“Chunwai Department Store” completed tens of millions of yuan in A1 round of financing, led by Zhisheng Technology

“Chunwai Department Store”, a community retail company in the same city, recently completed its A1 round of financing of tens of millions of yuan. This round of financing was led by Zhisheng Technology Strategy, followed by Zero Venture Capital and Meihua Venture Capital. This round of financing will be used to accelerate store expansion, digital research and development, brand building, and organizational upgrades.

“Chunwai Department Store” was founded in 2019, aiming at the subdivided purchasing needs of family members, and is committed to building a full-category department store rooted in the community and covering the same city, and improving the purchasing experience of target users.

The founder Wang Hai used to be the general manager of Baidu’s international HiClub business line and has extensive experience in overseas and product localization. Its entrepreneurial project StagerLive received investment from first-line capital from China and Japan, and was then acquired by ByteDance.

Wang Hai believes that with the increasingly refined consumption needs of the new generation of consumers, it has become a “headache” for family purchasing decision makers to buy suitable products in time. For example, ten years ago, the number of SKUs of personal care products in the average consumer’s home was less than 20, and now the number has become hundreds.

From the selection point of view, “Chunwai Department Store” has 1,000 three-level categories covering high-frequency and rigid needs of households. With supply chain advantages and differentiated pricing strategies, it can provide consumers with high-quality and low-priced preferred products. Dynamic management of super-large SKUs is the outstanding capability of “Chunwai Department Store”. Based on product classification, market popularity, user attention,

Competitive situation and acquisition difficulty, etc., automatically generate a purchase list to ensure instant satisfaction of consumer needs. At the same time, according to the purchase-to-sales ratio, the five-star dynamic sales rating is automatically generated for the products, the inventory turnover rate is evaluated, and the purchase/replenishment and sales strategies are formulated accordingly. Through digital and intelligent operation, “Chunwai Department Store” hopes to achieve the effect of “thousands of stores and thousands of faces”.

In Wang Hai’s view, the existing channels consider the logic of “goods” or “fields” more, while ignoring the feelings of “people”, which leads to a poor purchasing experience for consumers. E-commerce channels can be delivered the fastest the next day, and consumers need to conduct hundreds of searches for price comparison and stocking management; traditional supermarkets have slow product iterations and outdated experiences, and consumers must plan purchases; High-margin commodities are the main products, and the rigid demand is not strong. “The happiness of family shopping is closely related to the instant shopping experience of shopping wherever you go.”

From the point of view of the store, it has the following characteristics: first, the high-density display of 5,000 SKUs in 100 square meters can stimulate the purchasing desire of surrounding residents; second, the model of timely delivery within 5 kilometers and same day delivery within 50 kilometers is adopted to cover consumers in the city; third Third, improve the transaction conversion rate and enhance user stickiness through refined operation methods such as communities, consultants, courses and members. “Chunwai Department Store” members make an average of 3.5 purchases per month, and the repurchase rate of new users in the next month is as high as 82%.

Since 2018, the growth rate of online traffic has slowed down, and more and more new brands have opened up a “second battlefield” offline. Standardized community commerce is booming. The same-city community retail department store brands represented by “Chunwai Department Store” are pulling users from shopping malls, commercial streets, and e-commerce back to the “downstairs of the community”, trying to reconstruct the community business district.

Talking about future plans, Wang Hai said that “Chunwai Department Store” strives to achieve 100,000 stores in 100 cities within 5 years.

Wang Weiqiang, the founding partner of Zhisheng Technology, said that the community retail format has become the general trend, and consumers are more and more recognized with community chain stores. super form. Consumer demand is becoming more and more refined, Chunwai Department Store has seen the evolution trend of consumption habits and is committed to becoming a professional retail channel that meets consumers’ daily needs. We believe that Chunwai can expand rapidly in the future and create a new community business form.

Zheng Lianfa, the founding partner of Zeroy Ventures, said that today’s community stores have gradually become retail channels that meet consumers’ daily health and home daily needs, and the market growth potential is very large. With the advantages of the supply chain, Chunwai provides users with high-quality and low-price preferred products through a combination of community stores and e-commerce. With the help of capital and the excellent operation and management capabilities of the team, I believe that Chunwai can quickly expand its business and build its own brand influence.

Wu Shichun, the founding partner of Meihua Venture Capital, said that Meihua is optimistic about the innovative and fast-growing intra-city community retail. Focusing on the consumption needs of consumers of all ages, Chunwai provides full-time services to consumers across the city through community stores. With the rapid rise of new markets and the continuous success of entrepreneurial teams, we believe that Chunwai will become the premier community retail brand within five years.