---
title: "Second- and Third-Tier City Malls Compete for Hema's First Store"
description: "Recently, while surveying the market, I noticed an interesting phenomenon: malls haven't been this 'uniformly lively' in a long time. This buzz isn't from new dining options or trendy brand openings, but from the arrival of Hema's first store. Before the opening, local Xiaohongshu and community groups heat up with schedules, queue strategies, and must-buy lists; on opening day, the excitement peaks with queues at the basement entrance, overloaded parking lots, and insufficient shopping carts. More strikingly, the buzz spills over: people in line grab coffee, those waiting dine upstairs, and families with kids explore children's activities, lifting the entire building's atmosphere. In homogeneous, traffic-fluctuating second- and third-tier commercial areas, this visible footfall, topics, and spillover are rare. Soon, you see the second act: malls that were passive in leasing suddenly become proactive, even competing fiercely, for a brand—offering prime locations, adjusting layouts, stacking resources, and coordinating promotions, all to secure Hema's first store. But this raises a question: with many first stores, why does Hema trigger such competition?"
author: "汪海"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2026-01-06"
categories: "Retail Formats"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/second-and-third-tier-city-malls-compete-for-hema-s-first-store-60102fcf/"
markdown: "https://xinjignxiao.com/en/articles/second-and-third-tier-city-malls-compete-for-hema-s-first-store-60102fcf.md"
original_source: "https://mp.weixin.qq.com/s/8BUJkkeoNowwgffwQrfpog"
translation: "https://xinjignxiao.com/zh/articles/%E4%BA%8C%E4%B8%89%E7%BA%BF%E5%9F%8E%E5%B8%82%E5%95%86%E5%9C%BA-%E4%BA%89%E6%8A%A2-%E7%9B%92%E9%A9%AC%E9%A6%96%E5%BA%97-60102fcf.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/second-and-third-tier-city-malls-compete-for-hema-s-first-store-60102fcf/"
citation: "汪海. “Second- and Third-Tier City Malls Compete for Hema's First Store.” New Distribution, 2026-01-06. https://xinjignxiao.com/en/articles/second-and-third-tier-city-malls-compete-for-hema-s-first-store-60102fcf/"
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---

# Second- and Third-Tier City Malls Compete for Hema's First Store

> Recently, while surveying the market, I noticed an interesting phenomenon: malls haven't been this 'uniformly lively' in a long time. This buzz isn't from new dining options or trendy brand openings, but from the arrival of Hema's first store. Before the opening, local Xiaohongshu and community groups heat up with schedules, queue strategies, and must-buy lists; on opening day, the excitement peaks with queues at the basement entrance, overloaded parking lots, and insufficient shopping carts. More strikingly, the buzz spills over: people in line grab coffee, those waiting dine upstairs, and families with kids explore children's activities, lifting the entire building's atmosphere. In homogeneous, traffic-fluctuating second- and third-tier commercial areas, this visible footfall, topics, and spillover are rare. Soon, you see the second act: malls that were passive in leasing suddenly become proactive, even competing fiercely, for a brand—offering prime locations, adjusting layouts, stacking resources, and coordinating promotions, all to secure Hema's first store. But this raises a question: with many first stores, why does Hema trigger such competition?

Recently, while surveying the market, I noticed an interesting phenomenon: malls haven't been this 'uniformly lively' in a long time. This buzz isn't from new dining options or trendy brand openings, but from the arrival of Hema's first store. Before the opening, local Xiaohongshu and community groups heat up with schedules, queue strategies, and must-buy lists; on opening day, the excitement peaks with queues at the basement entrance, overloaded parking lots, and insufficient shopping carts. More strikingly, the buzz spills over: people in line grab coffee, those waiting dine upstairs, and families with kids explore children's activities, lifting the entire building's atmosphere. In homogeneous, traffic-fluctuating second- and third-tier commercial areas, this visible footfall, topics, and spillover are rare. So you quickly see the second act: malls that were increasingly passive in leasing suddenly become unusually proactive, even to the point of 'competing' for a brand—willing to give up locations, adjust layouts, stack resources, and coordinate promotions, all for one result: securing Hema's first store. But this raises a question: with many first stores, why does Hema trigger such competition?

Hema's first-store effect in second- and third-tier cities seems 'exaggerated' largely because it hits a real gap: malls don't need 'one more brand' but 'the certainty to bring people back.' And Hema is being redefined as the representative of that certainty. On New Year's Day 2026, Hema CEO Yan Xiaolei's New Year letter went viral in the retail circle: in 2025, Hema's overall revenue grew over 40% year-on-year, with Hema Fresh and Hehe NB serving over 100 million consumers; Hema Fresh entered 40 new cities, and Hehe NB opened over 200 new stores. Earlier, Alibaba's FY2025 annual report disclosed that Hema's overall GMV exceeded 75 billion yuan, achieving its first full-year adjusted EBITA positive. Combining these two pieces of information, you get a key judgment: Hema has moved from 'multi-format trial and error' to 'model validation.' When a retail company reaches scale profitability, it signals not just good numbers but more direct outcomes—more confident expansion, more stable models, and stores more likely to 'explode.' So what you see in second- and third-tier cities—'open one, explode one'—is superficially buzz but fundamentally 'model delivery': it can package opening heat, repurchase capability, and spillover effects together.

Homogeneous competition has pushed second- and third-tier malls onto the narrow path of 'grabbing certainty.' If Hema's explosive popularity is the supply-side explanation, then malls' 'grabbing first stores' is the demand-side explanation. The common pressure on second- and third-tier commercial complexes today boils down to one word: homogeneity.
> Brands are increasingly similar—what you have, I have;
> Formats are increasingly similar—dining, parent-child, cinemas, and collection stores follow templates;
> Experiences are increasingly similar—the difference between visiting A and B is just 'closer to me.'
In this environment, the most fatal issue isn't failing to open new stores but failing to retain people: events can heat up for two days but rarely become a long-term base; businesses in the same area divert traffic rather than create increment. So the meaning of first stores has changed—from icing on the cake to a lifeline: to push the mall back into the local attention center and make consumers say, 'This building is worth a visit.' This also explains why malls compete for Hema's first store: in the homogeneous era, malls aren't competing for 'one more brand' but for who can bring certain footfall and topics. Whoever can lift weekday traffic, drive the whole building, and turn 'one visit' into 'repeat visits' is valuable. The question is: are there many brands providing certainty? Not many. And Hema happens to be the most repeatedly validated card.

Why Hema? To answer 'why Hema,' you need to look at its changes over the past two years: it didn't suddenly become popular; after strategic focus, it became a replicable engine. 1. Strategic focus: from 'trying many' to 'running the strongest.' Hema experimented with multiple formats, but the landmark shift in 2025 was exiting the membership store track: the last Hema X membership store closed at the end of August 2025, marking Hema's complete exit from that segment, with resources returning to more mature, clearer-return main formats. Since then, Hema has formed a 'dual-engine' with 'Hema Fresh + Hehe NB': Fresh focuses on mid-to-high-end and quality fresh food; NB focuses on community discounts and high-frequency essentials, with over 400 stores in three years and accelerating expansion. This focus isn't just 'doing fewer things' but compressing supply chain, product systems, and organizational resources into the strongest main line, making store expansion more like replicating a model. The 'first-store explosion' in second- and third-tier cities becomes a structural result. 2. Content-driven anchor store: it turns 'grocery shopping' into a shareable city event. Traditional supermarkets have always been 'traffic anchors' in malls: solving daily needs and contributing stable traffic. But most are 'functional anchor stores'—you visit on the way, rarely specifically, and they rarely become city topics. Hema differs as a 'content-driven anchor store': new product launches create lists and discussions; deli, bakery, and daily products form 'scenario solutions'; combined with instant home delivery, 'in-store traffic' is amplified into 'city mindshare.' The store-visit buzz, community lists, and queue excitement you see in second- and third-tier cities aren't because malls suddenly know how to operate but because Hema carries its own 'communication fuel.' 3. Alibaba ecosystem synergy: making the first store's value extend beyond the mall. Hema's recovery also leverages Alibaba ecosystem synergy: 88VIP added a 'free 90-day Hema X membership' benefit, bringing incremental users; after Hema integrated with Taobao Flash Purchase, order growth was publicly mentioned. For malls, this means Hema's first store isn't just an offline point; it can also tap into platform online traffic, membership increments, and expanded instant fulfillment radius. In other words, it's not 'a supermarket' but a 'combination punch of offline entry + online amplification.' 4. Supply chain and partner programs: making 'explosion' last beyond the first three days. Opening with a bang is easy; sustaining it is hard. Hema's ability to extend first-store heat and stabilize repurchase is underpinned by supply chain and product R&D capabilities, as well as organizational capabilities with upstream partners—from supply chain networks to the 'Hehe Symbiosis' partner program, turning product strength into sustainable certainty. Combining these four, you understand why malls compete for Hema: they're not competing for 'the three characters Hema' but for the certainty packaged from product strength + supply chain + ecosystem traffic + dual-format expansion.

In conclusion, second- and third-tier city malls competing for Hema's first store looks like leasing news but is essentially an industry health report: when commercial complexes become increasingly homogeneous, whoever provides 'certain footfall + certain topics + certain spillover' gets fought over. In my view, Hema Fresh's expansion is bringing significant traffic and momentum to Hehe NB from another dimension. As Hema Fresh validates its model in more lower-tier cities and establishes a 'high-quality' image, it's also building mindshare for the entire 'Hema' brand—letting more consumers first know and trust Hema. At that point, Hehe NB, entering daily life with higher frequency, closer community proximity, and value-for-money positioning, no longer needs to educate the market from scratch but can ride the brand momentum, turning 'first try' into 'long-term repurchase.' In other words, the more stable Hema Fresh runs, the faster and further Hehe NB can go. In the coming period, this 'Hema grab' in second- and third-tier markets will show not just whether malls secure first stores but how far Hema's 'dual-format sedan chair' combination can expand certainty.


---

## Citation metadata

- Publisher: New Distribution
- Author: 汪海
- Published: 2026-01-06
- Canonical: https://xinjignxiao.com/en/articles/second-and-third-tier-city-malls-compete-for-hema-s-first-store-60102fcf/
- Original source: https://mp.weixin.qq.com/s/8BUJkkeoNowwgffwQrfpog

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