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Metro B2B online mall official said the investment will reach hundreds of millions

February 28, 2017

 

yesterday, the retail giant Metro announced its B2B online mall formally launched. Start the electricity supplier, Metro will be mainly in the self built logistics system and stores nationwide distribution, to build more distribution outlets, the plan for the next 3~4 years will double the number of stores in china.

despite the current physical retailers operating electricity supplier has not been a significant success stories, but Metro emphasizes its B2B model is different.

currently, Metro has a total of 54 stores in China, last year sales of $1 billion 500 million, an increase of 18%. However, with more than and 300 stores in China has been WAL-MART, about Carrefour stores, stores, such as the TESCO, Metro’s speed is still slow.

hope to expand the number of customers through the electricity supplier, increase sales. Specific electricity supplier to disclose the amount of investment, but it must be hundreds of millions of dollars. Will continue to invest in the future." Vice president of Metro Chinese revealed Feng Liu to accept the "First Financial Daily" interview, the survey found that 90% of business China electricity market belongs to B2B, Taobao’s C2C accounted for only a small share of the market, and this is what Metro can seize business opportunities.

"we and Carrefour, WAL-MART and other general stores, Metro was originally for the enterprise customer retailer, three major customers include hotels and restaurants, small and medium-sized wholesalers and enterprises and institutions, more than 60% of our customers have online shopping experience, the business unit customer access ratio as high as 86%." Feng Liu said that after the establishment of the electricity supplier platform, Metro will achieve the national distribution, covering the self built logistics center 200 km range of customers to take direct delivery.

at present, traditional retailers try hydropower company few successful cases, such as WAL-MART Chinese despite the establishment of business headquarters and holding Shop No. 1, but did not see the essence of business development, and even suspend the online shopping district China carrefour.

high investment, logistics bottlenecks and consumer habits is troubled by the three major problems in the transformation of physical electricity supplier. A number of shopping sites suspended last year.

huge investment is really a big problem, if it is difficult to profit not to control costs, many shopping sites will return 30% for marketing expenses, 16%~18% distribution for spending, this will not make money. But Metro has a clear corporate customer base, so the market cost savings, while Metro has its own logistics and distribution centers, logistics costs can be saved." Hu Xingmin, general manager of Metro China e-commerce company.

"we hope that the electricity supplier and the store is not conflict, development business is to develop more new customers, Metro had already in the Taobao flagship store water, found a part of online shopping are new customers, so we plan the future of electronic business platform and 70% of all new customers." Feng Liu pointed.

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