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[RDHY Case] The Foundation of the Peking Duck EMC, Smart Cooking EMC, IoF

1. The Foundation of the EMC

On August 1, 2020, Zhang Yu officially launched an order in the EMC-platform to establish the Smart Cooking EMC. Based on the four dimensions of market capacity, consumption habits, industry scale and team integration ability, the platform system automatically generates the target of 20,000 users and 10 million ecosystem income. To bid for this order means Zhang Yu will have 600,000 RMB of value-added sharing space.

The huge value-added sharing space attracts lots of ME nodes to enter the EMC. They are bidding for orders on the EMC-platform one after another, and provide solutions in line with the goal of the various nodes. For example, Human Resource Node provides a solution for attracting talents in the prefabricated product industry, 42-Market Node provide a solution for integrating the resources of 30,000 Haier stores, and Steaming Oven ME provides a solution for integrating different types of desktop ovens and embedded ovens... Then, Zhang Yu evaluates the solutions from different nodes on the platform and approves the qualified nodes to join the EMC. In this way, the EMC has been introduced a total of 11 solution nodes, such as steaming oven ME, Smart kitchen ME, food materials ME, Internet of things payment scenario interaction ME, Internet of things payment scenario landing ME, finance ME, human resources ME, and user interaction ME. In addition, 42 regional marketing centers located in Hangzhou, Beijing, Shanghai, etc., have joined the EMC as experience nodes.

2. The EMC Self-driving Iteration Roast Duck Cooking Solution

With the successful bidding of each node in the EMC, they began to determine the proportion of value-added share that can be obtained after completing the goal respectively according to the target they undertake and the value of their contribution. Taking the solution EMC and the experience EMC as an example, it can be found that in the early stage of the Smart Cooking EMC, they focused on the R&D and production of the smart oven, so the sharing proportion of the solution EMC and the experience EMC accounted for 60% and 40% respectively. When the R&D technology is mature, the EMC shift more emphasis on the marketing promotion of this mode, as a result, the sharing proportion is dynamically adjusted to each account for 50%. From the perspective of specific ME nodes in the EMC, for example, the market ME nodes in 42 regions of the experience EMC determine their respective share in advance according to the proportion of their respective number of promoted stores in the total number of promoted stores in the experience EMC. Thus, EMC contracts are automatically generated.

After that, the EMC-platform will automatically generate an interaction group, in which the balance of each node can be displayed at any time, and the platform will also remind each node according to their progress.

Smart Cooking EMC builds a food sharing platform for chefs to digitize their cooking skills through the Internet of Things. After successfully promoting dishes such as spicy crayfish and fish head with chopped peppers, Zhang came up with the idea of making roast duck with one-key when he attended the opening ceremony of Quanjude Restaurant in Beijing in September.

The idea has been endorsed by Chinese culinary master Zhang Weili, prefabricated products company Huifa Group, and some duck factories. As a result, they signed a cooperation agreement on October 23, establishing the target of selling 10,000 ducks by the Smart Cooking EMC and earning 2 million RMB in revenue. And after that, Zhang Weili, Huifa Group, duck farms and other companies have officially entered the Smart Cooking EMC and become its solution nodes.

After six months and thousands of experiments, Zhang Weili and his colleagues finally produced the first batch of roast ducks in a stew-oven mode on Sept 10, 2020. A demand survey covering 200 Haier Smart Home Users was launched following that. It was found that the users could not accurately master the frozen state of the roast duck semi-finished products, and there were many uncertain factors in the cooking process, which affected the final effect. Zhang Yu again contact Zhang Weili and the semi-finished duck company, research together "frozen roast" technology. After more than a month of continuous attempts, the technical goal of "one key roast duck" was finally achieved on October 15.

3. Pre-agreed value-added share drives the EMC to ignite the market

The EMC agreed on the share proportion in advance according to the different value contributions of platforms, chefs, food processing enterprises and duck farms. For each roast duck sold, Haier Smart Home Platform, Chef Zhang Weili, Huifa Group and the duck farm can get 2% to 6% of the profit respectively. The remaining profit of 15% or so goes to the Smart Cooking EMC, of which about 6% will be distributed to the makers at each node as value-added sharing space, about 9% will be reserved for follow-up development fund.

With the pre-agreed value-added share, each node can clearly understand the share value it can get after reaching the goal. Soon, the smart duck and duck semi-product were launched on the Haier Smart Home App, and samples were sent to more than 3,000 Haier stores for sale. They reached 20,000 ducks sold in one month, and achieved an ecosystem revenue of 4 million RMB, which was twice the original target.

Zhang Weili also successfully obtained the value added share of 57,906 RMB, and this figure is expected to reach more than 150,000 RMB by March 2021. In addition, there are 7 other nodes in the EMC including Hangzhou Refrigeration Group, etc., which also obtained the corresponding value-added share.

On November 5, 2020, Zhang Yu mortgaged his house, and then invested over 1 million RMB in this. Together, the 18 EMC members invested 2.1 million RMB in total, and set up an independent legal entity company.

4. Self-evolution of the EMC: from a roast duck to the IoF Ecosystem

The Smart Cooking EMC continues to iterate on users after the goal was achieved. However, the goal is not just to develop roast duck, but to develop more gourmet dishes at this time.

On December 16, 2020, the first IoF Food Developers Conference was held in Qingdao. After that, the smart cooking EMC, together with 9 chefs and 23 ecosystem parties, developed 16 new dishes with regional characteristics of Beijing, Shandong, Fujian, Guangdong, Sichuan and other different regions, to form nearly 10 combinations of "New Year's Eve dinner". On New Year's Day 2021, the Chinese New Year's Eve Dinner began to pre-sell, and 15,000 sets were sold in just one month, which setting a new industry record. If there are three people in a family, that means nearly 50,000 people have had the New Year's Eve dinner.

Up to now, the smart cooking EMC has attracted hundreds of ecosystem parties and chefs including Huifa Group, Xinhe Food, Hanrui Food, New Hope, Liuhe and so on to participate in the food co-creation.

In addition, the EMC's good performance also won the attention of numerous venture capital. And the Smart Cooking EMC has set plans to receive its first funding by June 2021.

4 June 2021 : 05:40 am

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