Shop No. 1: Yu Gang: More O2O Attempts

WAL-MART strategic investment in China

Station 1 is actively exploring the integration of online and offline retail this year, embracing O2O, and hopes to achieve sales targets far exceeding the industry's average growth rate this year through continuous innovation.

Yu Gang, chairman of No. 1 shop, told reporters during the interview of the fifth Global Business School Presidents Forum, held in 2014 at the Antai Institute of economics and management, Shanghai Jiao Tong University. The 1 businesses are actively exploring a number of O2O businesses this year, including the opening of three community service centers and "community groups" in Shanghai, cooperation with Shanxi's large supermarket chains, and cooperation with Sinopec's easyway convenience store.

Take the No. 1 community service center as an example. At present, each service center covers a number of residential areas, covering up to 68 residential areas and 350 thousand population.

The community service center has three functions, the first is the delivery terminal; the second is the customer's pick up point; the third is a marketing center, which can guide the customer how to order with the mobile device.

Because the store is located within the community, many offline activities can also be carried out in the store.

"These attempts may not always succeed, but the traditional retail is going online, and the electricity supplier is moving down the line. Eventually, it will form a new business mode combining online and offline to provide more channels and convenience for customers," Yu Gang said.

In the traditional retail business, the online business is also trying to traditional retail, embrace O2O, seems to have become a trend.

Recently, it is also reported that the online retail giant Amazon is planning to open its first retail store in Manhattan, New York, and will open in the US holiday shopping season.

In 2011, WAL-MART department store Limited (NYSE:WMT) invested strategic investment in shop No. 1 and continued to increase its capital in 2013, increasing its holdings to nearly 51%.

As of September 2014, shop No. 1 has more than 80 million registered users and has more than 24 million mobile subscribers.

At present, there are 4 million kinds of marketable goods, covering 17 categories, such as food and beverage, fresh food, imported food, digital phone, beauty care and so on.

Yu Gang disclosed that the total sales volume of shop No. 1 last year was 11 billion 540 million yuan, and this year it will grow faster than the average growth rate of the industry.

Although double eleven will soon be around, the electricity supplier war is hot, but Yu Gang said that the 1 shop will focus more on customer experience, system friendliness, product advantage price and so on. The competition pattern in the future may become more and more intense, but the strategy of No. 1 store will remain unchanged, and the best shopping experience for customers will be.

"Innovation is one of the four major genes in the No. 1 store and its important competitiveness."

Yu Gang said that through innovation, shop 1 achieved many breakthroughs.

Taking supply chain management innovation as an example, the inventory turnover rate of No. 1 store has been shortened from the average 40~50 days of the industry to the current 18 days, and is expected to reach 15 days this year.

The increase of turnover rate will not only bring more cash flow, but also better performance of profits.

Yu Gang said.

For example,

We also attach importance to the use of big data. "This can not only help enterprises to establish customer behavior models, improve efficiency and precision marketing and personalized services for customers, but also help enterprises to make purchases and make quick price changes and decisions," Yu Gang said. Although Shop No. 1 has a special heart of innovation, Yu Gang said that innovation is not a team to innovate, but requires full staff to innovate, and everyone in the team should have innovative thinking.

Formally launched in July 2008, it pioneered the "online supermarket" of China's e-commerce industry, with the highest daily traffic volume of 20 million passengers, ranking third in the domestic B2C integrated electricity supplier.

It seems that in the field of no policy and industry barriers, vertical electricity providers are still very difficult to compete with the comprehensive category of large electricity providers, which is why many vertical e-commerce providers have finally adopted the expansion of category.