In China Internet Giants PROVIDE Fierce Competition for Traditional retail in Fruit

18 November 2021

In China, Alibaba and PDD and other internet giants are really pushing hard to gain market share in produce (fruit, meat, seafood) at the expense of traditional retail shops and supermarkets by delivering really inexpensive produce, bought through their APPs, through hundreds of easy to visit delivery points within apartment communities in China’s major cities. These companies are able to offer lower prices because of their huge buying power. Their strategy has been boosted by the Pandemic, where economic uncertainty has caused many consumers to save more and to look for value.

Alibaba’s two on-line stores - Hema NB and Taobao MaiCai - deliver fruits bought on their APPs direct to these community outlets. Hema NB have their own small community pick up shops with fridges and water tanks to keep meat, fruit and fish as fresh as possible. Taobao and PDD have nominated individual receivers in the community from which locals can pick up their deliveries.

Hema NB Community Pick Up Point, Nanjing November 2021
Hema NB Community Pick Up Point, Nanjing November 2021

Pictures: Hema NB Store: Left: Box of Chinese Apples (Yantai) Delivered to Customer in Nanjing (5kg for RMB 22.4 (AUD 4.66). Right: Hema App

Pictures: Left: Box of Chinese Mandarins delivered to Community Pick Up Point Nanjing. 2.5Kg for RMB 8.3 (AUD 1.75). Middle: PDD APP offering Chinese bananas for RMB 5.99/Kg (AUD 1.25/Kg) and Right: TaoBao MaiCai App Bananas RMB 3.88/500Gr (AUD 1.60/Kg).

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