Q 3) Evaluate 15 Fen’s Strategic progress overtime.

Does it current strategy fit with your

blue ocean propositions?

 First of all the “15 Minute delivery” of fresh food in itself is a Strategy which would
separate 15 Fen from its competitors.
 There was also a membership proposition for the customer which backfired because
of the hefty subscription charges just for Vegetables which was preferred by
frequent buyers (Subscription).
 Gift card was a great strategy employed by 15 Fen where corporate customers and
business associates bought the gift cards but it was a FAD.
 Fix month for annual subscription plan was introduced where the amount was
between RMB 10,000-20,000 in order to gain confidence of the customers that the
Quality of products is certified.
 O2O model was introduced in 2013 where customers ordered via WeChat Account
using their mobile phone and had the choice between 1 hour delivery or taking the
order up at 15 Fen neighbourhood store at the nearest location where gained a
physical presence.
 Direct sourcing was done by 15 Fen where they ensured the quality of Green
Vegetable meant drilling down to seed selection and safe farming as well as
managing supply and demand according to nature’s cycle.
 He introduced 3 tier cold chain logistic in which the 1st tier pertains to the farmer
growing vegetable to the fancun warehouse, 2nd tier pertains to the logistic being
outsourced to the 3rd party where temperature controlled trucks dispatched the
material to the stores and 3rd tier from store to customer.
 2 tier shared financing model was introduced in which the investors were recruited
to finance capital requirement by acquiring share of particular stores.
 Prepaid Membership system where customer paid in advance for their fresh food
spending with the membership each member was entitled to the share in profit with
a minimum guarantee of 30% in return which is RMB 1,500.

JD.com, TMALL, SFBEST, WOMAI, FRUITDAY, TOOTOO, COFCO, YIHAODIAN, AMAZON,

DENLAI, YONGHUI and XUXIAN they were all better in particular domains and they were
successful in their own specific regions. Whereas there wasn’t a Red Ocean scenario Hence,
There was a complete odrioun for other new entrants or for the existing to grow. Whereas,
15 Fen/ Henry He got more opportunity and a hall to gather their spirit in order to create
blue ocean just by catering to new opportunities.