fresh connections: china
TRANSCRIPT
Mi Ping, CEO, Yummy 77 March 26, 2015
Fresh Connections: China
Fresh Produce Chinese Online Market Overview
l Introduction
l Development of Fresh Online Market in China
l Fresh Online Player Models
l Opportunities for Oversea Suppliers
Outline
l Founded in 2013
l Over 1 Million Registered Users in Shanghai
l Invested by Amazon US in 2014
Our Company - www.Yummy77.com
Our Web Site - www.yummy77.com
l Driven by Increasing Living Standard
l Driven by Health and Food Safety Concerns
Chinese Fresh Produce Market
Ø Prior 2012
Ø B2B Market Ø Failed Attempts Similar to Webvan
Ø Since 2012 Ø Great Development Led by Imported Fruit Ø Regional Specialty Agriculture Products Ø Co-Development with Cold Chain Logistics Investment
Online Fresh Market Development
Considered the next biggest thing in e-commerce Fresh Market - Over Billion RMB market
Online less than 1% 2012 - Online Fresh Growth Rate over 300% 2013 - 5.7 B RMB Sales 2014 - Agriculture Product Related Transactional Web Sites over 3000
Different Models and Strengths Ø Comprehensive Platform
Ø Transactional Platform: Taobao
Ø Product Platform: JD, Amazon, Yihaodian,
Ø Vertical Fresh Players
Ø Focus on Products and Full Services
Ø Offline Stores go online
Fresh Online Vendors
Special Challenges for Chinese Fresh B2C Players
Market Characteristics Ø Non Standard Product Ø Wider Range of SKUs Ø Greater Variety of Suppliers Ø City Layout, Traffic/Vehicle Control, and Population Density
B2C Challenges Ø Quality Standard and Control Ø Full Supply Chain Management Ø Devise Logistics Solutions
Yummy77 – A Fresh Vertical Players Product
Logistics
Services
SKU Selections Quality Control
Storage Last Mile Transportation
Customer Segmentation Customer Education Product Marketing
Ø Locality Focused
Ø Online and Offline Combined
Opportunities for Fresh Producers World wide
Ø Suppliers Ø Niche vs. Mass Market
Ø Wholesale Market vs. Retail Chain / Online Vendors
Ø Platform vs. Vertical Players
Ø Buying Trend Ø Volume increase on low end fruit
Ø Quality is a double edged sword
Ø Explore New SKUs
