It is very difficult for fresh e-commerce to make a profit. It not only has to bear huge water and electricity rent expenses, but also faces industry competition. If it does not change its business model, it is likely to lose money.

Although the development of e-commerce business is very hot now, it does not mean that e-commerce sales in such an industry are in the profit stage. For fresh e-commerce, its operation is very difficult, especially under the influence of mask environment, many e-commerce platforms have become losing money, and even some stores have closed.

Box Horse Neighborhood Strategy shrinks.

at 8: 11 p.m. on October 11, 2122, Hippo Neighborhood announced that it would withdraw its stores in Nanjing and Hangzhou. In October 2121, Hema Neighborhood had already withdrawn its stores in Shenzhen, Suzhou and Guangzhou. This year, it closed its sites in Xi 'an, Wuhan, Chengdu and Beijing one after another. Now only Shanghai's Hema Neighborhood is still sticking to it. When he just opened, the number of stores has reached more than 411 in China, and the sales in 11 cities across the country are very high. Now he has to make various strategic adjustments.

the production cost has increased.

We all know that the stores in the neighborhood of Box Horse are operated by self-operated mode. Their store area is only 41 to 51 square meters, and there are two or three employees in each store, and all kinds of equipment resources in the store are very rich. Therefore, he needs to bear the cost of various employees' water, electricity and rent, but the sales can't meet the cost, so he has to make this choice.

the industry is under great competitive pressure.

At present, various community group buying platforms are constantly developing, especially some larger platforms, and they all have some user subsidies. Therefore, compared with Boxma Neighborhood, many users will choose fresh e-commerce with lower prices, which is unbearable for this competitive Boxma Neighborhood. If he wants to continue to develop, he has to change his business model to exist for a long time.