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Benlai reaches 36 million loyal members in China

Benlai reaches 36 million loyal members in China
Credit: Benlai

 

Since it became profitable in 2018, China’s third specialist food E-platform has increased direct investments in production and new hybrid business model ‘Fresh Plus Store’.

With seven years’ experience in online sales of fresh products in China, Benlai has taken a leading role in process management and implementation in the supply chain. Among its 300+ brands, Benlai has enjoyed great success with partnerships such as with Chu orange, Hongqipo 100 apple, Liyushuang organic rice, Pujiang orange, and Yu San hairy crab.

Benlai.com supplies fruits, vegetables, meat and poultry, aquatic products, cooked foods, grains, oils and other groceries. Over the past three years, annual sales have grown by more than 300% across China. It delivers fresh products to 109 cities across the country using cold-chain solutions and to 300 cities by regular delivery. At present, there are nearly 700 offline stores in China, having entered the Shanghai market in January 2019.

New hybrid business model

The ‘Fresh Plus Store’ is the new O2O (Offline-to-Online) retail model developed by Benlai.com, in order to better target the mass markets. The concept is to integrate offline shopping with online sales. Door-to-door delivery is offered for consumers located within 300 metres. Belai.com has opened stores in China’s major cities, like Wuhan, Chengdu, Changsha, Zhengzhou, Tianjin, and Shanghai. Benlai has enjoyed great success since 2018 with its two brands, Fresh Plus, for the O2O model, and Benlai.com, for the B2C model, both of which have become competitive and attractive for investors. In October 2019, Benlai received a US$200 million investment fund to accelerate its development.

A strategic agreement with SGS

At the 2019 China Agricultural Forum, Benlai signed a strategic agreement with SGS (the world’s leading inspection, verification, testing and certification company) that will see the two parties cooperate closely in the areas of supplier management, fresh product testing, and own-product services to build a traceability quality control system for fresh products and improve product quality. During the 3rd China Fresh Produce Conference, organised by Eurofresh Distribution & the 23rd FHC CHINA expo in Shanghai (SNIEC), Bian Ning, general operating manager of Benlai.com said, “2019 is an unprecedented year for China’s fruit market because of the large planting area, good harvest and varieties.” As the Spring Festival will take place earlier in 2020, this will mean a short season of fruit demand in China, and risks causing a sharp reduction in fruit prices in the first half of 2020. Therefore, Benlai has launched a fast combat strategy to offset the upcoming risks.

 

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Spar consolidates its presence in China

Spar is an international group of independently owned and operated retailers and wholesalers joined together under the Spar brand. It comprises more than 12,000 stores in 42 countries on four continents.

Global food retail chain Spar continues to expand in China, with two new 24-hour convenience stores opened recently in the central province of Henan.

Both stores were opened on the same day in Henan and are 210m2 and 110m2 in size respectively.

“Despite the compact selling area, the stores offer shoppers a good variety of products including fresh fruits and vegetables, a frozen food section, drinks and snacks, as well as non-food items,” Spar said in a media release.

Meanwhile, in the North China province of Shanxi, Spar said it has partnered with local farmers to source over 10,000 kg of vegetables, thus reinforcing its support for the local agricultural sector and the enhancement of rural communities.

“Without Spar Shanxi’s business, many of the farmers would not have access to the retail market. This partnership with Spar has helped the farmers sell their produce, providing them with much needed financial support,” Spar said.

“Spar Shanxi has reinforced its support for local farmers.”

The products are delivered directly to Spar stores in Shanxi province and promoted with strong instore advertising. Spar Shanxi has set quality standards for the produce to ensure that customers not only get the freshest vegetables but are also confident of the quality, it said.

Elsewhere in China, over 600 retailers and suppliers recently attended a key supplier meeting hosted by Spar Shandong. With the theme “Move Forward Together”, the event was designed to discuss opportunities and strategies for development in China’s ever-evolving marketplace, such as supply chain reform.

Spar Shandong’s key supplier meeting

Spar is an international group of independently owned and operated retailers and wholesalers joined together under the Spar brand. It comprises more than 12,000 stores in 42 countries on four continents.

Top photo: Daily fresh produce in one of Spar Henan’s new stores (source: Spar)