Evolution of hotel retail: what is a flexible transition from B-end to C-end? Look carefully, I'll tell you in order

Original: Li Sheng

The evolution of retail

Retail

As a business, this is familiar to everyone

Small shop at entrance to village - typical retail

Walmart

RT-Mart is also a kind of retail

SKP is also a kind of retail

Simple

These retail scripts are for offline viewing only

It is also most famous retail market

The relationship between people and commodity yards is such that people go to store to buy and pick up goods after payment

С

The emergence of e-commerce platforms: Tao*, Tian*, Jing*, etc.

Retail has a new face

Relationships between people and freight yards have been reconstructed

People don't need to come to store

You only need to make an online purchase

After payment, you can receive goods by courier

The huge advantage of not having to go to store is to break through time

People can shop 24 hours a day. Space

Unlimited shelves

Products

Theoretically, there is no upper number limit

Reopen retail scale ceiling

С

After Alibaba's Jack Ma pitched new retail concept

He's pushing new retail outlets

Proposed by Ma Yun

New Retail is more in terms of pure online e-commerce

Online sales platform

Integration with offline sales platform

Open up a huge world of pure e-commerce

Because

The scale of traditional offline trading is much larger than online retail

How about

Distributing more offline traffic has become an e-commerce platform

The players have a common goal

Current market

The development status confirms success of model

Especially online and offline integration like Hema

In 2022

Alibaba

The average value of an ecosystem is 8.317 trillion yuan

($1.312 trillion)

Alibaba

GMV from a business targeting Chinese consumers

That's 7.976 trillion yuan ($1.258 trillion)

SGM

2022 equivalent

15th place in ranking of countries in world by GDP

Bigger than Mexico ($1.2855 trillion)

Data days

It fully demonstrates tremendous power of new retail

Also make Alibaba history

С

Rapid development of new retail trade

Vertical

Different gameplay also developed in separated areas. Each has its own advantages

Hotel retail

Hotel

As an important consumption scene

It has always been a retail segment

Hotel

Retail trade is divided into two areas: toB and toC

toB is intended for corporate clients

(Hotel investor)

Supply of materials for two stages of preparation and work

QC

For individual clients

(Hotel Consumer)

Hotel lifestyle

(that is, products that are closely related to hman)

Sell to individual customers

Clients in two directions are different

So, for hotels

As for management company, strategy and style of game are completely different

Retail

This is easiest for hotel managers

Because it's inflexibility of hotel investors

Test - how a hotel management company can receive an order

This

What hotel managers of all sizes do

Main goal

Take full advantage of your own channels and platforms

Will be high quality

Sell inexpensive products to hospitality investors

Help hotel investors control investment costs and reduce operating costs

Retail

Compared to toB

Although market size is larger

But development is harder

Higher requirements for team

But there's more room for imagination here. This is more in line with capital market expectations

So

The main approach is to go retail first.

Develop your team. Accumulate experience and funds. Then move on to retail

The main game in market

Current market

There are three modes, I will break them down for you one by one

First: making deals

Mostly

Large hotels

ToB retail management company is a transaction matching model

I use Jin Jiang Hotel as an example

Currently

Jin Jiang Hotel opened largest number of hotels in country

(Company stock code: 600754)

According to Jin Jiang Hotel 2022 Annual Report

Until December 31, 2022

In total, 11,560 hotels were opened

Already

The total number of open hotel rooms has reached 1,103,196

Responsible for Jin Jiang Hotel

Supply Chain Management

Shanghai Jinjiang Liancai Supply Chain Co., Ltd.

(Abbreviation: GPP)

GPP as Jinjiang Global Procurement Platform

from Jinjiang

Red Star McAllin

Zhuo Tour was established as a joint venture of three parties, with Jinjiang as actual controller

Such an important platform

Exists in form of a joint venture

A little unclear

С

GPP scale continues to grow

The acquisition of platform by Jin Jiang has also officially taken place

December 2022

Jin Jiang Hotel and Jin Jiang Liancai

Original shareholder of Shanghai Jinjiang Online Network Services Co., Ltd.

Red Star McAllin

Home Furnishing Group Co., Ltd. and Shanghai

Zhuo Tour Enterprise Management Co., Ltd. signed

"Capital Transfer Agreement"

respectively

Acquisition of 50% of Jinjiang Joint Mining

10% and 10% shares

As of December 31, 2022Transaction completed

December 31, 2022

Jin Jiang Hotels has included Jin Jiang Liancai in area of ​​consolidation of financial statements

Jin Jiang Hotel

Hold shares of Jinjiang Joint Mining

Share increased from 30% to 100%

Complete industrial and commercial changes on January 6, 2023

Image below

This is a screenshot of Jinjiang GPP official website

View this data

Firstly, people's first reaction is that Jinjiang Gas Processing Plant is very profitable

However

From Jin Jiang Hotel 2022 Annual Report

Reviewing GPP financial data disclosed above

GPP is not as profitable as outsiders think

Closed

Total assets as of December 31, 2022 are 518.87 million yuan

December 31, 2022

Net assets attributable to parent company are 244.6 million yuan

2022 operating income of 164 million yuan

2022

Net income attributable to parent company was -16.81 million yuan

GPP will be unprofitable in 2022

The author requested GPP2021 data

It was also found to be in a state of loss. This result was unexpected

Hotel

In traditional sense, supply chain should give people feeling of making money

But feeling is deceptive

Still see

Real financial data (excluding financial fraud)

Only to judge working conditions of company

From

164 million businesses

Income is visible

GPP refers to transaction matching mode

That is, through

Agreeing deals between company's hotels and suppliers to generate income

It's also way most platforms survive, like Tao* and Tian*

This template

The biggest advantage is creation of a trading platform

Introduce hotels and suppliers to transaction platform

Let suppliers deal directly with hotels

Avoid suspicion that platform matters

But platform must survive

It is inevitable to earn income in other ways

For example, charging suppliers for management

Depending on supplier's transaction amount, fees, etc.

This template

It can actually be compared to Wal-Mart

Although Wal-Mart is mostly offline

But after Wal-Mart built a strong global supply chain

Developed private label products for popular consumer products

Private label

Compared to well-known brands

Often quality is almost same

However

The price is lower than products of famous brands

Plus support for Wal-Mart brand

This model allows Wal-Mart

Make more profit than selling brand name products

Huazhu likes it

Ji Hoteln Jiang

Companies like BTG that use deal-making model

Started to create a library of products under his own brand. Used to increase profit

Second: self-employment

Atour is a typical self-driving model

In addition to Atour

Do traditional retail in toB mode

Out of business

In addition, it is first company in industry to offer stage retail

(toC, offline)

Concept hotel company

The main idea is to use entire hotel as a retail store

Allow users to move from guest room to lobby

Yes

Experience customized Atour products at zero distance

Complete weeding at planting

In terms of sales channels

In addition to own APP, small program, offline hotel

Also entered main e-commerce platform

(Tian*, Dou*), perform multichannel layout

According to Atour

Data disclosed in 2022 annual report

Until December 31, 2022

Atour is a scene-based retailer

2464 SKUs designed

Retail business

2020 Gross Merchandise Sales

107.2 million yuan

growth

112.9% to 228.2 million yuan in 2021

Another increase of 41.9% to 323.7 million yuan in 2022

2022

Average scenario retail orders reach 399.8 yuan

Atur Online

Third-party platforms will grow significantly in 2022

GMV up 71% year-over-year

In 2022

During Double Eleven Shopping Festival

Atur Planet

The flagship store is ranked among top 8 best-selling pillow brands on well-known e-commerce platforms

In addition

Atour Planet R90 deep sleep pillow

Since launch in October 2022

become fast

Dawyn Blockbuster

GMV Peak Cost in One Day Exceeds RMB 1 Million

Atur by B

Retail is still limited to hotel brands owned by service companies

And shopping mall retail is for general public

Introduce a standalone model

Sell to everyone. Direction of development - vertical e-commerce

Atur

Positioning yourself as a lifestyle company

Link products you sell to your hotel brand

Perform high-frequency exposure. For example, set a display area in lobby

These actions

For high traffic

As a supported e-commerce toC

This is a very important tool

With opening of a large number of hotels

May get more and more traffic

And traffic can be converted into more toNumber of orders

This is a positive cycle

Third: vertical field e-commerce platform

Tonji Mall

Be special. Break rules

Not only sales

The product is provided to hotel in its own system

Also sells groceries to all hotels

See yourself as industry's open sales platform

More e-commerce platforms positioned as vertical boxes

Main platform logic

Product purchased from upstream supplier

(A small number of products support transaction matching)

Sell to hotel at a higher price. Profit from price difference

In terms of sales methods

Tonji Mall

In addition to selling products through our own e-commerce channels

Also sell individually to hotels through sellers

Will there be e-commerce

Combine with traditional sales methods. The goal is rapid expansion

This template

The space of imagination is very large

Meets capital requirements for rapid growth of e-commerce platforms

The future direction of hotel retail

Future leader

Hotel e-commerce will gradually become

Vertical e-commerce for whole society

One body with two sides

It is divided into two systems: toB and toC

The supply chain and platform support system behind it are same set

In particular

direction there

Deal matching mode

Increase platform GMV and build user loyalty

Sell products and services to all customers

The direction of ToC should pay attention to user experience of product

Impress people with good products

Achieving a closed planting and weeding cycle

Be it toB or toC

It must be integrated online and offline. It can't be split

But

Company

It's not easy to work with two systems at same time

Currently, leader cannot crush opponent

The structure of market will also change

Looking forward to seeing leading companies in all aspects as soon as possible