Hema

About Hema

Hema, known as Freshippo and owned by Alibaba Group, is a retail platform for groceries and fresh goods that has been operational since 2015. The concept was pioneered by CEO Hou Yi, who initially proposed the idea at JD.com before bringing it to Alibaba. The first store opened in Shanghai in January 2016, marking the beginning of its expansion. As of early 2025, Freshippo operated nearly 430 stores across 50 cities in China. In March 2024, Hou Yi stepped down as CEO and was succeeded by the company's CFO, Yan Xiaolei.

Freshippo operates on a 'New Retail' business model, which integrates online and offline channels, logistics, and data to create a seamless shopping experience. This model utilizes physical stores as fulfillment centers for online orders, promising deliveries within a 30-minute radius. The business primarily serves digitally savvy, middle-to-high-end consumers, with a significant portion of its clientele aged between 25 and 40. Revenue is generated through direct sales, both in-store and online, as well as membership fees for its premium 'Hema X' warehouse stores. The company has achieved profitability, with its main Hema Xiansheng stores breaking even in 2022 and the entire Freshippo brand reporting its first full-year profit for the fiscal year ending March 2025.

The core of Freshippo's offering is fresh produce, particularly high-quality seafood that can be selected live and cooked in-store for immediate consumption. Beyond fresh goods, the platform provides a wide range of over 5,000 SKUs, including private-label products which accounted for 35% of sales in 2022. Customers use the Freshippo mobile app, which is linked to Alibaba's Alipay, to access product information by scanning barcodes, place orders for delivery, and complete payments. The company has experimented with various store formats, including 'Freshippo Mini' convenience stores, 'Freshippo Farmer's Market' for price-sensitive shoppers, and 'Freshippo Outlets' for surplus inventory, to cater to diverse market segments.