BATTLE FOR FRESH E-COMMERCE: HEMA FRESH ADVANCES, DINGDONG MAICAI RETREATS

Home

BATTLE FOR FRESH E-COMMERCE: HEMA FRESH ADVANCES, DINGDONG MAICAI RETREATS

Losses, store closures, layoffs, and strategic contraction have become common news in the retail e-commerce sector this year, indicating an unfavorable outlook. According to the “2023 H1 China Fresh E-Commerce Market Data Report,” the growth rate of fresh e-commerce transactions in 2023 is expected to hit the lowest point in nine years, with an industry penetration rate of about 8.97%, down 12.75% year-on-year.

During market adjustments and competition, platforms like Dingdong Maicai and Hema Fresh, which still have some capacity, are actively taking measures to meet challenges and seek new growth opportunities. Some have halted expansion to focus on efficiency rather than scale, while others continue to enhance their cold chain logistics systems and delivery networks to actively capture market share.

It’s worth noting that despite the rapid growth phase the fresh retail industry has experienced, it is still plagued by high cold chain transportation and operating costs, significant losses, and frequent user complaints. For platforms like Dingdong Maicai and Hema Fresh to seek new growth and move forward, the journey will undoubtedly be challenging.

The Glory Days are Gone

In the past, the rapid development of the internet led to the swift rise of the fresh e-commerce industry. Multiple startups and internet giants explored various models, driving the industry’s boom. Examples include the front-warehouse model represented by Dingdong Maicai and MissFresh, and the warehouse-store integration model represented by Hema and Yonghui. Even platform e-commerce players like JD, Tmall, and Pinduoduo made their presence felt.

Entrepreneurs, offline supermarkets, and internet e-commerce players flooded the fresh e-commerce track, creating a capital explosion and intense competition. However, the intense “red ocean” competition eventually led to a collective collapse in the fresh e-commerce sector, bringing a harsh winter to the market.

Firstly, the early pursuit of scale by fresh e-commerce platforms led to continuous expansion, resulting in high operating costs and ongoing losses, posing significant profitability challenges. Statistics show that in the domestic fresh e-commerce sector, 88% of companies are losing money, with only 4% breaking even and a mere 1% making a profit.

Secondly, due to fierce market competition, high operating costs, and fluctuating market demand, many fresh e-commerce platforms have faced closures, layoffs, and exits. In the first half of 2023, Yonghui closed 29 supermarket stores, while Carrefour China shut down 33 stores from January to March, accounting for over one-fifth of its total stores.

Thirdly, most fresh e-commerce platforms have struggled to make a profit, leading investors to be more cautious about financing them. According to iiMedia Research, the number of investments and financings in the fresh e-commerce sector hit a new low in 2022, nearly reverting to 2013 levels. As of March 2023, there was only one investment event in China’s fresh e-commerce industry, with an investment amount of just 30 million RMB.

Fourthly, issues such as product quality, refunds, deliveries, order problems, and false promotions are common, leading to frequent complaints about fresh e-commerce services. According to “E-Commerce Complaint Platform,” the top types of complaints from fresh e-commerce users in 2022 were product quality (16.25%), refund issues (16.25%), and delivery problems (12.50%).

Dingdong Maicai: Retreat to Advance

As a survivor of the fresh e-commerce subsidy wars, Dingdong Maicai’s performance has been unstable, leading it to adopt a strategy of significant retreats for survival.

Since 2022, Dingdong Maicai has gradually withdrawn from multiple cities, including Xiamen, Tianjin, Zhongshan, Zhuhai in Guangdong, Xuancheng and Chuzhou in Anhui, and Tangshan and Langfang in Hebei. Recently, it also exited the Sichuan-Chongqing market, shutting down stations in Chongqing and Chengdu, leaving it with only 25 city locations.

Dingdong Maicai’s official statement on the retreats cited cost reduction and efficiency improvement as reasons for adjusting its operations in Chongqing and Chengdu, pausing services in these areas while maintaining normal operations elsewhere. In essence, Dingdong Maicai’s retreats aim to reduce costs and improve efficiency.

From financial data, Dingdong Maicai’s cost-cutting strategy has shown some success, with initial profitability achieved. The financial report shows that Dingdong Maicai’s revenue for Q2 2023 was 4.8406 billion RMB, compared to 6.6344 billion RMB in the same period last year. The non-GAAP net profit was 7.5 million RMB, marking the third consecutive quarter of non-GAAP profitability.

Hema Fresh: Attack to Advance

Unlike Dingdong Maicai’s strategy of “cutting expenses,” Hema Fresh, which follows a warehouse-store integration model, continues to expand rapidly.

Firstly, Hema launched the “1-Hour Delivery” service to capture the instant delivery market, recruiting more couriers to improve delivery efficiency and fill the gaps in areas lacking fresh retail options. By optimizing logistics and supply chains, Hema extends its service capabilities to achieve rapid delivery and efficient inventory management, addressing the timeliness and efficiency shortcomings of fresh e-commerce. In March, Hema officially announced the launch of the “1-Hour Delivery” service and started a new round of courier recruitment.

Secondly, Hema is aggressively opening stores in first-tier cities, aiming to expand its territory while other fresh e-commerce platforms halt expansion. According to Hema, 30 new stores are planned to open in September, including 16 Hema Fresh stores, 3 Hema Mini stores, 9 Hema Outlet stores, 1 Hema Premier store, and 1 experience store at the Hangzhou Asian Games Media Center.

Moreover, Hema has initiated its listing process. If successfully listed, it will obtain substantial funds for new projects, research and development, and market promotion to support business growth and scale expansion. In March, Alibaba announced its “1+6+N” reform, with the Cloud Intelligence Group splitting from Alibaba to independently move towards listing, and Hema initiating its listing plan, expected to be completed within 6-12 months. However, recent media reports suggest that Alibaba will suspend Hema’s Hong Kong IPO plan, to which Hema responded with “no comment.”

Whether Hema can successfully list remains uncertain, but it already has a wide delivery coverage, a rich product range, and an efficient supply chain system, forming a sustainable business model with multiple quarters of profitability.

In conclusion, whether retreating to survive or attacking to thrive, platforms like Hema Fresh and Dingdong Maicai are consolidating their existing businesses while actively seeking new breakthroughs. They are expanding their strategies to find new “outlets” and diversify their food category tracks, transitioning into food e-commerce platforms with multiple brands. However, whether these new ventures will flourish and support future growth remains to be seen.

01 Pre-packaged Meals: A Sudden Rise to Popularity

Recently, the topic of pre-packaged meals entering schools has surged in popularity, making it a hot topic on social media. This has sparked considerable controversy, with many parents questioning the safety of pre-packaged meals in schools. Concerns arise due to the fact that minors are in a crucial growth stage, and any food safety issues can be particularly worrying.

On the other hand, there are practical issues to consider. Many schools find it difficult to operate cafeterias efficiently and often outsource to meal delivery companies. These companies typically use central kitchens to prepare and deliver meals on the same day. However, due to considerations like cost, consistent taste, and speed of service, some outsourced meal delivery companies have begun using pre-packaged meals.

Parents feel their right to know has been violated, as they were unaware their children have been consuming pre-packaged meals for an extended period. Cafeterias argue that there are no safety issues with pre-packaged meals, so why can’t they be consumed?

Unexpectedly, pre-packaged meals have re-entered public awareness in this manner.

Actually, pre-packaged meals have been gaining popularity since last year. In early 2022, several pre-packaged meal concept stocks saw their prices hit consecutive limits. Although there was a slight pullback, the scale of pre-packaged meals in both the dining and retail sectors has visibly expanded. During the outbreak of the pandemic, pre-packaged meal stocks started to rise again in March 2022. On April 18, 2022, companies like Fucheng Shares, Delisi, Xiantan Shares, and Zhongbai Group saw their stock prices hit limits, while Fuling Zhacai and Zhangzi Island saw gains of over 7% and 6%, respectively.

Pre-packaged meals cater to the contemporary “lazy economy,” “stay-at-home economy,” and “single economy.” These meals are primarily made from agricultural products, livestock, poultry, and seafood, and undergo various processing steps such as washing, cutting, and seasoning before being ready to cook or eat directly.

Based on the ease of processing or the convenience for consumers, pre-packaged meals can be categorized into ready-to-eat foods, ready-to-heat foods, ready-to-cook foods, and ready-to-prepare foods. Common ready-to-eat foods include Eight-Treasure Congee, beef jerky, and canned goods that can be eaten right out of the package. Ready-to-heat foods include frozen dumplings and self-heating hot pots. Ready-to-cook foods, like refrigerated steak and crispy pork, require cooking. Ready-to-prepare foods include cut raw ingredients available on platforms like Hema Fresh and Dingdong Maicai.

These pre-packaged meals are convenient, appropriately portioned, and naturally popular among “lazy” individuals or the single demographic. In 2021, China’s pre-packaged meal market reached 345.9 billion RMB, and within the next five years, it is expected to potentially reach a trillion RMB market size.

In addition to the retail end, the dining sector also “favors” pre-packaged meals, accounting for 80% of the market consumption scale. This is because pre-packaged meals, processed in central kitchens and delivered to chain stores, provide a solution to the long-standing standardization challenge in Chinese cuisine. Since they come from the same production line, the taste is consistent.

Previously, restaurant chains struggled with inconsistent flavors, often dependent on the skills of individual chefs. Now, with pre-packaged meals, flavors are standardized, reducing the influence of chefs and transforming them into regular employees.

The benefits of pre-packaged meals are evident, leading large chain restaurants to adopt them quickly. Chains like Xibei, Meizhou Dongpo, and Haidilao have all incorporated pre-packaged meals into their offerings.

With the growth of group buying and the takeaway market, more pre-packaged meals are entering the dining industry, ultimately reaching consumers.

In summary, pre-packaged meals have proven their convenience and scalability. As the dining industry continues to develop, pre-packaged meals serve as a cost-effective, quality-maintaining solution.

02 Pre-packaged Meals: Still a Blue Ocean

Compared to Japan, where pre-packaged meals account for 60% of total food consumption, China’s ratio is less than 10%. In 2021, China’s per capita consumption of pre-packaged meals was 8.9 kg/year, less than 40% of Japan’s.

Research indicates that in 2020, the top ten companies in China’s pre-packaged meal industry accounted for only 14.23% of the market, with leading companies like Lvjin Food, Anjoy Foods, and Weizhixiang holding market shares of 2.4%, 1.9%, and 1.8%, respectively. In contrast, Japan’s pre-packaged meal industry achieved a 64.04% market share for the top five companies in 2020.

Compared to Japan, China’s pre-packaged meal industry is still in its infancy, with low barriers to entry and low market concentration.

As a new consumption trend in recent years, the domestic pre-packaged meal market is expected to reach a trillion RMB. The low industry concentration and low market barriers have attracted many enterprises to enter the pre-packaged meal field.

From 2012 to 2020, the number of pre-packaged meal-related companies in China grew from fewer than 3,000 to nearly 13,000, with a compound annual growth rate of almost 21%. As of the end of January 2022, the number of pre-packaged meal companies in China had approached 70,000, indicating a rapid expansion in recent years.

Currently, there are five main types of players in the domestic pre-packaged meal track.

First, agricultural and aquaculture companies, which connect upstream raw materials to downstream pre-packaged meals. Examples include listed companies like Shengnong Development, Guolian Aquatic, and Longda Food.

These companies’ pre-packaged meals include chicken products, processed meat products, rice and noodle products, and breaded products. Companies like Shengnong Development, Chunxue Foods, and Guolian Aquatic not only develop the domestic pre-packaged meal market but also export them overseas.

The second type includes more specialized pre-packaged meal companies focused on production, such as Weizhixiang and Gaishi Foods. Their pre-packaged meals range from algae, mushrooms, and wild vegetables to aquatic products and poultry.

The third type comprises traditional frozen food companies entering the pre-packaged meal field, such as Qianwei Central Kitchen, Anjoy Foods, and Huifa Foods. Similarly, some catering companies have ventured into pre-packaged meals, like Tongqinglou and Guangzhou Restaurant, producing their signature dishes as pre-packaged meals to increase revenue and reduce costs.

The fourth type includes fresh retail companies like Hema Fresh, Dingdong Maicai, MissFresh, Meituan Maicai, and Yonghui Supermarket. These companies directly connect with consumers, meeting customer needs with wide sales channels and strong brand recognition, often leveraging joint promotional activities.

The entire pre-packaged meal industry chain connects upstream agricultural sectors, covering vegetable cultivation, livestock and aquatic farming, grain and oil industries, and seasonings. Through specialized pre-packaged meal producers, frozen food manufacturers, and supply chain companies, the products are transported via cold chain logistics and storage to downstream sales.

Compared to traditional agricultural products, pre-packaged meals have higher added value due to multiple processing steps, promoting local agricultural development and standardized production. They also support deep processing of agricultural products, contributing to rural revitalization and economic development.

03 Multiple Provinces Compete for the Pre-packaged Meal Market

However, due to the low entry barriers, the quality of pre-packaged meal companies varies, leading to quality and food safety issues.

Given the nature of pre-packaged meals, if consumers find the taste unsatisfactory or encounter issues, the subsequent return process and potential losses are not well-defined.

Therefore, this field should receive attention from national and provincial governments to establish more regulations.

In April 2022, under the guidance of the Ministry of Agriculture and Rural Affairs and the China Green Food Development Center, the China Pre-packaged Meal Industry Alliance was established as the first national public welfare self-regulation organization for the pre-packaged meal industry. This alliance, supported by local governments, research institutions, and economic research organizations, aims to better promote industry standards and ensure healthy and orderly development.

Provinces are also gearing up for fierce competition in the pre-packaged meal industry.

Guangdong stands out as a leading province in the domestic pre-packaged meal sector. Considering policy support, the number of pre-packaged meal companies, industrial parks, and economic and consumption levels, Guangdong is at the forefront.

Since 2020, the Guangdong government has taken the lead in systematizing, standardizing, and organizing the development of the pre-packaged meal industry at the provincial level. In 2021, following the establishment of the Pre-packaged Meal Industry Alliance and the promotion of the Guangdong-Hong Kong-Macao Greater Bay Area (Gaoyao) Pre-packaged Meal Industrial Park, Guangdong experienced a surge in pre-packaged meal development.

In March 2022, the “2022 Provincial Government Work Report Key Task Division Plan” included the development of pre-packaged meals, and the Provincial Government Office issued “Ten Measures to Accelerate the High-Quality Development of Guangdong Pre-packaged Meal Industry.” This document provided policy support in areas such as research and development, quality safety, industrial cluster growth, exemplary enterprise cultivation, talent training, cold chain logistics construction, brand marketing, and internationalization.

For companies to capture the market, local government support, brand building, marketing channels, and especially cold chain logistics construction are crucial.

Guangdong’s policy support and local enterprise development efforts are substantial. Following Guangdong,

Houcheng, 59, needs an opportunity to prove the potential of Hema to Liu Qiangdong, Zhang Yong, and Jack Ma.

Recently, Hema’s unexpected postponement of its Hong Kong IPO has added another chill to the domestic retail market. In recent years, the offline supermarket market in China has been under a cloud, with news of non-renewals, store closures, and losses frequently hitting the media, leading to the impression that domestic consumers have no money to spend. Some even joke that supermarket owners who still open their doors are doing so out of love.

However, community chain stores have found that foreign supermarket enterprises like ALDI, Sam’s Club, and Costco are still aggressively opening new stores. For example, ALDI has opened more than 50 stores in Shanghai alone in just four years since entering China. Similarly, Sam’s Club is accelerating its plan to open 6-7 new stores annually, entering cities like Kunshan, Dongguan, Jiaxing, Shaoxing, Jinan, Wenzhou, and Jinjiang.

The active expansion of foreign supermarkets in various Chinese markets contrasts sharply with the continuous store closures of local supermarkets. Listed local supermarket enterprises like BBK, Yonghui, Lianhua, Wumart, CR Vanguard, RT-Mart, Jiajia Yue, Renrenle, Zhongbai, and Hongqi Chain urgently need to find a new model to emulate and continue their growth. However, looking globally, innovative models suitable for the Chinese consumption environment are scarce, with Hema being one of the few exceptions.

Unlike Walmart, Carrefour, Sam’s Club, Costco, or ALDI, Hema’s “both in-store and home delivery” model may be more suitable for local supermarkets to emulate and innovate. After all, Walmart, which has been deeply rooted in China’s offline market for over 20 years, and ALDI, which has just entered the Chinese market, both regard “home delivery” as a strategic focus for the future.

01 Why is Hema Valued at $10 Billion?

From setting a listing timetable in May to its unexpected postponement in September, Hema has continued to aggressively open stores and accelerate the development of its product supply chain system. Hema’s listing is eagerly anticipated, but according to various sources, the postponement may be due to its valuation falling short of expectations. Alibaba’s initial discussions with potential investors estimated Hema’s value at around $4 billion, while Alibaba’s IPO valuation target for Hema was $10 billion.

The actual value of Hema is not the focus here, but its home delivery model is worth everyone’s attention. Community chain stores believe Hema now resembles a combination of Meituan, Dada, and Sam’s Club. In other words, Hema’s most valuable asset is not its 337 physical stores but the product system and data model behind its home delivery operations.

The Front-End Products

Hema not only has its own independent app but also official flagship stores on Taobao, Tmall, Alipay, and Ele.me, all part of the Alibaba ecosystem. Additionally, it has scene support from apps like Xiaohongshu and Amap, covering multiple high-frequency consumer scenarios.

Thanks to its presence on dozens of different apps, Hema enjoys unparalleled traffic and data advantages that outshine any supermarket competitor, including Walmart, Metro, and Costco. For instance, Taobao and Alipay each have over 800 million monthly active users (MAU), while Ele.me has over 70 million.

As of March 2022, Hema’s own app had over 27 million MAU. Compared to Sam’s Club, Costco, and Yonghui, which still need to convert store visitors to app users, Hema’s existing traffic pool is already sufficient to support the opening of more than 300 additional stores.

Hema is not only abundant in traffic but also rich in data. It has access to massive amounts of product preference data and consumption data from Taobao and Ele.me, as well as extensive product review data from Xiaohongshu and Weibo, and comprehensive payment data from Alipay covering various offline scenarios.

Armed with these data, Hema can clearly understand the consumption capacity of each community. This data advantage gives Hema the confidence to lease storefronts in mature business districts at rents several times higher than the market price.

In addition to traffic and data advantages, Hema also boasts high user stickiness. Currently, Hema has over 60 million registered users, and with 27 million MAU, its user stickiness surpasses popular platforms like Xiaohongshu and Bilibili.

If traffic and data are Hema’s fundamentals, the technology behind these models is even more noteworthy. In 2019, Hema publicly introduced its ReX retail operating system, which can be seen as the integrated backbone of the Hema model, covering store operations, membership systems, logistics, and supply chain resources.

Hema’s consumer experience, including product quality, delivery timeliness, and after-sales service, is often praised, partly thanks to the ReX system. According to research by brokerage firms, Hema’s large stores can handle over 10,000 orders daily during major promotions, with peak hours exceeding 2,500 orders per hour. To meet the 30-60 minute delivery standard, Hema stores must complete picking and packing within 10-15 minutes and deliver within the remaining 15-30 minutes.

To maintain this efficiency, real-time inventory calculation, replenishment systems, city-wide route design, and coordination of store and third-party logistics require extensive modeling and complex algorithms, similar to those found in Meituan, Dada, and Dmall.

Community chain stores believe that in retail home delivery, besides traffic, data, and algorithms, the selection ability of merchants is crucial. Different stores cater to different consumer demographics, and periodic consumer demands vary by region. Therefore, whether a merchant’s supply chain can support dynamic product selection is a key threshold for supermarkets aiming to excel in home delivery.

Selection and Supply Chain

Sam’s Club and Costco have spent years honing their selection capabilities, and Hema has been refining its own for seven years. Hema pursues a buyer system similar to Sam’s Club and Costco, aiming to trace the supply chain back to its origin, from raw materials to the production process, creating unique product stories for brand differentiation.

Hema first identifies the core production areas for each product, compares suppliers, and selects the highest quality raw materials and a suitable OEM factory. Hema provides the factory with standard processes, packaging designs, and ingredient lists, ensuring products meet specified standards. After production, products undergo internal testing, pilot sales, and feedback before being distributed to stores nationwide.

Initially, Hema struggled with direct sourcing but eventually found its rhythm by directly contracting planting bases, establishing 185 “Hema Villages” across various locations, including Danba Bako Village in Sichuan, Xiachabu Village in Hubei, Dalinzhai Village in Hebei, and Gashora Village in Rwanda, offering 699 products.

Compared to Sam’s Club and Costco’s global procurement advantages, Hema’s “Hema Village” initiative creates strong local supply chains, providing significant cost advantages and differentiation.

Technology and Efficiency

Hema’s ReX retail operating system integrates multiple systems, including store operations, membership, logistics, and supply chain resources, enhancing overall efficiency. For example, during major promotions, Hema’s large stores can handle over 10,000 daily orders, with peak hours exceeding 2,500 orders per hour. Meeting the 30-60 minute delivery standard requires precise real-time inventory management, replenishment systems, city-wide routing, and coordination with third-party logistics, supported by complex algorithms.

Home Delivery Metrics

Hema’s 138 stores operate as integrated warehouse-store units, offering 6,000-8,000 SKUs per store, with 1,000 self-branded SKUs, comprising 20% of the total. Customers within a 3-kilometer radius can enjoy 30-minute free delivery. Mature stores, operational for over 1.5 years, average 1,200 daily online orders, with online sales contributing over 60% of total revenue. The average order value is nearly 100 RMB, with daily revenue exceeding 800,000 RMB, achieving a sales efficiency three times that of traditional supermarkets.

02 Why is Hema the Only Competitor in Walmart’s Eyes?

Walmart China’s president and CEO, Zhu Xiaojing, stated internally that Hema is the only competitor to Sam’s Club in China. In terms of physical store openings, Hema indeed lags behind Sam’s Club, which has been in operation for over 40 years with over 800 stores worldwide, including more than 40 in China. Hema, with 337 stores, including only 9 Hema X member stores, appears small in comparison.

However, in home delivery, the gap between Sam’s Club and Hema is not as significant. Sam’s Club ventured into home delivery in 2010, four years after entering China, but due to immature consumer habits, the service was quietly discontinued after a few months. Since then, Sam’s Club has continuously evolved its home delivery model.

In 2017, leveraging its store network and front warehouses (cloud warehouses), Sam’s Club initiated the “Express Delivery Service” in Shenzhen, Beijing, and Shanghai, accelerating its home delivery growth. Currently, Sam’s Club operates a network of cloud warehouses, each supporting rapid delivery within its respective city, with an estimated 500 cloud warehouses nationwide, achieving significant order volumes and efficiency.

Sam’s Club’s business model, combining large stores with cloud warehouses, ensures quick delivery and integration, leading to impressive results: over 1,000 daily orders per warehouse, with Shanghai warehouses averaging over 3,000 daily orders and an average order value exceeding 200 RMB. This performance positions Sam’s Club as a leader in the industry.

03 Yonghui’s Reluctance to Sell to JD

Although Yonghui hasn’t caught the attention of Walmart’s executives, its proactive efforts in home delivery outshine its peers, making it a noteworthy example.

Representing the past of China’s traditional supermarkets, Yonghui is a prime example of a local supermarket enterprise that has thrived despite competition from foreign giants. Like foreign supermarket giants, Yonghui has proactively embraced online platforms and home delivery, becoming a leader among local supermarket enterprises.

Despite numerous challenges and continuous trial and error, Yonghui has become the domestic traditional supermarket leader in home delivery, with over 940 e-commerce warehouses and annual home delivery revenue exceeding 10 billion RMB.

E-Commerce Warehouses and Revenue

As of August 2023, Yonghui operates 940 e-commerce warehouses, including 135 full warehouses (covering 15 cities), 131 half warehouses (covering 33 cities), 652 integrated store warehouses (covering 181 cities), and 22 satellite warehouses (covering Chongqing, Fuzhou, and Beijing). Among them, over 100 are large front warehouses of 800-1000 square meters.

In the first half of 2023, Yonghui’s online business revenue reached 7.92 billion RMB, accounting for 18.7% of its total revenue, with an estimated annual revenue surpassing 16 billion RMB. Yonghui’s self-operated home delivery business covers 946 stores, generating 4.06 billion RMB in sales, with an average of 295,000 daily orders and a monthly repurchase rate of 48.9%. Its third-party platform home delivery business covers 922 stores, generating 3.86 billion RMB in sales, a 10.9% year-on-year increase, with an average of 197,000 daily orders.

Despite its successes, Yonghui lacks the massive consumer data of Alibaba’s ecosystem or Walmart’s global direct sourcing supply chain, leading to numerous setbacks. Nevertheless, it has leveraged partnerships with JD Daojia and Meituan to achieve over 10 billion RMB in sales by 2020.

Yonghui’s journey in home delivery began in May 2013 with the launch of the “Half the Sky” shopping channel on its website, initially limited to Fuzhou and offering meal packages in sets. This early attempt failed due to poor user experience and limited delivery options.

In January 2014, Yonghui launched the “Yonghui Weidian App” for online ordering and offline pickup, initially available in eight stores in Fuzhou. In 2015, Yonghui launched the “Yonghui Life App,” offering a wide range of high-frequency fresh and fast-moving consumer goods with fast delivery services, fulfilled by JD Daojia.

In 2018, Yonghui received investments from JD and Tencent, forming deep partnerships in traffic, marketing, payment, and logistics. In May 2018, Yonghui launched its first “satellite warehouse” in Fuzhou, offering 30-minute delivery within a 3-kilometer radius.

In 2018, Yonghui’s internal restructuring split its online business into Yonghui Cloud Creation, focusing on innovative formats, and Yonghui Supermarket, focusing on traditional formats. Despite initial setbacks, Yonghui’s online sales grew significantly, reaching 7.3 billion RMB in 2017, 16.8 billion RMB in 2018, and 35.1 billion RMB in 2019.

By 2020, Yonghui’s online sales reached 10.45 billion RMB, a 198% year-on-year increase, accounting for 10% of its total revenue. In 2021, online sales reached 13.13 billion RMB, a 25.6% increase, accounting for 14.42% of total revenue. In 2022, online sales grew to 15.936 billion RMB, a 21.37% increase, with an average of 518,000 daily orders.

Despite these achievements, Yonghui faced significant losses due to high investments in front warehouses and the impact of the pandemic, resulting in losses of 3.944 billion RMB in 2021 and 2.763 billion RMB in 2022.

Conclusion

Although Yonghui faces more challenges than Hema and Sam’s Club, its efforts in home delivery have secured a foothold in the market. As instant retail continues to grow, Yonghui has the potential to benefit from this trend. New CEO Li Songfeng has already achieved his first KPI, turning Yonghui’s 2023 H1 losses into profits.

Like Hema CEO Hou Yi, former JD executive Li Songfeng aims to lead Yonghui in the instant retail market, potentially sparking a new story in the industry. Hou Yi can prove his judgment of China’s retail trends, and Li Songfeng can demonstrate the potential of local supermarket enterprises in the post-pandemic era.

In May this year, Hema Fresh collaborated with Shanghai Aisen Meat Products Co., Ltd. (hereinafter referred to as “Shanghai Aisen”) to launch a series of fresh pre-packaged meals featuring pig kidney and pig liver as main ingredients. To ensure the freshness of the ingredients, the series ensures that the time from slaughter to the finished product entering the warehouse does not exceed 24 hours. Within three months of launch, the sales of the “Pig Offal” series of pre-packaged meals saw a month-on-month increase of up to 20%.

Shanghai Aisen is a well-known local supplier of fresh chilled pork, primarily providing chilled meat and by-products such as pig kidney, pig heart, and pig liver to retail and catering channels. Hema and Shanghai Aisen collaborated on six new pre-packaged meal products, five of which feature pig offal as the main ingredient.

Creating “Pig Offal” Pre-packaged Meals

Liu Jun, Hema’s pre-packaged meal R&D procurement officer, explained the reason for launching offal pre-packaged meals: “In Shanghai, dishes like braised pig kidney and stir-fried pig liver have a certain market foundation. Although they are home-cooked dishes, they require significant skill, which average consumers may find challenging. For example, preparing braised pig kidney involves selecting, cleaning, removing the unpleasant smell, slicing, marinating, and cooking—all of which are complex steps that deter many busy workers. This motivated us to attempt making these dishes into fresh pre-packaged meals.”

For Shanghai Aisen, this collaboration is a first-time endeavor. Chen Qingfeng, deputy general manager of Shanghai Aisen, stated: “Previously, Shanghai Aisen had pre-packaged meal products, but they were all frozen and primarily pork-based. Creating fresh pre-packaged offal meals is a new challenge for both parties.”

Producing offal pre-packaged meals presents challenges. Zhang Qian, head of pre-packaged meals at Hema’s East China division, noted: “Offal products are difficult to handle. The first requirement is freshness, which demands high standards from frontline factories. Secondly, if not processed properly, they can have a strong odor. Therefore, such products are rare in the market. Our biggest breakthrough is ensuring freshness without additives, bringing better and fresher ingredients to consumers, which is the essence of our fresh pre-packaged meals.”

Shanghai Aisen has advantages in this area. Chen Qingfeng explained: “During the slaughter process, pigs are calmed for 8-10 hours to relax and reduce stress, resulting in better meat quality. The offal is processed in the freshest state right after slaughter, cutting and marinating the products immediately to shorten the time. Additionally, we maintain high-quality standards, discarding any offal that shows even the slightest discoloration during processing.”

In May this year, Hema partnered with over 10 agricultural enterprises, central kitchens, and universities to establish a comprehensive pre-packaged meal industry alliance, focusing on “deliciousness” and developing products that meet current consumer demands around “freshness, novelty, and new scenarios.” To strengthen the advantages of fresh pre-packaged meals, Hema continues to build its fresh food supply chain, with over 300 ultra-short supply chains established around cities where Hema stores are located, collaborating with suppliers to ensure speed and quality.

Continual Investment in Pre-packaged Meals

Hema has been continuously investing in pre-packaged meals. In 2017, the Hema Workshop brand was established. From 2017 to 2020, Hema gradually developed a product structure covering fresh (chilled), frozen, and ambient temperature pre-packaged meals. From 2020 to 2022, Hema focused on innovative development, creating new products based on insights into different consumer needs and scenarios. In April 2023, Hema’s pre-packaged meal department was established as a primary division of the company.

In July, Hema’s Shanghai Supply Chain Operation Center became fully operational. Located in Hangtou Town, Pudong, this comprehensive supply center integrates agricultural product processing, finished ingredient R&D, semi-finished product frozen storage, central kitchen, and cold chain logistics distribution, covering a total area of about 100,000 square meters. It is Hema’s largest, most technologically advanced, and most heavily invested single project to date.

By establishing its central kitchen factory, Hema has enhanced the R&D, production, and transportation chain for its own brand of pre-packaged meals. Each step, from raw material sourcing to production and store delivery, is traceable, ensuring food safety and significantly improving the efficiency of launching and promoting new products.

Focus on Fresh, Novel, and New Scenarios

Zhang Qian explained: “Hema’s pre-packaged meals mainly fall into three categories. First, fresh products, which involve collaboration with more original food companies, such as those providing chicken and pork. Second, novel products, which include our seasonal and holiday bestsellers. Third, new scenario products.”

“Hema has many suppliers who have been with us throughout our journey. Since our products are short-shelf life and fresh, factories cannot be more than 300 kilometers away. Hema Workshop is rooted in local production, with many supporting factories nationwide. This year, we also established a central kitchen. Many of Hema’s products are co-developed with suppliers. Our partners include those deeply involved in raw materials like beef, pork, and fish, as well as those transitioning from the catering supply chain to central kitchens, providing pre-packaged versions of large and festive dishes,” Zhang added.

“We will have many proprietary recipes in the future. Hema has numerous proprietary products, including drunken crabs and cooked drunken crayfish, which are made in our central kitchen. Additionally, we will continue to cooperate with those who have advantages in raw materials and restaurant brands, aiming to bring more dishes from restaurants to consumers in a simpler, more retail-friendly manner,” Zhang stated.

Chen Qingfeng believes: “Looking at future trends and opportunities, the pre-packaged meal market is vast. More young people don’t cook, and even those who do hope to free up their hands to enjoy life more. The key to doing well in this market is supply chain competition, focusing on quality and comprehensive control. By laying a solid foundation and finding good partners, we can collectively capture more market share.”

On August 24, the Jiangsu Province Pre-packaged Meal Industry Chain E-commerce Supply and Demand Matching Event and Xinghua City Pre-packaged Meal Platform Cooperation Conference were held in Xinghua, Jiangsu.

Jiangsu has included the new food cluster in its “14th Five-Year Plan” as one of the 16 advanced manufacturing clusters to be developed. The pre-packaged meal industry chain is one of the three key industry chains prioritized for cultivation within this new food cluster. The conference created a platform for information exchange and supply-demand matching in the pre-packaged meal field, attracting participation from e-commerce platforms such as JD.com, Taotian, Kuaishou, and Yuanshiyun, as well as representatives from over 100 pre-packaged meal production and catering enterprises within the province.

The event promoted exchanges and cooperation among e-commerce platforms, the Green Healthy Food Industry Alliance, and pre-packaged meal production enterprises. It provided strong support for establishing stable raw material supply sources and expanding new market cooperation opportunities for various companies.

Recently, the second JD Agricultural Specialty Shopping Festival kicked off, and Tianlai Xiangniu supplied the event with 10,000 high-quality cattle from its exclusive organic ranch, allowing millions of consumers to enjoy organic beef from the foot of the Tianshan Mountains without leaving their homes.

Leveraging Channel Resources to Boost the Brand Recognition of Domestic Organic Beef

This year’s agricultural specialty festival is unprecedented in scale, with JD investing 10 billion RMB in cash subsidies and traffic resources to help high-quality agricultural products from over 2,000 industrial belts across the country reach consumers’ tables. As Tianlai Xiangniu’s largest online sales channel, JD collaborated with Tianlai Xiangniu to establish an exclusive ranch and production processing workshop, supplying the festival with 10,000 high-quality cattle so that consumers can taste organic beef from the foot of the Tianshan Mountains as soon as possible.

Driven by the goal of helping consumers select high-quality organic beef, JD Supermarket’s professional buyers conducted market research, on-site inspections, qualification reviews, and product testing, ultimately deciding to directly procure organic beef from Xinjiang Tianlai Xiangniu Food Co., Ltd., a leading domestic organic beef company.

On September 16, witnessed by leaders including Manatibek, member of the Standing Committee of the Bozhou Municipal Committee of Xinjiang Uygur Autonomous Region, Wang Bo, Secretary of the Municipal Commerce and Industry Bureau, and Wang Jixiang, Director of the Municipal Agriculture and Rural Affairs Bureau, JD Supermarket and Tianlai Xiangniu signed a strategic cooperation agreement. JD awarded Tianlai Xiangniu the title of JD Fresh’s Exclusive Organic Ranch, jointly creating a trusted sales channel for organic beef.

Leveraging JD’s strong capabilities in brand building, industry standardization, and logistics supply chain, Tianlai Xiangniu quickly established an online sales channel and officially opened a self-operated store on JD Supermarket. This not only brings high-quality organic beef to consumers, boosting the “Tianlai Xiangniu” brand, but also helps local herders increase their income and achieve prosperity.

Commitment to Direct Sourcing: Ensuring Industry, Technology, and Brand Take Root

Benefiting from Xinjiang’s unique geographical environment and resources, Tianlai Xiangniu is regarded as the pinnacle of the domestic organic beef industry. Each cow in the ranch is nurtured with Tianshan snow water, pure air, and organic pasture, and is fed a customized diet by professional nutritionists for up to 30 months.

To ensure that every piece of Tianlai Xiangniu beef in consumers’ hands is genuinely organic, JD Supermarket adheres to a direct sourcing model, implementing control over quality, logistics, and sales processes.

Thanks to JD’s nationwide cold chain logistics network, Tianlai Xiangniu’s organic beef products can seamlessly transition through the entire production, supply, and sales process, maintaining cold chain integrity from packaging and collection to transportation and delivery.

By partnering with Tianlai Xiangniu, JD Supermarket not only helps farmers sell their produce and embrace new growth but also fosters the integration of industry, technology, and branding in rural areas.

Since launching the Rural Revitalization “Benfu Plan” in October 2020, JD has established deep cooperation with over 2,000 industrial belts nationwide, creating high-quality regional agricultural products like Guizhou Xiuwen kiwifruit, Jiangsu Miansu crabs, and Dalian sea cucumbers. In June this year, JD achieved its three-year goal ahead of schedule, driving rural output value over one trillion RMB and increasing the income of over 100 million farmers.

During the JD Agricultural Specialty Shopping Festival, there are daily deals with 9.9 RMB for gourmet food trials and discounts of 20 RMB off every 200 RMB spent. Users can access the event page by searching “Agricultural Specialty Festival” on the JD app. JD will continue to collaborate with Tianlai Xiangniu and more premium brands to offer a wide range of high-quality agricultural specialty products, making the festival a new stage for branding agricultural specialty industrial belts.

As consumer levels and awareness increase, there is a growing preference for healthier, additive-free yogurt or low-temperature yogurt. Compared to ambient yogurt, low-temperature yogurt places higher demands on milk sources and the supply chain. So, how does Jian Ai, acclaimed as “China’s No. 1 brand of additive-free low-temperature yogurt,” ensure health and safety to bring nutritious and tasty milk to millions of Chinese families? Let’s explore Jian Ai’s North China “factory + ranch” integrated supply chain and unveil the production process of Jian Ai yogurt.

A nutritious and delicious cup of safe milk naturally requires high-quality milk sources. To ensure milk safety, Jian Ai, known as “China’s No. 1 brand of additive-free low-temperature yogurt,” has established the Jian Ai Fuyuan Ranch, addressing milk safety from the source. For two consecutive years, Jian Ai Fuyuan Ranch has passed the SGS “Hormone-Free Dairy Farming Technical Standard” certification. At Jian Ai Fuyuan Ranch, the hormone-free feeding environment allows cows to produce milk following natural rhythms, ensuring the provision of safe, healthy, and nutritious milk, thereby offering strong support for consumers’ healthy diets.

With high-quality milk sources in place, modern production equipment naturally needs to keep up. In May 2021, after three years of preparation and construction, the Pucheng Dairy Fengning Factory, covering 56,000 square meters, officially began production, coinciding with the sixth anniversary of the Jian Ai yogurt brand. The Fengning Factory specializes in the production of additive-free low-temperature dairy products, producing about 1.5 million cups of yogurt daily, which are delivered to consumers nationwide via the cold chain supply. From large investments in ranch and factory hardware and software to unseen details like air purification and the use of no more than nine food ingredients, Jian Ai Yogurt fulfills its promise of “safe and quality milk” in every detail.

Thanks to a digitalized production chain, the quality of Jian Ai Yogurt is robustly guaranteed. Jian Ai believes that the “factory + ranch” supply chain construction is the foundation for the brand’s sustainable and long-term development, as well as a necessary path from startup to maturity. In the future, Jian Ai Yogurt will continue to uphold its promise of “safe and quality milk,” consistently providing consumers with healthy, safe, nutritious, and delicious yogurt.

Wuhan Fresh Fruit Co., Ltd., established in 2020, is located in the Dongxihu District of Wuhan, Hubei Province. The company enjoys a prime location near the Jinggang-Ao Highway and the Shanghai-Chengdu Highway, providing convenient transportation and the ability to serve most areas of Hubei Province.

Based on a shared understanding of the development trends in the cold chain industry and the internet, Wuhan Fresh Fruit Co., Ltd. has officially formed a strategic partnership with Linkco. This collaboration will adopt a professional, standardized, and systematic management model, leveraging modern information technologies such as the internet and big data. The goal is to provide customers with high-efficiency, high-quality, and safer cold chain services, thereby enhancing the company’s market competitiveness.

The facility includes a ground floor cold chain warehouse covering 12,000 square meters with a height of 9 meters (for freezing, refrigeration, and constant temperature storage), a second-floor ambient temperature warehouse also covering 12,000 square meters with a height of 6.3 meters and a load capacity of 2 tons (accessible by ramp trucks), and a third-floor ambient temperature warehouse of 12,000 square meters with a height of 5.5 meters and a load capacity of 1.5 tons. The facility is equipped with Class B fire safety measures, two 5-ton elevators, and two additional hoists. The ground floor features a four-sided unloading platform, and the total building area is 43,000 square meters, with an expected delivery date of January 2024.

Linkco will leverage its platform’s advantages in internet and big data technology to provide precise resource matching, operational planning, and a complete suite of informatization solutions for the cold chain supply chain. This includes supply chain finance, asset evaluation and trading, as well as extended services. Additionally, Linkco will utilize its digital technology expertise to offer digitalized cold storage services, building a digital operation management system for cold storage and cold chain logistics parks. Services will include intelligent cold chain logistics management systems, inventory management systems, B2B e-commerce platforms, AI digital cold storage construction, intelligent elevator control, cold storage energy-saving monitoring, and new energy applications.

This strategic partnership will comprehensively apply modern technologies such as internet, IoT, big data cloud computing, and AI to significantly advance the informatization of the enterprise. It aims to fully enhance operational efficiency, expand operational capabilities, and support the company in reducing costs, increasing efficiency, and achieving sustainable development.

The 2023 China Logistics High-Quality Ecological Development Conference and ESG Summit Forum was held in Shanghai, with Meicai, a model enterprise in the fresh produce supply chain, invited to participate. On this important stage, the brand representative of Meicai shared the company’s exploration and practices in urban distribution within fresh produce logistics.

Fresh Produce Logistics Companies Embrace New Technologies to Foster High-Quality Development in the E-Commerce Industry

With the development and popularization of internet technology, the logistics industry is facing unprecedented opportunities. Particularly in the field of fresh produce logistics, the rapid growth of e-commerce platforms has provided ample space for the trading of fresh food ingredients. Simultaneously, technologies such as big data and cloud computing are continuously driving innovation and upgrading within the logistics industry. Therefore, for fresh produce logistics companies, actively embracing new technologies, tapping into market potential, and improving service quality have become urgent priorities. Fresh produce logistics is a critical link in ensuring the quality of e-commerce products. Over the past few years, Meicai has been committed to building a high-quality fresh produce logistics system by optimizing the distribution network, improving logistics efficiency, and strengthening quality control, thereby continuously reducing logistics costs and providing consumers with a more convenient shopping experience.

Utilizing Big Data Technology to Optimize the Logistics Industry and Increase Product Value

Firstly, big data analysis is applied in the logistics industry to deeply mine user data and market data, enabling precise predictions of user demand and market trends. By analyzing user needs, Meicai can optimize product structures and enhance product value. Additionally, by analyzing market trends, Meicai can promptly adjust product strategies to meet market demands. The application of big data has also yielded significant results in product recommendations.

Secondly, regarding the establishment of a delivery service system, Meicai has improved delivery efficiency and shortened user waiting times by establishing a comprehensive delivery service system. Meicai trains and assesses delivery personnel to ensure the quality of delivery services. The company has also optimized delivery processes to enhance efficiency. While ensuring user privacy, Meicai has strengthened the security management of delivery information through technological means, ensuring the confidentiality of user information.

Additionally, regarding quality control, Meicai strictly screens and inspects fresh produce during transportation to ensure product quality and safety. To ensure product quality, Meicai has established stringent quality control standards and rigorously audits and manages suppliers. During transportation, Meicai conducts random inspections of products to ensure they meet quality standards. Meicai has also set up dedicated customer feedback channels to promptly gather user feedback on products and make targeted improvements and optimizations.

Practicing ESG Concepts to Support Green Development and Circular Economy

As awareness of social responsibility awakens, more and more companies are incorporating ESG concepts into their entire business operations. As an internet company, Meicai deeply understands its responsibilities. While continuously optimizing its business, Meicai also actively takes actions to support national green development, always staying attuned to industry trends and policy changes to ensure the company remains at the forefront of development. Additionally, Meicai actively engages with domestic and international partners to exchange and learn from advanced enterprise management experiences and technological methods. Environmental protection is always regarded as a crucial social responsibility by Meicai.

For example, in transportation, Meicai strengthens vehicle maintenance and management to ensure emissions meet standards, and reduces logistics costs by optimizing warehouse management and increasing resource utilization. Meicai emphasizes its cooperation with suppliers, attempting to integrate ESG concepts throughout the procurement and logistics processes. Meicai also actively participates in social welfare activities to spread ESG concepts and raise awareness of the company’s efforts in sustainable development.

Continuing High-Quality Development in Fresh Produce Logistics

As the forum concluded successfully, the brand representative of Meicai reiterated the company’s determination and efforts in promoting high-quality development within the fresh produce logistics industry. She expressed confidence in Meicai’s development in the field of fresh produce logistics, hoping to share Meicai’s practical experience in fresh produce logistics with more industry partners through this annual meeting. She aims to work together to advance the development of China’s logistics industry and provide a more convenient and pleasant shopping experience for catering businesses

Over the past week, Wanye Logistics has been very active, entering into collaborations with supply chain service provider “Yuncangpei” and bulk aquatic product online trading platform “Huacai Technology.” These collaborations aim to further strengthen Wanye’s diversified cold chain logistics services through strong partnerships and technological empowerment.

As an independent logistics brand under Vanke Group, Wanye Logistics now covers 47 major cities nationwide, with over 160 logistics parks and a warehousing scale exceeding 12 million square meters. It operates 49 specialized cold chain logistics parks, making it the largest in terms of cold chain warehousing scale in China.

Extensive and widely distributed warehousing facilities are Wanye Logistics’ core competitive advantage, while enhancing operational service capabilities will be its future focus.

Strong Growth in Cold Chain Logistics

Founded in 2015, Wanye Logistics has maintained rapid growth in recent years. Data shows that over the past four years, Wanye Logistics’ operating income has achieved a compound annual growth rate (CAGR) of 23.8%. In particular, the cold chain business income has grown at an even higher CAGR of 32.9%, with the revenue scale nearly tripling.

According to data from the National Development and Reform Commission, the national logistics revenue achieved year-on-year growth of 2.2% in 2020, 15.1% in 2021, and 4.7% in 2022. Wanye Logistics’ revenue growth rate in the past three years has significantly exceeded the industry average, which can be partly attributed to its smaller base, but its development potential cannot be underestimated.

In the first half of this year, Wanye Logistics achieved a revenue of 1.95 billion RMB, a year-on-year increase of 17%. Although the growth rate has slowed, it is still significantly higher than the national average growth rate of about 12%. Wanye Logistics’ cold chain logistics services, in particular, saw a 30.3% year-on-year increase in revenue.

As previously mentioned, Wanye Logistics has the largest cold chain warehousing scale in China. Including the four new cold chain parks opened in the first half of the year, Wanye’s cold chain rentable building area totals 1.415 million square meters.

Relying on these cold chain logistics services is naturally an advantage for Wanye, with half-year revenue of 810 million RMB accounting for 42% of the company’s total income, even though the rentable area is only one-sixth of the rentable area of standard warehouses.

Wanye Logistics’ most representative cold chain park is the Shenzhen Yantian Cold Chain Park, its first bonded cold warehouse. This project covers an area of about 100,000 square meters and has maintained an average daily inbound volume of 5,200 boxes and an outbound volume of 4,250 boxes since it began operations in April, making it a powerful agricultural product cold chain logistics hub in the Greater Bay Area.

Will It Go Public?

Given its scale, business model, and advantages, Wanye Logistics seems poised to enter the capital market. Recent market rumors suggest that Wanye Logistics might go public and become the “first cold chain logistics stock” in China.

Speculation is fueled by Wanye’s accelerated expansion, hinting at pre-IPO momentum. Additionally, the introduction of A-round investments from Singapore’s GIC, Temasek, and others nearly three years ago suggests a potential exit cycle.

Moreover, Vanke has invested over 27.02 billion RMB directly into its logistics business, making it the largest investment among its subsidiaries, yet with an annual return rate of less than 10%. Part of the reason is the high value of logistics cold storage projects under construction, which require significant capital.

Vanke President Zhu Jiusheng acknowledged at an August performance meeting that “even if the transformation business does well, its contribution to revenue scale and profits is likely to be limited.” The capital market can evidently shorten the return cycle for new industries.

Furthermore, Wanye Logistics set a “100 cold chain parks” target in 2021, particularly increasing investment in core cities. Currently, Wanye Logistics’ cold chain parks number less than half of this target. Rapidly implementing this expansion plan will necessitate capital market support.

In reality, Wanye Logistics tested the capital market in June 2020, issuing its first quasi-REITs on the Shenzhen Stock Exchange market, with a modest scale of 573.2 million RMB but good subscription results, attracting investments from institutions such as China Minsheng Bank, Industrial Bank, China Post Bank, and China Merchants Bank. This indicates initial market recognition of its logistics park asset operations.

With increased national support for infrastructure REITs in recent years, public REITs listings for industrial parks and warehousing logistics could be a viable path. At a performance briefing in March this year, Vanke management indicated that Wanye Logistics had selected several asset projects in Zhejiang and Guangdong, covering about 250,000 square meters, which have been submitted to local Development and Reform Commissions, with REITs issuance expected within the year.

However, some analysts point out that Wanye Logistics’ preparations for listing are not yet sufficient, with its pre-listing earnings and scale still lagging behind international advanced levels. Maintaining growth will be a crucial task for Wanye in the foreseeable future.

This aligns with Wanye Logistics’ clear development direction. Wanye Logistics has articulated a strategic formula: Wanye = base × service^technology. While the symbols’ meanings are unclear, the keywords highlight a capital-centric warehousing network and technology-supported operational service capabilities.

By continuously strengthening its base and enhancing service capabilities, Wanye Logistics stands a better chance of navigating the current industry cycle of declining profits and telling a compelling story in the capital market.

BATTLE FOR FRESH E-COMMERCE: HEMA FRESH ADVANCES, DINGDONG MAICAI RETREATS