Unmanned Connivence Store

Company Preview: BingoBox

BingoBox launched 24 hour unmanned convenience store in 2017. Innovative shopping process includes entry QR code scan, automatic product detection at the cashier, and electronic payment via phone. Sensors and cameras identify items in the shoppers’ carts and automatically charge the customer’s WeChat Wallet.

In 2017 BingoBox pioneered the unmanned convenience store concept in China and received 100Mil RMB series A fund. Its goal is to build 5000 unmanned stored in one year. Later JD, Suning along with Jian24、fxBox also entered the market. However, because of competition, lack of government regulation, high cost of construction, and company internal conflict, BingoBox was far from reaching its target of 5000 boxes.

In 2018, BingoBox received series B funding of 80 million dollar and aim to (1) build stronger relationships with local government (2) develop more advanced technology including facial recognition.

US Market:

In the US, Amazon operates Amazon Go store in 4 major cities. Sensors automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart. Consumer can leave the store without paying and receive charges on their Amazon account.

Reflection:

• BingoBox markets the accessibility of products in emergency scenarios (open 24-7). Consumers save time (conveniently located in their local neighborhood）and money (5% cheaper than other convenience stores)

• Low consumer flow can not support the high cost of enacting these boxes (transportation fee, connection to power and water outlet etc raising the cost of each box to 10 - 15k equivalent to building a regular convenience store)

• Competition with established businesses: Community market has been a focus recently for larger business such as Suning，Alibaba，JD；hard for startups like BingoBox to compete

• Competition with Takeout Industry: consumers can order snacks, drinks, or even commodities from their phone. No reason to even go downstairs

• Incorrect Target: elders and children spend most time in local neighborhood，they are less likely to setting up Wechat pay and other supporting services for BingoBox; They also have habit of shopping in larger grocery stores or even farmers market.