Honey Bud Baby Liu Nan Talks About Electricity Price War

Since 2014, the frenzy of capital and the development of cross-border electricity business have made mother and baby the most striking category in vertical electric business.

Among them, honey bud baby in 2014 received two rounds of total investment of $80 million, becoming the industry's more eye-catching new mother and baby vertical business.

Liu Nan, founder of honey bud baby, said in an interview that the mother and baby industry has been in the Red Sea market after several rounds of shuffling. It is no longer suitable for new entrepreneurs to enter. The existing maternal and child business will continue to fight.

In 2015, honey bud baby tried to achieve breakout of mother and baby business through price war, layout of overseas supply chain, and insisting on cross border self employment mode.

In view of the vertical population of the universal maternal and child Electronic Business Honey bud baby line on March 2014, the on-line company that has just completed a year decided to hold the first imported diaper festival in from March 16th to 18th this year, launching the preferential policy of "500 million +1 billion yuan subsidy", and began the first round of price war in 2015.

According to Liu Nan, in this price war, the number of diapers and other brands of baby diapers on the honey bud platform has dropped to "two digits", of which the price of Unitya (Moony) will drop to 68 yuan.

"This price is almost cut off in imported diapers, which is very shocking for the industry."

Liu Nan introduced diapers as standard products in the industry of mother and infant, and in all electric businesses, gross profit is very low, usually under 5 points or even 2 points and 3 points.

Liu Nan believes that price war is the only way for the strength of the electricity supplier in a certain historical stage.

Not only is the price lower than what, the upstream supply chain is more critical, such as stocking capacity and purchasing power.

"Electricity supplier development to the present, price war is still the most favorable means of competition for the electricity supplier.

Price war can not only highlight strength but also eliminate weaker ones. A price war will show who is swimming naked. "

She said that in order to import diaper Festival, honey bud baby has launched 200 containers' stocking scale, and will openly display overseas procurement, warehousing stock, shipping containers, Japanese port pportation, arriving at Ningbo port, customs declaration and country inspection and other processes.

She said that the current situation is that the mother and baby business is already the Red Sea, the new entrepreneurs are not suitable for further entry, the price war will further enhance the threshold of maternal and child business.

According to Liu Nan, at present, several relatively large maternal and child electronic business platforms focus on different modes.

For example, Jingdong's mother to child channel is a general trade self run mode. Tmall is general trade settled, Tmall international is import bonded, and Su Ninghong's children are general trade self import + import bonded, and cross-border electricity supplier adopts imported bonded settlement mode.

It is considered that the price of goods in general trade mode will be relatively high, and the mode of general trade settlement will lead to the difficulty of ensuring the supply of goods by the platform.

Even cross-border electricity providers can not be represented as "single source". Some platform business models with third party merchants in the form of platform are loose, retailers can contract responsibility to upstream businesses based on contracts, and sales platform and sourcing are also from two different parts.

Once it's like a diaper, it's a product.

The quality problems (such as the difference between wet and extruded products) are not responsible for the retailer's nature, and consumers are ultimately injured.

Therefore, honey bud baby chose self-employed business model. 85% of the sales revenue came from self employment. The POP platform was an invitation system. It only opened up to the brands of clothing textiles and home department stores. The self financing mode of the whole chain was very important to Liu Nan.

At present, honey bud has established branches in Hongkong and Japan, and has established offices and warehouses in Australia, Europe and North America.

Take the warehouse in Nagoya, Japan, for example, there are 16 suppliers of honey bud baby in Japan, and more than 50 containers are sent to Beilun port in Ningbo, China every Sunday.

Liu Nan said that since September last year, honey bud baby has launched cross-border business in Ningbo bonded area, and its sales volume has exceeded 35 million yuan in 4 months.

In addition to cross-border business,

There are also domestic procurement and general international trade procurement.

Among them, overseas brands that are exclusive to honey bud baby account for about 15%-20% of all the brands sold on the platform.