Alibaba expands footprints of Freshippo in China ahead of the unit's IPO

Freshippo, Alibaba Group's digital intelligence-powered new retail company, has launched 12 new stores on the same day in eight cities across China, including Beijing, Shanghai, and Guangzhou as the retailer prepares for an initial public offering (IPO).

This comes as Freshippo believes that the recovery of China’s consumer market contributes to the rapid rise of young customers, particularly those from new first-tier cities. As the real economy continues to integrate with the digital economy, paired with the growing demand for online shopping, domestic consumption is set to rise significantly, according to the release.

Out of the 12 new stores, seven newly opened Freshippo stores are adopting the latest store image, which will offer a wider variety of products, a broader delivery area, a more spacious shopping environment, and an enhanced service experience to better meet customer needs. All new stores will have diverse sales channels and product categories to more effectively cater to each customer’s needs regardless of whether they are in commercial or residential areas.

The remaining five stores are Freshippo Outlets, which are located in Shanghai in the districts of Songjiang, Pudong and Minhang, offering quality products and services at attractive prices to reach a broader group of consumers. The opening of five new outlets has brought the total number of Freshippo Outlets to 68 across 14 cities in Mainland China.

Several of these newly launched stores also look to tap into younger audience. For example, the store in Joy City in the Huangpu District of Guangzhou is Freshippo’s first in the district and is expected to bring convenience to local young people. Of the 550,000 people who live there, nearly 90% of them are aged between 19 to 44, aligning strongly to Freshippo’s target market.

Another example is the store on Shatou Street in Futian District, Shenzhen, which intends to serve young residents as well as the 100,000-strong local working population spread across residential neighborhoods, office areas and shopping malls.

Apart from opening new stores, Freshippo will continue to strengthen the development of the entire industry chain. In May this year, Freshippo partnered with chefs, agricultural enterprises and universities to expand its pre-cooked food business, selling an average of more than 1,000 types of pre-cooked food per month.

Most recently, Alibaba reportedly granted greenlight on an initial public offering for Freshippo, but did not reveal the exact timeline. Freshippo wishes to combine company’s strength in eCommerce and logistics with the more traditional shopping experience. Users can order online and get groceries delivered, they can also visit the physical stores to purchase fresh produce. Headquartered in Shanghai, Freshippo currently operates more than 300 stores across 27 cities in mainland China.

MARKETING-INTERACTIVE has reached out to Freshippo for more information. 

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