From “conventional” e-commerce to livestream-led social commerce, retail has come a long way since going online. After the pandemic dealt a considerable blow to brick-and-mortar retail, the rebound has been slow. Data from earlier this year shows that half of the top 20 supermarkets have lost both sales and stores, while over half of the top 100 have reduced revenue in 2023.
E-commerce is also facing stagnation, especially as “super livestreamers” are becoming more of a liability than an asset for many channels, after the controversies surrounding Li Jiaqi, Dong Yuhui and “Crazy” Little Brother Yang. Now both platforms and streamers are trying to diversify their businesses by going abroad, investing in various types of livestreaming or doing something completely different. Some have found the next stage of their predominantly online retail business: offline supermarkets.
Shortly after super streamer Xinba’s channel was suspended before his livestream against “Crazy” Yang, he announced that he would be giving up livestreaming to focus on either offline supermarkets or expanding overseas. Xinba opened his first supermarket in Guangzhou, Guangdong back in 2022 called X-Market. However, it was a membership online venture with 200 of its goods available online. Xinba recently took a trip to Xuchang, Henan and visited the legendary local supermarket chain Pangdonglai and its founder Yu Donglai to learn more about the secrets of the supermarket sector. Pangdonglai has recently been on the news after Yu announced the group will stop helping to transform other businesses after its transformation project partner Yonghui Superstore sells nearly 30% of its shares to MINISO, as the lifestyle retailer also eyes the supermarket space.
Almost at the same time, JD.com, who sold its Yonghui shares to MINISO, also opened its first outlet in Wuxi, the latest of its slew of offline stores, including the first Shanghai store of its supermarket 7Fresh and Huaguan Discount Supermarket in Beijing. The e-commerce giant is shifting towards an online-offline omnichannel model that can provide a seamless experience to consumers with its “instant” delivery. With powerful competition entering the arena, all aiming at the likes of Costco and Sam’s Club, it is interesting to see how current players like Freshippo (Hema) will react.
