7Fresh to open store in Shanghai
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E-commerce giant JD’s offline retail store 7Fresh is set to launch at Shangbin Plaza in Shanghai’s Hongkou District. The move is regarded as a step towards expansion nationwide beyond the firm’s home base in Beijing, as well as an attempt to follow recent trends to diversify from online-only business models. The high spending power of Shanghai residents was key in determining the store’s location.
JD expects to be operating 1000 outlets with three to five years, using insights learnt from trading online to tailor product ranges popular locally. It will be taking on rival Alibaba’s Hema Market, which has already grown to more than 100 outlets.
JD’s senior VP Wang Xiaosong said: “JD’s online fresh food business provides an advantage in terms of merchandise selection when we’re expanding into offline retail.”
Shangbin Plaza is due to open early next year.
Questions & Answers
Q.What is the primary reason for 7Fresh opening a new store in Shanghai?
What is the primary reason for 7Fresh opening a new store in Shanghai?
The move is seen as part of 7Fresh's nationwide expansion plans beyond its initial base in Beijing. It also reflects a trend towards diversifying from online-only business models, with Shanghai's high spending power being a key factor for the location.
Q.How will 7Fresh differentiate its product offerings in its new offline stores?
How will 7Fresh differentiate its product offerings in its new offline stores?
7Fresh plans to use insights gained from its online trading experience to customise product ranges that are popular locally. JD's online fresh food business is expected to provide an advantage in merchandise selection for offline retail.
Q.What are JD’s long-term expansion goals for its 7Fresh retail stores?
What are JD’s long-term expansion goals for its 7Fresh retail stores?
JD aims to operate a total of 1000 7Fresh outlets within the next three to five years. This significant expansion shows the company's commitment to growing its offline retail presence nationwide.
Q.Who is 7Fresh’s main competitor in the offline fresh food market?
Who is 7Fresh’s main competitor in the offline fresh food market?
7Fresh will be competing directly with Alibaba's Hema Market. Hema Market has already established a significant presence in the sector, having expanded to more than 100 outlets.
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