JD to open 1,000 7Fresh stores over next five years
May 20, 2020
Chinese ecommerce giant JD has agreed deals with 16 real estate companies to expand its premium supermarket chain 7Fresh across China
Launched in January 2018, 7Fresh competes directly with Tencent’s Le Marche and Alibaba’s Hema supermarkets in the online-offline hybrid retail space.
JD said in a press release that 7Fresh “is differentiated by its mix of products, with fresh produce making up more than 70% of offerings”.
“Twenty percent of products are directly sourced from overseas suppliers who have been carefully vetted by JD, an important factor for Chinese shoppers”.
The firm’s focus on the customer beyond product selection is broad and detailed.
JD incorporates its customer profiles into many 7Fresh business decisions, using such data to optimize store location and layouts, and manage inventory to cater for local shopping habits.
Like Alibaba’s Hema stores, 7Fresh locations incorporate new technologies to improve the customer experience.
Its Magic Mirrors, for example, respond automatically to a customer picking up fresh produce by providing relevant product information on a nearby screen.
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JD’s press release also notes its “powerful logistics capabilities [which] enable 30-minute delivery from the stores for online shoppers”.
Xiaosong Wang, CEO of 7Fresh, said:
“7Fresh redefines the offline retail experience by combiningthe best parts of fresh grocery markets and top-quality restaurants with cutting edge e-commerce technology”.
“With the expansion of 7Fresh into more cities across China, we are bringing ‘Boundaryless Retail’ to even more shoppers for an incredibly convenient and enjoyable way to buy fresher, safer and more reliable products”.
Real estate companies to have struck a deal with JD for further 7Fresh stores include China Poly Group, Greenland Holdings, Joy City, Yuexiu Property, and Vanke.