China Doesn't Want to Go to the Store for Groceries, EitherIssue 12-04-17 |
Here in the United States, Amazon and others are trying to work out how to sell fresh food online with speedy delivery.
Meanwhile, Wal-Mart has already developed a big online grocery business in China that delivers fresh produce within one hour. They have a network of chilled mini-warehouses and use an army of crowdsourced delivery people.
Thin margins and perishability make this a challenging business. Wal-Mart uses a sophisticated inventory management system and adjusts each store's online inventory every four weeks. Wal-Mart's sales are up, and rivals like Alibaba's Hema supermarkets and Beijing Missfresh, backed by Tencent, are moving to get a piece of the growth potential.