Abstract
Since its inaugural store opening in 2016, Freshippo, Alibaba Group's exclusive retail chain for groceries and fresh products, has grown exponentially to encompass 303 outlets nationwide as of early 2022. Following initial years of rapid growth fueled by data-driven operations, its new retail model has been widely imitated, triggering a transformation towards digital intelligence in the traditional retail industry. However, starting from 2020, supply chain uncertainties and heightened profitability pressures have come to the forefront. Amidst fierce competition in China's retail landscape, Freshippo finds itself introducing faster and continuous digital intelligence innovations that span product offerings, store operations, and supply chain management. Have these new initiatives enabled the company to gain a differentiated competitive advantage? Meanwhile, it faces the challenge of balancing speed and stability. Between 2021 and 2022, its innovative business models are confronted with the challenge of decelerating development in favor of pursuing stability.
Looking ahead, Freshippo aspires to redefine the boundaries and achieve synergy between its online and offline channels, aiming to optimize the benefits of both realms. Has the company brought new insights to the retail industry in China? In early 2022, it sets full profitability as a new goal based on its retrospective analysis. In this context, how can Freshippo achieve a mutually beneficial balance between exploring innovative industry models and attaining profitability? How can it achieve balanced development between social and commercial value through digital intelligence?
Translated title of the contribution | Freshippo: Can a New Retail Species Gain Competitive Edge with Digital Intelligence? |
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Original language | Chinese (Simplified) |
Number of pages | 16 |
Publication status | Published - 25 Aug 2023 |
Case number
OMS-23-087Case normative number
OMS-23-087-CCCase type
Field CaseUpdate date
22/04/2024Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- New Retail
- data-driven operations
- digitalization
- Smart industry
- innovation
Case studies discipline
- Operations & Management Science
- Sales
- Strategy
Case studies industry
- Retail Trade
- Transportation and Warehousing