Recently Ventech China invested in Series A financing of Bingo Box, an unmanned convenience store company. The company develops a 15m² box-like unmanned store, which can provide same functions as traditional 40m² one.

The process of shopping in Bingo Box is innovative: Customers can enter by scanning QR code and registration on WeChat. After that, they can pick up items needed, place them onto the checking counter for auto-scanning, and pays through Bingo Box app, WeChat or Alipay. Before leaving, the customer will be scanned again at the exit to ensure all items are checked and paid. A typical box can provide 800 SKUs, mainly standard products like snacks, drinks and daily consumed goods.

The self-helping shopping is realized by a series of relatively mature technologies: The company use RFID technology to label and identify goods. Besides, there are cameras & remote client services monitoring against thefts and solving customers’ ad-hoc issues. In future human face recognition technique will be applied to identify the customer and prevent strangers’ entry. Compared to traditional convenience stores, Bingo Box saves the area for cash counter, employee lounge, storage, etc. A Box can achieve the efficiency of a 40m² convenience store, at lower than 50% operation expenses.

Bingo Box monetizes through multiple approaches. Apart from sales profit, the company can earn advertising revenue from multiple ad-displaying area, once large numbers of Boxes are deployed. Furthermore, Boxes can be placed into areas closer to customers inside the communities and office buildings and create a new high-quality distribution channel.

Bingo Box plans to expand business into mid & high end communities in China’s tier 1 cities, and deploy around 5,000 Boxes by end of 2017. The company has already cooperated with large retailing companies, such as Auchan Group and RT-Mart, to leverage their advantages in local logistics and management and to expand business in Shanghai. The company will also expand into other cities through business partnership with local retailing players.

Mr. CHEN Zilin, CEO of Bingo Box, has rich experience in entrepreneurship and acts quickly to implement plans. Previously he was among the co-founders of Bingo Fruit, a fruit O2O start-up in Southern China, and once served as senior manager in Ogilvy, a well-known advertisement firm.

Eric Huet, managing partner of Ventech China, says that Bingo Box is leading the retailing revolution both in China and globally. Bingo Box offers unique shopping experiences with mature technology and can spread quickly in large numbers. In the future, Bingo Box has the potential to become the leader in retailing industry.