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Fresh Hippo's New Retail Strategy to Become the Most Profitable Chinese Supermarket
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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
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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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Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies
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