2018 Satisfaction of FMCG Retail Supply: New Retail Format Exceeds Traditional Marketing

 (Source: Xinmin Evening News, September 27)

2018 Satisfaction of FMCG Retail Supply: New Retail Format Exceeds Traditional Marketing

Shanghai Oriental Century Consumer Goods Development Promotion Center released the results of 2018 Satisfaction Survey of FMCG Retail Supply on September 26. Executives of more than 100 supplier enterprises mainly located in the Yangtze River Delta Region were interviewed in the survey, involving 116 retailers.

From January to June 2018, China’s total retail sales of consumer goods reached CNY 18,001.8 billion, with a year-on-year growth of 9.4%, slightly lower than 10.4%, the growth rate in the same period in 2017. The satisfaction index of traditional physical retail stores represented by chain stores and chain supermarkets all suffered declines. The satisfaction index of chain stores fell by 0.1 points, with a comprehensive satisfaction index of 3.35 points; the satisfaction index of retail chain supermarkets fell by 0.06 points, with a comprehensive satisfaction index of 3.21 points.

With the continuous improvement of consumption power and the gradual development of online shopping habits of domestic residents, it is expected that the growth rate of overall transaction scale of the domestic online retail market will remain close to 30% in the second half of the year. Online and offline integration, social e-commerce, and the extension of pan-retail categories will become important growth points of domestic online retail and even the whole retail market in the future. The satisfaction indexes of both e-commerce retail and new retail increased; especially new retail enjoyed the largest satisfaction rise up to 0.32 points. However, as the technology and application remained green, the comprehensive satisfaction index of unattended convenience stores and unattended shelves were still unsatisfactory, reaching only 3.25 points.

In addition, with the rise of young millennial consumers and the consumption upgrade trend of full line category and specific category, the convenience stores more fitting the demand of young consumers enjoyed a growth of comprehensive satisfaction index of 0.18 points; high-end boutique supermarkets enjoyed a growth of 0.01 points, and maternal and infant chain stores enjoyed a growth of 0.06 points.


At Least 23 Among the Top 50 of China’s Top 100 Enterprises Have Equity or Partnerships with Alibaba and Tencent.

 (Source: 21st Century Economy Review, April 9)


The year of 2018 may be the real “first year of new retail”.

The concepts of new retail and smart retail have been hot topics for nearly three years. During this period, Alibaba has completed the investment and acquisition of six traditional retailers including Sanjiang Shopping Club Co., Ltd and Yintai. However, it was the major push of Tencent from the beginning of 2018 that truly started the “war of retail”.

Starting from the investment in Yonghui, Tencent has invested in several retailers including Carrefour, Wanda Commercial and Helan Home in just three months.

According to the statistics of 21CBR, as of March 2018, 23 among the top 50 companies on the list of China’s Top 100 Enterprises released by CCFA had established equity relations or partnerships with the two giants. Among them, 13 had established equity relations while the rest 10 had established partnerships. Of the top 10, only Gome Electrical Appliances, Shandong Commercial Group General Corp. and Chongqing Commercial Association Group remained completely neutral.


Fresh Hema First Published Operating Data: Single-store Daily Sales of over CNY 800,000

(Source: Business Observer, September 17)


On the 2018 Alibaba Investor Day, Hou Yi, CEO of Fresh Hema disclosed the operation of Fresh Hema for the first time.

According to Hou Yi, Fresh Hema has so far opened 64 stores in 14 cities, serving more than 10 million consumers.

In terms of sales per square meter, single-store daily sales of Fresh Hema’s mature store (having operated for more than 1.5 years) reaches over CNY 800,000, equivalent to over CNY 50,000 of sales per square meter.

In terms of source of orders, online order volume of Fresh Hema’s mature stores accounts for 60%, and has started to exceed the offline order volume from the mid-2017 period.

In terms of per customer transaction, the online and offline per customer transactions are respectively CNY 75 and CNY 113 for Fresh Hema.

The monthly purchase is CNY 575 for the member using the service of Fresh Hema both online and offline, CNY 279 for the member of pure online consumption and CNY 228 for the member of pure offline consumption.

In addition, according to the disclosure from Fresh Hema, for Taoxianda stores having operated for more than 3 months in RT-Market, the quantity of average daily online orders of single store increases by more than 1,200; the monthly sales of a single store increases by more than 10%, and the number of young customers in single stores increases by 20,000 accumulatively.[/vc_column_text][/vc_column][/vc_row]

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