Su Sheng First Opened The County Level Market Store Fresh Business Subsidence Still Impede.

On September 13th, following the landing in Ji'nan a few days ago, Su Sheng opened another store, and the store was Su Xiansheng's first store in the county level market nationwide.

Statistics show that Su Xian Sheng's first county-level market store landed in Zhangjiagang, Suzhou, covering an area of more than 1000 square meters, mainly engaged in seafood, fruits and vegetables, cosmetics, drinks, cereals and oils and other supplies, and also provide consumers with food and cuisine. In addition, relying on Suning's logistics and distribution system, users pay 29 yuan for seafood, food and so on in the store. They can enjoy three kilometers an hour quickly.

According to media reports, this is the twelfth shop that Su Sheng has landed in the whole country. Next, in September 28th, Jiangsu Nantong San Sheng store will also open. In the coming October and November, there will be four Suzhou fresh stores landing in Nanjing, Shenzhen Liantang, Shanghai Wujiaochang and Xiangyang Huacheng Baihui.

It is not hard to see that Su Sheng Sheng is accelerating the expansion of its territory throughout the country, and the opening of Zhangjiagang stores also shows that Suning wants to sink the fresh business to the county level market.

In fact, in the commercial field of recent two years, many dark horses have been born around the sinking market, so that in 2019, once known as "the first year of sinking", both the electricity supplier giant and the new force have concentrated their core strength on the sinking market. Compared with the current situation of the dividend elimination of the second tier cities, the sinking market also shows a huge potential for incremental development.

Data show that China's county population accounts for nearly 70% of the total population, that is, the size of the population of nearly 1 billion people. Because of the uneven development of the market, the business services in the county towns are still in the stage of filling the gap, improving infrastructure and constantly increasing consumption demand, which will bring about a consumption market space which is no less than the urban consumption potential.

Because of this, Suning has already speeded up the horse race enclosure in the market before sinking the fresh service to the county town. Data show that as of August 6, 2019, Suning retail cloud nationwide layout of nearly 3700 County stores, covering more than 1700 districts and counties and nearly 3700 townships.

At present, this layout is still accelerating. Following last year's "three year plan to create wealth", Suning further clarified the target of retail cloud stores and plans to complete the landing of 12000 stores in 2021.

In addition, up to now, Suning helps the county town service center has launched 1100 service stores nationwide, providing 24 hours loading and unloading service for more than 21000 villages and towns nationwide. It is expected to cover 95% of the county towns in the country by the end of this year. At present, the laying of logistics services in Suning retail cloud store and County town has also made preparations for Su Sheng to seize the sinking market.

However, due to the particularity of fresh products, Suning will still encounter many obstacles to expand the fresh business to the county level market. First of all, fresh products are "high-frequency and low" consumption, gross margins are not high, but warehousing, logistics, packaging and other costs remain high; secondly, their location is demanding for lots.

Su Sheng's positioning radius of three kilometers determines that its radiation range is limited and difficult to widen. Once there is not enough target population within three kilometers, the high cost brought by the more than 1000 square meter shop will be unable to make ends meet.

In addition, the price of sunken to low line cities can hardly get consumers from the vegetable market and traditional community fresh stores, and the competition in the same industry is fierce. To sum up, Su Sheng's way of sinking still needs to be cautious.