvest commercial processing facilities and cold chain logistics of agricultural products must not be less than 70%. Central government financial support will be provided to improve the circulation of agricultural products.

The government has issued a series of support policies for agricultural products and supply chain construction. On the one hand, this has stabilized the source of commodity supply for the fresh food e-commerce industry. On the other hand, it has prompted it to build a convenient and fast cold chain logistics system, laying a good policy foundation for the development of the fresh food e-commerce industry.

1.2 Economy

2012 was the first year of the development of China's fresh food e-commerce industry, and it began to enter people's field of vision with "Benlai Life" as the leader. From 2013 to 2020, China's fresh food e-commerce industry has developed rapidly, which of course is inseparable from the rapid development of China's economy and the improvement of people's income levels.

According to the "2019 China Economic Development Report" released by McKinsey Global Institute, China has become the world's largest economy in 2014, calculated by purchasing power parity. Calculated in terms of nominal GDP, China reached 66% of that of the United States in 2018, becoming the world's second largest economy.

McKinsey Global Institute ranked the participation of various economies based on the flow of goods, services, finance, people and data, and the results showed that China ranked 9th in the world. In 2018, China's GDP accounted for about 16% of the global total.

The economy is the foundation. The rapid development of China's economy has led to a continuous increase in people's disposable income and changed their shopping habits. Shopping needs for daily fresh food have also changed. While considering the freshness of the product, people also begin to consider the time cost and convenience of purchase, which provides an economic basis for the development of fresh food e-commerce.

1.3 Society

Consumption upgrading and changes in people’s purchasing habits. In the past, people mainly bought fresh products from supermarkets and wet markets, usually in the morning before going to work or in the evening after getting off work. The main considerations for buying fresh products were distance and the freshness of the product.

However, with the continuous development of the economy, people have more and more money in their hands, but less and less free time, especially for white-collar workers working in first- and second-tier cities. Due to their busy work, they have no time to go to supermarkets or vegetable markets to buy fresh products, but they pursue quality of life and want to cook at home. This is the social reason for the booming fresh food e-commerce industry, because it meets people's needs for saving time and ensuring quality of fresh food products after consumption upgrades.

1.4 Technology

Fresh food has extremely high requirements for logistics and distribution. It is necessary to keep the food fresh while ensuring the speed of delivery, which requires the use of cold chain logistics for distribution.

As shown in the above figure, the scale of China's cold chain logistics has been growing steadily from 2015 to 2020. However, it can also be seen that due to the rapid development of the fresh food e-commerce industry, the scale of China's cold chain logistics is still unable to fully meet the cold chain demand for China's fresh products, so there is still a lot of room for development of China's cold chain logistics in the future. The development of refrigeration technology and cold chain logistics is an indispensable technical support for the development of China's fresh food e-commerce industry.

The rapid development of mobile Internet has made the growth and development of fresh food e-commerce possible. By the end of 2019, China's mobile Internet users reached 1.319 billion, accounting for 32.17% of the world's total Internet users. The transaction volume of online payment reached 24.988 trillion yuan, and the penetration rate of mobile payment is at the world's leading level.

All of the above factors have driven the rapid development of China's 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 iResearch Consulting's 2020 "China Fresh Food E-commerce Industry Research Report", the transaction volume of China's fresh food e-commerce market has been steadily increasing year by year from 2015 to 2020. In 2019, the market transaction scale of China's fresh food e-commerce industry reached 279.62 billion yuan, an increase of 36.7% over the previous year. In 2020, due to the sudden outbreak of the epidemic, a large number of users flocked to fresh food e-commerce platforms, bringing new development opportunities to fresh food e-commerce. It is estimated that by 2023, the transaction volume of the fresh food market will exceed 800 billion.

Data from the China Statistical Yearbook show that the total consumption of fresh food by residents nationwide increased from 312 million tons in 2014 to 332 million tons in 2018, with a compound annual growth rate of 1.6%. According to statistics on the classified transaction volume of food trading market stalls with a turnover of more than 100 million yuan, the transaction scale of major fresh food categories in my country increased from 21 trillion yuan in 2014 to 26 trillion yuan in 2018, with a compound annual growth rate of 5.5%.

Summary: As mentioned above, China's current fresh food consumption market is huge. China's fresh food e-commerce industry is still in a period of rapid development and is deeply favored by the capital market. There is still a lot of room for development in the future.

2. Enterprise Analysis

The above mainly analyzes the product MissFresh from a macro perspective. Now I will use the SWOT analysis method to analyze MissFresh from four aspects: the strengths and weaknesses of the company itself, as well as the opportunities and threats brought to it by the external environment.

2.1 Strengths

Daily Fresh's competitive advantages mainly include the following aspects:

2.1.1 Rich product categories and guaranteed safety

With 2,000 selected SKUs, MissFresh's products cover 12 major categories including fruits and vegetables, meat, eggs, aquatic products, dairy snacks, wine and beverages, grains, oils and seasonings, and daily necessities. This "comprehensive supermarket model" truly allows users to achieve one-stop shopping.

In terms of product quality, MissFresh has hundreds of professional buyers who source directly from the origin in more than 30 countries and regions around the world, ensuring the high quality of products from the source. In terms of food safety, MissFresh has a third-party authoritative organization on-site to test each batch of products and comprehensively upgrade the product quality control system. From fresh produce, fruits and vegetables to grains and oils, all products are subject to level-by-level checks by a professional quality control team before and after entering storage to ensure the safety of each ingredient.

2.1.2 The pioneer of forward warehouse, no delivery delay

As the pioneer of the "city sorting center + community forward warehouse" ultra-fast cold chain logistics system, MissFresh is also an industry-leading company in logistics and distribution. In addition to the four sorting centers in North China, East China, South China and Central China, MissFresh has established more than 1,700 community distribution centers in 16 cities across the country, ensuring that the stations can reach users within 3 kilometers. The entire delivery process is completed by its own personnel, and delivery can be achieved in as fast as 30 minutes. The forward warehouse has become the core competitiveness of MissFresh. According to the vision of MissFresh at the Supply Chain Ecology Conference on September 17, in the future there will be 3,000 SKUs in forward warehouses and 30,000 SKUs in large warehouses. Within three years, the forward warehouse model will be deepened and thoroughly implemented in the TOP30 cities. When everyone clicks on the MissFresh APP, the products they see are precisely recommended to them, realizing "thousands of warehouses, thousands of people, and millions of faces."

2.1.3 Perfect after-sales service, shopping is guaranteed

In terms of after-sales service, MissFresh adopts a combination of AI intelligence and manual customer service. Users can make refunds, apply for invoices and file complaints by themselves. If the problem is more complicated, you can call the manual customer service during the period of 9:00-23:00. This after-sales method that combines the two can not only quickly solve common simple problems of users but also reduce the customer service costs of the platform. After each order is completed, users can also leave comments so that other potential buyers can have a comprehensive and accurate understanding of the product information.

2.1.4 Various operation modes and high user stickiness

A successful e-commerce product must have an excellent operating model. First of all, MissFresh has adopted a variety of social fission operation methods, such as invitation gifts, 0 yuan grab, invitation verification, etc., to bring in old customers and continuously increase the number of users. Secondly, a membership system is adopted to enhance the stability of old users.

2.2 Weakness

Compared with other e-commerce categories, fresh food e-commerce is complex and has higher requirements for transportation and storage. Although MissFresh's forward warehouse model has improved delivery efficiency and experience, it requires a lot of money to build. Moreover, the forward warehouse model generally has no offline stores and lacks offline traffic entrances, requiring higher marketing costs and high subsidies to attract customers. Overall, the forward warehouse model requires high cost investment and a longer payback period.

2.3 Opportunities

1) The scale of e-commerce users has increased steadily. According to iResearch Consulting’s 2020 industry research report on fresh food e-commerce, the number of monthly active users of fresh food e-commerce reached 31.2282 million in December 2019, an increase of 82.5% year-on-year. In 2020, due to the impact of the epidemic, the number of active users of fresh food e-commerce continued to maintain a strong growth momentum.

2) With the development of new agricultural operators and the improvement of agricultural modernization, the scale, standardization, technology, intensiveness and industrialization of fresh product production are gradually improving.

3) At present, my country's fresh food products are still mainly distributed through traditional channels. With the construction of cold chain logistics systems and the gradual maturity of a new generation of consumer groups, fresh food e-commerce will have a large room for growth in the future.

2.4 Threats

my country's fresh food e-commerce industry is currently in a period of model exploration and rapid development. Various business models such as forward warehouses, store-warehouse integration, community group buying, and store-to-home delivery are running in parallel, and competition is fierce. Currently, there is no mature profit model. Therefore, for MissFresh, continuously improving its supply chain management capabilities is an important aspect of its future development.

3. Competitive Product Analysis

(1) Traditional fresh food e-commerce:

Fresh products are delivered to consumers via the Internet through traditional express delivery methods such as e-commerce warehouses and branch warehouses, and are generally delivered 1-2 days after the user places an order. For example, JD Fresh, Tmall Fresh, etc.

Advantages: 1) Low customer acquisition cost due to early user habits; 2) Strong brand advantage and credibility

Disadvantages: 1) Long delivery time and high product loss rate; 2) Dependence on the strength of the capital chain

(2) Fresh food e-commerce in the “forward warehouse + home delivery” model:

Fresh food e-commerce covers consumers within 1-3 kilometers by setting up forward warehouses around communities or cooperating with offline supermarkets, retail stores, and convenience stores. After an order is placed on a consumer app, fresh food products are quickly delivered to consumers within 1 hour through logistics distribution. Such as Dingdong Maicai, Miss Fresh, etc.

Advantages: 1) Distributed around users, delivery time is improved; 2) The forward warehouse model reduces product loss and reduces cold chain delivery costs

Disadvantages: Large initial investment in supply chain and warehousing

(3) Fresh food e-commerce with the “in-store + home delivery” model:

Fresh food e-commerce companies open stores around communities, using the stores as the center to serve users within 1-3 kilometers. Users can either shop in the stores or place an order on the APP, with the platform providing home delivery service within 1 hour. The stores opened by the platform are open for business and also undertake online warehousing and distribution functions. For example, Hema Fresh, 7 Fresh, etc.

Advantages: 1) Provide consumers with an integrated online and offline experience; 2) Online processing and production can effectively reduce spoilage

Disadvantages: Online and offline dual mode, increased store and labor costs

(4) Community group buying model:

The group buying platform provides product supply chain logistics and after-sales support. The group leader is responsible for community operations, and users pick up goods in the community. The coverage range is 500 meters to 1 kilometer, and the delivery time is generally 1-2 days. For example: Xingsheng Youxuan, Shixianghui, etc.

Advantages: Low customer acquisition cost, light operation model, easy to scale up

Disadvantages: The platform’s product variety is limited and there is a lack of comprehensive group leader management experience

According to iResearch's self-operated fresh food e-commerce apps in June 2020, Hema, MissFresh, and Dingdong Maicai ranked the top three with 16.486 million, 7.800 million, and 4.978 million active users, respectively.

Since DailyFresh and Dingdong Maicai are direct competitors and have similar user scales, we will use the two companies’ growth paths and business models as a starting point to gain a deeper understanding of the differences between them.

3.1 Dingdong Shopping

In 2014, Dingdong Maicai’s predecessor, Dingdong Community APP, was launched.

In 2017, "Dingdong Community" was renamed "Dingdong Maicai" and officially launched. Adhering to the concept of "never selling bad vegetables to users", it has a delivery fee of 0 and can deliver vegetables to your door in 29 minutes.

In 2018, Dingdong Maicai received angel round financing led by Gaorong Capital. In the same year, it completed five rounds of investment, including A round, A+ round, strategic investment and B+ round. Investors included Gaorong Capital, Tiger Global Management, HUPO HARMONY CAPITAL, Sequoia Capital, Today Capital, etc.

In 2019, Dingdong Maicai's order volume exceeded 400,000, and it received two rounds of B+ investment led by Today Capital, Oling Investment and Star Capital, CMC Capital, Bertelsmann Asia Investment Fund and Longfor Capital respectively.

In May 2020, it received a US$300 million Series C investment from the U.S. firm The BlackBerry, with a valuation of US$2 billion.

Dingdong Maicai’s business model is “forward warehouse + home delivery”

Procurement side: Mainly from urban wholesale markets and direct supply from brand suppliers. For seafood and vegetables that are difficult to store, we adopt the method of wholesale purchasing in the city to ensure the freshness of the products.

Delivery side: Dingdong Maicai builds forward warehouses within one kilometer around the community. The warehouse can be opened as long as the number of residents in the surrounding area is around 20,000 to 30,000. In addition, some cities have adopted the "0 yuan starting delivery + 0 yuan delivery" delivery model, promising that users can receive the goods within 29 minutes after placing an order.

User side: Dingdong Maicai currently mainly covers Jiangsu, Zhejiang, Shanghai, Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, Nanjing, Suzhou and other first-tier cities. The user group is mainly women born in the 1980s. Overall, users have good economic strength and strong purchasing power, but are unwilling or do not have time to buy fresh food offline.

3.2 Daily Fresh

MissFresh was founded in 2014 and received US$5 million in angel round financing from Guangxin Capital and Yuanjing Capital in the same year.

In 2015, MissFresh officially launched its WeChat Mall and 2-hour express delivery service, and received a US$10 million Series A financing led by Tencent. In October of the same year, it received a RMB 200 million Series B financing led by Tencent.

In 2016, the MissFresh APP was officially launched and received a B+ round of financing of RMB 230 million led by Yuanyi Investment.

In 2017, the unmanned office retail project Daily Fresh launched its express delivery service, speeding up delivery to members within 1 hour. MissFresh received a US$230 million Series C financing led by Tiger Global, Yuansheng Capital, Jeneration Capital, Tencent, and Lenovo Capital, entering the ranks of unicorns. In the same year, it received a US$100 million Series D financing led by Jeneration Capital. MissFresh Convenience Store received a US$200 million financing ecological chain fund led by Tencent and CDH Investments, and Sansheng Venture Capital was established.

In 2018, MissFresh received US$450 million in financing led by Goldman Sachs, Tencent, Jeneration Capital, and Davis Selected Advisers.

In 2020, MissFresh completed its latest round of financing with a total amount of US$495 million. The investors behind it include ICBC International, Tencent, Abu Dhabi Capital Group, Suzhou Changshu Government Industrial Fund, Tiger Global, funds under Goldman Sachs Asset Management and several other institutions.

Daily Fresh's business model is "city sorting center + forward warehouse"

Purchasing side: MissFresh has hundreds of professional buyers around the world, a composite team that understands planting and e-commerce. With more than 300 buyers in more than 30 countries and regions, 50% of vegetables, 70% of meat and eggs, and 90% of fruits are sourced directly from the place of origin or factory.

Distribution side: The "forward warehouse" model was first created by MissFresh. Through an intensive approach, products are distributed from the city sorting center to the "forward warehouse" for transfer to cold storage for preservation, and then short-distance distribution of 1-3 kilometers is carried out, and the products are delivered to customers within two hours (now shortened to 30 minutes). As of 2019, MissFresh has opened more than 1,500 forward warehouses across the country.

User side: MissFresh has currently established an ultra-fast cold chain logistics system of "city sorting center + community forward warehouse" in more than 20 major cities across the country. According to Trustdata's "China Mobile Internet Industry Analysis Report from January to September 2019", 70% of MissFresh users are women, and users aged 18-40 account for more than 80%. It can be seen that MissFresh is more popular among young women.

Summary: From the above analysis, it can be seen that MissFresh and Dingdong Maicai were established at a similar time, have basically the same core businesses, and similar business models, and are direct competitors. However, it is obvious that MissFresh's financing speed is faster, the process is smoother, and the amount of financing is relatively larger, which has laid a solid economic foundation for it to lead other fresh food e-commerce companies in the same industry.

In terms of business models, there are certain differences between MissFresh and Dingdong Maicai. In terms of procurement, MissFresh purchases products from all over the world. It is committed to bringing high-quality global products to people’s tables as much as possible and has higher requirements for product quality on the procurement side.

On the delivery side, after continuous improvements, the delivery time of both is basically within half an hour. However, Dingdong Maicai has adopted a "0 yuan starting delivery + 0 yuan delivery" delivery model in some cities. In cities where delivery is not free, the threshold for free delivery for Meituan Youxian is also higher. As for the user audience, both MissFresh and Dingdong Maicai are mainly young urban women, but MissFresh covers more cities, so its user range is wider and the number is larger.

Finally, both received a new round of investment in 2020, indicating that the development prospects are still very bright. However, in order to achieve long-term development in the fresh food industry, they must refine their operations, deepen the supply chain, and ensure product quality in order to go higher and further.

4. User Value Analysis

In the fresh food e-commerce market, there are three main participants: suppliers, consumers, and platforms. If the platform wants to develop rapidly, it must meet the demands of suppliers and consumers.

Below I will analyze the needs of these two parties and how MissFresh can better meet their needs.

4.1 Suppliers

As a self-operated fresh food e-commerce platform, finding reliable suppliers is very important to ensure the stability of the platform's product supply, diversity of categories and product quality. MissFresh’s suppliers are the producers of fresh products. Its main demands are to find more sales channels, reduce distribution links, and increase its sales revenue.

At present, its main sales channels are as follows:

4.1.1 Self-production and self-sales

Self-production and self-sales can directly give consumers feedback on product effects, and can adjust production in a timely manner to achieve the goal of stable production and steady development. However, self-production and self-sales are only suitable for fresh agricultural product operators with relatively small production scales, and the income from self-production and self-sales is not very stable and is relatively low.

4.1.2 Farmers’ Market

Farmers' markets are markets set up in urban and rural areas where agricultural and sideline products can be freely bought and sold. Farmers' markets are easy for fresh food suppliers to quickly get fresh agricultural products into the market. Its advantage is that it simplifies the management costs of agricultural products entering the market.

The disadvantage is that the quality supervision of agricultural products is not in place and the quality of products varies greatly. People's perception of farmers' markets is that the environment is dirty and the products are cheap. Therefore, the income from farmers' markets is relatively low for suppliers.

4.1.3 Farm-supermarket connection

Through the "farm-supermarket connection", agricultural product operators can directly supply fresh agricultural products to supermarkets, making it convenient for consumers to purchase directly. The connection between farmers and supermarkets is to use modern logistics methods to quickly deliver fresh and high-quality agricultural products to consumers, thereby achieving a win-win situation for agricultural product operators and consumers.

The connection between farmers and supermarkets provides a channel for the sales of high-quality agricultural products. Supermarkets provide a platform for the sale of agricultural products and have the responsibility to monitor or supervise the quality of agricultural products. However, for fresh product producers, the competition between farmers and supermarkets is fierce. Unless they cooperate with large supermarket chains (the probability is low), they need to negotiate with every supermarket, which results in high communication costs.

Even if they cooperate, random charges, arbitrary returns and delayed payment by the purchasing party are still problems that cause headaches for many suppliers.

4.1.4 Wholesale of agricultural products

Agricultural product wholesalers refer to organizations or individuals that engage in agricultural product trading activities under the authorization of agricultural product producers or agricultural product distribution departments. Agricultural product wholesalers collect, transport and sell farmers' agricultural products and earn the difference to make a profit.

Agricultural product wholesalers are widely active in production areas, playing a role in integrating agricultural products, stabilizing the sales channels of fresh produce producers and increasing their income. However, in the distribution channels at each level, the wholesale price of fresh produce producers increases several times by the time it reaches consumers through several levels of distributors. As the end of the distribution chain, fresh produce producers receive very limited profits.

summary:

Of the above-mentioned sales channels for fresh produce producers, the first three can be classified as direct sales, and the fourth is distribution. In direct sales, there are no distributors to make a profit from the price difference, and producers can adjust the prices themselves. However, this sales model lacks professional and unified management, has low efficiency and unstable income.

Among them, the advantages of the connection between farmers and supermarkets are more obvious. However, there are too many homogeneous products and fierce competition, making it difficult to form unique competitiveness. The probability of cooperation is low and the cost of cooperation is relatively high. Random charges, arbitrary returns and delayed payment are also problems faced by suppliers.

Distribution channels play an integrating role in fresh products. However, at each level of the distribution channel, the producer’s profit is the lowest compared to the entire distribution chain. It can be seen that there is room for improvement in the cooperation model between suppliers and buyers.

4.2 Consumers

With the development of the economy and the changes of the times, my country's consumer groups have gradually changed. At this stage, people born in the 1980s and 1990s have become the backbone of consumption, and their consumption habits have also changed accordingly. They are more willing to improve their personal consumption level, and their standards for quality and experience are getting higher and higher.

Offline shopping methods such as supermarkets or vegetable markets used to be one of the main shopping channels for people’s daily consumption. Consumers can intuitively touch the products to judge their freshness and decide whether to buy them. In addition, there are many product categories and a wide range of choices. Shopping in supermarkets and markets can be considered a form of leisure for people.

However, there are several problems with this offline purchasing method. Firstly, the location is fixed. There may not be one near the consumer’s residence, or there may be one but it is quite far away. This makes it not very convenient for daily purchase of food, especially for older consumers. If they go out to buy food in bad weather, there are certain safety risks.

Secondly, the hours are fixed. Supermarkets and vegetable markets have fixed opening and closing times. Vegetables at the vegetable market are generally the most complete and freshest in the morning, and supermarkets also close relatively early. However, people's pace of life is getting faster and faster, especially for young people working in first- and second-tier cities. The 996 working hours leave them with no extra free time to go shopping in supermarkets or vegetable markets. So online shopping came into people's view.

4.3 Platform

From the above analysis we can find that. In the fresh food e-commerce market, the main problems with the solutions provided by participating suppliers are: self-sales channels lack unified management, are relatively scattered, have low efficiency, unstable income, and are difficult to form strong competitiveness. There are too many sales links in the distribution channel, and the profits of fresh food producers are still low.

For consumers, their main demands are the convenience of purchasing fresh products, reducing the time cost of shopping, and ensuring the quality and variety of products. As a platform, how does MissFresh better meet the needs of all parties involved?

4.3.1 Implementing the “Three Zero Plan”

In 2017, MissFresh increased its support for upstream high-quality fresh produce producers and jointly built a new ecosystem for the fresh produce industry. It proposed the "Three Zero Plan", namely "0 fees, 0 returns, and 0 account periods", 0 fees - no entry fees or promotion fees of any form, 0 returns - 0 returns for qualified goods, 0 account periods - supply chain financial services. This will help to fundamentally rebuild new standards for cooperation between farmers and merchants, completely change the traditional retailers' long-standing problems with suppliers in terms of "high fees, random returns, and long payment terms", and establish a good relationship with suppliers based on mutual benefit, mutual trust and complementarity.

There is an entrance on the official website of MissFresh to apply to become a supplier. After the supplier applies on the official website, as long as they can pass the strict qualification review and provide high-quality products, they can maintain long-term and stable cooperation with MissFresh. The "agricultural and commercial cooperation" model, without middlemen making a profit from the price difference, can greatly increase and stabilize suppliers' income.

4.3.2 Establish professional buyers to ensure the freshness of the supply

MissFresh insists on selecting SKUs (standard commodity units) of all categories, with large quantities of individual products and centralized procurement. It has established buyers in more than 30 countries and regions around the world to specialize in purchasing local high-quality fresh products. In order to better improve product quality, MissFresh's professional buyer team will go deep into the production areas of fresh products to cultivate producers and purchase the best quality products.

4.3.3 Establishing a rapid cold chain logistics system of “city sorting center + community forward warehouse”

MissFresh has established an ultra-fast cold chain logistics system of "city sorting center + community forward warehouse". The maximum delivery distance for each deliveryman is 1-3 kilometers, ensuring that fresh goods can be delivered to consumers' homes within 30 minutes. This greatly saves consumers' shopping time, and the purchasing time is not restricted, so consumers can buy fresh ingredients at any time.

At present, MissFresh has thousands of forward warehouses across the country, which can refrigerate a variety of fresh foods and ensure the freshness of the products. In June 2019, MissFresh teamed up with Tencent Smart Retail to launch the "Smart Fresh Billion Plan".

It is expected that in 2021, MissFresh will grow into a fresh food retail platform with a scale of hundreds of billions. By building accurate, detailed and smart full-scenario information flow, it will further realize high labor efficiency and high floor space efficiency of forward warehouses, establish a data-driven agile supply and demand relationship, and enable more consumers to enjoy a more extreme fresh food purchasing experience.

4.3.4 Rich Product Categories

Currently, MissFresh has more than 2,000 selected products, covering categories such as vegetables and fruits, meat, eggs, aquatic products, snacks, wine and beverages, daily necessities, etc., which can meet consumers' daily one-stop shopping needs.

Summary: Through the above analysis, we can find that compared with other methods, MissFresh can better meet the needs of suppliers and consumers, which is why it can become a leader in the fresh food e-commerce market.

5. Commercial Value Analysis

MissFresh’s core business is the sale of fresh products. Next, I will use the GMV indicator to analyze MissFresh’s core business and see how it improves its commercial value.

GMV = number of users * conversion rate * average order value. The improvement of any one of the following indicators, namely the number of users, conversion rate, and average order value, will have a positive impact on the growth of the company's overall revenue. Therefore, we will focus on analyzing the means used by MissFresh to improve these three key indicators.

5.1 Increase the number of platform users

In order for businesses to achieve sustained growth in revenue, attracting a steady stream of new users to register is the basic guarantee. Only with traffic can there be revenue. So what methods does MissFresh use to attract new users? There are mainly three types: advertising, social media and word of mouth.

5.1.1 Different forms of advertising

• Online advertising: traditional TV advertising, live streaming by celebrities
• Offline advertising: community advertising, platform advertising, car body advertising, subway advertising, elevator advertising, etc.

5.1.2 Various social media methods to attract new customers

Social media acquisition is the main way for MissFresh to attract new customers, that is, to attract new customers by sharing with old users on WeChat friends and Moments. This article divides the purchase process into three categories:

Before buying: Invite friends to help. Old users can get coupons or red envelopes by inviting new users to register and like their posts.

Purchasing: Group buying of good items. Old users can initiate a group purchase and invite friends to buy a product with them at a low price. As long as the required number of group members is reached, consumers can get the product at a very low price.

After purchase: Invite friends to get cash back. After old users purchase products, MissFresh will return part of the money to the users in the form of red envelopes. Users need to invite a specified number of users to help, and then they can withdraw the money.

5.1.3 User word-of-mouth publicity

Word of mouth is a spontaneous behavior of users. If a product is based on users and can make users feel that they benefit, user satisfaction will be high, and they will then recommend it to their relatives and friends or on social media.

MissFresh has done an excellent job in terms of product quality, delivery speed and price discounts, so it has established a good reputation among users. Because I am quite satisfied with all aspects of MissFresh, I have recommended it to my colleagues and friends.

5.2 Improve conversion rate

After having a sufficient number of registered users, how to convert these users into paying users who can bring revenue to the company is what every company is working tirelessly to do. So, as an industry leader, how does MissFresh do it? In this part, I will analyze according to the user's purchasing process on the platform.

User purchase process: Home page - Product list page - Product details page - Shopping cart - Checkout

5.2.1 Home Page

After a new user registers, the homepage of Daily Youxian will display "Newcomers get their first order for free", which means that the user's first order is free shipping, and after the new user purchases the goods, the platform will "cash back" to the user in the form of fresh coins, with a maximum of 4,000 fresh coins returned, equivalent to RMB 40. As shown in the picture above, consumers can use fresh coins to offset part of the price of goods. MissFresh uses these methods to stimulate newly registered users to make their first purchase.

5.2.2 Product List Page

After entering the product list page, users can quickly and easily find the fresh food categories they want to buy based on the categories. At the same time, the highlighted discounted prices, the display of product popularity, the sense of urgency created by limited-time flash sales, and the inventory quantity displayed on the product list page tell consumers that if they don’t buy the product now, it will be taken off the shelves and they will miss out on the discount. These small designs of merchants are all encouraging consumers to click on the product details page and make quick purchasing decisions.

5.2.3 Product Details Page

5.2.3.1 Demonstrate cost-effectiveness

Consumers all want to buy the best products at the lowest price. Daily Youxian's product details page shows the cost-effectiveness of products through price comparisons before and after the discount, coupon redemption, and limited-time promotions, making users feel that it is a good deal to buy now. The countdown setting for flash sales makes users feel a sense of urgency to buy quickly, and they feel that it will be a loss if they don’t buy now.

5.2.3.2 Creating a sense of consumption scenario

Use product details pictures to create a good real product consumption experience and restore offline usage scenarios. As shown above, the merchant uses only a few words and a few high-definition pictures to create a scenario in which users drink beer and eat edamame with friends at a food stall and chat loudly on a cool summer night.

The products also come with brief food-making recipes, so that users who love making delicious food can give it a try themselves. At the same time, it is simple and easy to use, which makes even novice cooking users feel the urge to place an order. By creating a sense of consumption scenario, users will feel that this is the product they want.

5.2.3.1 Establish consumer protection

Product safety is one of the primary considerations for fresh product buyers, and MissFresh also attaches great importance to this. Therefore, the product details page shows that the products on this platform are tested by authoritative organizations, and each product has a qualified inspection report. Allow users to buy with confidence without any worries.

5.2.4 Shopping Cart

After users add the products they want to the shopping cart, how should merchants design the page to allow users to pay quickly?

5.2.4.1 Remind again of the price discount

As can be seen from the above picture, merchants deliberately highlight discounted and price-reduced products, which is to remind users again that the product is very favorable and will be missed if they miss it.

5.2.4.2 Utilizing the Principle of Reciprocity

Use a small favor in exchange for a greater willingness to buy, give away a small item to induce users to place an order

5.2.4.3 Creating scarcity of products

There are purchase limits on some commodities, limiting the purchase quantity for users. For limited-edition goods, users may think that either the goods are out of stock or the prices are too cheap, which is why merchants restrict purchases. So buying it will give you a feeling of making a profit.

5.2.5 Commodity Settlement

On the checkout page, the merchant will display the total discount the user has received for purchasing the goods, highlighting the discounted price so that the user feels it is a good deal and immediately clicks the payment button to pay.

5.3 Increase Average Order Value

The average order value is affected by two factors: the user's single purchase amount and the frequency of purchase. So how does MissFresh increase its average order value?

5.3.1 Increase user purchase frequency

5.3.1.1 Members only

In order to increase user stickiness, MissFresh launched a paid membership system. As long as the user opens a membership, he or she can enjoy member-exclusive privileges, receive member-exclusive red envelopes, and purchase goods at member-exclusive prices. Because members pay fees to gain these privileges, users will continue to spend on the platform, maximizing membership benefits.

5.3.1.2 Promotional Events

Daily Youxian’s promotional activities include both limited-time specials that are held every day like “Today’s Flash Sale”, as well as activities that are launched from time to time at specific times during holidays. These promotions are designed to attract users to increase purchase frequency by offering preferential prices.

5.3.1.3 Multiple coupon information

The user increases the purchase amount to reach the amount required to obtain the discount. Daily Youxian’s latest wallet, Savings Wallet, requires users to pay a certain cost to receive coupons, which can increase the probability of users using coupons and further increase the number of purchases.

5.3.2 Increase the user's single purchase amount

5.3.2.1 Free shipping and group order

To meet the requirement of free shipping, users increase the amount of each order

5.3.2.2 Related recommendations

On the Daily Youxian shopping cart page, under the products loaded by the user, the platform will use big data to infer related products that the user may be interested in based on the products loaded by the user. If the user sees that the recommended product happens to be what he needs or is priced very well, he will buy it. This is also an effective way to increase the user's single purchase amount.

5.3.2.3 Value-added Exchange

When the user clicks the checkout button in the shopping cart, a small window for value-for-money exchanges will pop up on the checkout page, pushing some products to the user at a more favorable price, which will also increase the user's single purchase amount.

Summary: From the above analysis, it can be seen that MissFresh has done a lot of work to optimize its revenue model, continuously attracting new users and improving conversion rates and average order value. So far, the results are still very good. It is precisely because of the great commercial value of MissFresh that investors will continue to increase their investment.

6. Product Iteration Analysis

In order to deeply analyze the version iteration rhythm of MissFresh and explore the product iteration logic, this article organizes all the core version iterations of MissFresh since its launch, as shown in the following table:

As shown above, based on the iterative function and total download curve (S-shaped), Daily Youxian can be divided into three stages according to the product life cycle: startup stage – growth stage – maturity stage

6.1 Startup Phase

2015 V1.0—V2.0, verifying user needs and polishing user experience

This stage is the cold start stage of MissFresh. The main goal of this stage is to verify user needs and improve basic functions. The main features launched include coupon redemption, multi-region support, precise positioning of delivery addresses, personal center and updating of product details, which are all essential functions for users when shopping on the MissFresh mobile app.

Among them, the functions of adding delivery address labels and accurately selecting delivery addresses are mainly because in the early stage of product launch, due to inaccurate positioning, users filled in incorrect addresses or filled in multiple addresses without careful confirmation when placing an order, which led to many cases of delivery guys delivering to the wrong addresses, which not only resulted in poor user experience but also increased logistics costs, so this version was iterated.

At the same time, in order to increase the number of platform users, a new "group buying activity" was added, relying on "old users bringing in new users" to acquire new users faster.

At this stage, the product has just been launched on the market, and the main focus is to deeply explore user needs and bring in more registered users. Targeted product iterations have enabled MissFresh’s monthly active users to reach millions from zero at the beginning of its launch during this period.

6.2 Growth Stage

2016 V3.0.0—2020 V9.8.24, build operation tools and attract a large number of users

This stage is a period of rapid growth for MissFresh, and acquiring a large number of users has become the focus of product iteration. This phase focuses on adding some operational tools. For example, promotional activities, social fission and membership.

Promotional activities: 1) Get a big discount for the first order, and get coupons for subsequent orders; 2) Get gifts for recharging. The larger the recharge amount, the more benefits you get; 3) Launch super-value special offers and flash sale countdowns on the homepage to attract users to place orders with low prices; 4) Get cash back for placing orders

The launch of promotional activities attracted a large number of users to place orders, greatly improving the platform's conversion rate and revenue.

Social fission: 1) Invite friends. Users invite friends to place orders, and both parties can get discounts; 2) Group purchase upgrade, launch 0 yuan lucky draw group; 3) Users can send red envelopes to friends after placing an order

These social methods not only increase user activity, but also let more new users know about the existence of the platform, increasing the popularity of the platform.

Membership system: 1) Users can become members if they place two orders per month; 2) Members can enjoy certain privileges that non-members cannot enjoy; 3) Members can invite friends to experience membership services every month.

The membership system is an operational method widely adopted by various e-commerce companies. It can not only increase the average order value, but also increase user stickiness.

In addition to the construction of the above three operational tools, MissFresh also added many other functions during this period:

1) Security. Food safety is one of the main factors that users consider when purchasing fresh products. In order to dispel users' purchasing concerns and allow them to buy and eat with peace of mind, MissFresh has launched the function of providing safe detection labels and fruit and vegetable product quality inspection reports that can be queried on the details page. During the epidemic, in order to ensure the safety of users, MissFresh also launched a "contactless" delivery service.

2) Commodity aspects. First, MissFresh launched the product pre-sale function. For a self-operated fresh food platform, the cost of storing goods is very high. By using the product pre-sale function, it can estimate the user's demand range, reduce inventory backlogs, and reduce costs. Second, MissFresh has enriched its product categories and launched modules such as daily necessities, wine and beverages, grains, oils and seasonings. It has gradually shifted from a single fresh food profit model to a supermarket model, achieving an upgrade of its profit model. Moreover, these modules are complementary to the fresh food categories, enabling one-stop shopping for users, making shopping more convenient, so the acceptance rate is also high.

3) In terms of delivery, the upgrade from two-hour delivery in version 3.0.0 to the fastest thirty-minute delivery in version 9.6.4 reflects MissFresh’s unremitting pursuit of delivery speed. During this period, the fresh food e-commerce industry developed rapidly and had many competitors. Speeding up delivery can not only improve user experience but is also an inevitable measure to maintain competitive advantage. MissFresh has also added courier contact function, real-time positioning function, and arrival reminder function to make the product delivery service more humane.

4) In terms of customer service, MissFresh continued to update its customer service functions during this period. Because the user conversion rate increased and the transaction volume increased dramatically during this period, the problems encountered by users during the shopping process also increased, and customer service costs increased. In order to quickly solve user problems and reduce customer service costs, MissFresh launched self-service customer service. Common user questions can be quickly answered by intelligent customer service, and difficult problems that cannot be solved by intelligent customer service will be transferred to manual customer service. In addition, MissFresh has also added an evaluation function and feedback portal to better serve users.

As mentioned above, precisely because MissFresh has been continuously optimizing and developing in all aspects, from its inception to March 2020, MissFresh, as a main force in the rise of the fresh food e-commerce industry, has maintained its monthly active users in the first echelon of the industry.

6.3 Mature stage

From 2020 V9.8.36 to now, we have continuously optimized functions and increased user stickiness

MissFresh has entered its mature stage, during which it has mainly focused on continuously optimizing basic functions at the product level, including the optimization of homepage components and the revision of the "What to Eat" section.

In order to consolidate its leading position, MissFresh's operating pace remained very fast during this period. The main operations include: the launch of the 5th Anniversary Shopping Carnival, the 618 Quality Fresh Food Festival and the "Youxian Vegetable Market, Billion Subsidies" and other activities.

Summary: Overall, MissFresh’s development pace is particularly good. In the early stage, we focus on polishing the product and are not in a hurry to promote it. In order to ensure subsequent development, we will continuously improve the user experience. When the user experience becomes stable and enters a period of rapid growth, large-scale promotion will begin to continuously acquire new users. When the number of users reaches a certain scale and enters the mature stage, on the one hand, we will continuously optimize the user experience to prevent user loss, and on the other hand, we will start to expand new businesses. The above are the overall iteration steps of MissFresh.

7. Product structure analysis

In the iterative analysis, we analyzed the product function iteration steps of MissFresh. Next, let’s take a look at what user needs these functions meet and how they are distributed in the entire APP. This is mainly analyzed through product structure.

7.1 Daily Fresh V9.8.86 Product Structure Mind Map

7.2 Daily Fresh V9.8.86 Product Structure List

For the convenience of analysis, the product structure of MissFresh is reorganized according to users, scenarios, needs and functions into the following table:

7.3 Overall Analysis

There are three scenarios when consumers use MissFresh: before shopping, during shopping, and after shopping. Let’s analyze the needs of consumers in each scenario and the functions MissFresh uses to meet these needs of consumers.

7.3.1 Before shopping

1) Before placing an order, consumers may have only heard of the name MissFresh, but do not know much about the platform and do not know whether the platform is trustworthy. In order to dispel consumers' doubts and allow them to consume on the platform with confidence, MissFresh has set up a qualifications and rules button on its homepage. Consumers can click in to view the platform qualifications, operating qualifications, user agreement and privacy policy.

2) Consumers want to know the categories of goods sold on the platform, as well as the specific price, origin, nutritional value of each item, and whether the product is safe. The product list page categorizes and organizes the categories of all products on the platform, and consumers can choose freely. On the product details page, consumers can find specific information about the product and the product inspection report issued by a professional organization, allowing consumers to buy happily and with confidence.

3) For consumers with clear purchasing goals, a search box is set up on the homepage so that consumers can quickly find the products they want to buy. For consumers who are unsure of what they want to buy, the platform has launched a "What to Eat" module, where users can view the food made by other users. Each sharing includes the food and the ingredients needed to make it. Interested users can click on the relevant ingredients to purchase.

4) For price-sensitive consumers, price is an important factor they consider when shopping. For the same product, with or without a discount, consumers' purchasing attitudes may be completely different. Therefore, in order to meet the needs of consumers who want to buy "high-quality and low-priced" goods, the platform has set up preferential activities on the homepage, categories and other modules, such as: 10 billion subsidy activities, today's flash sales, brand specials, cloud super sales, etc. For consumers who are not sensitive to price, MissFresh focuses on quality. The product details page has recommendations from professional buyers, recommending high-quality products.

5) If consumers still have doubts about the products they are interested in, they are unsure whether the product details described on the platform are consistent with the actual situation. You can view reviews from users who have purchased the product on the product details page. These reviews are real feedback from other consumers and can largely dispel user concerns.

6) Before placing an order, consumers must edit and confirm whether their delivery address is correct. They can locate the detailed address of their area on the homepage, or find the delivery address in My Services and edit or modify it.

7) Before placing an order, consumers want to know how long it will take to deliver the product to see if it is within their acceptable range. The platform sets the delivery time range on the details page of each product.

7.3.2 Shopping

1) When preparing to place an order, the shopping cart clearly displays the quantity, price, delivery time and other information of the items added by the consumer. The "Guess You Like" function recommends more related products to consumers, thereby increasing the purchase amount of a single order.

2) During checkout, the product discount details next to it allow users to understand the discount details more clearly and enhance the shopping experience. In terms of discounts, if consumers want to check the usage of coupons and gift certificates, they can directly check the available coupons at the top of the shopping cart.

3) If consumers want to waive shipping costs, the platform has set up a reminder at the bottom of the basic delivery fee conditions for express delivery products. Consumers can see how far the price of the items they add to their shopping cart is from the free shipping fee, and they can get the waiver when the price reaches the minimum amount for free shipping.

4) On the order settlement page, MissFresh supports five payment methods: stored value balance, WeChat, Alipay, Huabei, and UnionPay QuickPass. Meet the diverse payment method needs of consumers with different payment habits.

7.3.3 After shopping

1) After placing an order, consumers can view the order information in the order details. If they want to cancel the order because they bought the wrong item, want to buy it again, or simply don’t need it anymore, and the platform has not yet delivered the order, consumers can cancel the order directly in My Orders.

2) After purchasing a product, if consumers want to track the product logistics and know the delivery status of the product in real time, they can check in "My Orders" whether the product is in the stage of waiting for delivery or in the process of delivery. If the order delivery time exceeds the time promised by the platform, consumers can click the reminder button in the order details to urge the platform or delivery person to deliver the goods as soon as possible.

3) After receiving the goods, if the consumer finds that the purchased goods are damaged, missing, or the consumer is not satisfied with the goods, they can communicate with the customer service in the customer service and help section to obtain goods or monetary compensation, or return the goods directly. If you cannot coordinate with customer service, you can click the "I want to complain" button to make a complaint and wait for further processing by the platform.

4) After receiving the goods, the consumer's order status will change to "pending for evaluation". Consumers can comment based on their actual consumption experience, which can serve as a reference for subsequent buyers.

5) If consumers need a shopping receipt, they can apply for an invoice. If you want to place another order, you can directly click "Place another order" in my orders, which is very convenient.

Summary: From the above analysis, it is found that MissFresh’s functional design can well meet the user’s needs in four scenarios: before placing an order, when placing an order, before receiving the goods, and after receiving the goods. At the same time, the high-frequency functions required by different users are highlighted in the product structure and distributed reasonably, which can be regarded as a product with relatively excellent design.

8. Operational Path Analysis

MissFresh is a product with strong operation drive. It attracts new customers through social fission, advertising, word-of-mouth publicity, and other means, as well as establishing consumer guarantees, creating product scarcity, establishing a membership system, and coupons to increase conversion rate and average order value. An excellent operation team has played an indispensable role in MissFresh’s becoming a leader in the industry.

Most of its operating methods have been analyzed in detail in the previous article, so I will not repeat them here. In this part, we will analyze the efforts made by MissFresh in event operations, which can be mainly divided into the following three categories (because detailed data on operating activities cannot be obtained, they are simply listed for your reference):

Celebrity endorsements:

• 2020-04-10, MissFresh celebrates its 5th anniversary and invites Xiong Ziqi, Li Sheng, Wang Yuanke, Zhou Weitong, Wang Ju, Liu Chang, Ma Tianyu and other popular stars to endorse

Supporting public welfare:

• On March 8, 2020, MissFresh joined hands with 10 female celebrities including Zhang Jingchu, Qin Lan, Tan Zhuo, Ma Su, Huang Shengyi, Xiong Naijin, Jiang Kaitong, Li Sheng, Liang Yuan, and Zhao Ke to launch the "Eat at Home" public welfare advocacy campaign.
• On August 20, 2020, MissFresh and the Cyberspace Administration of Qingdao Municipal Committee of the Communist Party of China jointly advocated "practicing economy and opposing waste" to Internet TV users across the country
• 2020-09-23, Daily Fresh supports the "Blue Ocean Charity Event" to protect the blue ocean

Homemade short film:

• 2018-01-24, Daily Fresh produced a short film about the Spring Festival, "Selecting for Love, Making Homely and Extraordinary"
• 2020-02-10, Daily Youxian launched a documentary short film "Our Heroes" to pay tribute to the "ordinary defenders" during the epidemic.
• 2020-04-10, Daily Fresh celebrated its 5th anniversary with a short film titled "Thank You for Your Three Meals and Four Seasons"

Cross-border cooperation:

• 2020-04-06, MissFresh and CCTV News launched a special topic "Thank you for group ordering for Hubei"
• 2020-04-12, MissFresh and underwear technology company "Bananain" jointly launched a T-shirt + socks collector's edition gift box
• 2020-04-19, Daily Fresh joins the mobile game "Dream Garden" event rewards
• 2020-04-30, MissFresh and Kimberly-Clark reached a strategic cooperation
• 2020-05-01, Daily Fresh and Hisense TV Weibo launched the "Most Unforgettable Living Room Hour" collection activity
• 2020-05-07, MissFresh and Zhihu launched the "Zhixianhu" event
• 2020-05-08, Daily Fresh and Yisai Beef reached a strategic cooperation
• 2020-05-15, MissFresh and Hengdu Beef reached a strategic cooperation
• 2020-05-17, MissFresh and Mengniu Dairy Alliance celebrated the "First Yogurt Culture Festival"
• 2020-05-21, MissFresh teamed up with Joyoung to launch a Weibo campaign to collect the “most desired juice”
• 2020-05-22, MissFresh and Vinda reached a strategic cooperation
• 2020-05-29, MissFresh and Vitasoy reached a strategic cooperation
• 2020-06-05, MissFresh and JiujiuYa reached a strategic cooperation
• 2020-06-26, MissFresh and General Mills reached a strategic cooperation
• 2020-07-31, Daily Fresh helps Beike set up a love book corner with free borrowing service
• 2020-08-08, Daily Fresh supports Ping An Bank Credit Card's "Looking for Hot 8 in the City" campaign
• 2020-08-19, MissFresh and B. Braun launched the "Enjoy the Chinese Valentine's Day Together" event
• 2020-08-20, Daily Fresh and Leke Sports launched a joint dance music "Fresh Disco"
• 2020-10-01, MissFresh and Tencent Maps launched the "Search and buy groceries on Tencent Maps during National Day and get 20 yuan off" event

IX. Conclusion

Through the overall analysis of the fresh food e-commerce market and MissFresh, we can draw the following conclusions:

1) Macroeconomic factors such as political policies, economic foundation, social culture, science and technology have greatly promoted the development of the fresh food e-commerce industry in recent years, and will also affect the industry to continue to maintain a high growth rate in the future.

2) In the fresh food e-commerce industry, MissFresh and Dingdong Maicai are direct competitors. Their brand influence, user scale, etc. are comparable, and their business models are also roughly the same. However, compared with their competitors, MissFresh has a faster development speed, a larger amount of financing, and a more optimistic future development prospect.

3) In the fresh food e-commerce industry, there are three main participants: suppliers, platforms, and consumers. If the platform wants to develop rapidly, it must meet the demands of suppliers and the needs of consumers. In response to this, MissFresh has taken a series of measures.

4) MissFresh’s current core business is the sales of fresh products. GMV is an important indicator often used by the e-commerce industry to measure whether its core business is healthy. In order to enhance its own commercial value, MissFresh increases the number of platform users through advertising, social fission, and word-of-mouth publicity. It improves conversion rate and average order value by carefully designing every link of the homepage, product list page, product details page, shopping cart, and checkout page, and has achieved very good results, gaining both user value and commercial value.

5) From the perspective of product iteration, MissFresh's development has gone through three stages: start-up, growth and maturity, from focusing on polishing products and improving user experience, to acquiring a large number of users through large-scale operations and promotion, and then to continuously optimizing functions and increasing user stickiness. MissFresh is advancing steadily and taking every step firmly.

6) In terms of product structure, MissFresh has well met the consumers’ needs in each of the four scenarios: before the user places an order, when placing an order, before receiving the goods, and after receiving the goods. It truly starts from the user’s perspective and is a relatively well-designed product.

The above is an analysis report I made out of my love for the fresh food e-commerce industry and the excellent product MissFresh. I did not give any suggestions on the direction of product optimization. I hope it will be helpful to everyone.

Author: Murmur

Source: Murmur