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What limits the breakthrough in the vending machine market?

May 19, 2018

The  business model of the domestic vending machine operation industry is  that the company obtains final profits from the products sold by the  machines, rather than selling the machines themselves. The  operating costs are mainly composed of machinery depreciation expense,  site rent, goods procurement and distribution expenses, and management  expenses including labor, etc., and the success or failure of the  operation ability of vending machines, mainly related to income level,  population structure, consumption habits, and government The relevant policy provisions and support factors. In general, the higher the income level, the larger the proportion of  migrants, the easier to accept new things, and the more cities and  locations where young people like fashion consumption, the greater the  sales of vending machines.

So which aspects restrict the breakthrough in the vending machine market?

1. Compared with supermarkets, vending machine operators have fewer  purchases and do not have a clear advantage in terms of commodity  prices.

2.  From the operator's point of view, each vending machine with a value of  RMB 30,000 to 40,000 yuan must achieve large-scale operations. If there  is no installment payment, it will be difficult to pay a huge amount of  fees, which undoubtedly increases the entry barrier for operators. For consumers, credit card spending or mobile payment will make the  use of automatic vending machines more convenient, thereby greatly  increasing their utilization rate. However, this method cannot be  realized on a large scale in China, and the single payment method causes  inconvenience in use.

3. There are only a few types of products that can be supplied to operators, such as beverages, snacks, and cigarettes.

4. Due to the limited manpower, timely distribution of goods has also become a burden.