Different types of technologies are disrupting the grocerymarket, like “just walk out” technology and home delivery. Another disruption, called Hema, is coming from the multinational Alibaba. Hema is a supermarket that combines online and offline shopping. Every product has a barcode that provides customers with product and price information.
In 2015 the first Hema shop was introduced in Shanghai. Nowadays there are 65 shops throughout China and they are planning to open dozens of shops this year1, 2.
What is Hema and how is it different from other supermarkets?
Until recently, the Chinees grocery market was traditional. The customer experience was depressing, with the fluorescent lamps and frowning employees. In contrast to the traditional supermarkets, Hema is an appealing brand which creates a seamless customer shopping experience. How Hema is making a difference is for example with the Hema app; customers can shop, dine and pay their groceries by using one single device. Customers can use their smart phone to scan the barcodes and find additional information such as; product details and recipes. At the in-store restaurant, customers can pick their own fresh products which are prepared on the spot.
Besides this offline customer experience Hema offers a home-delivery service, so customers who shop online have a same great experience, as their groceries will be delivered within 30 minutes2, 3.
Wat kind of technology is used?
Hema is using different types of technologies to combine online and offline shopping experiences. Hema uses big data analytics that remembers all purchases of each customer and makes personalized recommendations. The app suggests a data-driven selection of fresh products based on the customer’s location. Within the Hema store digital price tags are used which provides dynamic pricing based on the competition. Another technology is used in one of the stores in China, where robots are serving customers at the in-store restaurant3.
Looking at how quickly Hema is growing and the kind of features they offer, I think that Hema will expand worldwide and be a worldwide success. In Europe and other parts of the world, we do not have this kind of shopping experience as the Chinees have with Hema. I think Alibaba earns a big market share in the grocery industry.
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