Report on Operation and Investment Strategy of China’s Fresh Food E-commerce Industry
This report will use methods such as Five-Force model industry analysis, the value chain analysis and SWOT analysis to analyze the data of E-commerce enterprises and seek answers to the below questions: Whether the fresh food E-commerce has a promising future? What is the future development trend of the industry? Which commercial patterns and operation strategies will be successful? And where are the potential investment opportunities in the production and circulation of agricultural products?
PART ONE: MACRO INDUSTRY ENVIRONMENT OF FRESH FOOD E-COMMERCE
I. GLOBAL MACRO-ECONOMY AND ONLINE SHOPPING MARKET ENVIRONMENT
1. The Weakening and Highly Uncertain Global Economic Prospect
2. Rapid Development of Global Online Shopping Market
II. ANALYSIS OF AGRICULTURAL PRODUCTS VALUE CHAIN
1. Overview of Agricultural Products Value Chain
2. Anlysis of Main Links
2.1 Production and Processing
2.1 Middle Link
2.3 Marketing and Consumption
III. MODERN AGRICULTURE PATTERN OF DEVELOPED COUNTRIES
1. The Direct Production-Sales Pattern Repesented by “American Pattern”
1.1 Agricultural Production of America
1.2 Domestic Agricultural Products Consumption of America
1.3 Agricultural Products Trade of America
1.4 Ciculation Pattern of Agricultural Products in America
2. The Auction Market Represented by “West Europe Pattern”--France
2.1 Agricultural Production of France
2.2 Domestic Agricultural Products Consumption of France
2.3 Agricultural Products Trade of France
2.4 Ciculation Pattern of Agricultural Products in France
3. The “Japan-South Korea Pattern” of Small-Scale Peasant Economy--- South Korea
3.1 Agricultural Production of South Korea
3.2 Domestic Agricultural Products Consumption of South Korea
3.3 Agricultural Products Trade of South Korea
3.4 Pattern of Agricultural Products Produciton and Ciculation in South Korea
IV. CHINA’S AGRICULTURAL INDUSTRY REFORM AND DEVELOPMENT OF E-COMMERCE
1. Factors Affecting China’s Agricultural Development
1.1 China’s Overal Economic Background
1.2 Political Factors Promoting the Rapid Development of China’s Agriculture
1.3 Impact of Urbanization
1.4 Agricultural Production Factors
1.5 Production Standard of Agricultural Products
1.6 China’s Agricultural Products Trade
2. Outlook of China’s Modern Agiruclture Development
2.1 Bulk Commodities Will be Increasinly Dependent on Import
2.2 The Development of Agricultural Cooperatives Needs More Policy Support
2.3 Centralized Land Operation –The Uprising of Large-Scale Agricultural Enterprises and Family Farm Pattern
2.4 The Circulation Pattern Is Faced with a Great Reform
3. Development of China’s Online Shopping Market
PART TWO: DEFINITION OF FRESH FOOD E-COMMERCE AND ANALYSIS OF COMPETITION ENVIRONMENT
I. ANALYSIS OF THE FRESH FOOD E-COMMERCE PATTERNS
1. Definiton of Fresh Food E-commerce and Overview of the Market
2. E-commerce Platforms: Represented by Store No.1, JD.com, and Tmall
3. Self-Owned Base + Online Stores +Home Delivery: Represented by Tony’s Farm and OABC.
4. Self-Owned Base + Purchasing +Online Stores + Delivery: Represented by TooToo farm
5. Purchasing +Online Stores + Delivery: Represented by SFbest, Benlai.com, Womai.com, Fieldschina.com, and yiguo.com, etc.
6. Comprehensive E-commerce under Traditional Supermarkets: Sam’s Club and Loogoo.com
7. Single Type Professional Business/Business at E-commerce Platform: Fruitday.com
II. ANALYSIS OF MAIN FRESH FOOD E-COMMERCE REPRESENTATIVES
1. TooToo farm –“Online Food Supermarket”
2. RESOURCEFUL BENLAI.COM
3. SFbest—Collecting Best Food of the Globe
4. COFCO Womai.com—State-owned E-commerce
5. Fieldschina.com—Caught the Stomach of Foreigners
6. OABC—Focusing on Organic Food and back to B2C
III. ANALYSIS OF COMPETITION ENVIRONEMNT OF FRESH FOOD E-COMMERCE
1. Bargaining Power of Suppliers
2. Threat from Alternative Channels
2.1 Offline Large-Scale Retail Stores
2.2 Innovative Fresh Food Supermarket
3. Threat from New Entrants
3.1 Online Stores Opened by Traditional Supermarket Giants
3.2 Online Stores Possiblly Opened by Large-Scale Enterprises Upstream of the Agricultural Industry Chain
4. The Bargaining Power of Customers
5. Competition in the Industry
PART THREE: ANALYSIS OF THE OPERATION STRATEGY OF FRESH FOOD E-COMMERCE
I. LOGIC OF FRESH FOOD E-COMMERCE PATTERN
1. Target Customers and Orientation of Fresh Food E-commerce
2. Business Pattern of Fresh Food E-commerce
3. Profit Pattern of Fresh Food E-commerce
II. PRODUCT STRUCTURE MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Product Type Choice of Fresh Food E-commerce
2. Single Commodity Optimizaiton of Fresh Food E-commerce
3. Price Strategy of Fresh Food E-commerce
III. SUPPLY CHAIN MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Supplier Management of Fresh Food E-commerce
2. Warehouse Management of Fresh Food E-commerce
3. Logistics Optimization of Fresh Food E-commerce
IV. SLAES PROMOTION AND MARKET ACTIVITIES MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Sales Promotion Strategies of Fresh Food E-commerce
2. Marketing and Promotion Activities of Fresh Food E-commerce
3. Advertising Strategies of Fresh Food E-commerce
V. EXPANSION MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Products Line Expansion of Fresh Food E-commerce
2. Trans-Regional Expansion of Fresh Food E-commerce
PART FOUR: RISKS AND CHALLENGES FOR FRESH FOOD E-COMMERCE
I. MACRO-ECONOMIC ENVIRONMENT
1. Riska of Economic Downturn and Tightening of Residents’ Shopping Expenses
2. Speed of Customers’ Shopping Habit for Online Fresh Food Products
3. The Policy for the Tranferring of Production Factors such as Land and Foresty Land Is Unclear
II. UPSTREAM LINKS
1. Risks of Products Quality Safety
2. Risks of Stable Supply of Fresh Agricultural Products
III. INTERNAL CONTROLS
1. Bottleneck of Fresh Food E-commerce Talents
2. Control of Fresh Food E-commerce Internal Workflow
3. Risks from the Capital Application and Asset Liquidity of Fresh Food E-commerce
IV. DOWNSTREAM LINKS
1. The Cold Chain Logistics Industry Still Needs Improvement
2. Risks from the Logistics and Delivery of Fresh Food E-commerce
3. Brand Building and Maintainence of Customers Loyalty of Fresh Food E-commerce
4. Risks from the After-Sale Service to Customers of Fresh Food E-commerce
V. INCREASED COMPETITION IN THE INDUSTRY
PART FIVE: FUTURE DEVELOPMENT AND INVESTMENT OPPORTUNITIES OF FRESH FOOD E-COMMERCE
I. DEVELOPMENT TREND OF FOREIGN FRESH FOOD E-COMMERCE
1. Inadequate Popularity of Fresh Food E-commerce and the Fierce Competition Online and Offline
2. Diversificaiton of Fresh Food E-commerce Platform Business Pattern and Differentiated Operation
3. Stable Operation and Slow Expansion of Fresh Food E-commerce
II. ANALYSIS OF LEADING FRESH FOOD E-COMMERCE CASES IN DEVELOPED COUNTRIES
1. Webvan, a B2C Case Which Failed in the Early Stage
2. FreshDirect, Which Conducts Stable Operation and Slow Expansion
3. Peapod, an Innovative C2B2B Pattern
4. Ocado, the “Store No.1” in Britain
5. Amazon Fresh: a Trial of an Industry Giant
6. Relay Food, a C2B2F Pattern Connecting Farmers and Customers
7. Instacart: a New Financing Case of C2B2B Pattern
II. ANALYSIS OF CHINA’S NON-FRESH-FOOD E-COMMERCE CASES AND THE INSPIRATION
1. dangdang.com ( E-commerce Platform and Department Store & Bookstore)
2. Vipshop.com(Platform for Fashion Shopping &Discount Flash Purchases)
III. OUTLOOK OF CHINA’S FRESH FOOD E-COMMERCE MARKET
1. Impact of Capital on the Market Status Quo of China’s Fresh Food E-commerce
2. Estmate of China’s Future Fresh Food E-commerce Market Scale
3. Estmate of China’s Future Fresh Food E-commerce Profitability
4. Analysis and Judgment on the Direction of China’s Fresh Food E-commerce Industry Development
4.1 The Development Speed of China’s Fresh Food E-commerce Will Exceed That of Other Countries
4.2 Fresh Food E-commerce Will Overthrow the Traditional Theory of “Demand Determining the Supply”.
4.3 Form Determines the Content and the Key is its Orientation
4.4 Customer Experience Determines the Success of the Fresh Food E-commerce
IV. EVALUATION OF THE INVESTMENT OPPORTUNITIES IN CHINA’S FRESH FOOD E-COMMERCE MARKET AND UPSTREAM & DOWNSTREAM MARKETS
1. Reasonable Evaluation of a Fresh Food E-commerce Business
2. Investement Opportunities in the Upstream Industry of China’s Fresh Food E-commerce （Front-end Resources）
3. Investement Opportunities in the Downstream Industry of China’s Fresh Food E-commerce（Distribution of Warehouses and Logistics ）
4. Investement Opportunities in China’s Fresh Food E-commerce Industry （Platform Channels）
APPENDIX
FRESH FOOD E-COMMERCE NAMELIST
I. GLOBAL MACRO-ECONOMY AND ONLINE SHOPPING MARKET ENVIRONMENT
1. The Weakening and Highly Uncertain Global Economic Prospect
2. Rapid Development of Global Online Shopping Market
II. ANALYSIS OF AGRICULTURAL PRODUCTS VALUE CHAIN
1. Overview of Agricultural Products Value Chain
2. Anlysis of Main Links
2.1 Production and Processing
2.1 Middle Link
2.3 Marketing and Consumption
III. MODERN AGRICULTURE PATTERN OF DEVELOPED COUNTRIES
1. The Direct Production-Sales Pattern Repesented by “American Pattern”
1.1 Agricultural Production of America
1.2 Domestic Agricultural Products Consumption of America
1.3 Agricultural Products Trade of America
1.4 Ciculation Pattern of Agricultural Products in America
2. The Auction Market Represented by “West Europe Pattern”--France
2.1 Agricultural Production of France
2.2 Domestic Agricultural Products Consumption of France
2.3 Agricultural Products Trade of France
2.4 Ciculation Pattern of Agricultural Products in France
3. The “Japan-South Korea Pattern” of Small-Scale Peasant Economy--- South Korea
3.1 Agricultural Production of South Korea
3.2 Domestic Agricultural Products Consumption of South Korea
3.3 Agricultural Products Trade of South Korea
3.4 Pattern of Agricultural Products Produciton and Ciculation in South Korea
IV. CHINA’S AGRICULTURAL INDUSTRY REFORM AND DEVELOPMENT OF E-COMMERCE
1. Factors Affecting China’s Agricultural Development
1.1 China’s Overal Economic Background
1.2 Political Factors Promoting the Rapid Development of China’s Agriculture
1.3 Impact of Urbanization
1.4 Agricultural Production Factors
1.5 Production Standard of Agricultural Products
1.6 China’s Agricultural Products Trade
2. Outlook of China’s Modern Agiruclture Development
2.1 Bulk Commodities Will be Increasinly Dependent on Import
2.2 The Development of Agricultural Cooperatives Needs More Policy Support
2.3 Centralized Land Operation –The Uprising of Large-Scale Agricultural Enterprises and Family Farm Pattern
2.4 The Circulation Pattern Is Faced with a Great Reform
3. Development of China’s Online Shopping Market
PART TWO: DEFINITION OF FRESH FOOD E-COMMERCE AND ANALYSIS OF COMPETITION ENVIRONMENT
I. ANALYSIS OF THE FRESH FOOD E-COMMERCE PATTERNS
1. Definiton of Fresh Food E-commerce and Overview of the Market
2. E-commerce Platforms: Represented by Store No.1, JD.com, and Tmall
3. Self-Owned Base + Online Stores +Home Delivery: Represented by Tony’s Farm and OABC.
4. Self-Owned Base + Purchasing +Online Stores + Delivery: Represented by TooToo farm
5. Purchasing +Online Stores + Delivery: Represented by SFbest, Benlai.com, Womai.com, Fieldschina.com, and yiguo.com, etc.
6. Comprehensive E-commerce under Traditional Supermarkets: Sam’s Club and Loogoo.com
7. Single Type Professional Business/Business at E-commerce Platform: Fruitday.com
II. ANALYSIS OF MAIN FRESH FOOD E-COMMERCE REPRESENTATIVES
1. TooToo farm –“Online Food Supermarket”
2. RESOURCEFUL BENLAI.COM
3. SFbest—Collecting Best Food of the Globe
4. COFCO Womai.com—State-owned E-commerce
5. Fieldschina.com—Caught the Stomach of Foreigners
6. OABC—Focusing on Organic Food and back to B2C
III. ANALYSIS OF COMPETITION ENVIRONEMNT OF FRESH FOOD E-COMMERCE
1. Bargaining Power of Suppliers
2. Threat from Alternative Channels
2.1 Offline Large-Scale Retail Stores
2.2 Innovative Fresh Food Supermarket
3. Threat from New Entrants
3.1 Online Stores Opened by Traditional Supermarket Giants
3.2 Online Stores Possiblly Opened by Large-Scale Enterprises Upstream of the Agricultural Industry Chain
4. The Bargaining Power of Customers
5. Competition in the Industry
PART THREE: ANALYSIS OF THE OPERATION STRATEGY OF FRESH FOOD E-COMMERCE
I. LOGIC OF FRESH FOOD E-COMMERCE PATTERN
1. Target Customers and Orientation of Fresh Food E-commerce
2. Business Pattern of Fresh Food E-commerce
3. Profit Pattern of Fresh Food E-commerce
II. PRODUCT STRUCTURE MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Product Type Choice of Fresh Food E-commerce
2. Single Commodity Optimizaiton of Fresh Food E-commerce
3. Price Strategy of Fresh Food E-commerce
III. SUPPLY CHAIN MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Supplier Management of Fresh Food E-commerce
2. Warehouse Management of Fresh Food E-commerce
3. Logistics Optimization of Fresh Food E-commerce
IV. SLAES PROMOTION AND MARKET ACTIVITIES MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Sales Promotion Strategies of Fresh Food E-commerce
2. Marketing and Promotion Activities of Fresh Food E-commerce
3. Advertising Strategies of Fresh Food E-commerce
V. EXPANSION MANAGEMENT OF FRESH FOOD E-COMMERCE
1. Products Line Expansion of Fresh Food E-commerce
2. Trans-Regional Expansion of Fresh Food E-commerce
PART FOUR: RISKS AND CHALLENGES FOR FRESH FOOD E-COMMERCE
I. MACRO-ECONOMIC ENVIRONMENT
1. Riska of Economic Downturn and Tightening of Residents’ Shopping Expenses
2. Speed of Customers’ Shopping Habit for Online Fresh Food Products
3. The Policy for the Tranferring of Production Factors such as Land and Foresty Land Is Unclear
II. UPSTREAM LINKS
1. Risks of Products Quality Safety
2. Risks of Stable Supply of Fresh Agricultural Products
III. INTERNAL CONTROLS
1. Bottleneck of Fresh Food E-commerce Talents
2. Control of Fresh Food E-commerce Internal Workflow
3. Risks from the Capital Application and Asset Liquidity of Fresh Food E-commerce
IV. DOWNSTREAM LINKS
1. The Cold Chain Logistics Industry Still Needs Improvement
2. Risks from the Logistics and Delivery of Fresh Food E-commerce
3. Brand Building and Maintainence of Customers Loyalty of Fresh Food E-commerce
4. Risks from the After-Sale Service to Customers of Fresh Food E-commerce
V. INCREASED COMPETITION IN THE INDUSTRY
PART FIVE: FUTURE DEVELOPMENT AND INVESTMENT OPPORTUNITIES OF FRESH FOOD E-COMMERCE
I. DEVELOPMENT TREND OF FOREIGN FRESH FOOD E-COMMERCE
1. Inadequate Popularity of Fresh Food E-commerce and the Fierce Competition Online and Offline
2. Diversificaiton of Fresh Food E-commerce Platform Business Pattern and Differentiated Operation
3. Stable Operation and Slow Expansion of Fresh Food E-commerce
II. ANALYSIS OF LEADING FRESH FOOD E-COMMERCE CASES IN DEVELOPED COUNTRIES
1. Webvan, a B2C Case Which Failed in the Early Stage
2. FreshDirect, Which Conducts Stable Operation and Slow Expansion
3. Peapod, an Innovative C2B2B Pattern
4. Ocado, the “Store No.1” in Britain
5. Amazon Fresh: a Trial of an Industry Giant
6. Relay Food, a C2B2F Pattern Connecting Farmers and Customers
7. Instacart: a New Financing Case of C2B2B Pattern
II. ANALYSIS OF CHINA’S NON-FRESH-FOOD E-COMMERCE CASES AND THE INSPIRATION
1. dangdang.com ( E-commerce Platform and Department Store & Bookstore)
2. Vipshop.com(Platform for Fashion Shopping &Discount Flash Purchases)
III. OUTLOOK OF CHINA’S FRESH FOOD E-COMMERCE MARKET
1. Impact of Capital on the Market Status Quo of China’s Fresh Food E-commerce
2. Estmate of China’s Future Fresh Food E-commerce Market Scale
3. Estmate of China’s Future Fresh Food E-commerce Profitability
4. Analysis and Judgment on the Direction of China’s Fresh Food E-commerce Industry Development
4.1 The Development Speed of China’s Fresh Food E-commerce Will Exceed That of Other Countries
4.2 Fresh Food E-commerce Will Overthrow the Traditional Theory of “Demand Determining the Supply”.
4.3 Form Determines the Content and the Key is its Orientation
4.4 Customer Experience Determines the Success of the Fresh Food E-commerce
IV. EVALUATION OF THE INVESTMENT OPPORTUNITIES IN CHINA’S FRESH FOOD E-COMMERCE MARKET AND UPSTREAM & DOWNSTREAM MARKETS
1. Reasonable Evaluation of a Fresh Food E-commerce Business
2. Investement Opportunities in the Upstream Industry of China’s Fresh Food E-commerce （Front-end Resources）
3. Investement Opportunities in the Downstream Industry of China’s Fresh Food E-commerce（Distribution of Warehouses and Logistics ）
4. Investement Opportunities in China’s Fresh Food E-commerce Industry （Platform Channels）
APPENDIX
FRESH FOOD E-COMMERCE NAMELIST
