[Small] Gilt Taste Death of defeat: Food electricity supplier gravedigger Revelation [REVIEW] in the country, the electricity supplier of fresh food has been a hot area of entrepreneurship, almost all of the electricity supplier giants and traditional fresh food industry giants will enter the field, the wind would have preferred living in different areas of the network are doing wind From the water, but still far from a real success in foreign FreshDirect (Fresh Direct) PeaPodRelayFoodsOcado (Okay more) AmazonFresh other fresh giants are doing well, but does not mean that this area will be very easy, regardless of domestic and foreign has a lot of classic failures, earlier black Marco another article, 'Gene was thinking? a' fresh electricity supplier 'of death' has analyzed the domestic case, but today it is a classic presentation of foreign high-end food electrical Suppliers failures -Gilt Taste the following selected Fortune Chinese network in May 2011, the electricity supplier website Gilt Groupe "shakugan no shana cosplay " launched its latest sales site - Gourmet website Gilt Taste. Just after a few weeks, Gilt Groupe just raise from investors including Goldman Sachs Group (Goldman Sachs) to $ 138 million, including investment funds, this round of financing given to the company's valuation of about $ 1 billion.
Gilt Groupe is famous real-time mode flash purchase a substantial discount and a limited inventory, whereby a New York-style sample sales to the world. Saying the difference is that the purpose of the establishment of Gilt Taste is claiming to be a 'luxury brand' to sell high-end price of food. However, this model does not work, this year May 24, Gilt Taste quietly went out of business. But as a group has been set up and is expected to grow and the prospect of food - tech start-ups have shown, Gilt Taste of defeat does not prove that the local food economy can not be assigned a billion dollars in annual sales of up to 2,250 e-commerce industry soup. However, Gilt Taste of Waterloo did indicate that online sales of food and sell designer handbags completely different, it is essential to understand these differences. Gilt tast cost me Gilt Taste demise, as well as the presence of a variety of reasons, such as early online grocery retail startups Webvan and failure to pay online food market and provides services website Foodzie and other e-commerce sites. Cost me one: the lack of personalized food product planning Fundamental characteristics - at least the food feature food movement understood the electricity supplier, it is directly inconsistent with its start-up mode. Any farm, city, region or country, will not be the same as the local food system, so the relevant standard can not be a simple - or even not so simple - the algorithm to be estimated. Lifestyle Zen is to include food - tech start-ups, including innovative entrepreneurs providing services firm.
This law firm boss Patrice? Perkins thought it was a misunderstanding expected to enter the field of food technology talents among the common. 'We believe that as long as the group has a capable programmer and creative talent to find the right team, almost soon be able to promote an idea from the conceptual stage to the implementation stage.' However, she further said that many times, 'people did not conduct adequate market research, can not really guarantee that products offered must be market demand 'cost me two: Gilttast faced with low conversion rate and a low repurchase rate dilemma though its website traffic is quite impressive - a monthly average. It attracted 100,000 unique visitors, but its content did not boost sales comments. Gourmets may gladly avidly read about the new salt or the most delicious prosciutto article, but that does not mean she will buy these products. And grocery different handmade food is often considered a niche market. They can serve as a very nice gift, and occasionally enjoy delicious, but most people - even gourmet - will not be too often buy high-end truffle oil. And cosplay costumes for sale who wish to buy these products customers usually they can see, smell and taste somewhere purchasing these products, such as: at a farmers market in the Whole Foods (Whole Foods), or in the food handmade entity's own shop. Reasons for the Failure 3: Product gross profit margins are too low in view of a low-names, no food-based industry companies will be faced with an inherent challenge, and that is to come up with a healthy balance sheet. That is why when Gilt Groupe announced in September 2012 to reduce the number of products offered Gilt Taste given.
Four Reasons for the Failure: distribution, all such electricity supplier common dilemma trying to sell food companies also face a special problem: distribution. According to market research firm, the founder of Food + Tech Connect Danielle? Gould believes that this is the most difficult to create a viable business model parts. 'A lot of people just planted in the above this.' "tales of the abyss cosplay " In addition to the usual distribution requirements - warehouses, trucks, labor outside food also perishable. She said: 'It increases the complexity of the company's distribution and constraints, particularly if they are to expand the scale of operation, when the business began to grow as demand grows, you will become a distribution company, an order fulfillment company.' So if Unable to keep up with the pace of demand growth, we could not survive. San Francisco-based online farmers market Good Eggs also come to the same conclusion. The company is in charge of the scientific community veteran Rob? Spiro (co-founder of the social Q \u0026 A site Aardvark, Aardvark in 2010 sold for $ 50 million to Google (Google)) and Aaron? Savant (software design company Carbon Five co-founder). They initially tried a lot of ways to overcome the distribution of the 'last kilometer', to provide customers with local food, and finally set up their own logistics infrastructure system, to the groceries delivered to the San Francisco Bay Area customers doorstep. By working with manufacturers to design their own online sales platform, Good Eggs teams to cater to different needs of food producers. And this point, Gilt Taste did not do it. Gilt Taste of Chinese fresh food companies a fresh warning alerts electricity provider model problem:? A fresh field of electronic business in China currently has B2B, B2C, O2O three visibility modes. B2B generally meet the group purchasing or hotel food fiscal procurement, currently in the country there are some in the supply chain and cold chain management of companies are doing, but the problem is the problem of slow payment cycles.
Fresh domestic B2C electricity supplier mainstream model, also gilt tast problems still not open around the core of the logistics and electricity supplier said the plight of the problem category. O2O is a small attempt to resolve regional solution, but in China is still no large-scale spread of the cases occur, for example, test the water only between certain cells in some cities Beijing and Shanghai in China, made of green city O2O fresh distribution, which also aims to bypass the logistics, the current situation still fit the traditional line has a number of stores to test under water. The choice of model should be configured from the perspective of their own resources point of view, is not limited to what mode can be successful, foreign countries have integrated platform like Amazon do electricity supplier success stories, domestic or in burn exploratory stage, there is no proof of any modes is feasible or not feasible. Warning II: Programming ingredients system. This will not only gait tast problems in China do fresh electricity supplier this problem will become more prominent, because: 1 ingredients China is too big difference, look at China on a tongue, you know that every one will have a different Chinese regions Food culture, may Canto-pop seafood is not popular in some areas of the mainland. This choice of ingredients more demanding, because standardization means that you can not select ingredients, ingredients nature of this difference in different regions of China will be more pronounced than abroad. You need to extend their unlimited category. 2 ingredients planning you also need to consider margin problem: As the high rate of domestic traffic acquisition costs and logistics costs, low margin category no profit, so either take the high road do high-end ingredients, or do personalized ingredients. Do ordinary everyday just to be able to buy in the supermarket category higher risk of failure was not only low profit margin, is important to purchase the ingredients of users accustomed to always-on, it is difficult transformation.
Of course, relying on the Lynx platform to do this through cooked food after processing is an option. 3 ingredients planning a core of outstanding issues also can not standardize the reason why the rise of electricity providers, because the current electricity supplier category products have strict standards, such as what computer configuration and the like; however, the electricity supplier for fresh terms You piece of pork delivery guarantee you what percentage of the fundamental law of the fat, what percentage of lean meat, may buy yesterday and today simply are not the same product. Warning three: food safety issues. Is in China at this stage will be relatively prominent problem, China's food security is not a fresh one electricity supplier can be resolved, therefore, under the overall environment, generally considered to address food security needs of the whole industry chain layout can from source control food, or you still can not avoid the risk of food safety would not exist, but in China the table from the field do not have a few, so, for food safety, said the general solution relies on purchasing control the quality, but the effect not much to say. Warning IV: cold chain and logistics issues, and this is the first problem that plagues guit tast cold chain issues, he said: A few days ago to chat with Dalian, a company responsible for Fisheries, recognizing he gives is China cold chain is still very backward, still need Like vigorously study abroad. The fresh cold chain requirements not only freshness issue we have seen, throws a few examples for reference: bananas can not enter the cold; Apple to get into the refrigerator; fish die easily, need ice, and every fixed the time required oxygenation; seafood needs water, water spinach to horizontally ... but these issues did not figure out, just do it fresh, apparently do not fly, and that each type of question we need to have someone to take care of, so. , not to a more advanced stage when it comes to cold chain, but there is no cold chain, fresh distribution loses its meaning.
Logistics problems: 1 is how the distribution of the problem, the same problem is timeliness, if the distribution is too large, not just the high logistics costs, and the user needs to lose the timeliness, fresh ingredients can not be guaranteed. 2 problems who received general delivery can be pushed in where, but for the freshness of Fresh required not squeeze can not wait. Therefore, some people think that such a large area in China, and only suitable for localized fresh platform, national distribution is difficult to ensure the user experience. Five Warning: You in the end is the question of who the user base in China, to get rid of high-end users, the strongest demand for electricity suppliers is really fresh supermarket reinforcements 'old aunt who,' but the old aunt who will not online shopping?. This has led people to cook do not buy, do not buy to cook, how to promote marketing is the key. Guit tast for fresh revelation China much more than that, if you can think clearly above five issues, China's electricity supplier fresh theoretically still the sea of blue.