Su Xiansheng'S First County-Level Market Store'S Fresh Food Business Sinks And Still Has Obstacles

On September 13, it was reported that Su Xiansheng opened another store after landing in Jinan a few days ago, and this store was the first store of Su Xiansheng in the county-level market nationwide.

According to the data, Su Xiansheng's first county-level market store was located in Zhangjiagang City, Suzhou, covering an area of more than 1000 square meters. It mainly deals in seafood, meat, vegetables, fruits, cosmetics, personal care, wine, grain and oil, and also provides consumers with food and beverage. In addition, relying on Suning's logistics and distribution system, users can enjoy the service of three kilometers and one hour quick delivery when they pay a full 29 yuan for seafood, food, etc. in the store.

According to the media, this is Su Xiansheng's 12th store nationwide. Next, on September 28, Su Xiansheng's store in Nantong, Jiangsu will also open; In the coming October and November, there will also be four Susheng stores in Nanjing, Shenzhen Liantang, Shanghai Wujiaochang and Xiangyang Huacheng Baihui.

It is easy to see that Su Xiansheng is accelerating its expansion nationwide, and the opening of Zhangjiagang stores also shows Suning's determination to sink its fresh business to the county market.

In fact, in the business field in the past two years, many dark horses have emerged around the sinking market, so that 2019 was once called "the first year of sinking". Both e-commerce giants and new forces have devoted their core forces to the sinking market. Compared with the status quo of dividend elimination in the first and second tier cities, the sinking market does show huge incremental space.

Data shows that at present, the population of counties and towns in China accounts for nearly 70% of the total population, that is, nearly one billion consumers. Due to the unbalanced development of the market, the commercial services in the county and town markets are still in the stage of filling the gap, improving infrastructure, and constantly improving consumer demand, which will bring consumer market space no less than the urban consumption potential.

Because of this, Suning has already accelerated its pace in this market before sinking its fresh food service to the county and town. According to the data, as of August 6, 2019, Suning Retail Cloud had nearly 3700 stores in counties and towns across the country, covering more than 1700 districts and counties and nearly 3700 villages and towns.

At present, this layout is still accelerating. Following the "three-year wealth building plan" put forward last year, Suning further defined the goal of opening retail cloud stores this year, and planned to complete the landing of 12000 stores by 2021.

In addition, up to now, Suning Bangke County and Town Service Center has launched 1100 service stores nationwide, providing 24-hour delivery service for more than 21000 villages and towns nationwide, and is expected to cover 95% of the county and town areas nationwide by the end of this year. At present, the laying of Suning retail cloud stores and county and town logistics services has also prepared Su Xiansheng to seize the sinking market.

However, due to the particularity of fresh products, Suning will still encounter many obstacles to expand its fresh business to the county market. First of all, fresh goods are consumed with "high frequency and low amount", and the gross profit is not high, but the costs of warehousing, logistics, packaging, etc. are still high; Secondly, the self positioning is demanding on the location.

Su Xiansheng's distribution radius of three kilometers determines that its radiation range is limited and difficult to expand. If there is not enough target population within three kilometers, the high cost of 1000 square meters of large stores will not make ends meet.

In addition, it is difficult to win consumers from the food market and traditional community fresh food stores if the price in the low-end cities has no advantage. In addition, the competition in the same industry is fierce. In a word, Su Xiansheng's sinking road still needs to be careful.