Source:Interface News
Xianlife, the new master of The Haolinju, publicly released the improvement scheme on the old-brand Beijing convenience store.
It is less than one month from Haolinju changed under new ownership. On October 29th, The Greentown Service Group, a Hong Kong-listed company, announced that together with Xianlife and Anxianda, they co-founded the joint venture company, Chian CVS, meanwhile signed the trade agreement with Morgan Stanley which wholly acquire The Haolinju Convenience store with $84 million, approximately CNY 0.56 billion. Xianlife holds 50% shares from among, will play a leading role in reconstructing Haolinju.
Different from most acquirers, Xianlife will not hide the brand of The Haolinju, reversely it will turn all “Xian stations”, the brand they previously operated into The Haolinju, and plan to introduce The Haolinju brand into the cities like Hangzhou, Chengdu, etc..
Xianstation is a brand of community convenience store, founded by Xiao Xin in 2016. The store sites are mainly selected around communities with 100-200m2areas. Xianstation is positioned as 24-hour CVS, in addition to standardized goods, also selling fresh like fruits and vegetables in small amount. Viewed from the stores, Xianstation is more like community CVS, located at “non-golden places among golden areas, with quite controllable rental fee at around 40k.
Knowing from the traditional CVS like The Haolinju, Xianstation starts gaining traffic online since the very beginning of its establishment, with cooperating with Taoxianda, the CVS business under Alibaba, and launched on Eleme, Meituan, such catering platforms. By virtue of 100 cases online and monthly 10k earnings, so far Xianstation has expanded to more than 30 stores and achieved the delivery time within 45 minutes.
To keep enhancing delivering time, Xianstation should obtain intensive enough stores to get supported, The Haolinju entered into the view of Xiao Xin just at that time. The Good Neighbor not only possessed the network advantage of owning 300 stores, also tried developing online businesses from around 2012. The complementary advantages create the cooperation possibilities between the two brands.
However, integrating the systems is not as easy as connecting plugs or cash registers, more important is to connect the inventories between each other. Not like catering industry, which can freshly prepare as soon as received the orders without the problem of managing inventory integration, convenience stores have to ensure sufficient inventories on the shelves at disposal when orders come in, otherwise user experience will be negatively impacted. Fortunately Xianstation managed to engage its own system with online platform from the very beginning, which realized the real-time sharing between online and offline inventories. The set of module can provide good reference for integrating The Haolinju.
Incorporated Haolinju, in order to completely integrate the systems between each other, Xiao Xin set an one-year target.
At the moment, more than 10 The Good Neighbor stores connected with online system and had cooperation with the platforms, Taoxianda, Tmall Supermarket, MeiTuan and Eleme. Xiao Xin showed that now each store has more than 100 orders in a daily basis with 45-minute delivery time, which online orders take up around 30% among, the target is to achieve above 50% online order shares. From a long perspective, he said, after all 300 stores get online, hopefully enhance the delivery effectiveness up to 15 minutes.
To realize such a high delivery time, besides sufficient online order volume, another must is the goods support that can meet community needs in offline stores.
With the aid of Alibaba sources like Tmall Supermarket in Beijing Dacang, supply chain of Yiguoshengxian, Xiao Xin aims to remould The Haolinju to HeMa(the new retailing commercial mode of offline supermarket under Ali Group) in CVS industry. The Haolinju stores in the future and online page design will present different characteristics targeting at different communities and different spots, the goods conforming to home kitchen, such as clean vegetables, semi-finished food, fresh food will be added in varied degrees, the SKU of fresh fruits will take up 10-20% with nearly 100 kinds.
Store expansion plan has been drawn up.
The model of The Haolinju after renovation will be copied to Hangzhou. As the business partner to Xianlife and the new shareholder of Haolinju, Hanghzhou Greentown services trusted Xiao Xin to manage more than 20 retail shops- Greentown CSVs. Among his plan, in the following year, Greentown CVS in Hangzhou, the stores located in Greentown real estate community will use Greentown brand, and The Haolinju, which the stores in non- Greentown real estate community) will reach up to around 100 stores.
In regards to the expansion speed, The Haolinju will keep expanding at 30%-40% increase rate on a yearly basis, which means 100 more stores increase needed annually. Xiao Xin reasons that the CVS capacity in Beijing will be 2000-3000 stores in the short term, but for now the number of branded chain stores in Beijing is less than 1000, from the perspective of market capital situations in Beijing CVS industry, definitely some other CVS brands will enter.
However, subjected to the difficulty of license processing for opening up a new store in Beijing and the high costs, it is far more complicated to expand stores here rapidly, there is no any one company that can open up 100 stores within one year.
