Alibaba: Freshippo format innovation

Charles Chan
Senior Retail Analyst
@RetailAnalysis

Date : 05 March 2020

Since launching in 2016, new-retail inspired Freshippo has expanded to about 200 stores covering more than 20 cities.

Adapting to local needs

Alibaba has been refining its Freshippo store concept and now operates seven different store formats. These target different shopper missions:

  • Freshippo (formerly Hema Fresh) blends online, offline and big data to transform the grocery shopping experience. It is a fresh supermarket concept, trading approx. 3,000 sq m and showcases the freshest products. Shoppers can handpick the products and get them cooked in-store, Freshippo also offers online shopping via its Hema app. Products are picked in-store and delivered to shoppers within 30 minutes in a 3km radius
  • Freshippo Farmers’ Markets cater to more price-sensitive shoppers in residential neighbourhoods on the outskirts of top-tier cities. The experience is improved and enriched by digital features and 30-minute delivery services
  • Freshippo Mini stores (approximately 300-500 sq m) are often in lower-tier cities, where high-quality products are less accessible. The format requires less capital investment and designed to address the rising consumption power of lower-tier cities
  • Freshippo Station fulfils fresh-produce orders for residents living in urban residential areas where Freshippo stores are not yet available. It mainly focuses on fresh produce and has a hyper-local delivery radius of 1.5km
  • Other formats such as Freshippo F2 and Freshippo Pick’n Go, complement the original Freshippo supermarket concept by providing customers with ready-to-eat solutions and breakfast options, respectively. Both formats mainly target busy urban shoppers in central areas
  • The first Freshippo Mall opened in Shenzhen last November. It is a three-storey shopping mall, operating 40,000 sq m. It offers a range of lifestyle services, e.g. retail, entertainment, dining, education and cleaning services.

See video of Freshippo’s latest concepts on Alizila here

 

Want to know more?

  • Subscribers can view our Strategic Outlook for Alibaba here
  • Subscribers can view our Freshippo store visit report here
  • Subscribers can view our Hema fast&freshade store visit report here