Li Bao Ge Group to partner with Alibaba’s Freshippo
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Li Bao Ge Group is launching its food delivery service through Alibaba’s Freshippo (Hema) stores.
The two firms have entered into a cooperation agreement under which Li Bao Ge will open in-store counters at Freshippo stores. With exclusive selling rights for Siu Mei products, Li Bao Ge will offer cooked-on-site Hong Kong-style roast meat (“Siu Mei”) under its own brand, as well as other specialties such as Cantonese-style soup, dim sum, dessert and festive delicacies. Freshippo will, in turn, make its digital platforms and on-site facilities available to Li Bao Ge and provide technical support – including marketing initiatives, online sales resources, a delivery service, potential customers, and establishment of online to offline channels.
Li Bao Ge undertakes to set up not less than 10 counters at Freshippo’s stores on or before 15 December next year. It will leverage Freshippo’s brand awareness and high traffic to attract more young consumers and develop multi-channel sales to penetrate the Chinese takeaway and food-delivery market.
“As online consumption gains prevalence, the competition in the food and catering industry has extended from restaurants to online order and delivery,” said Li Bao Ge Group chairman Chan Chun Kit. “With that in mind, we have decided to adopt a new business model leveraging Freshippo’s sophisticated digital management platform and big-data analysis to develop a new integrated O2O operation based on an asset-light model.
“Going forward, Li Bao Ge will, starting from the South China region, expand into regions and cities with high purchasing power and appeal to a younger group of individual and family customers. We will gradually transform from a conventional banquet dining operator to a light meal delivery industry player. We will also explore the opportunities for the retailing of packaged food to accelerate the pace of expansion and enhance profitability.”
Li Bao Ge currently operates eight mid-to-high-end Cantonese restaurants in Hong Kong and Shenzhen.
Questions & Answers
Q.What specific products will Li Bao Ge Group offer through the new partnership?
What specific products will Li Bao Ge Group offer through the new partnership?
Li Bao Ge will sell Hong Kong-style roast meat (Siu Mei) with exclusive rights, along with Cantonese-style soup, dim sum, dessert, and festive delicacies. These will be available from their in-store counters.
Q.What will Freshippo contribute to this new cooperation with Li Bao Ge Group?
What will Freshippo contribute to this new cooperation with Li Bao Ge Group?
Freshippo will provide its digital platforms, on-site facilities, and technical support. This includes marketing, online sales resources, a delivery service, and establishing online-to-offline channels to reach potential customers.
Q.What is Li Bao Ge Group's main objective for this new business model?
What is Li Bao Ge Group's main objective for this new business model?
Li Bao Ge aims to use Freshippo’s brand and traffic to attract younger consumers and penetrate the Chinese takeaway and food-delivery market. They seek to develop multi-channel sales and expand their reach.
Q.How many in-store counters will Li Bao Ge open, and by when?
How many in-store counters will Li Bao Ge open, and by when?
Li Bao Ge undertakes to set up not less than 10 counters at Freshippo’s stores. These new counters are expected to be operational on or before 15 December next year, according to the agreement.