Strategy: Offline and online channels key
Similarly, Hema Xiansheng, the emerging online-to-offline or O2O supermarket operated by Alibaba, is a combination of supermarket, grocery store and restaurant, which allows its customers to buy online or offline.
Last year, it opened its first offline store in Shanghai and quickly expanded to a 12-store chain spanning Shanghai, Beijing and Ningbo.
Another example is Yong- hui Superstores of Yonghui Super Species chain. It caters to middle-class consumers by combining supermarkets, catering and mobile app to provide a New Retail experience.
Yonghui Superstores has plans to open more than 100 stores next year.
Most of the leading retailers have adopted a more aggressive O2O strategy, according to Kantar Worldpanel China, a market research firm.
Jack Ma, the founder of Alibaba, savors the king crab he ordered at Hema Xiansheng, an emerging online-to-offline supermarket backed by Alibaba, in Shanghai in July.