This is the situation of No. 1 Store:
No. 1 Store: 4.17 million, 46 million, 805 million.
This is the annual sales data of Yihaodian from 2008 to 2010. If broken down to each month, Yihaodian has experienced an average monthly growth rate of 28% since its launch in 2008.
"There are few companies in the industry that are developing faster than Yihaodian." Yu Gang, one of the founders and chairman of Yihaodian, said.
Today, the team size of No. 1 Haodian has grown to more than 1,800 people; and three years ago, Yu Gang and No. 1 Haodian CEO Liu Junling opened a 10-square-meter office in Zhangjiang Hi-Tech (11.58,0.17,1.49%). They started their business in the same office, and the two worked face to face for nearly 4 months. At that time, they were the only employees of No. 1 Store.
“I didn’t expect it to develop so fast.” Yu Gang of No. 1 Store said that when he started his business, he only expected the turnover to reach “around 100 million” in the third year.
It’s not just the speed that changes. Compared with the original business plan, No. 1 Haodian Yu Gang described the comparison between the past and the present as "unrecognizable." For example, the current business and methods of No. 1 Haodian have changed a lot from the original design.
But what makes Yihaodian Yu Gang and Liu Junling proud is their original requirements and plans for the system, supply chain structure, corporate philosophy and culture and other basic contents. "Look now, 95 % are correct."
Yihaodian: Scale first
Three years ago, Yu Gang and Liu Junling, then vice president of global purchasing and president of Dell China, resigned from Dell and founded " No. 1 store".
What they want to do is to be a "one-stop shopping and one-stop service website" that meets all people's daily needs, and this idea has never changed.
In 2008, in the domestic e-commerce field, there were JD.com, which made 3C, Dangdang, which made books, Redbaby, which made maternal and infant products, and Fanke and PPG, which made men's shirts.
What category is suitable for No. 1 Store to start from? At that time, Yu Gang and Liu Junling spent a long time thinking.
In the end, they chose to build an online supermarket, starting from fast-moving consumer goods, mainly because of the following considerations: to avoid direct competition with existing e-commerce; the concept of online supermarkets is scalable and will not be A certain vertical category is locked; fast-moving consumer goods have a large demand, a high repeat purchase rate, and strong customer stickiness.
Now, you can not only buy oil, salt, sauce, vinegar and tea in No. 1 store, but also electrical appliances, computers, clothing, shoes and hats, etc. in No. 1 store. The number of SKUs (stock keeping units, stock keeping units) in Yihaodian has increased to 70,000, and “the goal in 2011 is to add more than 200,000 new ones.” However, “the number of SKUs in the flagship stores of Carrefour and Wal-Mart is only 2-4. Ten thousand”.
Facts have proved that No. 1 Store is in the right direction. Statistics from Yihaodian show that there are now 8 million customers, and regular customers contribute 50% to 70% of orders every day.
Price is one of the weights that attract consumers. One of the things Yu Gang of No. 1 Store pays attention to every day is to check the Pricing index system to control the selling price of all products to "on average 3-5 points cheaper than offline supermarkets." One-third of the products in No. 1 Store are "popular products", making small profits or even losses.
Various lifestyle services also play a role in building popularity. From mobile phone recharge, credit card repayment, to buying air tickets, train tickets, lottery tickets, paying utility bills, etc., Yihaodian can handle it all without leaving your home. Yu Gang from Yihaodian said that these are value-added services of Yihaodian, rather than the main profit points.
Beauty care, health care products, clothing, shoes and hats, etc. are all sources of profit for Yihaodian. Among them, imported food is the fastest growing category of Yihaodian. Such high-margin products also account for 1/3 of the volume.
With the launch of some high-unit-price products such as 3C and the enhancement of customer trust, the unit price of each order in their No. 1 store has gradually increased from around 100 yuan to more than 130, 160, and 200 yuan. "It is currently several times that of traditional supermarkets."
The problem is, take Jingdong Mall, which started by selling 3C, as an example. Although the unit price is high and the sales in 2010 exceeded 10.2 billion, it is still not profitable.
Yihaodian Yu Gang said that Yihaodian, which has completed two rounds of financing, "never lacks money" and is not in a hurry to make a profit. What Yihaodian wants now is scale. Relying on its advantages in supply chain management, Yihaodian Company still has strict control over the entire profit margin. Yu Gang of No. 1 Store predicts that in the next 2-3 years, No. 1 Store will be profitable when its sales reach about 6 billion.