HEMA DEVELOPS FRESH PRE-PACKAGED MEALS AND CONTINUES TO STRENGTHEN ITS FRESH FOOD SUPPLY CHAIN

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HEMA DEVELOPS FRESH PRE-PACKAGED MEALS AND CONTINUES TO STRENGTHEN ITS FRESH FOOD SUPPLY CHAIN

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.

On September 19, 2023, SINGAUTO, an innovative technology company from Singapore, held a global new energy smart refrigerated vehicle brand and product launch conference at the Yanqi Lake International Convention and Exhibition Center in Beijing. This event, themed “Intelligent Innovation, Leading the Future,” marked SINGAUTO’s bold move to revolutionize the global new energy smart cold chain logistics market with disruptive action and courage.

“Since its establishment, SINGAUTO has been driving the transformation of the global new energy smart cold chain vehicle market with the concepts of safety, connectivity, efficiency, and environmental protection,” said Liu Yuqiang, founder of SINGAUTO, at the conference. “We are constantly seeking more innovative new energy and intelligent commercial vehicle solutions, creating new service and energy models to ensure unique competitiveness, leading the global cold chain transportation industry towards more efficient and greener development.”

“Internet + Logistics”: SINGAUTO Transforms Cold Chain Logistics

SINGAUTO focuses on secondary logistics, not only providing customers with efficient, green new energy smart refrigerated vehicles and derivative models but also striving to build a new “Internet + Logistics” model. This approach makes logistics operations more intelligent and efficient, providing customers with comprehensive technical services to meet needs in hardware, software, and big data, laying a solid foundation for achieving the vision of “truly benefiting users.”

Innovation and Vision: SINGAUTO Expands Global Market

As a Singapore-based technology company, SINGAUTO set out from its inception with an international development strategy of “based in China, oriented to the world.” At this conference, Liu Yuqiang announced SINGAUTO’s “135 Plan,” indicating that the company is challenging conventions, rapidly establishing R&D, production, and distribution networks, actively expanding global strategic partners and customers. Leveraging deep insights into the new energy smart refrigerated vehicle industry and market sensitivity, SINGAUTO aims to build a global leadership brand in this niche market.

Forward Development: SINGAUTO Unveils Three Groundbreaking Products

At this launch event, SINGAUTO introduced three new products featuring self-designed, leading-edge technology:

New Energy Cold Chain Vehicle S1: This model, based on forward development, measures 5,995mm in length and offers over 18 cubic meters of storage capacity. Its unique integrated body design ensures optimal space utilization, with a drag coefficient of 0.4, providing excellent energy efficiency among similar logistics models. The vehicle is equipped with a 106kWh battery pack, offering a range of 300km. Fast charging from 0 to 80% takes only 40 minutes, while the battery swap mode can complete a quick battery change in 5 minutes, significantly increasing efficiency and convenience. Distributed motors drive the wheels directly, simplifying the transmission chain and creating a more compact body structure, providing more space inside the vehicle. The entire vehicle supports OTA upgrades and features L4-level assisted driving, smart central control, and a walk-in cabin for easier, safer driving. The model also includes an innovative external electronic screen that can output diverse content.
New Energy Smart Commercial Vehicle V1: This concept product aims to become the future smart commercial vehicle solution. It measures 5,545mm in length, 2,100mm in width, and 2,150mm in height, with a range of up to 320km and a total weight of 2.3 tons, bringing new product concepts to the commercial vehicle market. The V1′s design combines straight lines and sharp angles, giving it a distinctive avant-garde style. It can adapt to various commercial and practical scenarios, from urban express delivery to long-distance logistics transportation, fully meeting diverse business needs.
New Energy Autonomous Charging Vehicle E1: This newly developed fully autonomous charging vehicle measures 2,200mm in length, 980mm in width, and 1,400mm in height, with a compact body size that allows easy navigation in various environments. The vehicle is equipped with two high-precision radars and two cameras, along with eight ultrasonic sensors, enabling comprehensive obstacle detection and tracking. This ensures the safety of the charging vehicle and allows it to autonomously navigate around obstacles. The E1 can be summoned via a mobile app for quick charging of SINGAUTO vehicles, significantly improving logistics efficiency and addressing frequent charging needs in urban logistics, offering great convenience to users of SINGAUTO’s smart cold chain vehicles.

At the event, SINGAUTO signed strategic investment agreements with DAEJI P&I, Cynergy Global Investment Company, and Turing Qiushi, demonstrating the confidence and support of these global investment firms in SINGAUTO’s future development. Additionally, SINGAUTO signed strategic cooperation agreements with Qingdao Feixiong Lingxian Technology Co., Ltd., Shaanxi Subida Cold Chain Logistics Co., Ltd., and Qingdao Wanchun Restaurant Management Co., Ltd., showcasing SINGAUTO’s active efforts to expand the enterprise user market. From the outset, SINGAUTO has closely collaborated with partners, including investors and enterprise users, to jointly transform the global cold chain logistics industry.

With this grand brand and product launch, SINGAUTO announced to the world that the revolution in the new energy smart cold chain logistics industry has arrived. Let’s witness the power of SINGAUTO leading the future together, creating the cutting-edge and pioneering the future!

For many years, JD Supermarket has implemented a four-in-one strategy of direct sourcing from production areas, strict quality control, supply chain cost reduction and efficiency improvement, and billion-yuan subsidies. This approach has introduced numerous high-quality products at the lowest prices on the internet, allowing consumers to purchase affordable and reliable goods. A prime example of this strategy is the collaboration between JD.com and the Weihai government, industry associations, and leading local enterprises to establish the JD Weihai Marine Industry Belt.

Located at the golden latitude of 37°N, Weihai boasts nearly a thousand kilometers of coastline with relatively flat nearshore seabeds across various sea areas. It serves as the throat and transit point for the exchange of waters between the northern and southern Yellow Sea, making it an ideal place for sea cucumber growth. According to Professor Liang Zhenlin from the Oceanography Institute of Shandong University, Weihai is far from industrial and navigational routes, resulting in a 100% high-quality water rate, making it genuinely clear and pollution-free. Additionally, the intersection of the East China Sea and the Yellow Sea at Shandong, coupled with the flow of ocean currents, brings a higher water quality replacement rate and abundant bait resources. Weihai, with its unique maritime advantages, produces sea cucumbers that are superior in both quantity and quality.

While the reputation of Weihai sea cucumbers continues to rise, some irregularities have also surfaced in the market. Li Junfeng, Chairman of the Weihai Sea Cucumber Industry Association, points out that the primary issues in Weihai sea cucumber sales include the addition of sugar, salt, water, and the passing off of non-local products as authentic ones. Some online channels even sell sea cucumbers with half a pound of sugar and half a pound of water per pound of sea cucumber. These inferior fake products quickly capture the market with extremely low prices, disrupting industry order.

In recent years, JD Supermarket, as the largest online channel for consumers to purchase sea cucumbers, has been deeply involved in the high-quality sea cucumber industry belt. Through close cooperation with local governments, associations, and leading enterprises, JD Supermarket has reduced intermediate links to enhance the circulation efficiency of sea cucumbers and promote the sustainable high-quality development of the sea cucumber industry.

Hu Hai, the head of fresh sea cucumber procurement and sales at JD Supermarket, explains that to eliminate industry irregularities and meet consumers’ needs for high cost-performance products, JD Supermarket has stationed buyers directly in production areas for direct sourcing to ensure low prices. Additionally, to prevent inferior fake sea cucumbers from being passed off as good ones, JD has arranged for quality inspection experts to monitor and inspect the entire process, ensuring the reliability of sea cucumber quality.

Furthermore, JD Supermarket collaborates with the government and associations to co-build geographical indications and establish a traceability system. This system strictly controls the listing and operation of geographical indication products on the platform, ensuring the platform’s reputation for genuine and reliable products.

In terms of cold chain logistics, JD Supermarket leverages JD’s nationwide cold chain logistics network to ensure the timeliness and quality of product delivery. Currently, JD Airlines has opened flights to Weihai, and JD has established two supply chain bases in Weihai to coordinate logistics scheduling, achieving cost reduction and efficiency improvement.

Regarding the cooperation between Weihai sea cucumbers and JD Supermarket, Li Yongren, a member of the Party Leadership Group and Deputy Director of Weihai Marine Development Bureau, stated that with the start of the first autumn catch, both parties will jointly promote the upgrading of the industry belt around the characteristic sea products represented by “Weihai sea cucumber.” By leveraging JD’s advantageous resources, they aim to strengthen the brand image of Weihai landmark products, bringing new growth opportunities for increased production and income.

Taobao Grocery’s New Recruitment and Market Expansion

Recently, job listings on third-party recruitment platforms indicate that Taobao Grocery is hiring business developers (BD) in Shanghai, specifically in Jiading District. The primary job responsibility is to “develop and promote Taocai’s group leaders.” Currently, Taobao Grocery is preparing to launch in Shanghai, but its WeChat mini-program and Taobao app do not yet show group points in Shanghai.

This year, the fresh e-commerce industry has reignited hope, with major e-commerce giants like Alibaba, Meituan, and JD.com re-entering the market. Retail Circle has learned that JD.com launched JD Grocery at the beginning of the year and has since restarted its front warehouse model. Meituan Grocery also restarted its expansion plans earlier this year, extending its business to new areas in second-tier cities like Wuhan, Langfang, and Suzhou, thereby increasing its market share in fresh e-commerce.

According to China Market Research Group, the industry is projected to reach a scale of about 100 billion yuan by 2025. Despite the failure of Missfresh, the profitability of Dingdong Maicai has given the industry confidence. Therefore, with e-commerce giants entering the market, competition in the fresh e-commerce sector is expected to become fiercer.

01 The Battle Reignites

Fresh e-commerce was once a top trend in the entrepreneurial world. In the industry, 2012 is considered the “first year of fresh e-commerce,” with major platforms like JD.com, SF Express, Alibaba, and Suning forming their own fresh platforms. Starting in 2014, with the entry of the capital market, fresh e-commerce entered a period of rapid development. Data shows that the industry’s transaction volume growth rate reached 123.07% that year alone.

After several years of development, a new trend emerged in 2019 with the rise of community group buying. At that time, platforms like Meituan Grocery, Dingdong Maicai, and Missfresh began intense price wars. The competition was exceptionally fierce. In 2020, the pandemic provided another opportunity for the fresh e-commerce sector, with the market continuing to expand and transaction volumes growing.

However, after 2021, the growth rate of fresh e-commerce slowed, and the traffic dividend was exhausted. Many fresh e-commerce companies started layoffs, closed stores, and reduced their operations. After nearly a decade of development, the vast majority of fresh e-commerce companies still struggled to be profitable. Statistics show that in the domestic fresh e-commerce field, 88% of companies are losing money, only 4% break even, and only 1% are profitable.

Last year was also challenging for fresh e-commerce, with frequent layoffs and closures. Missfresh stopped operating its app, Shihuituan collapsed, Chengxin Youxuan transformed, and Xingsheng Youxuan shut down and laid off staff. However, entering 2023, with Freshippo turning profitable and Dingdong Maicai announcing its first GAAP net profit for Q4 2022, and Meituan Grocery nearly breaking even, fresh e-commerce seems to be entering a new phase of development.

Early this year, JD Grocery quietly launched, and Dingdong Maicai held a vendor conference, preparing for major operations. Subsequently, Meituan Grocery announced its expansion into Suzhou, and in May, Taocai officially rebranded as Taobao Grocery, merging the next-day self-pickup service Taocai with the hourly delivery service Taoxianda. These moves indicate that the fresh e-commerce industry is undergoing new changes.

02 Showcasing Abilities

Clearly, from the market size and future development perspective, fresh e-commerce represents a significant opportunity. Therefore, major fresh platforms are actively adjusting or enhancing their business layouts in this field.

JD Grocery Relaunches Front Warehouses: Retail Circle learned that as early as 2016, JD.com had laid out plans for fresh e-commerce, but the results were minimal, with development being lukewarm. However, this year, with the “revival” of the fresh e-commerce industry, JD.com has accelerated its layout in this field. At the beginning of the year, JD Grocery quietly launched, and soon after, two front warehouses began operations in Beijing.

Front warehouses, an innovative operating model in recent years, differ from traditional warehouses far from terminal consumers by being located near communities. This brings a better shopping experience for consumers but also higher land and labor costs for the platform, which is why many are skeptical of the front warehouse model.

For JD.com, with its strong capital and logistics system, these impacts are minimal. Relaunching front warehouses complements JD Grocery’s previously unreachable self-operated segment, giving it more control. Previously, JD Grocery operated on an aggregation platform model, involving third-party merchants like Yonghui Superstores, Dingdong Maicai, Freshippo, Sam’s Club, Pagoda, and Walmart.

Meituan Grocery Expands Aggressively: Retail Circle learned that Meituan has also accelerated its fresh e-commerce layout this year. Since February, Meituan Grocery has resumed its expansion plan. Currently, it has launched new businesses in parts of second-tier cities like Wuhan, Langfang, and Suzhou, increasing its market share in fresh e-commerce.

In terms of products, Meituan Grocery has expanded its SKU. Besides vegetables and fruits, it now offers more daily necessities, with the SKU exceeding 3,000. Data shows that most of Meituan’s newly opened front warehouses in 2022 were large warehouses of over 800 square meters. In terms of SKU and warehouse size, Meituan is close to a mid-to-large supermarket.

Moreover, Retail Circle noticed that recently, Meituan Delivery announced plans to strengthen its instant delivery cooperation ecosystem, partnering with SF Express, FlashEx, and UU Runner. This collaboration, combined with Meituan’s own delivery system, will create a richer delivery network for merchants, indicating a trend from competition to cooperation in the instant delivery industry.

Taobao Grocery Focuses on Instant Retail: In May, Alibaba merged its community e-commerce platform Taocai with its instant retail platform Taoxianda, upgrading it to Taobao Grocery.

Currently, the Taobao app homepage has officially launched the Taobao Grocery entrance, providing “1-hour delivery” and “next-day self-pickup” fresh retail services for users in over 200 cities nationwide. For the platform, integrating local retail-related businesses can meet consumers’ one-stop shopping needs and further enhance their shopping experience.

At the same time, integrating local retail-related businesses can effectively avoid traffic dispersion and reduce delivery and procurement costs. Previously, the head of Taobao Grocery stated that the core reason for the merger and upgrade is to make Taobao Grocery cheaper, fresher, and more convenient for consumers. Additionally, for Taobao, this further improves its overall e-commerce ecosystem layout.

03 Quality Remains the Focus

In the past few years, the fresh e-commerce sector has often followed a money-burning and land-grabbing model. Once subsidies decrease, users tend to return to traditional offline supermarkets. Therefore, how to maintain sustained profitability has been a perennial issue for the fresh e-commerce industry. As fresh e-commerce sets out again, Retail Circle believes that the new round of competition will inevitably shift from price to quality for two reasons:

First, with the market becoming more regulated, price wars are no longer suitable for the new market environment. Retail Circle learned that since the end of 2020, the State Administration for Market Regulation and the Ministry of Commerce issued “nine prohibitions” on community group buying, strictly regulating behaviors like price dumping, price collusion, price gouging, and price fraud. Scenes like “buying vegetables for 1 cent” or “buying vegetables below cost price” have gradually disappeared. With previous lessons learned, the fresh e-commerce players re-entering the market will likely abandon “low price” strategies even if their expansion tactics remain unchanged. The new round of competition will be about who can offer better service and higher-quality products.

Second, consumption upgrades drive consumers to increasingly pursue product quality. With lifestyle updates and evolving consumption patterns, consumers increasingly seek convenience, health, and environmental friendliness, leading to the rapid rise of fresh e-commerce. For consumers pursuing high-quality living, food quality and safety are becoming more critical, expanding their daily dietary needs. Fresh e-commerce platforms must focus on consumer experience and product quality, integrating offline and online seamlessly to stand out in the competition.

Additionally, Retail Circle believes that over the past three years, consumer behavior has been repeatedly reshaped. The rise of live e-commerce challenges traditional shelf e-commerce, paving the way for more impulse and emotional consumption. Instant retail channels, while addressing immediate consumption needs, also played essential roles during special periods, finally finding their niche.

As a representative of affordable and essential consumption, grocery shopping can provide valuable traffic and order flow for e-commerce platforms facing traffic anxiety. With content industry updates and supply chain iterations, future dietary consumption will become a key battleground for giants. The fresh e-commerce industry will face even fiercer competition ahead.

HEMA DEVELOPS FRESH PRE-PACKAGED MEALS AND CONTINUES TO STRENGTHEN ITS FRESH FOOD SUPPLY CHAIN