These Chinese supermarkets make
Amazon Go stores seem basic
Alibaba
Group’s Hema Xiansheng groceries offer a compelling vision of a retail future
that combines the best of real-world experience with digital convenience.
Chinese commerce giant Alibaba’s Hema Xiansheng stores are the
showpiece of what it calls “New Retail,” the seamless blending of the digital
and physical experience. “Consumers don’t think about the world online versus
offline,” says Alibaba Group president Michael Evans. “Neither should brands
and retailers.” The grocery-restaurant hybrids—there are more than 100 in 19
Chinese cities—have captivated consumers with their tech-powered ordering and
delivery and richly satisfying in-store experiences. The annualized average
sales per square meter in mature Hema locations exceeds $7,300, making it one
of the more valuable retail environments. Here’s how Alibaba is making the
future real.
1. THE APP
STARTS IT ALL
Hema stores, which debuted in 2016, are designed to offer an
enhanced experience via a mobile app. In the store, users can scan items to get
information about their provenance and freshness and, ultimately, pay for them.
Eleven million people have signed up for the app, which accounts for 60% of
customer orders.
2. FRESH
DIRECT
Local produce and poultry are trucked in daily from nearby farms.
The English brand name is Freshippo, which explains the mascot.
3. A GOOD KIND
OF OVERHEAD
The array of conveyor belts snaking above shoppers isn’t just for
dramatic effect. Hema stores double as fulfillment centers for deliveries, and
the conveyors, which dip into parts of the sales floor, allow employees to pick
items for to-go orders that can’t be obtained from the stockroom—without
getting in the way of customers. Deliveries are then assembled behind the
scenes.
4. FRUITOPIAN
GREETINGS
Hema leverages data from its digital orders to help determine what
to stock each day, reducing waste and enabling what it calls “one-day farm to
table.” Fruits such as the funky durian are stocked near the front to
fragrantly announce their freshness to shoppers.
5. A SHOW AND
THEN DINNER
The centerpiece of the in-store Hema experience is the fresh meat
and seafood. People can pick what they want from the live fish market, then
take their selection to the dine-in checkout and choose how they want it
prepared à la minute. Some meat can also be cooked to order, and live demos on
weekends showcase butchering skills. Diners can also choose from a buffet and
local restaurant outposts.
6. STARBUCKS
TO GO
In August, Alibaba and Starbucks partnered to give the global
coffee chain a delivery option in China. “Starbucks delivery kitchens” are
being added within Hema stores to fulfill digital orders using Hema’s
infrastructure, and Starbucks will harness ordering data to help choose future
locations for its cafés. Hema intends to offer its platform to other businesses
as well.
7. THIRTY
MINUTES AND IT’S FREE
For residents who live less than 2 miles from a Hema, delivery is
complimentary with app orders. They’re fulfilled by Alibaba’s squadron of
food-delivery drivers on motorbikes.
8. PAY, GO
Physical cash is not accepted; most customers use Alibaba’s
digital payment network, Alipay. Some stores offer customers payment via facial
recognition: Hema’s 3D checkout kiosks scan a shopper’s face, then ask for a
phone number for added security.
·
BY DAVID
LIDSKY
WWW.fastCOMPANY.COM
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