Fresh Hippo's New Retail Strategy to Become the Most Profitable Chinese Supermarket

Research Article
Open access

Fresh Hippo's New Retail Strategy to Become the Most Profitable Chinese Supermarket

Yicheng Zhu 1*
  • 1 University of Edinburgh    
  • *corresponding author s1918967@ed.ac.uk
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/9/20230404
AEMPS Vol.9
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-45-4
ISBN (Online): 978-1-915371-46-1

Abstract

Fresh Hippo has become one of the most popular supermarkets in China since 2016, and its revenue per square meter, an indicator of retail efficiency, is the largest among Chinese supermarkets [1]. This research is to analyze and explain its success through frameworks, theories, and reasonings. The research question is how Fresh Hippo redefines the concept of retail and becomes the most profitable supermarket in China. The main content of this research is to describe and explore Fresh Hippo’s strategy and to answer two related questions.. The first is how the company improves its operating efficiency to fit the definition of new retail. The second is how Fresh Hippo reinvent the retail business model. The topic of this research is about new retail strategy of Fresh Hippo. The research methodology is literature research method, in which the researcher applies several frameworks that can explain the new retail strategy of Fresh Hippo. The purpose of this research is to provide a guidance for other Chinese retailers, showing how the innovation is applied and produced. The research conclusion is that Fresh Hippo improves its efficiency by increasing the revenue per square meter through online and offline sales, and the business model changes to “Eat-Convert-Deliver”. The new business model allows the company to serve customers within 3 kilometres without coming to the store, largely increasing the average order value and the shopping frequency at the same time [1].

Keywords:

fresh hippo, new retail, people product place, revenue per square meter, operational efficiency

Zhu,Y. (2023). Fresh Hippo's New Retail Strategy to Become the Most Profitable Chinese Supermarket. Advances in Economics, Management and Political Sciences,9,389-394.
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References

[1]. Liu Run (2018). New Retail : A low-cost and efficient way of data empowerment / Xin ling shou : Di jia gao xiao de shu ju fu neng zhi lu. CITIC Publishing Group Co., Ltd., Beijing: Zhong Xin Chu Ban Ji Tuan Gu Fen You Xian Gong Si.

[2]. CGAP (2019). The New Retail Revolution. www.cgap.org.

[3]. Uptin Saiidi (2018). Inside Alibaba’s new kind of superstore: Robots, apps and overhead conveyor belts. [online] CNBC. Available at: https://www.cnbc.com/2018/08/30/inside-hema-alibabas-new-kind-of-superstore-robots-apps-and-more.html.

[4]. Murphy, C. (2020). 100,000 retail stores could close by 2025, accelerated by COVID-19, analysts say. USA TODAY.

[5]. Colliers International (2020). WHAT’S HAPPENING NEXT IN RETAIL?.

[6]. Corporate Finance Institute (2018). 5 P’s of Marketing - Learn More About the Marketing Mix. [online] Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/other/5-ps-marketing/.

[7]. Feng, X. (2018). Reconstructing retail: the survival rule and business practice of enterprises in the new retail era = New retail / Zhong gou ling shou : Xin ling shou shi dai qi ye sheng cun fa ze yu jing ying shi jian = New retail. Zhejiang University Press, Hang Zhou: Zhe Jiang Da Xue Chu Ban She.

[8]. Corporate Finance Institute (2021). Sales per Square Foot - Definition, Formula, How To Increase. [online] Cor-porate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/accounting/sales-per-square-foot/.

[9]. Huatai Securities (2019). Accurate positioning of market demand, channel efforts to create leading.

Cite this article

Zhu,Y. (2023). Fresh Hippo's New Retail Strategy to Become the Most Profitable Chinese Supermarket. Advances in Economics, Management and Political Sciences,9,389-394.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-45-4(Print) / 978-1-915371-46-1(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.9
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Liu Run (2018). New Retail : A low-cost and efficient way of data empowerment / Xin ling shou : Di jia gao xiao de shu ju fu neng zhi lu. CITIC Publishing Group Co., Ltd., Beijing: Zhong Xin Chu Ban Ji Tuan Gu Fen You Xian Gong Si.

[2]. CGAP (2019). The New Retail Revolution. www.cgap.org.

[3]. Uptin Saiidi (2018). Inside Alibaba’s new kind of superstore: Robots, apps and overhead conveyor belts. [online] CNBC. Available at: https://www.cnbc.com/2018/08/30/inside-hema-alibabas-new-kind-of-superstore-robots-apps-and-more.html.

[4]. Murphy, C. (2020). 100,000 retail stores could close by 2025, accelerated by COVID-19, analysts say. USA TODAY.

[5]. Colliers International (2020). WHAT’S HAPPENING NEXT IN RETAIL?.

[6]. Corporate Finance Institute (2018). 5 P’s of Marketing - Learn More About the Marketing Mix. [online] Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/other/5-ps-marketing/.

[7]. Feng, X. (2018). Reconstructing retail: the survival rule and business practice of enterprises in the new retail era = New retail / Zhong gou ling shou : Xin ling shou shi dai qi ye sheng cun fa ze yu jing ying shi jian = New retail. Zhejiang University Press, Hang Zhou: Zhe Jiang Da Xue Chu Ban She.

[8]. Corporate Finance Institute (2021). Sales per Square Foot - Definition, Formula, How To Increase. [online] Cor-porate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/accounting/sales-per-square-foot/.

[9]. Huatai Securities (2019). Accurate positioning of market demand, channel efforts to create leading.

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