Beijing: As sales of fresh products such as vegetables, seafood and meat get a boost through online applications during the country's COVID-19 lockdown and quarantine, grocery brand Hema Jiansheng under Alibaba Group Holding's supermarket chain Freshpo has also benefited earned in China last year.

According to a letter to employees by Hou Yi, FreshHippo's chief executive, sales of fresh foods at the chain, which is known in Chinese as hema (sounding like the word for hippopotamus), have grown over seven years. were profitable thereafter.

After years of investment, the break-even demonstrated that Alibaba's "new retailing is finally bearing fruit," Hou said, adding that Freshpo will serve 1 billion customers with an estimated sales value of 1 trillion yuan (US$145 billion). has been placed on the track to serve. ten years.

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Freshippo was developed to leverage the robust supply chains of Alibaba's Taobao and Tmall e-commerce platforms, and to provide customers with the convenience of online ordering, door-to-door delivery and in-store dining. Over time, it expanded into a range of services including the Hema F2 Takeaway Lunchbox, the Hema X Membership Store and the Hema Mini Corner Convenience Store.

The break-even mark marks a significant development in China's highly competitive retail sector, where many internet-driven retailers are vying to provide fresh produce to consumers, including Meituan's Macai unit and the independently run Dingdong Macai. .

Hou, who personally toured Europe last month to seek out boutique beer, drinking water and chocolate, wrote that Freshipo will continue to source goods from around the world to win customers.

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The customer, who will be identified only by his last name Zhao, was in his 60s and said, "I come here almost every day and I bought a membership card," at a Freshippo location in downtown Shanghai. The quality is better than normal supermarket.

The chain's path to profitability was characterized by rapid direction changes and turnarounds: Freshpo closed dozens of stores operated by Hema Neighborhood Business last year within months of their opening, according to a 36kr report from October.

According to the company's most recent filing, Freshippo's adaptability helped it generate healthy growth in same-store sales and narrow its losses, helping Alibaba "benefit" its September quarter earnings. South China Morning Post is owned by Alibaba.

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On the Chinese mainland, Freshippo operates about 350 stores, most of which are concentrated around the commercial hub of the Shanghai region, Hangzhou, Alibaba's hometown, as well as Beijing and Shenzhen.