The new retail supermarket Hema Fresh recently released on WeChat public account. On July 8, three new stores opened at the same time, including the second store in Beijing - Hema Dacheng Store. In addition, the same stores also include Shanghai Hema Pinggao Store and Hema Xinjiangwan Store. Some industry insiders revealed that Hema Fresh’s site selection model is based on the number of active users of surrounding Alipay and the purchasing power of users.

According to the Hema Fresh official account, on July 4, many residents around Hema Dacheng Store were also asking security personnel about the location of Hema Fresh Store. The construction in the store has been basically completed, leaving only the final cleaning work and the placement of goods.
There are many employees who have been promoting the store near the store. A staff member said that the Dacheng store will be open for trial operation on July 8, but online products are available for purchase. The Hema Fresh App has displayed information on Dacheng Store, but there are fewer products, and the main product Aquatic products also prompts that it is "replenished" and cannot be purchased for the time being. But Hema delivery staff can already be seen around.
Construction of Hema Fresh Second Store was completed in early July. After further confirmation, Hema Fresh said that Hema Dacheng store will indeed be opened for trial operation on July 8. On the evening of July 5, the news about the opening of the second store on the WeChat official account of Hema Fresh has been deleted.
As the new retail model is optimistic, some traditional supermarkets are gradually turning to the new retail sales model. Hema Fresh broke the tradition of some large supermarkets at the beginning, such as self-service app checkout, 30-minute online delivery, etc. Some industry insiders analyzed that Hema Fresh chose self-operated delivery to achieve the efficiency of 30 minutes of delivery. The store uses an independent intellectual property suspension chain system to ensure the smooth delivery process. If a third-party delivery team is selected, it cannot ensure that efficient delivery methods will not be leaked.
Lai Yang, executive vice president of the Beijing Society of Business Economics, believes that Hema Fresh’s new retail model has advantages and disadvantages, and the advantages are the freshness, price and on-site cooking experience of aquatic products. Because the cooking of some aquatic products is more complicated and traditional supermarkets cannot process them, consumers lose interest in purchasing, and the Hema Fresh model will greatly increase sales. However, this model also has disadvantages, such as the store area is large and the cost is high, and the category is relatively thin compared to supermarkets, so the ratio of rent and income is difficult to control; secondly, although Hema Fresh can provide delivery to home, it is still difficult to say whether the variety and price have sufficient advantages. Some e-commerce platforms may be cheaper and not slow. In addition, Hema Fresh's main aquatic products cannot choose cooking services when delivering, which may lose some consumers, so there is room for improvement in the future.
It is worth noting that the second store and first store of Hema Fresh happen to be located in both east and west directions of Beijing. Previously, some analysts believed that this type of layout was to better promote it in many regions in Beijing. Similar to Hema Fresh’s first store, the location of Hema Dacheng Store is also around a large community, with high prices in nearby properties and moderate consumption levels of residents.
However, Wang Yongping, Secretary-General of the China Commercial Real Estate Alliance, revealed that Hema Fresh's site selection is determined by the number of active users and user purchasing power of surrounding Alipay, which to a certain extent breaks the inherent commercial site selection model. Beijing is a key development area for Hema Fresh and has great development efforts. However, the expansion of stores does not mean how mature the model is. Alibaba wants to do some experiments on the new retail format that integrates online and offline. Whether Hema Fresh's short-term profit is not the most important thing. More importantly, it is to obtain feasible solutions for the online and offline integration method to shorten the experiment time point as soon as possible. (Source: NetEase News)
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