Vinamilk yogurt selected for Hema supermarket - Alibaba's new retail model in China

Shopping experience at smart supermarket

Hema is a system of more than 150 retail supermarkets that are currently the most popular with consumers in China, concentrated in major cities such as Beijing, Shanghai, etc. According to Alibaba founder Jack Ma, Hema supermarkets are the model for the “new retail” model in China, integrating traditional and online sales through mobile applications. This model is part of an ambitious retail development strategy of the “giant” Alibaba.

Inside a Hema smart supermarket in Hunan province, where Vinamilk products have been available since September 2018.

Currently, Vinamilk's yogurt products are available in the Hema supermarket chain in Hunan province and Wuhan city - the capital of Hubei province. Vinamilk's yogurt products are quite diverse, including basic types such as original yogurt, fruit, strawberry,... and also Vietnamese specialties such as purple sticky rice yogurt, durian, passion fruit, jackfruit, mango.

Hema Hunan supermarket staff at Vinamilk yogurt product counter.

At Hema, everything is powered by technology and automation. For example, you can use the supermarket app to scan QR codes to learn about products and track their origins before adding them to your cart and paying. Supermarket staff will be in charge of picking up orders and leaving them at the exit or delivering them to your home within 30 minutes when you order online.

Vinamilk representative said that because of the advantages of this model, Vinamilk decided to bring products to Hema.“It can be said that with the development and strict requirements of the Hema supermarket system in China, this sales channel will help Vinamilk affirm the quality of the company's products, which is the basis for continuing to expand distribution in the market. At the same time, this is also an effective channel to reach Chinese consumers through an extremely convenient and fast shopping experience.”- Vinamilk representative added.

Quality - Taste - Convenience

Quality and taste are important criteria for Ms. Cong Yen, a customer shopping at Hema, to consider when choosing nutritional products. Ms. Cong Yen added:“I often shop on Hema’s mobile app, but I still go to the supermarket from time to time to try new products. For example, Vinamilk’s black sticky rice yogurt is very unique, can be used for breakfast, and is very tasty, so I ordered it for my family.”

Customers can try Vinamilk yogurt products at Hema supermarkets, then order via the mobile app.

In addition to allowing customers to shop in-store and on the app, Hema supermarkets also support customers to pay automatically using facial recognition and check the origin of products.

A representative of a Vinamilk distribution partner in Hunan said:“At Hema, customers can check encrypted information and trace the origin on the spot. This will help consumers trust the quality of Vinamilk products. For Chinese consumers, quality is the top factor to convince them, especially with nutritional and food products.”

Consumers can check information and pay quickly with automatic cash registers with facial recognition function.

Keeping up with the e-commerce boom

Over the past decade, China has been recognized as the world's leading e-commerce country. 42% of global e-commerce is taking place in China and the mobile payment market is 11 times larger than the US. In China, more than 731 million people (more than 50% of the country's population) use the internet. According to a report by the McKinsey Global Institute, China's current dominance in e-commerce is demonstrated by the number of transactions processed in a year in this country being higher than the combined number of 5 countries (France, Germany, Japan, the UK and the US).

Grasping the booming online consumption trend in China, in addition to the Hema app, consumers can buy products at Vinamilk's own booth on Alibaba's Tmall e-commerce channel and cooperate with major e-commerce sites in Hubei such as Daily Fresh and Lucky and Fresh.

Interface of Vinamilk's online store on Tmall, China's largest e-commerce site.

In addition to bringing Vietnamese dairy products to modern supermarkets in China and developing e-commerce channels, last September, Vinamilk officially launched its brand identity for this market within the framework of the largest international exhibition of the year on food & catering services in Hunan province, China. It can be seen that the fundamental steps in international business of this largest Vietnamese enterprise, especially in the world's largest market with 1.4 billion people but also very challenging.