Finally, many of the traditional food suppliers and distributors should be educated to implement digitalization infrastructure in their warehousing and logistics operations, or even integrate information technology into their product packaging. Secondly, the picking, packing, replenishing and checking out processes in the supermarket are still very labor intensive. Customers can ask the chef to cook customized dishes using the groceries they bought, and enjoy a family dinner in the store. As with Alibaba’s investments in the Intime department store chain, the aim is to create showcases that demonstrate the benefits of “New Retail” to customers and other businesses that want to digitally transform themselves. Taobao.com sells a diversified range of products, including grocery food. In just a few years, Alibaba has ascended to the top of the online commerce industry. This post has been updated for clarity. How does this approach change the order received by a supplier? One open question is, should the offline stores such as Hema supermarket sell everything, or just the fast-moving products? Similarly, in America, Amazon did the same thing by acquiring Wholefoods. To address the efficiency and quality concerns, a new type of stores named Hema Supermarket was created. Thank you for an interesting article! Think of New Retail as the digitization of the entire value chain – the customer, the inventory, the logistics. Due to higher efficiency and lower labor requirements, products sold in Hema supermarket are 10% [2] cheaper than average grocery stores. Positive signs. There are currently about 20 Hema supermarket open in Beijing, Shanghai, Hangzhou, and Shenzhen. Taobao.com is an online retail platform operated by Alibaba [1], a Chinese e-commerce conglomerate in China. Hema Fresh was founded by Hou Yi, a former executive at JD Logistics, the logistics arm of Alibaba’s rival JD.com. Hema launched its first store in January 2016 in Shanghai and so far has owned over 100 stores across China. The chain is central to Alibaba's push for "new retail" that blends online and offline experiences, Tom Doctoroff writes. TO your last question, if the data transparency could be truly done. Launched in 2015, Hema has expanded to … Alibaba’s new fresh supermarket model: HEMA Fresh Orders can be delivered to places within 2 miles from the store within 30 min. Alibaba’s more than 60 Hema stores are located in … 2. This report will focus on Fresh Hema. The supermarket chain has created a model in China’s biggest cities that can be rolled out across the country. Furthermore, lower inventory level requires less space in the store. Date : 19 July 2017. I think that this is a very essential move and allows Alibaba to capture both the online and offline market especially in groceries which are highly perishable. You must be logged in to post a comment. Unexpected supply chain disruptions may even further delay the shipment. Since Hema supermarkets are located very close to customers, the real estate in densely populated areas is very expensive. For HEMA Fresh, A-share Zhongmen stores are distributed in first- and second-tier cities. One the one hand, the digitalization of supply chain enables customers to track the movement of their orders online. Taobao.com is unable to leverage digitalization to improve the efficiency and quality of its food supply chain, and thus cannot respond to customers’ new demand. Hema Supermarket needs to hire more talents in robotics engineering, software development, and machine learning areas. Taobao.com is an online retail platform operated by Alibaba [1], a Chinese e-commerce conglomerate in China. Alibaba is rapidly expanding its new offline retail store, Hema, throughout China. SHANGHAI, Dec. 11 (Xinhua) -- E-commerce platform Hema Fresh, Alibaba's fresh-food chain, has announced a cross-border shopping project that helps Chinese consumers purchase imported goods quickly and easily. The hema available here can be used in a variety of distinct pharmaceutical, organic and other chemical processes. And Gutteridge highlights how Hema’s strength lies in the choices it provides consumers. Nowadays we can buy almost everything online. I think this will play out as more information is collected regarding customer behavior. Now, Blue Yonder’s proven AI/ML capabilities can be integrated with JDA’s market-leading fulfillment solutions. However, because the existing food supply chain of Taobao.com is dispersed among thousands of small and large food sellers, it is almost impossible for Taobao.com to implement these technologies for each individual seller. “Yiguo will concentrate single-mindedly on bolstering the capabilities of organizations within the Alibaba ecosystem, including Hema, RT-Mart, Tmall Supermarket Fresh and Eleme, consolidating its position as a data-driven, complete supply chain cooperative platform,” read one article posted to Sina.com, which referred respectively to Alibaba’s wholly owned or invested small-format … Since it was founded in 2015, Hema has opened 150 stores in 21 Chinese cities, according to its website. Find quality Manufacturers, Suppliers, Exporters, Importers, Buyers, Wholesalers, Products and Trade Leads from our award-winning International Trade Site. Summit: Pathways to a Just Digital Future, Investigate how to address technological inequality, AI puts Moderna within striking distance of beating COVID-19, Dig into the totally digital biotech company, From Taobao.com to Hema Supermarket, Alibaba’s Digitalized Food Supply Chain. IGD provides the latest news, research and insight to help businesses in the food and consumer goods industry succeed. Freshippo, also known as Hema, is Alibaba’s grocery chain leveraging New Retail to converge online and offline shopping. Alibaba's massive Hema supermarket expansion in China creates opportunities for Aussie farmers. Therefore, the delivery time highly depends on the distance between the customer and the seller, ranging from less than a day to more than a week. Personally, the latter strategy is less appealing in that these supermarkets are located in prime real estate and using shelf space for other non-perishable inventory that could be easily bought through other online channels does not seem like a cost-effective use of these locations. Hema Fresh was founded by Hou Yi, a former executive at JD Logistics, the logistics arm of Alibaba’s rival JD.com. In a traditional grocery store model, the supplier receives a bulk order from a distributor, who then breaks down larger shipments into smaller tailored shipments that fit the broader but smaller inventory size needs of individual grocery stores. Making use of the digitalised supply chain. What Does It Mean for ATMs? If Taobao’s strategy is to provide a different retail experience to customers in the grocery space through not only more convenient and faster online deliveries but also the in-store experience and the variety of perishable products that it can offer through the more efficient supply chain, I believe it makes more sense to focus on groceries. This way, vendors are incentivized to follow Taobao.com’s forecasts, resulting in minimal inventory and an even, fair distribution of orders. Welcome to the future: Alibaba’s Hema Fresh stores, ©The Institute of Grocery Distribution and IGD Services, In-depth articles on the latest developments in the industry, Free guides and whitepapers from our functional experts, Access to a range of topic-specific newsletters. [1] From Wikipedia, see: https://en.wikipedia.org/wiki/Alibaba_Group. [2] From China Business, see: http://business.china.com.cn/news/info-5725.html. I feel that online and offline services are eventually converging. Alibaba Supply Chain Explained. Zhang toured one of the 10 neighborhood stores in Shanghai with Executive Chairman Jack Ma last week and held up the fresh-food focused Hema as an example of the “New Retail” model, which Alibaba … With Taobao.com plant form, suppliers are able to view demand timely as well, how would this be changed with the creation of Hema? The one thing that I do not fully grasp is how the Hema supermarket differs from other (non-Chinese) supermarket retailers leveraging scale, such as Wal-Mart in the US. Nowhere is the New Retail idea more on display than in Hema Xiansheng, Alibaba's futuristic supermarket. I was previously unaware that Taobao.com owned physical supermarket locations to handle online grocery deliveries. What’s Hema Fresh? Alibaba is expanding Hema, a chain of cashless supermarkets. Alibaba Group Holding Ltd. has no plans to export its brick-and-mortar supermarket chain Hema to international markets and will focus instead on bringing international products to Chinese consumers, a company executive told a retail conference in New York on Jan.13. This was my experience at China’s supermarket of the future by Alibaba These new offline supermarkets serves as physical ecommerce distribution centers for the online retailers. Alibaba Group Holding will source CNY1 billion (USD141 million) worth of crayfish from Hubei through its chain supermarket Hema Fresh to help the virus-stricken central Chinese province’s agriculture recover as soon as possible after the Covid-19 epidemic, the Hangzhou-based tech titan said yesterday. Daniel Zhang, CEO of Alibaba Group As of October 2018, Alibaba already has 87 Hema stores in China, with plans to open 2000 more in the next 3–5 years. 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