Image credit: Seafood Guide
High-end, imported seafood the clear winner in Hema Fresh’s ‘Chinese New Year Again’ promotional efforts in Shanghai and Guangdong
(SOURCE: Seafood Guide, 3rd April 2020)
During the COVID-19 period, Shenzhen residents followed the principle of staying at home, which sacrificed a lot of life’s fun. Daily foods such as vegetables, eggs and milk were purchased on the internet in a mad rush, and previous fancy dinners were forced to shrink. According to statistics, during the COVID-19 period, basic vegetables, meat, poultry and eggs, instant food, etc. were the most popular items. Since late February, the sales growth of imported fruits, seafood, organic vegetables, alcoholic beverages and other commodities has far exceeded the average.
Huang Lina, general manager of Hema Guangdong Regional Company, said that Guangdong Province has shown a strong recovery capacity in the late stage of the epidemic. From the perspective of Hema’s operation, the order of Hema has steadily increased since the last week of February. Since the return of their free shipping promotion on February 26, Hema Fresh orders increased by more than 25%. Since March, the most popular instant noodles have fallen sharply, and sales have fallen 51% from the peak of the epidemic. Sales of Boston lobster, salmon, and flowers have increased by 64%, 39%, and 431%, respectively.
‘This is explained by the fact that everyone’s consumption structure has changed, from ’enough to eat’ to eating well. “Huang Lina said.
From March 27th to 29th, Hema launched the ‘Chinese New Year Again’ event in Guangdong, targeting high-end ingredients that are often purchased in the New Year, through large-scale concessions to compensate the public for the deliciousness they missed in this year’s Chinese New Year.
During the event, the merchants’ prevention and control of the epidemic situation was certainly not slack. Customers needed to wear masks when making purchases at the store. Before entering the store, they also needed to pass temperature checks and disinfection. If there was a large flow of people during certain periods, the store executed measures to ensure social distancing.
Within only half a day of the event being launched, sales had doubled.
The CEO of Hema Fresh, Hou Yi, promised that stock is prepared well for the promotion event. In the 4000-square Hema Daning store, he alone pushed a trolley and bought nearly 30 items in just half an hour by himself!
The products he purchased include Norwegian salmon, chilled Australian fillet beef, Bin No. 8 wine, Chilean plums, Dachen Island yellow croaker, Australian Wagyu beef, black pork belly, etc. and the total cost came to 1287.12 yuan, which was 15% off.
On March 20, the first day that Hema launched this event in Shanghai, as of 2:30 pm, the Hema Daning store offline sales doubled compared with the previous day, and the peak period after 4 pm had not yet even begun.
Aunt Zhang and her friends bought several boxes of chilled codfish in the store. At 200 grams per box, with the usual price of 128 yuan, ‘she said today it was buy one get one free, and also 15% off!’
Aunt Zhang is a big fam of Hema and is familiar with their prices, ‘Of course, it is great to buy more and share with my grandsons.’
When the news reporter who prepared this story tried to also participate in the event, he found it was all too late and everything was all out of stock.
Shanghai has been fighting with COVID-19 for dozens of days, and the citizens have sacrificed a lot of life’s fun. This year, they have not been able to live well, and they felt disappointed.
Hema responded to the call of the municipal government to change this disappointment and launched its special event. From March 20th to 22nd, for three consecutive days, more than 1,000 high-end products such as seafood, fruits, meat, etc. enjoyed 15% off, with coupons and other ways to reduce prices such as a 10 million yuan per day concession, helped the public to compensate for their missed Chinese New Year.
All kinds of data show that Shanghai has demonstrated huge consumption power during the epidemic as well as in the near future. Hou Yi revealed that during the epidemic, orders for Hema bakery rose sharply, such as butter, flour, baking tools, etc., which increased by more than 3.5 times year-on-year, and a large number of young mothers born in the 1980s and 1990s were cooking and baking at home.
After the epidemic has gradually stabilised, since the last week of February, Hema orders have steadily increased, and the sales ratio of forgotten items as seafood, imported fruits and other commodities gradually returned to normal levels when the epidemic was severe.
Since Hema resumed free shipping on March 2nd, orders have increased by more than 25%.
Currently, Hema is striving to meet the strong retaliatory consumption of citizens. It is reported that due to the impact of COVID-19 overseas, products such as bread crabs from the UK and fresh beef from Australia may be out of supply, but Hema has previously done its best to lock in overseas production capacity and shipping routes to prepare for about six months of inventory turnover, including imported water, sunflower oil, olive oil, milk, cereals, etc.. These items have all been stocked in advance and are in sufficient supply.
The new season New Zealand kiwifruit is also about to be loaded on to ships and is expected to arrive next month. At the same time, with a large number of fresh seasonal fruits being marketed in Yunnan, Sichuan, Guangxi and other places in China, it can also meet the needs of the Shanghai market in large quantities.
This promotional event is just the first in a series of Hema fancy activities to activate consumer demand. Recently, two co-branded youth group products by Hema came online at 10 a.m. and were sold out in 3 minutes. To promote the Qingming Festival, rice cake products will be launched in large quantities.
Then, with the Hema Southeast Asia Fruit Festival and the Hubei Crayfish Festival that will be launched in April. In May, Hema will also participate in a large-scale consumption-driven theme event in Shanghai on May 5th. With the attitude of Shanghai retail owners, it will help the return of consumption and the restoration of confidence in all walks of life.