Hema Supermarkets: Jack Ma's New Retail Strategy
The Beginning...<\/span><\/strong>
Daniel Zhang<\/strong>, the CEO of Alibaba Group, once stated that Hema Supermarkets<\/strong> were conceived with the vision of integrating online and offline shopping into a single retail format known as "New Retail"<\/span>. This approach utilizes technology to effectively connect data to customers and truly enhance their shopping convenience. The key medium for this is a mobile application that links to customers' Taobao or Alipay accounts for payment.
Hema Supermarkets<\/strong> launched in 2015 with 13 locations, primarily in Shanghai (10 stores), Beijing (2 stores), and Ningbo (1 store).
Chinese billionaire Jack Ma certainly does not venture into business lightly with such innovative concepts, leading the way far ahead of others. A closer look reveals hidden insights, as TerraBKK<\/span><\/strong> identifies three key advantages that make Hema Supermarkets' "New Retail" model superior to traditional retail<\/span>:
Thank you for the source: alizila.com <\/a> Article by: TerraBKK Investment Tips <\/p>
-Clear Customer Segmentation-<\/strong><\/span><\/p>
Hema Supermarkets caters to customers through both channels<\/span>, targeting residents within a 3-kilometer radius of the store. They do not only focus on walk-in customers but also emphasize their ability to provide free delivery within 30 minutes for online orders, efficiently handling up to 1,000 deliveries per day.
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-Innovative Service Model<\/span><\/strong><\/p>
In addition to the aforementioned free delivery service, there are other intriguing offerings that emphasize the connection between online and offline<\/span>. For example:
• The fresh food department, such as seafood, allows customers to have it cooked on-site by chefs, with options to take it home or dine in the designated restaurant area.
• Every product has a barcode that customers can scan with their mobile phones, displaying all relevant information about the product, including its origin and similar product options.
• Payments are processed through Alipay, making forgotten wallets a non-issue.
-Always Collecting Data for Future Growth-<\/strong><\/span><\/p>
Since everything operates through a comprehensive system, customer experience becomes the most valuable and accurate data for the company<\/span>. This data is utilized to enhance business systems, such as introducing new products in categories that customers frequently purchase and optimizing delivery routes for online customers.
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Customer Feedback...<\/span><\/strong>
According to the latest figures from 2017, Alizila<\/strong>, Alibaba Group revealed that an average customer makes 4.5 purchases per month, or about 50 times a year. Anyone who downloads the Hema app becomes a customer of Hema Supermarkets<\/strong> 35% of the time, and currently, 50% of existing customers prefer to order online.
With this in mind, TerraBKK<\/strong> begins to see the potential as Daniel Zhang mentioned that the future of 'New Retail' will be a seamless blend of online and offline. Undoubtedly, Hema Supermarkets<\/strong> will serve as a significant example of that evolution. Looking back at Thailand, we can only wait and support local retailers to adapt to the changing world in time ---<\/span>TerraBKK<\/span><\/strong>
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