---
title: "Do You Know How Major Retailers Operate Their Omnichannel Strategies?"
description: "Driven by the dual forces of consumption and technological upgrades, transitioning online has long been a consensus among traditional retailers. Starting with RT-Mart's Feiniu.com in January 2014, traditional retailers have successively tested online businesses, and by this year, after continuous exploration, the omnichannel retail systems of major retailers have begun to take shape. 01 Operating Models: Self-operated and Third-party in Parallel We have reviewed the omnichannel businesses of Walmart, RT-Mart, Carrefour, Yonghui, Bubugao, Wumart, China Resources Vanguard, and Bailian, and it can be seen that there are two omnichannel operating models for retailers: self-operated and cooperation with third-party platforms. RT-Mart, Yonghui, China Resources Vanguard, Bubugao, Carrefour, and Bailian all have their own independent O2O platforms. In addition, most retailers have also initiated cooperation with third-party platforms."
author: "Kantar Retail"
publisher: "New Distribution"
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published: "2017-11-25"
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# Do You Know How Major Retailers Operate Their Omnichannel Strategies?

> Driven by the dual forces of consumption and technological upgrades, transitioning online has long been a consensus among traditional retailers. Starting with RT-Mart's Feiniu.com in January 2014, traditional retailers have successively tested online businesses, and by this year, after continuous exploration, the omnichannel retail systems of major retailers have begun to take shape. 01 Operating Models: Self-operated and Third-party in Parallel We have reviewed the omnichannel businesses of Walmart, RT-Mart, Carrefour, Yonghui, Bubugao, Wumart, China Resources Vanguard, and Bailian, and it can be seen that there are two omnichannel operating models for retailers: self-operated and cooperation with third-party platforms. RT-Mart, Yonghui, China Resources Vanguard, Bubugao, Carrefour, and Bailian all have their own independent O2O platforms. In addition, most retailers have also initiated cooperation with third-party platforms.

Driven by the dual forces of consumption and technological upgrades, transitioning online has long been a consensus among traditional retailers. Starting with RT-Mart's Feiniu.com in January 2014, traditional retailers have successively tested online businesses, and by this year, after continuous exploration, the omnichannel retail systems of major retailers have begun to take shape.
**01**
**Operating Models: Self-operated and Third-party in Parallel**
We have reviewed the omnichannel businesses of Walmart, RT-Mart, Carrefour, Yonghui, Bubugao, Wumart, China Resources Vanguard, and Bailian, and it can be seen that there are two omnichannel operating models for retailers: self-operated and cooperation with third-party platforms. RT-Mart, Yonghui, China Resources Vanguard, Bubugao, Carrefour, and Bailian all have their own independent O2O platforms. In addition, most retailers have also initiated cooperation with third-party platforms.
**02**
**Coverage: Retailers Accelerate Expansion of Store Direct Delivery Points**
Currently, these retailers support both warehouse delivery and store direct delivery. Warehouse delivery mainly targets bulk or large orders, with retailers arranging delivery. Store direct delivery addresses shoppers' immediate needs, where shoppers can place orders through the retailer's own online platform (with retailer-arranged delivery) or third-party delivery platforms, generally arriving within 2 hours. In comparison, store direct delivery is more favored by shoppers due to its delivery timeliness, and third-party delivery platforms have seen significant growth in FMCG transactions in the past year.
For warehouse delivery, all major retailers cover nationwide delivery. For store direct delivery, RT-Mart has the widest reach, covering its 370+ stores nationwide. Walmart, through its integration with JD Daojia, covers 146 stores in 20 cities. Bailian and Bubugao's store direct delivery only support single-city store delivery, in Shanghai and Changsha respectively.
**03**
**Delivery Thresholds**
In addition to delivery efficiency, delivery costs are also a factor influencing shoppers' choice of online shopping. Currently, except for Bubugao, which offers free shipping for first weight within 10.5kg, other retailers have set free shipping thresholds at various price points.
**04**
**Products and Services: Fresh Produce Share Continues to Rise, Online-Offline Integration Strengthens**
In terms of categories, RT-Mart's Jisuda (store direct delivery) involves over 4,000 SKUs, with fresh produce accounting for one quarter and standard products for three quarters. Walmart, in cooperation with JD Daojia, has listed over 1,500 products, covering fresh produce, dry goods, mother and baby products, household cleaning, and personal care. Fresh produce already accounts for 50% of all categories. Yonghui Life's online single-store SKU is around 1,000, with fresh produce accounting for about 40%.
In terms of membership systems, Yonghui, Wumart, Bailian, and China Resources Vanguard have fully achieved online-offline integration. Additionally, Wumart and Yonghui have both launched self-service scan-and-pay processes, saving shoppers time in checkout lines and further enhancing shopping convenience, adding another value point for offline channels to attract shoppers.
The omnichannel business model will give rise to new consumption growth points, and the market landscape will continue to adjust through innovation. The following trends are worth noting.
  * **Trend 1: Leveraging Store Value is the Key Focus of Omnichannel Strategy**
Under the new retail model, channel boundaries are very blurred, and shoppers are active in both online and offline scenarios. Retailers need to fully integrate online and offline across brand, inventory, supply chain, pricing, membership systems, and services to meet shoppers' shopping demands anytime, anywhere.
Physical stores play an irreplaceable role in breaking down barriers between online and offline channels, especially for categories with high consumption frequency and high supply chain requirements (such as fresh produce and prepared foods). Compared to e-commerce, physical retailers have abundant store resources and can use stores as "front warehouses" (placing high-frequency purchased items in advance to form a flexible and efficient small warehouse), solving the last-mile delivery problem and greatly improving delivery efficiency and resource utilization. Since October this year, RT-Mart's Feiniu.com has closed its fresh produce warehouse and now relies entirely on stores for fresh produce delivery.
  * **Trend 2: Imported Goods Share Continues to Rise, Retailers Increase Cross-border Products**
According to the "2016-2017 China Cross-border Import E-commerce Development Report" released by the China E-commerce Research Center, in 2016, China's cross-border import e-commerce transaction scale reached 1.2 trillion yuan, a 33.3% increase from 900 billion yuan in 2015, and is expected to reach 1.8543 trillion yuan in 2017. Overseas products have huge market potential. It can be seen that RT-Mart, Yonghui, China Resources Vanguard, Bubugao, Bailian, and Carrefour have all launched overseas purchasing services and are continuously expanding the proportion of overseas products online and offline. Shoppers can purchase overseas products directly from stores or through retailers' online global purchasing platforms.
  * **Trend 3: Delivery Platforms Gradually Penetrate the FMCG Sector**
Most retailers have initiated cooperation with delivery platforms such as Ele.me and Meituan. According to Ele.me data, in 2016, supermarket products accounted for 5% of total transaction value, with beverages, snacks, grains, oils, and seasonings being the most purchased categories.
Under the new retail market model, delivery platforms have formed powerful traffic entrances and equipped complete delivery teams. Moreover, the last-mile data they possess will be an indispensable part of omnichannel integration. Previously, Ele.me spent $800 million to acquire Baidu Waimai, further consolidating the delivery industry market. We may soon see deeper participation of delivery platforms in the new retail sector.
**Conclusion:** Omnichannel retail has become a trend, and shoppers' demands for shopping convenience, service immediacy, and product diversity place higher requirements on retailers' and brands' strategies, insights, logistics, and supply chains. Both supply and retail sides need to deepen cooperation and break down barriers in data insights and supply chain, plan the new retail transformation roadmap, and fully utilize data resources to provide shoppers with more effective shopping experiences.
Source: Kantar Retail Consulting (KantarRetail)
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