Daily Fresh begins to transform the vegetable market and build a smart market

Daily Youxian began to transform the vegetable market and build a smart market.

Daily Youxian began to transform the vegetable market and build a smart market. Daily Youxian plans to use self-operated front-end warehouses. The technical core capabilities accumulated in the instant retail business have promoted the standardization of the wet market through business format optimization, hardware upgrades, in-depth digitization, channel expansion, etc., and Daily Youxian has begun to transform the wet market and create a smart market. Daily Youxian began to transform the vegetable market and build a smart market 1

On June 25, the Hongqi vegetable market in Anqing City, Anhui Province reopened. This is not the first wet market that Daily Fresh has renovated. In fact, together with two other traditional wet markets in Anqing, Daily Fresh has renovated nearly 100 markets in more than 20 cities including Qingdao, Changshu, and Huangshan. However, Hongqi Market is an important experimental field for deploying smart markets with high-quality fresh food every day and incubating market chain merchants.

Take Palmyuan Fresh Food in Hongqi Market as an example. This merchant, which previously specialized in supplying community group purchases, began to plan to open its own store. But between the high rents of offline stores and the establishment of smart markets, this merchant ultimately chose the latter. Yang Hailin, the person in charge of the operation of Anqing Hongqi Food Market, told reporters that as the daily high-quality fresh food renovation of the food market speeds up, more merchants will be incubated in the future, helping them realize the chain from 1 to N.

How to transform

The Hongqi Market was built in 2013, with an overall area of ??1,750 square meters, and its services cover Hongqi Community, Xinlong Community, etc. within 1.5 kilometers. Nearly 60,000 residents in 17 communities.

Yang Hailin introduced that the original Hongqi Market had outdated infrastructure and poor environmental conditions. Its operation on the road could easily block the passage, and the category configuration and layout design were unreasonable, resulting in a poor shopping experience. The decentralized management rights of wet markets also make management difficult. In response to various problems existing in the vegetable market, Daily Youxian has made four main changes.

First, renovate the hardware of the Hongqi vegetable market, add a new island, reinstall the hardware facilities in the market, such as air-conditioning fresh air system, infrared temperature measurement, camera monitoring, etc., and re-clear the sewage pipes , and provide each merchant with a uniform apron.

The second is to re-plan the layout of the market, dividing merchants according to fresh, live, raw, cooked, dry, wet and other areas to make the circulation in the market more reasonable. In addition, the market has set up a self-produced and self-sold area, allowing farmers who originally set up stalls outside to sell home-grown agricultural products to enter the market.

The third is to upgrade the intelligence of the food market, install a large smart screen at the entrance of the food market, install a display screen for each merchant, and equip it with a smart electronic scale. When consumers walk into the Hongqi vegetable market, they can see the day's market guidance vegetable prices and food safety test results on the smart screen.

The fourth is to install daily high-quality smart market solutions into the market. This set of operation management tools includes category investment promotion, daily operation management, marketing, merchant empowerment, etc. Daily operation management also includes Management of markets, merchants, contracts, properties, personnel, etc.

"The merchants were resistant to the renovation at first. They were worried about whether the rent would increase and whether doing business would become more troublesome. But after the renovation, they found it more convenient For example, in the past, merchants had two payment codes, Alipay and WeChat. When settling accounts, they needed to add up the two accounts, and they also needed to pay for cash withdrawals. Now with One Code, merchants only have one payment code, which makes it easier for us to settle accounts. With bank cooperation, merchants don’t need to pay fees for cash withdrawals,” Yang Hailin said.

For the vegetable market, the significance of the smart market is to improve management efficiency: from the store purchase receipts, amounts and other information entered into the system, to the flow of people information when residents scan the code to enter the market, and even through the large The data can trace the dishes and prices, and the system also clearly marks the merchant’s dish price and reputation level to promote merchant self-discipline.

Yang Hailin said that the renovation of the entire market lasted 2 months. During the transitional stage, temporary transition points were built using containers, which did not delay the business of the merchants.

Why transform

As the first domestic fresh food e-commerce company, why does Daily Fresh want to transform the traditional vegetable market?

In fact, with the development of the Internet and changes in people’s living habits and concepts, today, when fresh food e-commerce has become a shopping choice for many people, the wet market is still the largest fresh food retail channel in China. It is also one of the most important traffic entrances for community retail in major cities.

However, due to its relative backwardness in food safety supervision, emergency support, sanitary conditions, hardware facilities, and digital management, traditional wet markets have always been unable to meet the ever-escalating consumer demands of consumers. In addition, the online retail market share of fresh food e-commerce is almost saturated, and the transformation of vegetable markets in third- and fourth-tier cities comes at a time of blue ocean.

iResearch data also shows that the overall penetration rate of China’s smart markets will rapidly increase from 0.4% in 2020 to 14.6% in 2025, and the market size will also increase from 0.4% in 2020 to 14.6% in 2025. 13.8 billion yuan, rising to 600.4 billion yuan in 2025.

But the renovation of the market requires government support. Anqing City has proposed to use three years to orderly complete the "reconstruction and reconstruction" work of 72 wet markets in the city. The "construction, reconstruction and conversion" work of the wet market has also been listed as one of the top ten people's livelihood issues in Anqing City in 2022.

In terms of profit model, Yang Hailin also said that Daily Youxian will select vegetable market targets with clear property rights, package them as a whole, and sign a contract for several years of operation rights. It will not only stay at the level of transforming the vegetable market, but also It is to become the operator of the wet market.

“The smart market we built is to transform the traditional market from a gathering place for fresh food into a community mall integrating food, catering, education and services, providing the people with a more complete one-stop shopping Experience." Yang Hailin said that the transformation plan of the wet market of Daily Fresh is not to sell low-premium fresh products, but to create a combination of multiple business formats and multiple services. Daily Youxian began to transform the vegetable market and create a smart market 2

Innovation is a symbol of the times, and Changshu Five-Star Farmers Market can be said to be a model in the innovation trend. When you step into the Changshu Five-Star Farmers Market, what you will notice is its neat stalls, open aisles, and the vegetables and meats on the stalls are divided into categories. It is reported that the innovative transformation of Changshu Five-Star Farmers Market has benefited from the wisdom of Daily Fresh. After the new transformation, both the merchants in the market and the residents who come to shop are very satisfied with the upgrade.

"Now it is a pleasure for me to sell vegetables here. Not only is the environment neat and clean, but it is also a pleasure to smell the natural fragrance of vegetables and fruits every day!" Ms. Wang Witness the changes in the market. Ms. Wang said that she has been operating in the Five Star Market for more than 30 years. From the street stall operation to the indoor market after the market was completed, she watched the market change continuously. She recalled that the aisles of the market were relatively narrow before, and during the peak period, the entire vegetable market was full of food. The market is so crowded that you can’t even go out to use the toilet.

In the renovated five-star market, the aisles can accommodate 3-4 people passing side by side at the same time, which not only improves traffic efficiency, but also makes it easier to select and purchase. The central stalls are displayed in a square shape, making it easier for consumers to select products. .

The smart market was launched by Daily Youxian in the second half of 2020. It is a chain operation and digital empowerment, upgrading the traditional vegetable market into a community mall.

Daily Excellent Fresh plans to use the core technical capabilities accumulated in the real-time retail business of self-operated front warehouses to promote the standardization of wet markets and optimize the merchant mix through format optimization, hardware upgrades, in-depth digitization, channel expansion, etc. Introducing new business formats makes the wet market no longer a simple transaction scene, but a community integrating food, catering, leisure and entertainment, services, and medical care, creating a community Mall in a one-stop scenario.

In order to facilitate merchants to improve their operating capabilities, Changshu Five-Star Farmers Market has also successfully opened the "one-code" payment function for merchants. The smart one-code payment covers a wide range of products used by customers. A variety of payment methods, such as WeChat and Alipay, facilitate merchants to analyze business results and adjust business strategies in a timely manner. Of course, in the future, Changshu Five-Star Farmers Market will continue to develop into a one-stop, integrated, and one-account solution, in order to achieve higher residents' fresh food purchases. Excellent service! Daily Youxian began to transform the vegetable market and build a smart market 3

In the seven years since its establishment, Daily Youxian has continuously adjusted and optimized itself and adjusted its layout.

Daily Youxian pioneered the front-end warehouse model in the fresh food industry, building the warehouse closer to users. On the one hand, it improves the speed of delivery of high-loss fresh food, and on the other hand, it reduces the cost of cold chain logistics. cost.

With the front warehouse, efficient delivery of high-quality fresh food every day is guaranteed. Front-end warehouses play an irreplaceable and important role in responding to users' emergency needs. Especially in first- and second-tier cities where life and work pressures are greater, the front-end warehouse model has been recognized by more users. You suddenly thought of a delicious dish on the way to get off work. You moved your fingers and placed an order on the Daily Fresh APP. After calculating the time, you arrived home and the ingredients were also at home. This is what Daily Fresh can provide to consumers. Convenient and fast.

Not only that, Daily Youxian has proposed a new multi-business strategic layout, namely (front warehouse + smart market) * retail cloud, in order to sort out higher Competition threshold. Daily Youxian has a keen insight into the preferences of consumers and satisfies their desire for an offline shopping experience with carefully selected products and a wide range of categories. Therefore, the smart market came into being.

The smart market was launched by Daily Fresh in the second half of 2020. It is a community commercial center integrating fresh food, catering, leisure and entertainment, and neighborhood services. Through business format optimization, hardware upgrades, in-depth digitization, channel expansion, etc., we will promote the standardization of wet markets, optimize the merchant mix and introduce new business formats, so that the wet markets are no longer a simple traditional transaction scene, but a new one-stop community consumption scene.

At present, Daily Youxian has signed operating agreements with dozens of food markets in many cities across the country. By renovating venues, optimizing products, and providing electronic payment and online marketing, etc. Digital upgrades, diversified services, and nearly 10,000 SKU products are enough to meet the shopping needs of consumers of different ages and classes.

Relying on a more scientific retail network, Daily Youxian has implemented a business model with multiple online and offline initiatives, giving consumers more choices in Daily Youxian.