Industry perspective
I. rural retail is scattered, and Shenzhen Agricultural Products Group Co.Ltd(000061) upward and downward two-way flows of industrial products are encouraged
Income and consumption: the rural population is 510 million, accounting for about 36% of the total population, the income level is about 40% of that of cities and towns, and the contribution of retail sales is about 16% of that of cities and towns. The growth rate of rural social retail sales and per capita disposable income are higher than that of cities and towns, and there is still much room for improvement. Fast moving consumer goods are the main category of retail in the sinking market (accounting for 56%), durable goods have a high growth rate, and the increment or more comes from the increase in the penetration of air conditioners, computers and other products, as well as the upgrading of washing machines, refrigerators and color TV sets.
Internet penetration: rural Internet penetration rose to 57.6%. The county network retail sales account for about 30% of the national network retail sales, with East China leading. The policy promotes "prospering agriculture through several businesses" and cultivates rural digital economy.
II. B2B e-commerce promotes the integration of digital and rural retail industry
Mode: self operation and matchmaking can run through, and pay attention to the change of management efficiency after the scale of self operation mode increases.
Barriers: localization ability, warehouse allocation efficiency and brand service ability determine the store acquisition ability and store service ability of B2B platform in the sinking market.
Merchant behavior: B2B e-commerce platform has become one of the main purchase channels of small stores. It gives business empowerment in terms of cost reduction, circulation efficiency improvement and data precipitation, accounting for about 18.8% of the order weight. The platform selection reflects certain user loyalty. At present, the average receiving time is 2.3 days, and there is still room to improve the warehouse allocation efficiency.
III. sinking the digital direction of retail participants in the market
Trend 1: focus on the B2B role of FMCG and empower the community group buying territory. Representative enterprises: Alibaba retail link and jingxitong. Ali retail is integrated into shopping for vegetables. Jingxitong, as a component of Jingxi business department, focuses on the sinking market. B2B platform integrates goods and supply chain. Many connected retail stores have become high-quality group buying points in the community with good customer conditions and stable business places.
Trend 2: deeply cultivate the self operated path, optimize the profit model and layout SaaS +. Representative enterprise: huitongda. Huitongda builds a sinking market retail trading and service platform through self-supporting mode, covering household appliances, consumer electronics, agricultural materials, travel, etc. The current profit of 2B business model is relatively thin, with a gross profit margin of 2.8% in 2021. In the short term, the profit model optimization can reduce the proportion of channel customers with high bargaining power by adjusting the type of customers, and in the long term, it can layout high value-added SaaS + and other services. Due to the high price sensitivity of the sinking market, small business scale and limited need for digitization, the willingness and ability to pay for SaaS + services have yet to be verified.
Trend 3: brand BC integration and digital transformation of dealers. From the perspective of brands, brands with high user stickiness and relying on their own in-depth distribution have the advantage of BC integration, reach end consumers, weaken the role of dealers, master the full link data, and representative brands include cola and Yanghe. Dealers are trapped in the bottleneck of scale that is difficult to break through, actively seek change, better realize large-scale distribution through online means, rely on small program ecology and live broadcast form, so that small stores can better understand brands and goods.
Risk tips
Repeated outbreaks; Changes in market demand; Seasonal fluctuations; Increase or interruption of logistics costs, etc.
