Customers of Alibaba's New Retail Supermarket Prefer Online Orders
Liao Shumin
/SOURCE : Yicai
Customers of Alibaba's New Retail Supermarket Prefer Online Orders

(Yicai Global) Sept. 19 -- Hema Fresh, the new retail supermarket operated by e-commerce giant Alibaba, receives the bulk of its orders online, according to company data.

Some 60 percent of orders are made online, Qdaily reported, citing to data released by Hema's Chief Executive Hou Yi at the Alibaba Investor Day conference yesterday. Average daily income among stores that have been in operation for over a year and a half has now reached CNY800,000 (USD116,500), he added.

Hema Fresh, the face of Alibaba's foray into brick-and-mortar food sales, had 64 stores across 14 Chinese cities, serving over 10 million customers as of the end of July, he added. It plans to open another 18 stores across 12 cities by the end of this month, and wants 100 in operation by year end.

The brand shot to popularity thanks to the catering experience offered in store. It offers more than just retail sales -- customers can pick up ready-to-eat salmon sashimi, lobster, hot pots and other dishes made with fresh ingredients, and the food has been well received on Meituan-Dianping, an on-demand services app that offers shop and restaurant reviews.

But Hema is not positioning itself as a restaurant. The firm offers free, 24 hour delivery within three kilometers and wants to be seen as a trusted brand for fresh produce, with customers prepared to place orders from home after they have sampled foods in store. Prices are the same regardless of how the order is placed, and payment can be made using facial recognition in store.

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Keywords: Hema , New Retail , Online Orders