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Case
-
Reference no. IMD-7-2144
Published by:
IMD (2019)
Version:
04.12.2019
Revision date:
05-Jun-2020
Length:
20 pages
Data source:
Published sources

Abstract

A new approach to e-Commerce, one that blends the best of different online models, is emerging in China under the description 'New Retail'. Hema, a subsidiary of Alibaba, was founded in 2015 and is growing rapidly, demonstrating the power of an omnichannel strategy of merging online and offline grocery shopping experiences that integrates supply chain considerations into the business design. Overall, Hema represents a fusion of the centralised distribution model and store fulfilment model in the typical online grocery distribution. Each Hema store doubles as a distribution centre through an overhead conveyor system, which enables a 30-minute delivery time for customers within 3km of the nearest store. Hema's approach to transform online grocery demonstrates new possibilities in the future of grocery retail.

Topics

Operations; Online grocery; Distribution; Grocery

Setting

The events covered by this item took place in 2016 to 2019.

Geographical setting

Region:
Asia
Country:
China

Featured company

Company name:
Hema
Industry:
Retail;Food and beverage

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