Hema Xiansheng, the Alibaba-owned supermarket chain, recently announced an expansion of its delivery range, extending the fastest delivery time from 30 minutes to one hour and increasing the range from three kilometers to five kilometers. The move was met with mixed reactions from customers and delivery staff.
While some customers have welcomed the expansion, others have complained about late delivery and order delays. Hema’s delivery staff have also voiced concerns about their workload and income distribution.
According to feedback from the delivery staff, certain Hema Xiansheng stores have 50 to 100 delivery staff, but every Tuesday and Wednesday, when orders surge due to membership day, there are often cases of late delivery.
Although Hema has tried to expand the scope of delivery, the order volume of each Hema Xiansheng store is still maintained at more than 3,000 orders per day. Hema’s rush to increase its market share has led to dissatisfaction among consumers, particularly regarding the increasing prices of products and the disappearance of discounted products in the Hema Xiansheng store after 8 pm.
Moreover, customer complaints about Hema’s products have grown louder, with reports of low quality. Hema’s quality control is now under scrutiny.
Despite these issues, Hema aims to achieve profitability and increase its market share. In the first quarter of 2023, Hema reported sales growth in its store. Its gross profit margin has also increased, and year-on-year losses have been significantly reduced.
However, Hema’s rush to expand has not gone as smoothly as it had hoped. The expansion has caused delivery delays and late orders, leading to complaints from customers and delivery staff alike. Hema will need to adapt and optimize its operations if it wants to expand further and achieve its ambitious goal of going public and achieving its 1 trillion sales goal.