---
title: "Freshippo's Busy 2023"
description: "On September 9, Freshippo officially revealed that it would open 30 stores in September, including 16 Freshippo stores, 3 Freshippo mini stores, and the first Freshippo 'Premier' black-label store. Freshippo stated that the 'Premier' store will feature many unique products and domestic first launches of some imported goods. Meanwhile, in a self-reform effort, Freshippo will fully transform into a discount store model across three dimensions: differentiated products, building a vertical supply chain, and controlling internal operating costs. Hou Yi said that the Chinese retail market still has many shortcomings and needs to develop a business model with Chinese characteristics and international advanced retail experience."
author: "刘敏露"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2023-09-17"
language: "en"
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# Freshippo's Busy 2023

> On September 9, Freshippo officially revealed that it would open 30 stores in September, including 16 Freshippo stores, 3 Freshippo mini stores, and the first Freshippo 'Premier' black-label store. Freshippo stated that the 'Premier' store will feature many unique products and domestic first launches of some imported goods. Meanwhile, in a self-reform effort, Freshippo will fully transform into a discount store model across three dimensions: differentiated products, building a vertical supply chain, and controlling internal operating costs. Hou Yi said that the Chinese retail market still has many shortcomings and needs to develop a business model with Chinese characteristics and international advanced retail experience.

On September 9, Freshippo officially revealed that it would open 30 stores in September, including 16 Freshippo stores, 3 Freshippo mini stores, and the first Freshippo 'Premier' black-label store.
Freshippo stated that the 'Premier' store will feature many unique products and domestic first launches of some imported goods.
At the same time, in a self-reform effort, Freshippo will fully transform into a discount store model across three dimensions: **differentiated products, building a vertical supply chain, and controlling internal operating costs**.
Hou Yi said, **'The Chinese retail market still has many shortcomings, and we need to develop a business model with Chinese characteristics and international advanced retail experience.'**
In addition, Freshippo has set its sights on the To B business this year, planning to deliver its fresh products to canteens. Behind this, Freshippo is also accelerating its supply chain construction.
**Continuous Innovation in New Business Formats**
On September 9, Freshippo's official account 'Freshippo Intelligence Bureau' posted that Freshippo is expected to open 16 Freshippo stores, 3 Freshippo mini stores, 9 Freshippo Outlet stores, 1 Freshippo Premier black-label store, and 1 Hangzhou Asian Games Media Center experience store in September.
Throughout September, Freshippo will complete the opening of 30 stores, averaging one new store per day. These 30 stores will be located in Shanghai, Beijing, Guangzhou, Hangzhou, Chengdu, Nantong, Nanjing, Chongqing, Kunming, Hefei, Jinan, and Nanchang. After September, Freshippo's total store count will exceed 350.
Freshippo has always insisted on exploring a multi-format model, having tried 10 formats, including Freshippo, Freshippo MINI, Freshippo Station, and Freshippo Neighborhood.
In recent years, by reconstructing the 'people, goods, and places' of the retail industry, Freshippo's three major formats—'Freshippo', 'Freshippo X Membership Store', and 'Freshippo Outlet'—have become its three growth drivers. With accelerated store expansion, these three formats are externally referred to as Freshippo's 'three carriages'.
**The exploration of multi-format models continues.** Among the 30 new Freshippo stores, there is the first 'Premier' black-label store.
It is reported that the store is located at Shanghai Cloud Nine City Life Center and is expected to open on September 27 this year. Freshippo stated that it hopes the 'Premier' store will become a representative of Chinese new retail supermarkets with high service levels and high-quality products.
"'Premier' will feature many unique products and domestic first launches of some imported goods," Freshippo revealed to the author.
Jiang Han, a senior researcher at Pangoal Institution, told the author that accelerating store openings can expand Freshippo's market coverage and brand influence, and also help improve its operational efficiency and economies of scale, achieving better profit returns. **A multi-format model can meet the needs of different consumer groups and provide a wider range of product choices.** By launching the 'Premier' store, Freshippo can offer higher-end products and higher-quality services, attracting consumers seeking premium consumption experiences.
**Self-Reform**
In October 2022, Freshippo's Chief Merchandising Officer Zhao Jiayu stated that Freshippo store sales grew 25% year-on-year in 2022, Freshippo X Membership Store channel growth exceeded 247%, and Outlet channel growth reached as high as 555%. In April this year, Freshippo revealed to the outside world that it had achieved overall profitability in the fourth quarter of last year and the first quarter of this year.
In addition to rapid store expansion and overall profitability, Freshippo is undergoing self-reform. "We have officially launched the entire organizational transformation, and the core of the transformation is the full transformation of Freshippo stores into a discount store model," said Hou Yi, founder and CEO of Freshippo.
In Hou Yi's view, **the full upgrade to a discount store model means a change in Freshippo's business model. Freshippo will promote the transformation from three levels: differentiated products, building a vertical supply chain, and controlling internal operating costs.** In addition, Freshippo has merged its original brand team, big import team, and category procurement team into one.
An industry insider said that **Freshippo's self-reform is to use discounts as a business model to re-engineer its internal organization and supply chain**, and the rapid growth of Freshippo Outlet also provided inspiration for Hou Yi.
In the face of this self-reform, Freshippo has never avoided price competition with competitors. At the end of July this year, Freshippo launched the 'Moving Mountain Price', with some products marked with 'Moving Mountain Price' significantly reduced from their original prices, and expanded from Beijing and Shanghai to 15 cities where Freshippo operates, including Hangzhou, Guangzhou, and Shenzhen.
This move triggered a 'price war' between Freshippo and Sam's Club, with Freshippo's viral product 'Durian Thousand-Layer Cake' becoming the focus of consumer attention. In the price competition, this product dropped from an initial 128 yuan to the latest 'Moving Mountain Price' of 39.9 yuan. Many consumers discussed the prices of the same products at Freshippo and Sam's Club on social platforms, and the hashtag 'Freshippo Sam's business war is crazy' also made it to Weibo's hot search.
Regarding this competition, Hou Yi said, **'Sam's Club has fully integrated American product categories with Chinese internet technology, giving birth to a brand-new business model. The Chinese retail market still has many shortcomings, and we need to develop a business model with Chinese characteristics and international advanced retail experience.'** "We strive to become Sam's competitor," Hou Yi said.
**Targeting To B Business**
In recent years, China's group meal market has grown rapidly. Data shows that from 2017 to 2021, the scale of China's group meal market grew from 1.2 trillion yuan to 1.98 trillion yuan. It is expected that in 2023, the scale of China's group meal market will be around 2 trillion yuan. Against the backdrop of the group meal market's potential, Freshippo has set its sights on the fresh food To B business.
In June this year, Freshippo officially stated that it plans to open its fresh supply chain this year and deliver its fresh products to canteens. Currently, Freshippo has reached cooperation with two enterprises in Shanghai, starting with meat, eggs, and other ingredients for business testing. To optimize the ordering process for canteens, Freshippo has locked in the main and auxiliary ingredients that canteens frequently purchase daily, and will also co-develop a 'weekly menu' with enterprise canteen chefs. Looking to the future, Freshippo also plans to move some of the canteen's food processing work into its central kitchen.
Jiang Han analyzed, "For Freshippo, the B-end market supply chain requires higher flexibility and customizability, and cooperation with B-end customers also requires strengthening the supply chain's collaborative and rapid response capabilities. Exploring the B-end market is a strategic move for Freshippo."
**In supply chain construction, Freshippo has continued to accelerate its pace this year.**
In July this year, Freshippo's Shanghai Supply Chain Operation Center was officially put into operation. The center is a comprehensive supply center integrating agricultural product processing, semi-finished product cold storage, and central kitchen, serving Freshippo stores in Shanghai, Nanjing, Suzhou, Hangzhou, Hefei, and the entire East China region. In May, Freshippo signed strategic cooperation agreements with 13 globally renowned retail groups, international brands, global associations, and consulting companies in Shanghai to accelerate the introduction of high-quality overseas products.
At the same time, in the development of the pre-made dishes category, which is highly compatible with the fresh food To B business, Freshippo established a 'Pre-made Dishes Ecological Alliance' with 13 pre-made dish companies including Anjoy Foods, Dingzhen Foods, and Qianwei Central Kitchen, 3 universities including Shanghai Ocean University, Northwest A&F University, and Wuhan Business University, and Robam Appliances.
Chen Huifang, general manager of Freshippo's pre-made dishes department, said that cooperating with top raw material enterprises in the agriculture, forestry, animal husbandry, and fishery fields, cooperating with leading central kitchens and top supply chain enterprises in China, cooperating with universities with advanced food technology patents, and cooperating with small appliance enterprises that master the latest cooking trends are the confidence for Freshippo to promote the upgrading of the pre-made dishes industry and purify the industry ecosystem.


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