China has seen its urban convenience level improved in the past four years since the introduction of the new retail model. Hangzhou is the second most convenient city in China, said the New Retail Convenience Index report by New Retail Think Tank.
The report, which surveys the new retail penetration ratio in stores, numbers of same-city deliveries, consumer adoption, etc, found that the city ranked ahead among all Chinese cities. “Alibaba is based in Hangzhou, where there are more Yintai department stores and faster expanding Hema superstore network,” said an industry insider.
Stores in Wulin, the city’s central business district, can deliver online orders to an area within a radius of up to 10km as fast as in 30 minutes and no longer than two hours.
“On the one hand, instant delivery has become a must for consumers; on the other hand, more store owners have become increasingly aware of the fact that digitization capability is the necessary knowhow for restaurants and retailers,” said CEO Wang Lei of Ele.me.
Alibaba is now able to deliver almost everything for urban consumers within half a day. For instance, cosmetics and household items are the most popular products second to fresh groceries. The orders on 2-hour delivery increased 170% YoY for Yintai’s Wulin store during the period from March to August.
The report also shows that orders and customer traffic at Yintai’s stores all across the country have rallied since a brief dip in February, and driven by online marketing and live broadcasting, order numbers increased much faster than customer traffic growth.