Alibaba's Freshippo and Hema grocery stores are reinventing the supermarket of the future

Summary

Alibaba's Hema store in Shanghai showcases a futuristic retail experience with a robot restaurant. The store integrates shopping, online order distribution, and dining, featuring real-time price updates and transparency on product origins. Customers can order groceries for delivery within 30 minutes and enjoy a seamless checkout via the Hema app. The robot restaurant automates food delivery, offering a high-tech dining experience, though human servers are still needed for complex dishes.

Takeaways

• 🏬 Alibaba's Hema store in Shanghai is a new retail concept that combines a physical shopping experience with a robot restaurant.
• 📈 The Hema store has been rapidly expanding in China, opening 65 locations in just one year.
• 🛍️ The store serves as a place to shop in person, a distribution center for online orders, and a restaurant.
• 🏷️ Every price tag in the Hema store has a barcode that can be scanned with the Hema app to see the price, reviews, delivery information, and a government certificate.
• 📈 The pricing system uses special technology that can change prices in real-time.
• 🚀 Store employees use scanners and conveyor belts to fulfill online orders, making the store an efficient distribution center.
• 🏠 Delivery is available for customers within three kilometers of a Hema store, with groceries delivered within 30 minutes.
• 🦞 Chinese consumers prefer to visit the store in person to see the freshness of seafood before purchasing.
• 🛒 There are no traditional cashiers in the Hema store; payments are made through the Hema app connected to Alipay, or via facial recognition.
• 🍽️ The robot restaurant at Hema allows customers to order and pay through the Hema app, with robots delivering the food.
• 🤖 Alibaba uses technology from its e-commerce automated warehouses to power the robot restaurants, creating an efficient system of robots working together.

Q & A

What is the name of Alibaba's new retail concept store?

The name of Alibaba's new retail concept store is Hema.

What is unique about the Hema store's expansion into offline retail?

The Hema store is unique in its expansion into offline retail as it includes its own robot restaurant, which is the first of its kind.

How does Hema's pricing system work?

Hema's pricing system uses barcodes on price tags that customers can scan with the Hema app to see the item's price online, read reviews, and get information about delivery and origin, including government certificates for organic products.

What is special about the technology used in Hema's price tags?

The technology used in Hema's price tags allows for real-time price changes and provides information about when and where the product was delivered to the store.

How does Hema's store function as a distribution center for online orders?

Hema's store functions as a distribution center by using a conveyor belt system where employees place products for online orders, which are then automatically transported to the back area for delivery.

What is the delivery promise for customers living within three kilometers of a Hema store?

For customers living within three kilometers of a Hema store, the delivery promise is to have their groceries delivered within 30 minutes.

How does Hema's checkout process differ from traditional grocery stores?

Hema's checkout process is fully digital, with no traditional cashiers. Customers use the Hema app, connected to Alipay, to swipe their phone in front of a scanner for payment, and they also have the option to pay using facial recognition.

What is the role of the Hema app in the shopping and dining experience?

The Hema app is central to the shopping and dining experience, allowing customers to scan barcodes for pricing and reviews, facilitate checkout, order food at the robot restaurant, and even pay using facial recognition.

How does the Hema robot restaurant work?

At the Hema robot restaurant, customers check in at a kiosk using the app, get assigned a table, scan the table's barcode, and place orders through the app. Robots then deliver the food, and payment is made within the app.

What is the significance of the Hema store's three pillars of strategy?

The three pillars of Hema's strategy are to serve as a place for in-person shopping, a distribution center for online orders, and a restaurant. This approach aims to define the future of retail by integrating online and offline experiences.

What are the limitations of Hema's robot restaurant in terms of food service?

While the robot restaurant can handle the delivery of most dishes, it is limited in that it cannot serve complicated dishes like soups, which require human servers.

Outlines

00:00

🤖 Hema Store: Alibaba's Futuristic Retail and Robot Restaurant

The video script introduces Hema, Alibaba's innovative retail concept store in Shanghai, which also features a robot restaurant. Hema is rapidly expanding in China, opening 65 locations in a single year. The store serves as a physical shopping destination, an online order distribution center, and a restaurant. The pricing system is advanced, with barcodes on every tag that can be scanned via the Hema app to check prices, reviews, delivery details, and authenticity certificates. The store also uses technology to change prices in real-time. Online orders are fulfilled by staff who use scanners and a conveyer belt system to efficiently process deliveries, especially within a three-kilometer radius where groceries can be delivered within 30 minutes. Despite the efficiency, the store can feel chaotic due to the number of employees fulfilling orders. The script also mentions the importance of in-store seafood purchases for Chinese consumers and the absence of traditional cashiers, with payment handled through the Hema app and Alipay. The robot restaurant is highlighted, where customers use the app to check in, assign tables, and place orders, with robots delivering the food and handling payments.

Keywords

💡Hema

Hema is the name of Alibaba's new retail concept store, which is a central focus of the video. It represents the integration of technology into traditional retail spaces. The video discusses Hema's unique features, such as its robot restaurant and real-time pricing system, highlighting how it is redefining the shopping experience.

💡Robot Restaurant

The robot restaurant at Hema is a key innovation highlighted in the video. It showcases how technology is being used to automate food delivery in a retail setting. Robots are responsible for delivering food to customers, illustrating the potential for automation in service industries.

💡Pricing System

The pricing system in Hema stores is a technological feature that allows prices to be updated in real-time. This system is connected to the Hema app, enabling customers to scan barcodes to see prices and product reviews. It exemplifies how technology can enhance transparency and efficiency in retail.

💡Barcode

Barcodes in the Hema store are used in conjunction with the pricing system and the Hema app. Customers can scan these barcodes to access detailed information about products, including prices, reviews, and delivery details. This demonstrates the integration of technology in enhancing customer interaction with products.

💡Distribution Center

Hema stores function not only as retail spaces but also as distribution centers for online orders. The video mentions how employees use scanners and conveyor belts to fulfill online orders efficiently. This dual role is part of Hema's strategy to optimize logistics and customer service.

💡Online Orders

Online orders are a significant aspect of Hema's business model, as highlighted in the video. Customers can order products through the Hema app, and these orders are fulfilled by employees in the store. This system allows for quick delivery, with groceries being delivered within 30 minutes if the customer lives within three kilometers of a Hema store.

💡Alipay

Alipay is a payment platform that is integrated with the Hema app. The video mentions how consumers can use Alipay to make payments at Hema stores, either by scanning their phone or using facial recognition technology. This integration showcases the seamless connection between e-commerce and physical retail.

💡Seafood

Seafood is highlighted in the video as a product category that Chinese consumers prefer to purchase in person. This preference is attributed to the importance of seeing the freshness of seafood firsthand. It demonstrates the ongoing relevance of physical retail in certain product categories.

💡Self-Checkout

The video notes that Hema stores do not have traditional cashiers and instead rely on self-checkout systems connected to the Hema app. This approach eliminates the need for human interaction at the checkout process, streamlining the shopping experience and further automating the retail process.

💡E-commerce

E-commerce technology is leveraged by Alibaba in the Hema stores, as mentioned in the video. The integration of e-commerce platforms with physical retail spaces is a key theme, showing how online and offline shopping experiences can be merged to create a more efficient and convenient retail model.

💡Robot Ecosystem

The robot ecosystem in Hema's robot restaurant is a complex network of robots working together to deliver food to customers. The video describes how Alibaba has adapted technology from e-commerce automated warehouses to power these restaurants, illustrating the potential for robotics in enhancing service efficiency.

Highlights

Alibaba's Hema store in Shanghai features a robot restaurant, showcasing the tech giant's expansion into offline retail.

Hema's strategy includes a physical shopping experience, online order distribution, and a restaurant, aiming to define the future of retail.

The Hema app allows customers to scan barcodes for real-time pricing, product reviews, and detailed delivery and origin information.

Hema's pricing system uses special technology to update prices in real-time and display government certificates for products like organic items.

Store employees use a conveyer belt system to fulfill online orders, streamlining the process and reducing the need for walking across the store.

Hema offers 30-minute grocery delivery for customers within a three-kilometer radius, enhancing convenience.

The store's efficiency comes with a somewhat chaotic in-store experience due to employees fulfilling orders throughout the store.

Hema features numerous sample stations, similar to Costco, allowing customers to try products before purchasing.

Chinese consumers prefer in-store visits for seafood to ensure freshness, one of the reasons for visiting Hema.

Hema has no traditional cashiers, relying solely on the Hema app connected to Alipay for payment, including facial recognition options.

The Hema app streamlines the checkout process, eliminating the need for human interaction or traditional self-checkout methods.

The robot restaurant at Hema allows customers to check in, order, and pay through the app, minimizing staff interaction.

Alibaba's existing e-commerce automated warehouse technology powers the robot restaurant, creating an efficient ecosystem of robots.

The robot restaurant features a tablet for entertainment, though its functionality is somewhat redundant with modern smartphones.

Human servers are still required for complex dishes like soups, indicating that some aspects of dining still need human touch.

Transcripts

I’m in Shanghai visiting Alibaba’s new retail concept store. The name? Hema.

Not only is the tech titan expanding into offline retail,

but this location is the first with its own robot restaurant too.

Robots are actually delivering, pretty much, all the food.

That's where I’ll end up at after the shopping experience.

The Hema store is growing rapidly in China, opening 65 locations in one year.

There’s three pillars to its strategy: serving as a place to shop in person,

a distribution center for online orders and the restaurant.

It’s hoping to define what the future of retail will look like.

While I’m checking this out, I might as well grab a basket.

Let’s see what interests me.

The first thing I notice is the pricing system. Every price tag has a barcode, in which you can use the Hema app

to scan the barcode and see the price of the item online. You can also see reviews of that product.

What’s also fascinating is that even though these price tags look like they were printouts,

it's a special technology that can change the price in real-time.

And that’s not all.

It even tells you when it was delivered to the store and where it came from.

You can even see a scan of a government certificate proving, for instance, if it was organic.

It also shows delivery options if you decide not to buy it in store.

I just saw a lady who works for the store and she was fulfilling an online order.

So using her scanner, she had a bag, she would pick the products.

And then what was really crazy, is instead of walking across the store to get it where it needs to go,

she put it on a conveyer belt, which then took it to the ceiling, to the back area, where it will go out for delivery.

So essentially now you’re talking about not only a retail store, but also a distribution center.

And if you live within three kilometers of a Hema store,

you can have delivery of your groceries within 30 minutes.

You see a lot of employees walking around the store, fulfilling orders.

I understand how it can maximize efficiency of sourcing,

but it creates a somewhat chaotic experience too, when you have a lot of people running around.

A lot of sample stations throughout the store.

It's like a Costco. Sample stations everywhere.

At one point you ask yourself, why even come to the store then?

If everything is online and it's such an easy experience to just order from an app.

Well one reason Chinese consumers prefer to come in store is for seafood.

It's very important for the Chinese consumer to see firsthand their seafood, to make sure it's fresh.

Alright, so I picked two items that I'm going to check out with.

One of them is bananas, and the other one is these Lays potato chips, Italian red meat flavor.

Why not try something new?

There’s literally no traditional cashier at this grocery store.

It's not like you have an option between a cashier and self-checkout.

So if you're looking for that human interaction, go somewhere else.

Using the Hema app, which is connected to Alipay,

consumers swipe their phone in front of this scanner, and that’s pretty much it.

There’s also the option to pay using your face, too.

And now, let me try those chips.

It's actually a very subtle taste. It's not too strong, surprisingly.

Now, it’s time to try the robot restaurant.

To get a table here, you can check in at a kiosk, you guessed it, using the app.

It's connected to your identity, your name, everything you've bought in the past, and of course, your wallet.

From there, you get assigned a table. Once you're assigned a table, you scan the barcode at the table.

And then from there, you can just start placing your order on the Hema app.

So you’re not waiting for anyone to come take your order. There's no pen or paper, any of that.

In fact, you really have no interaction with a staff member.

And then from there, the robots deliver your food.

And you've already paid, all within the same app.

Alibaba leveraged its existing technology from the e-commerce automated warehouses

to power these new robot restaurants.

It's really an entire ecosystem of robots that are working together pretty well. I have yet to see a collision.

Even the tablet at the table, in a way, is obsolete.

The only thing the tablet can really do is entertain you. There's games, which your phone probably has.

You can call for a server if you need, you can use the tablet for that.

And then there's also a demo of how the robots work as well.

The robots can't handle everything though.

For complicated dishes, like soups, that'll require a human server.