Hold onto your hats, folks! Meituan (03690.HK), the delivery giant, is seriously considering a splash back into brick-and-mortar with its Ele.me Xiansheng (小象超市) grocery chain. Sources tell me they’re not just tinkering around the edges – they’re eyeing a full-on assault on Alibaba’s Hema Xiansheng dominance.
Initially, the plan leaned towards replicating Hema’s smaller ‘Hema NB’ format. But now, the ambition is bigger. We’re talking Hema Xiansheng-sized stores. This is a significant pivot, and frankly, a necessary one if Meituan wants to make a real dent in the offline grocery market.
Don’t underestimate the implications here. Meituan’s strength lies in its delivery network. Combining that with a physical retail presence? Game changer. But scaling a nationwide chain is no walk in the park. They’re actively hiring experienced operations personnel—specifically those with a track record in national retail chains.
Let’s break down why this matters (and why Hema should be worried).
The Rise of ‘Next-Generation’ Grocery Stores: These aren’t your grandma’s supermarkets. Hema pioneered a tech-driven model — in-store dining, fast delivery, data-driven inventory management — setting a new standard.
The Importance of Omni-Channel: Consumers want flexibility. They want to order online for delivery, or pop into a store for fresh produce. Success requires seamlessly integrating physical and digital experiences.
Logistical Challenges are Massive: Building & maintaining a cold chain, efficient inventory, and speedy last-mile delivery across a country as vast as China? That’s a monumental undertaking. It demands serious capital and operational expertise.
Meituan is playing catch-up, but they have the resources and the tech know-how. The silence from Meituan headquarters speaks volumes. They’re keeping this close to the vest, likely refining the strategy before a full reveal. Expect fireworks. This one’s going to be interesting to watch.
