Introduction ...
            Daniel Zhang, the CEO of Alibaba Group, once stated that Hema Supermarkets were created with the vision of integrating online and offline shopping into a single entity through a new retail format called "New Retail". This approach utilizes technology to connect data to customers efficiently, providing genuine convenience for their shopping experience. The key medium for this is the mobile application that links to customers' Taobao or Alipay accounts for payment.

           Hema Supermarkets launched in 2015 with 13 branches, primarily located in Shanghai (10 branches), Beijing (2 branches), and Ningbo (1 branch).
          Chinese billionaire Jack Ma certainly does not venture into business lightly with such innovation, staying ahead of others. A closer look reveals hidden insights. TerraBKK identifies three key principles that give the "New Retail" business model of Hema Supermarkets an advantage over traditional retail:


- Clear Customer Segmentation -


           Hema Supermarkets cater to customers through both channels, targeting residents within a 3-kilometer radius of the store. They do not only serve customers who walk in for traditional shopping but also focus on the ability to provide free delivery within 30 minutes for online orders, efficiently handling up to 1,000 orders per day.



- Innovative Service Model -


             In addition to the free delivery service mentioned above, there are other intriguing services that emphasize the connection between online and offline, such as:
• A fresh food department, including seafood, where customers can have it cooked on-site by chefs. They can either 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 product information clearly, including its origin and similar product options.
• Payment is processed through Alipay, so forgetting a wallet is no longer an issue.



- Continuous Data Collection for Future Development -


               Since everything is conducted through a comprehensive system, customer experience becomes the most accurate and valuable data for the company, which can be used to enhance business systems further. For example, introducing new products in categories that customers frequently purchase, or using algorithms to optimize delivery routes for online customers.


Feedback ...
              As for the feedback, according to the latest figures from 2017, Alizila reported that an average customer makes 4.5 purchases per month, or about 50 times a year. Anyone who downloads the Hema app becomes a Hema Supermarkets customer 35% of the time, and naturally, 50% of current customers prefer to order online.


              Seeing this, TerraBKK begins to recognize the possibilities as Daniel Zhang mentioned that the future of 'new retail' will be a perfect blend of online and offline, with Hema Supermarkets serving as a significant example of that evolution. Looking back at Thailand, we can only wait and encourage Thai retailers to adapt to the world in time --- TerraBKK


Source of images and information: alizila.com

Article by: TerraBKK Investment Tips
TerraBKK: Find Good, Affordable Homes