Hema’s member design is mediocre compared to its own business model innovation. In the member's rights design, the goals are unclear, the target is not obvious for online and offline users, and the effect is not good, and the overall situation is very average.
1. Preface
Take a community in Shenzhen where I am as an example. You have to grab the order. The APP will show a burst order before 9 o'clock in the morning. Hema, which mainly delivers goods to the door in 30 minutes, takes more than 4 hours to deliver, which shows its popularity.
Hema Fresh As the flagship of the new retail idea of Jack Ma , Alibaba CEO Zhang Yong was led by Alibaba No. 1 project, which can be said to be born with a golden key. Against the backdrop of the launch of paid members in the entire e-commerce and retail industry, Hema also fully launched paid members in 2019.
It can be said that Hema's model represents the highest level of fresh fresh retail in China. So how is Hema Fresh's X member designed? What design ideas does it reflect Hema? Is it reference for other retailers?
2. Hema Fresh Business Model
First, let’s learn about the basic situation and business model of Hema Fresh.
Hema Fresh is a benchmark for new retail. Its biggest innovation is the integration of online and offline, which not only supports traditional in-store purchase business, but also supports home delivery business, meeting the coverage of consumers' online and offline scenarios.
started to open its first store in Shanghai in January 2016, and by December 2019, Hema Fresh has opened 200 offline stores in more than four years, ranking among the top 18 domestic supermarkets (according to the data of the top 100 fast-moving consumer goods supermarkets/convenience store chains in 2018), with annual sales growth of as much as 300%. At this growth rate, Hema Fresh will surpass CRV Vanguard in five years to become the largest fresh food supermarket in China.
The reason why Hema Fresh has achieved such impressive results is that in addition to Alibaba's efforts to invest in funds and resources, the most important thing is that Hema Fresh's model caters to the Internet trend of the fresh food industry.
Fresh food, as an industry with a market size of one trillion yuan, has high consumption frequency and a wide coverage of people. However, due to the problems of low standardization, short shelf life and high loss, it has not been penetrated by the Internet.
New retail, represented by Hema Fresh, solves the long-standing problems of fresh food e-commerce through digital stores. Consumers only need to place orders at home using mobile APP. Hema can directly pick goods in the store and deliver them to consumers' homes within 1 hour.
This business model innovation is unprecedented in improving retail efficiency. Hou Yi, vice president of and CEO of Hema Fresh, revealed that Hema Fresh stores, which have been operating for more than 1.5 years, have a single store efficiency of more than 50,000 yuan, and the average daily sales of a single store reach 800,000 yuan, far exceeding traditional supermarkets. You should know that the average daily turnover of each store of the international chain giant Walmart is only about 490,000 yuan.
3. Analysis of Hema Fresh’s membership model
Under the influence of Amazon Prime paid membership, the domestic retail industry has introduced paid membership model in recent years.
. Hema Fresh initially tried the paid membership system in Shanghai in April 2018, and launched the "Hema X Membership" plan with an annual fee of 188 yuan, and consumers can enjoy nine rights and interests. Then on November 30, Hema announced that its stores exceeded 100, and it launched the "Box District Life Card" and stated that it will test paid members nationwide in 2019.
At the Alibaba Investor Day in 2018, Hou Yi, CEO of Hema Fresh, disclosed the business situation of Hema Fresh for the first time. If members use Hema's services online and offline, the monthly expenses of members are 575 yuan. For members who are purely online, the monthly cost is RMB 279. Members who spend pure offline consumption spend 228 yuan per month.
Let’s focus on analyzing Hema X members today. First of all, you can see the introduction of X members in Hema APP
The membership fee of Hema X members is 218 yuan/year, which is not cheap. You should know that even if it is a professional membership store in China, the annual fee is only more than 260 yuan.
But in terms of membership fees, there is a selling point: "Use Huabei to open it, enjoy it first and then pay, and you don't save more than 218 yuan in the whole year, and the annual fee will be refunded in proportion." What does
mean? For example, I only saved 100 yuan for membership this year, so my membership fee is 100 yuan/year.
seems very attractive, but it means you must open the Huabei business of Alipay . From this point of view, we can see that the benefits of collaborative operations under the Alibaba ecosystem, Alipay and Hema joined hands to cooperate. For Alipay, with the help of the rapid growth of Hemadian, it promoted the Huabei business, which significantly reduced the user's payment resistance and helped attract users to join members.
So let’s take a look at the membership rights of Hema X members. What are the membership rights and interests?
According to Hema's publicity, Hema X members have 9 major rights and interests as follows:
(1) Family Sharing: This is the first priority among the nine major rights and interests, which means that someone at home has applied for a main card and can apply for a secondary card for other family members. But if you look at the following terms carefully, it will be very harsh. The first choice is to apply for a secondary card and you need to spend another 100 yuan. Secondly, you need to set the secondary card account as an Alipay family account.
I think this "family sharing" rights is very insincere. You should know that even the Sam membership store we mentioned earlier, its membership card also includes a free relative card.
, and Hema X members actually ask users to pay 100 yuan, and also help Alipay complete the promotion business - opening a family account. From this point of view, the design idea of Hema X members is that Alibaba Group's ecological value is preferred, not customer value is preferred.
(2) 88% off for the whole audience: 's rights seem very attractive, but if you look closely at the terms, it is only available on Tuesdays, which means that you can enjoy this 88% off for only one day in a week, and the exception is some special products. This means that for members who have applied for a card, you must make a good point at any time to stock up on Tuesday to obtain this rights.
(3) Receive vegetables every day: receives a free vegetable every day, and the price should be between 3-5 yuan. (You must go to the store by pointing out key points)
(4) 5 yuan off for meat and poultry: 5 yuan off for meat and poultry at , once a day. (You must go to the store by pointing out key points)
(5) Weekly milk tickets: two 5 yuan milk tickets per week. (You must go to the store by marking key points)
(6) Monthly meal tickets: processing fee reduction of ten yuan, there is a chance of 2 times a month. I think this is worth mentioning. When Hema Fresh first opened, it caused a sensation and became a popular internet celebrity store. One of the big reasons is that consumers are going to eat seafood meals such as king crabs, but if they want to eat seafood meals, they will charge a processing fee ranging from 15 to 30 yuan per kilogram. I was thinking at the time that if Hema could launch a paid membership, and the member's rights were to eat seafood meals for free, then the reputation would definitely be spread wildly. But judging from the monthly meal tickets that only 10 yuan is exempted, it does not give anyone a surprise.
(7) APP free exchange: online shopping for 99 yuan, you can enjoy free exchange of designated products.
(8) Monthly shipping coupon: has 4 free shipping opportunities per month. However, since Hema has free shipping for the first order every day, the probability of placing multiple orders every day is extremely low, so it is not very valuable.
(9) Life service rights: 20% off for clothing, shoes, bags, and washing. It is not very meaningful to use it in Shanghai and some stores in Shenzhen.
In general, among the 9 major interests of Hema, the only value of is the 18% discount on the entire market. (although it can only be used on Tuesdays). Most of the other interests of are in-store rights, such as receiving vegetables every day, meat and poultry exemptions, etc.However, according to Hema's business model design, its transaction order volume comes from online accounts for 60% or even more than 70%, which means that only about 30% of users have the opportunity to use these in-store rights.
But why did Hema do this? This may be related to Hema's business model exploration. Hema CEO Hou Yi mentioned in a 2019 sharing that Hema is proud of whether the online and offline "unified membership, unified goods, unified prices, and unified marketing" is completely correct. He proposed a reflection. This is because the offline consumer group may be very different from online, such as higher price sensitivity and completely different product demands. This part is obviously better in traditional offline supermarkets Yonghui. Therefore, Hema may further optimize and iterate offline user needs in terms of products, prices, and marketing.
From this perspective, Hema Fresh’s intention is very obvious, which is to adjust offline traffic to online through the store rights of paid members, or attract more offline users. But the effect of doing this is questionable, because since offline customers are more sensitive to prices, will they spend 218 yuan to apply for this paid membership card?
4. Summary
From the above analysis of Hema X members, the design of Hema X members can only give a 3-star evaluation, which is very average overall. Because compared to the surprise brought by Hema Fresh's business model innovation, the X paid membership experience is mediocre and does not give people an unexpected experience.
Just as I was about to publish this article, I found that Hema X members have temporarily stopped joining the new membership. Maybe Hema has discovered the problems with Hema X members.
Finally, Hema Fresh’s X member file is presented.
#Related reading#
Analysis of 102 company membership models (1): What are the secrets of Amazon’s prime membership?
analyzes the membership model of 102 companies (2): Starbucks' new membership system
analyzes the membership model of 102 companies (3): NIO
analyzes the membership model of 102 companies (4): Can Wang Xing create the era of Meituan's paid membership?
#Columnist #
Chen Wenzhong, WeChat public account: Code Ant that shows off muscles, everyone is a product manager columnist.
This article was originally published by Everyone is a product manager. Reproduction is prohibited without permission.
question picture comes from Unsplash, based on CC0 protocol
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