---
title: "Deep Analysis: Misconceptions in the Development of Unmanned Shelves to Avoid!"
description: "Since the second half of 2017, unmanned shelves have entered a period of rapid development. Currently, various companies are exploring their models. Based on observations, some viewpoints are one-sided and some paths may have problems. This article analyzes common misconceptions such as occupying locations, relying on simple shelves, standard products, single-shelf output, others' supply chains, scattered layout, and treating capital as the service target, arguing that success requires focusing on supply chain innovation, product differentiation, and treating it as a real retail business."
author: "鲍跃忠"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-01-03"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/ozjcg4NGxPisOEFk5rUBhg"
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---

# Deep Analysis: Misconceptions in the Development of Unmanned Shelves to Avoid!

> Since the second half of 2017, unmanned shelves have entered a period of rapid development. Currently, various companies are exploring their models. Based on observations, some viewpoints are one-sided and some paths may have problems. This article analyzes common misconceptions such as occupying locations, relying on simple shelves, standard products, single-shelf output, others' supply chains, scattered layout, and treating capital as the service target, arguing that success requires focusing on supply chain innovation, product differentiation, and treating it as a real retail business.

Since the second half of 2017, unmanned shelves have entered a period of rapid development.
Currently, the various unmanned shelf models are all groping forward. Based on my observations of this industry and synthesizing the development paths of various companies, I feel that some viewpoints are one-sided, and some paths may have problems.

**Occupying locations:**
Currently, most unmanned shelf companies are rushing to grab locations. Their viewpoint is: location resources are scarce, and whoever grabs them first owns them. Is this viewpoint valid?
Retail logic has never been like this. The business district you favor is certainly also favored by others. If you open a store, others will also open stores to compete. The convenience store market in Shanghai and Guangdong is already like this. At an intersection on Maotai Road, FamilyMart, Lawson, C-Store, and 7-Eleven each occupy a corner.

**The logic of retail has always been that the strong defeat the weak, and the advanced defeat the backward; there has never been a case where the first entrant can maintain an advantage forever.** Walmart and Carrefour's entry defeated previous retail models, and Hema Fresh is now trying to eliminate the hypermarket model.

From a practical analysis, the current unmanned shelf development model does not have competitive advantages. A simple shelf, some simple products, and a simple model basically have no entry barriers or industry thresholds.

Thinking that occupying a location will hold it forever is a bit wishful thinking.

**Relying on simple shelves:**
Most unmanned shelf companies seen use shelves that are as simple as possible.
Now convenience stores and brand stores, for competitive needs, are upgrading the image of display fixtures. Shelves cost hundreds of yuan, but most unmanned shelves seen are very inferior, possibly costing around 100 yuan. Some even lack load-bearing capacity, and safety may be an issue.

**Retail is for people. Retail must first have reverence for customers. The manifestation of reverence for customers is creating a good retail environment.**
Unmanned shelves are a model. But if you use the simplest shelves possible, you lack basic reverence for customers.

As a new retail form, innovation is very commendable. But you need to design your fixtures well first. Design should first attract customers, be differentiated, and have some novelty. I saw one box with a diamond-shaped shelf design, which had some novelty. Other shelves are too poor in quality and not suitable for use.

Other expenses can be saved. Expenses for serving customers and facing customers must not be saved. If you want to save in this area, you will pay a greater cost.

**Relying on standard products:**
The products organized by unmanned shelf companies are all ordinary standard products that can be directly sourced from the market. There is no differentiation from other retail, and no special characteristics.

This retail concept is not feasible. If Hema Fresh's new retail only offered 30-minute home delivery, the probability of success would be only 20%. Its core is clearly positioning who it serves and what products meet their needs. That is the core.

Hema's positioning is the post-80s and post-90s generation, white-collar workers and elites. What products? Large seafood, daily fresh, and quality product systems. That is its main secret weapon to attract target consumers.

Innovation in new retail forms is very important, but supply chain innovation must be done first. Without good new products that meet target consumers' needs, and without products with unique competitive advantages, relying solely on price wars and subsidies will be hard to sustain.

For unmanned shelves to succeed, they must work on products and create products with unique appeal. Relying solely on standard products is hard to sustain.

The FMCG B2B path has proven that relying on subsidies and price wars cannot last long.

**Relying on single-shelf output:**
Some unmanned shelf companies intend to increase customer stickiness and increase single-shelf output to achieve break-even at a single point.

It cannot be denied that some shelves can achieve higher output at a single point. But such resources are scarce. **Currently, most unmanned shelf site selection standards have been lowered to office scenarios with 20-30 people. In such scenarios, covering costs with a single point is very difficult.**

Based on my retail experience, the demand scenario in offices exists. But single-point output is very limited. According to analysis by relevant professionals, 100 yuan is the ceiling. If a point only produces a few dozen yuan, covering costs is basically impossible.

To do well, unmanned shelves can only work on the online side. Use the advantage of being close to quality consumer resources like white-collar elites and young professionals, and use the favorable conditions of being closer and more convenient to build communities.

The shelf is just a traffic entry point. Make the shelf an experience station that builds customer trust, creates connections, and enhances customer stickiness. The ultimate goal is to channel the traffic generated by the shelf online.

Making a profit from shelves is very difficult. Or if you don't want to grow big and just guard a few quality points, even so, life won't be easy.

Therefore, my judgment is that for unmanned shelves to have a future, they must find ways online.

**Relying on others' supply chains:**
Some unmanned shelf companies have even more incredible development models. They enter the market without building their own supply chain system, relying on others' products, logistics, and operations. I wonder where your future is? Where are your competitive advantages?

If you only position yourself as a platform or matchmaker, your C-end output capacity is too low, and market value is too small.

If you only use others' standard product systems, it is also difficult to build a competitive business system. Standard products are hard to be competitive.

**My judgment is that the future profit point of the unmanned shelf model can only be on the supply chain side, and only by working on products.**

So the best way is to build your own supply chain system, control the supply chain system, and work on product development. Only when products have competitive advantages can there be development potential; only when products have profit points can you survive.

Of course, the product system includes the product composition of the shelf and the product organization of the online mall.

**Scattered layout:**
The current unmanned shelf model, including some new retail innovative companies, seems to want to change some regularities of retail.

Retail is a model that needs scale and intensive development. Retail development should avoid scattered layout.

Currently, unmanned shelf companies may be for the purpose of racing to occupy territory, developing scattered. Each market is not done deeply or thoroughly. This does not conform to the laws of retail development.

The best means is to concentrate forces to thoroughly do each market and form market advantages.

Concentrate enterprise forces and focus on developing markets. Do not take this path of dispersing forces, dispersing resources, and casting a wide net everywhere.

Because retail development requires matching complete supply chain resources and team resources, many resources need market accumulation and time to settle.

In this regard, some retail enterprises have already paid enough tuition for failure.

**Treating capital as your service target:**
Retail is retail. The thinking of doing retail and the thinking of doing capital are completely different things.

Of course, current unmanned shelf companies are mostly capital-driven enterprise models. Behind them is capital.

But enterprises must be clear: what you do is retail. It is a real retail business.

You can tell stories to capital, but you cannot completely operate according to capital's thinking.

That will kill you.

**So, unmanned shelves should still be treated as retail, following the retail path, following new retail thinking, and following the business model.**

Introduction: Bao Yuezhong, senior economist, expert of the Ministry of Commerce's "Ten Thousand Villages and Thousand Towns Market Project", founder of Bao Yuezhong New Retail and New FMCG Innovation Studio, WeChat: bc111246
Friends interested in unmanned retail can follow the unmanned retail WeChat public account below for more information.
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