SPAR leaders’ look into community grocery business

Published on: 2020-09-08
2020 China Community Business Conference was held in Jinan, Shandong during August 28th and 29th. Livestream e-commerce is already hugely popular in China. How retailers use it as a platform to innovate and boost their community-based grocery business? SPAR leaders from our partners Beijing Huaguan and Shandong Jiajiayue shared their insights on this topic with industrial leaders, experts and national livestream players at the conference. 

Mrs. Xiao Ying, General Manager, SPAR Beijing Huaguan, talked about the changes livestream e-commerce had made to her business. 

COVID-19 pandemic accelerates changes in Chinese retail industry, including the shift to a higher volume of online sales, and the addition of new delivery and pickup options. For shopping convenience, SPAR Beijing has successfully launched a Community Fresh Pickup Program (Huaguan Youcai) during the pandemic. It is a mobile program that giving community residents an easy access to fresh produce and daily essentials. Now it has successfully served almost 100,000 customers in over 120 communities, creating retail sales 5 million RMB.” Mrs. Xiao Ying said.

“Livestream e-commerce is an inevitable trend. For instance, Mendale, one of Chinese household textile brands, achieved 300,000 RMB sales in two hours livestream broadcast, 10 times the daily sales during the pandemic. Chando, one of leading beauty brands, sold 10,000 RMB in two hours, 20 times the daily sales. We can say that, private domain traffic and product value are two pillars of livestream broadcast.” Mrs. Xiao Ying added.

SPAR Beijing continues to expand investment in supply chain system. “Value, personalized product, and production center are three key focuses for our business in the following months. ”

Looking ahead, Mrs. Xiao suggests, first of all, to make clear what are the basics of retail channels? “Customer data is of great importance. By establishing a self-run digital platform, we are able to use data to drive customer engagement. Second, product is the greatest competitive edge. It is supported by consistent innovation and enhanced supply chains. Third, embrace new concepts in grocery retailing. ”

Mr. Ding Mingbo, Deputy General Manager, SPAR Shandong Jiajiayue, delivered his keynote speech on Make Fresh Produce a Differentiator in Community Business. 

“At SPAR Shandong Jiajiayue, we are committed to staying close to our customers, both geographic proximity and order fulfillment. Fresh will be one of our biggest advantages. We offer quality products at attractive prices to better matching customers’ needs.” Mr. Ding said.

Consistent formats innovation is important. As a supermarket chain retailer, SPAR Shandong is committed to developing community-based retail business, including community hypermarket, lifestyle supermarket, convenience stores, as well as rural store. Moreover, the Group is investing in lifestyle shopping center that is anchored by a large hypermarket and features online-offline integration concepts, smart mini fresh market, smart mini community grocery store. 

Supply chain system is a sustained foundation for business innovation, including the food distribution center, production center as well as central kitchen. With the coordinated actions among warehouses, chilled and ambient, central and regional, SPAR Shandong has established a 2.5-hour logistics network, serving local grocery stores in a more efficient and consolidated way.

Development of private label food products. The central kitchen and production center can provide extensive items including fresh produce, ready-to-cook solutions, pasta, seafood, meat, poultry, mutton, cooking oil, rice and grains, bean products, as well as ready-to-eat meals. SPAR Shandong team is establishing an open supply chain platform. They are also ready to put the central kitchen into production. Next step, the team shall work together with cafeterias of local governments, large institutions, organizations and office buildings, developing and distributing private label food products for them. 

Food safety is our top priority. At SPAR Shandong, the team has established extensive quality control measures during each step of operation, from farm to fork, which ensures the freshness and safest products. On the private label product packaging, there is an QR code that allows our shoppers to access more product information concerning original source, procurement, production, transportation and sales.
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