Chinese online grocery-delivery platform, Missfresh has partnered with Nanchang’s Wangjia Market Management in Jiangxi Province to expand its Intelligent Fresh Market business to 20 cities across China.
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This partnership will enable Missfresh’s Intelligent Fresh Market business to continue to grow into a mature business unit and further diversify its position in China’s USD 1.9 trillion neighbourhood retail market.
The company reconstructs and optimises the layout of traditional fresh markets to improve the business mix and expand the service scope, as well as providing merchants with SaaS tools that help them with online payment, marketing, CRM, and omni-channel support. These tools enable merchants to convert and manage offline private traffic to online platforms and increase monetisation.
The two companies will operate Intelligent Fresh Markets together in Yingtan and Shangrao, two cities in China’s Jiangxi province, transforming and digitalising traditional local fresh markets, improving access to quality fresh food, increasing local consumers’ well-being and boosting economic activity for local merchants.
Launched in the latter half of 2020, Missfresh’s Intelligent Fresh Market business was implemented in cities across the country including Qingdao, Changshu, Huangshan, Hefei and Yunfu.
Traditional markets are China’s largest fresh food retail channel and one of the most important entry points for community retailers in cities across the country. However, they lag behind in terms of food safety oversight, emergency safeguards, hygiene, hardware facilities and digitised management, placing them out of step with the demands of the contemporary retail industry.
To meet the growing demands of consumers and to continue to keep up with technological advancements, digitalisation has already become a trend in traditional fresh markets across China. According to iResearch, the overall penetration rate of Intelligent Fresh Markets in China will rapidly grow from 0.4 percent in 2020 to 14.6 percent by 2025, while the scale of these markets will skyrocket from USD 2.166 billion (RMB13.8 billion) to USD 94.2 billion (RMB600.4 billion) over the same period.
Missfresh Founder, President and CEO Xu Zheng said that the Intelligent Fresh Market business is another of the company’s major business strategies.
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Xu added that this will become a mainstream consumption channel among consumers in China’s third and fourth tier or small- and medium-sized cities. Intelligent Fresh Markets will provide a better consumption and shopping experience to consumers and increase revenue and profit for merchants through upgrades to operations, digital empowerment and private domain operations.