Consumers check out pears at the
Freshippo, the grocery retail chain of Chinese e-commerce giant
The slew of new openings features coverage from 16,000 to 20,000 square meters, each with around 3,000 stock keeping units-a rough calculation of items for sale in the retail lexicon, according to Freshippo, also known as "
Over 40 percent of products in the membership-only X store are the company's exclusive products, including those from Hema MAX, a private label of Freshippo that is loosely equivalent to
"The proportion of merchandise carrying the 'Hema MAX' marquee has surpassed 30 percent in these new stores, up 10 percentage points from half a year ago," said Zhao Jiayu in
In the past few years, foreign retail giants like
Continuous improvements have been made in the string of new stores, such as adding space for toys and apparel sections. But Zhao said Freshippo's competitive edge lies in its position of being "the membership store for Chinese".
"We emphasize sourcing locally, which not only satisfies the needs of Chinese customers but also helps merchants and even peasants in remote areas from the supply side," said Zhao, citing the example of cherry-picking premium agricultural produces from the nation's less developed regions.
It also gives full play to its strength in fresh seafood offerings, something that is iconic of the Freshippo system which debuted in 2016 and largely fills the void of wholesale chain outlets by Western brands.
Goods bought in the X store can be delivered within half a day to customers living within a 20-kilometer radius of the store. Products bought in other Freshippo stores can be delivered to customers living within a 3 km radius of another store and the delivery time can be as short as 30 minutes.
"Even in the bulk-buying model, we tend to market and pack products in a way that is more consumer-friendly," said Chong Xiaomeng, a director for public and client communication at Freshippo. "For instance, unlike our competitors selling cheese in large chunks, we roll out cheese bars, flake-lets or slices that can go with instant noodles and hot pots, making it something that can be simply consumed as a snack."
A crucial touch point is the employment of data to keep abreast of consumption trends and profiles of members, in which the X store system has amassed nearly 2 million in just over a year's time.
"For instance, we discovered in the latest trial runs that the average clientele in
Retailers need to build holistic value propositions for high-value shoppers via membership programs. The membership-only model is still in its infancy in
"The competitive edge of
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