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Vending machines: the hundreds of billions of new markets to emerge?

The bonus period of online traffic is no longer, the operation cost of e-commerce is high, and the price war is fierce. Offline hypermarkets are closing in waves as production costs rise and profits are squeezed. What else to focus on as a channel in the marketing 4P theory has been the topic of discussion among food manufacturers. Vending machines widely distributed in subway stations and on campus provide a new perspective for offline access and have been used in the beverage industry for a long time. Vending machine as a kind of more convenient retail mode, flexible point distribution, can penetrate into the corridor, subway station, such as store is difficult to enter the space, the immediate convenience and randomness of consumer demand, with 24 hours a day, without artificial, save area etc., effectively solve the retail entity (such as the rent is high, high labor costs, with unique channel value. Industry insiders predict that vending machines will be a trillion-dollar channel.

Japan is the most developed countries, the vending machine formats data, according to Japanese vending machine industry association in 2016, Japan 4.94 million vending machine, every 26 people have one, achieve sales of 293 billion yuan. Among them, the conventional drinks vending machine account for only half, other types of vending machine sells products including cigarettes, magazines, umbrellas, socks, etc., from groceries to electronic products, almost everything. By contrast, the development of vending machines in China has been slower since the 1990s, due to factors such as immature consumption habits and operating and maintenance costs. So far, the vending machine for drinks sold more, the phenomenon of snack food in the vending machine is not common, but refer to the beverage industry in the channels of the vending machine performance, seem to be as with the FMCG leisure food indicated the prospect to period.

01

Testing water: costs and demand have prompted food companies to focus on new channels

According to a report released by the China chain store association, the rent cost of convenience stores increased by 7% and labor costs by 6.5% in 2016. Therefore, de-manpower cost, small area of vending machines have become a focus of attention. The emergence of new devices such as self-service juicers, self-service coffee machines and fresh food vending machines has made this industry more likely.

From the perspective of demand side, with the improvement of income level, people's consumption demand for instant convenience is increasing, and the consumption environment of vending machines is becoming more and more mature. Consumer demand for vending machines is expected to explode when per capita GDP reaches $10,000. In 2016, China's GDP per capita reached this level in nine provinces and cities. In addition, as urbanization continues to advance and the population continues to concentrate, public space areas such as office buildings and subway stations suitable for vending machines are increasing.

In this context, a few food enterprises have begun to explore the channels of vending machines. In Beijing, for example, some subway stations already have vending machines that sell leisure food. The author in fangzhuang fengtai district, Beijing subway station, in addition to drink vending machine, already has 4 machine specially on the leisure food, product is a bimbo's (Beijing) food co., LTD., a subsidiary of bimbo's best Finn French cake, have strong heart, let many fe Angle chocolate layer cake and crisp bread three product, retails in 10 yuan, currently only support pay micro letter. Because the delivery time is limited, bimbo's series product sales, the outside world is unknown, but there have been food companies are starting to test the waters of this new channel forms, regardless of success or failure, snack food has begun the channels to explore of the vending machine. This is certainly groundbreaking.

"The decline in FMCG's performance is mainly due to the decline in the traditional super channel sales of big businesses and many products are not suitable for online sales. In addition, the higher costs of channels and rents have led to higher fees for producers. Wahaha, master kong, they face a problem is the cost of channel is getting higher and higher, and this is why some companies choose the vending machines, they think that they set up automatic vending machines, can reduce the dependence on traditional channels, can also earn a little money, it is a trend." Deep blue technology CEO Chen haibo told the media.

02

Help: mobile payment technology ripens the new business model

The advent of intelligent technology upgrading and mobile payment era is an important driving factor for the rise of vending machine industry. Traditional vending machines are paid with special denomination notes and COINS. The machines are changed to zero, which is prone to card currency and lack of currency. In 2013, WeChat payment was launched, and youbao was one of the first offline partners. The access of mobile payment has greatly improved users' purchasing experience and further reduced operating costs. Moreover, the background management system of the intelligent vending machine can monitor the inventory and operation status of goods in real time. With background data, operators can make more planned replenishment and equipment maintenance to reduce operating costs. Through the analysis of sales data, we can optimize the point position and commodity structure of the vending machine. Users can also check the location and goods of the nearby vending machines through the APP and purchase them directly, so as to achieve online guidance. With more timely replenishment of goods, the sales volume of single machines can be improved.

"Smart vending machine on the Internet and mobile payments and technology of China led the world, the vending machine channels on the one hand, through the intelligent devices are connected to the electricity, save space and manpower costs on the other hand, take advantage of the retail industry, will gradually become anemic growth of emerging power, China's retail market with the high speed growth and unlimited growth potential, the vending machine has received more and more attention to brands." Li Xiang food co., LTD., general manager of marketing center of fujian Wang Wei said that in recent five years, the vending machine channels of average annual sales growth has exceeded 100%, the vending machine monthly yield as the economy and rising living standards and increase gradually, by 2020, a vending machine monthly sales will reach 6000 yuan, annual sales of close to 100 billion.

03

Argument: can solve the fast consumer goods growth asthenia

With the decline of online traffic dividend, the value of offline traffic has been re-examined, but the offline store business also faces the pressure of rising labor and rent costs. Before sales targets put forward by the enterprise is the percentage of growth this year than the same period last year, with sales to sales strategy, but now due to channel fragmentation, FMCG enterprise faces the problem of sales growth, many traditional brands appeared serious losses, even sales space or room for growth is not ideal, continue to pursue scale volume increase, it is difficult to achieve. Whether the vending machine channel can bring new growth momentum to the FMCG industry is still an open question.

04

Enlightenment: take advantage of the new business model to do a good job of channel sinking

Regardless of the future development of vending machines, as an emerging channel, the biggest lesson for food manufacturers is how to better realize channel subsidence. Now, more and more people in the industry realize that products are close to consumers, and that it is possible to make purchases, such as e-commerce, convenience stores and vending machines. China's vast consumption market, in addition to developed a second-tier cities, and the level of consumption and consumption potential growing county township market, how to establish channels and the diversification of customer contact, is the food manufacturers need to consider the problem.

"Convenient vending machine channels have affected food companies, and in fuzhou there are already machines selling baked goods. As a food enterprise, we should be alert. At present, this convenient consumption mode will affect some terminal networks. What we need to think about is how to cultivate channels deeply. The new wave of retail and Internet growth will be very rapid. It will be a crisis as well as an opportunity.

At present, the domestic vending machine industry is in a special period of development. On the other hand, the new generation of consumers is rising, and the channel reform triggered by Internet technology is deepening. As a special intelligent retail service channel, self-service selling has both innovation and upgrading space and cost advantage. So each big brand enterprise successively into the bureau, and how to grasp the development trend of channel, repair and maintenance of late market continuously, with the help of a vending machine, complete product sales channels and the growth of sinking is the manufacturer will be a big problem to solve.

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