188bet industry development history，It’s new、The process of continuous integration and change of old business formats。

October 2016，The concept of “new 188bet” is led by Alibaba and enters the public eye。In just two or three years，Alibaba、The two Internet giants Tencent and Tencent divide their camps into “racing horse races”。Traditional 188bet giants have also passively or actively begun to "search for prescriptions"。During this period，Business innovation、Capital influx、Gimmicks have become the norm。

November 2016，The General Office of the State Council issued opinions on promoting innovation and transformation of physical 188bet，Accelerate structural adjustment of physical 188bet enterprises、Innovative development methods、Achieve cross-border integration、Continuously improve the supply capacity and efficiency of goods and services and make arrangements。

According to data released by the National Bureau of Statistics on January 21，The total 188bet sales of consumer goods in 2018 exceeded 38 trillion yuan，9 year-on-year increase.0%。Promoted by new technologies and supported by an increasingly perfect logistics and distribution system，The integration of emerging business formats and traditional business formats has become an important way to supply the consumer market。

But in fact，It is not difficult to find out the actions of major 188bet giants，Alibaba since March 2018、Tencent has actually stopped “buying, buying, buying”。There is also a figure of "ebb tide integration" in the camp。

Except for unmanned convenience, the capital craze is fading，December 2018，Yonghui Supermarket divested Yonghui Yunchuang，Becomes the sign of a new round of adjustment trend in the 188bet industry。Yunchuang business as an attempt in the new 188bet sector，Serious losses occurred，Cumulative losses of nearly 1 billion yuan in the past three years，Loss in the first three quarters of 2018 alone reached 6.1.7 billion yuan。This also caused Yonghui Supermarket’s net profit to drop by 26.9%，This is also the first time its performance has declined in 7 years。

Cooling of the entire capital market，It also reduces the “assist” of capital in new 188bet。However, the problem of weak early profitability of new 188bet itself cannot be ignored。Although every business change exceeds industry expectations，But products and services are still the true pursuit of practitioners。

Whether it is a traditional 188bet company or an Internet company that moves from online to offline，Return to the essence of 188bet，Becomes a reality that every "person in the game" has to face。

Low tide warning

The “188bet revolution” initiated by Hema Fresh，It seems to have evolved into a big carnival in the 188bet industry。

Hou Yi, CEO of Hema Fresh, disclosed the operating conditions of Hema Fresh for the first time in September 2018。Hou Yisheng，Hema Fresh has a total of 64 stores，Covering 14 cities，Serving more than 10 million consumers。From the perspective of square footage，If it is a mature store (operating 1.more than 5 years)，Hema’s single-store daily sales exceed 800,000 yuan，Effectively equivalent to over 50,000 yuan per square meter。The square meter efficiency of traditional supermarkets is generally around 10,000 yuan/square meter，From the perspective of square footage efficiency，The attempt at new 188bet has made a qualitative leap。

Hema opened 64 stores in one year，Achievements at a speed that 188bet companies can only dream of。Financial strength，Team、Talent、Management、Supply chain、Operation capabilities put forward extremely high requirements。Alibaba sinks to heavy asset entities to do new 188bet，Based on the strong support of Alibaba system。These supports include logistics、Service，Every aspect of technology。

According to public order sources，The proportion of online orders in Hema’s mature stores has reached 60%，In fact, in mid-2017，The online order volume of Hema’s mature stores has exceeded offline orders。Customer price level，Hema’s online order price per customer is 75 188bet，Offline customer unit price 113 188bet。

Specific to members’ monthly purchases，If members use Hema’s services both online and offline，The monthly cost of membership is 575 188bet。Members who only consume online，Monthly cost is 279 188bet。Members who spend purely offline consumption spend 228 188bet per month。

It’s worth noting，These disclosed data are only for mature stores。“Hema currently releases only the data of the top companies，The overall square footage efficiency of hundreds of stores still cannot be recorded。If the subsequent store has a larger loss，It is very likely that the profits of the head stores will be evened out。Compare the already profitable offline companies’ counterattack on the online market，Establishing offline stores requires higher capital dependence in the early stage。”188bet Expert、Hu Chuncai, founder of Shanghai Shangyi Consulting, told the 21st Century Business Herald reporter。

Obviously for Alibaba’s “heart treasure” Hema，Solid financial backing。But based on the current market rules，The ebb cycle of capital often only takes 3-5 years。For other traditional 188bet companies entering the market，If there is a swarm of bees、A “desperate” bet on “new 188bet”，The consequences may be "injurious"。

Yonghui Yunchuang business as an attempt in the new 188bet sector，Cumulative losses of nearly 1 billion yuan in the past three years，Loss in the first three quarters of 2018 alone reached 6.1.7 billion yuan。Facing serious losses，Yonghui is overwhelmed。“Data and Algorithms” for a company like Yonghui that started in the traditional 188bet industry，If you want to cultivate the Tao，Unavoidable long-term “heavy asset” investment。Perhaps it is because of the investment that cannot bottom out in the short term，Yonghui chose to stop at the right time。

When the new 188bet trend is booming，Yonghui relies on its strong fresh food supply capacity，From the supermarket scene to the catering scene，Extended traffic，Seeking high gross profit。Via "Super Species"，A mix of high-end supermarkets and fresh food restaurants，Positioned as light fashion and light luxury dining。

End of 2017，Tencent with 46.800 million yuan invested in Yonghui Supermarket，Transfered 5% 188bet equity 188bet listed company；Subsequently with 1.87.5 billion yuan to increase capital of "Yonghui Yunchuang"，After completion of capital increase，Tencent holds 15% of shares in “Yonghui Yunchuang”。

In 188bet，The confrontation between Tencent and Alibaba escalates，Comprehensive comparison of super species against Hema Fresh Food。However, at the end of 2018，Yonghui has to face the reality of losses，Split Yonghui Yunchuang，Stop loss in time。

“Hot money pours in，Too eager for quick success，Not necessarily a good thing for an originally reasonable business model。Not all situations can be solved by burning money。Capital needs education，Return to rationality，Return to the internal logic of 188bet。Need to rethink how much benefit can be obtained、How much does it cost，How long does it take to find the balance between investment and income。" Hu Chuncai said，“Rapid investment of capital，Acquire customer flow quickly。In fact，Consumers are very smart。Remove some consumers at the head，For most consumers，Pay more attention to the money in your pocket，Value for money shopping。After no subsidy bonus，Naturally choose other consumption methods。Pseudo demand brought about by burning money cannot be sustained。”

The essential concern of 188bet is still efficiency and effectiveness，The results are costs and benefits。In the 188bet era represented by Carrefour，Retailers through comparative advantage from suppliers，Get income from the mode of obtaining channel fees。In the new 188bet era，Ali was the first to make innovations，By cooperating with suppliers，Explore value together and share，Making the supplier’s original product development cycle of 18-24 months，Can be shortened to 3-6 months。Help suppliers find suitable new products，Giving value to suppliers，Also becoming the future trend。

“For retailers，Essentially it is a setter，Does not produce goods itself。After having e-commerce，The value of the setter gradually fades，Transforming from a logistics setter to a value setter，Uncover the value that belongs to retailers between customers and manufacturers，It is the core of future 188bet transformation。" Hu Chuncai analyzed。

In addition，7FRESH、Tianhong sp@ce are 188bet opening stores like crazy，In such a competitive environment，Speed ​​up the store，Seizing the first-mover advantage seems to have become the main battlefield for all parties。

Hema adopts the method of opening 188bet stores to attract mid-to-high-end customers，There are also higher requirements for time and quality。On the road to radical expansion，Hema, the “trendy boy”, is also bound to have problems。The "label gate" that changed the shelf date of carrots on November 15, 2018；December 11, 2018，Hema Xiansheng was notified and listed on the list because the crucian carp sold in the store was found to have excessive levels of enrofloxacin；January 15th this year，Pipi shrimp sold by Hema in Chengdu were found to contain excessive cadmium。

Differentiated play

In this new 188bet melee，Traditional foreign 188bet giants have different tactics，Slower but steadier pace。Walmart’s Sam’s Club launched a cloud warehouse project in 2017，To some extent, in response to the competition for 188bet that continues to sink into the community。

In fact，The attempt to use cloud warehouses (i.e. front warehouses) has always been controversial in the traditional 188bet industry。Front warehouse，refers to the internal warehousing and logistics system of the enterprise，Closeest to the store，The most advanced warehousing and logistics。The traditional logistics and distribution pattern has changed from e-commerce platform + express delivery company + consumer to e-commerce platform + front-end warehouse + real-time logistics (or consumer)，or front warehouse + consumer。

Hema Fresh、Daily Fresh、Yonghui Life、RT-Mart、Alibaba’s 188bet channel, etc.，There are also attempts at front-loading warehouses，Only slightly different in form。Hema Xiansheng belongs to the store and warehouse，Both store and warehouse。

The front warehouse of Walmart Sam’s Club does not have the function of a store。Approximately 200~300 square meters，SKU is around 1000，Generally select locations where members are concentrated，Selected products that members purchase frequently and have high penetration rates，Including fresh food、Mother and baby、Personal care、Dry stuff，And popular Internet celebrity snack products，Basically covers all fresh food categories，Provide 1-hour "fast delivery" service for users within 3~5 kilometers surrounding。Publish information at present，Sam plans to deploy about 10 or more front-end warehouses in each first-tier city，By deepening cooperation with JD Daojia，Improving home-to-home 188bet。

“In view 188bet good response after the launch 188bet cloud warehouse project，We will expand the cloud warehouse project to Shanghai in 2018、Beijing。Take Shenzhen Cloud Warehouse, which has been operating for more than one year, as an example，The square meter efficiency reaches over 130,000 yuan per square meter per year，Gives us more confidence to open more cloud warehouses。Yuncang is very helpful to members’ shopping frequency。Because of Sam’s membership features，What we care most about is our customers’ shopping frequency and card renewal rate。”Vice President of Walmart China、Chen Zhiyu, senior vice president of Sam’s Club, told a reporter from the 21st Century Business Herald。

Generally, the unit price of 188bet food e-commerce is about 30 to 50 yuan，The unit price of Sam’s front warehouse reaches more than 200 yuan。Under the premise that the fixed costs (such as delivery costs) of each order are the same，If the customer unit price is higher，The stronger the profitability。

“Yuncang solves the immediate consumption needs of some members，Especially high-quality 188bet products and “authentic” maternal and infant products，These two types of products sell very well in Yuncang。Our target members are not willing to lower their living standards because of other factors。Therefore，Yuncang meets members’ urgent needs for 188bet produce and maternal and infant products，Helping our members maintain the standard and quality of life。User feedback reflected in increased sales and shopping frequency，And increased satisfaction。" Chen Zhiyu added。

And for the fresh people at the center 188bet hot pursuit、Cooked food，Sam chose the relatively "cold treatment"。

Deputy CEO of Walmart China、Andrew Miles, President of Sam’s Club China 188bet, told the 21st Century 188bet Herald reporter: “Sam’s positioning in China mainly meets the needs of individual members—targeting families with mid-to-high-end incomes。Out of insistence on product quality、Food safety considerations，Not designed to sell live seafood。We cannot serve all consumers，Must insist on serving target groups。”

Chen Wenyuan, President of Walmart China, also told reporters，188bet future, physical stores will still focus on strengthening fresh food operations、Mainly strengthening the development of private brands and continuing to implement the three strategies of “affordable prices every day”。Chen Wenyuan disclosed，Walmart’s first self-operated fresh food distribution center in China will be officially launched in March this year，The total investment of this project exceeds 700 million yuan，The largest single investment since Walmart entered the Chinese market 22 years ago。Next 20 years，Walmart plans to rebuild or build a dozen similar logistics centers in China。

“Yuncang is growing very fast，We hope to achieve exponential growth in 2019。The main bottleneck now is the manpower issue。In terms of categories，We will still focus on maternal, infant and fresh products。We can decorate the store beautifully，Can be opened 188bet city center，Can create a lot of gimmicks，But these costs will eventually lead to an increase in commodity prices。Accurate positioning is Sam’s best entry point at present，It is also the aspect that can provide the highest value to members。" Chen Zhiyu added。

For physical 188bet，Store square footage is no longer the only criterion for measuring performance。Traditional physical 188bet uses stores as brands、Market、Sales、Shipping、The position of warehousing and other processes，But for omni-channel business，The store does not need to carry all functions，In addition to servicing sales，Stores should also provide consumers with a better shopping experience。

Based on this background，Carrefour、Walmart、Traditional 188bet giants such as Tianhong are accelerating the pace of store upgrades。By adding a new maternal and child room、Interactive area and ways to introduce star chefs to provide guidance on cooking ingredients，Upgrade offline shopping experience。

Different from the "heavy asset" play style that only focuses on speed but not attack，Traditional 188bet giants appear more cautious，Pay more attention to the cultivation of one’s own internal strength。

Start 188bet second half

The current 188bet industry is undoubtedly still in the "Spring and Autumn Period and Warring States Period"、The era of "a hundred schools of thought contend"。Currently one of the top 100 domestic 188bet companies，Only 20% of the market share of physical 188bet，The top ten foreign 188bet companies account for 30% of the market share。

In comparison，The development of offline 188bet in the United States is relatively mature，According to Rediff Business，2010，Among the top ten 188bet giants in the world，The United States has five seats，Amazon respectively、Kroger、Costco、Home Depot and Target。The highly developed offline 188bet has also curbed the development of e-commerce to a certain extent。Looking at China，The growth rate of offline 188bet sales is relatively slow，From 2009，Growth rate is less than 20%。However, e-commerce represented by Alibaba has achieved overtaking in corners。

Back to the current status of the 188bet industry，Online companies have obvious capital advantages，But lack of offline experience；Offline stores are impacted by online business，Also facing an increasingly difficult situation。Many physical 188bet owners are starting to feel that it is getting more and more difficult to run a supermarket，Choose to sell assets。Moreover，Benchmarking the development trend of global 188bet industry，There is also a trend of increasing asset concentration。M&A also plays an important role in this。The 188bet industry after 2019，Increasing concentration will also become an inevitable trend。

The first half of the e-commerce era (C2C) focused on traffic and encirclement、To the upcoming second half (B2C)，Will pay more attention to brand upgrade。New 188bet giants face bottlenecks in online traffic growth，Also began to explore the business model of requesting offline traffic。

From 2000 to 2018，The two core keywords 188bet industry are traffic and brand online upgrade，But the current traffic cost has increased，Platforms face higher costs in increasing category granularity，Resulting in a slowdown in brand online development。

2017 was the craziest year for Tencent and Alibaba to compete for offline physical 188bet resources。Ali Suning Department、The battle for the new 188bet territory represented by Tencent and JD.com is fiercely fought。Early 2017，Alibaba completes the privatization of Intime，Successively signed contracts with Shanghai Bailian Group、Invested in Shanghai Lianhua Supermarket、Fujian Xinhualian，And blockbuster investment in Sun Art 188bet (RT-Mart、Auchan)、Investment Juran Home，Quickly complete the new 188bet layout construction。December 2017，Tencent officially acquires shares in Yonghui，Began to follow Alibaba to intensively invest in the offline 188bet industry。Rapidly expand the battlefield，Formation gathers Walmart、Carrefour、Hongqi Chain、Zhongbai Group、BBK、Meituan、Daily Fresh、Texhong shares’ 188bet territory。

Social e-commerce is booming in 2018。Social 188bet has low cost、Diverse scenes、Characteristics of decentralization。Based on such characteristics，After conducting in-depth analysis of multiple customer cases，New layout of three major sectors in the social business field: social 188bet + social distribution + social marketing。

And the post-e-commerce era after 2018，188bet will continue to focus on repurchase and efficiency。In addition，Population structure、Consumption habits determine the direction of 188bet sales。

In addition，Digital 188bet，From the day of birth，Encapsulated in the imagination of value exchange methods and verification of the future。It is not difficult to see from this year’s digitalization process，Digital Business Era，Both manufacturers and retailers should shift their focus from product thinking to customer thinking。

About people in new 188bet、goods、Restructuring of fields，Scenario-based thinking based on mobile Internet technology can enhance the stickiness of merchants and consumers，It is also the easiest digital method to use。

Deloitte also released a research report stating，The most fundamental change facing the 188bet industry today is that consumers use technology beyond enterprises，This drives the need for companies to transform themselves to catch up with new consumer needs。Digital platforms can help companies reach consumers in unprecedented ways，This has brought about a complete change in the competition model。

More than two years since the birth of new 188bet，Still in the exploratory stage。Industry integration competition has not yet been determined，The heroes compete for the throne，Unknown result。

However, no matter it is Sam、Hema，Still a super species、7FRESH，Everyone is looking for “medicine”，Nowadays, they are also planning on the combined track of opening stores and e-commerce。Although the future is uncertain，But new 188bet has shown several ups and downs。For enterprises，Is it better to advance bravely or to make steady progress？The final answer still needs to go back to the core of business，Competition of efficiency and effectiveness。

*Source of 188bet article: 21st Century ClassicJi Report, author: Tang Weike, original title: "The ups and downs of "New 188bet" in two years: Capital ebbs, who will win？》.