- Sep 22, 2020
- Business Update
7FRESH LIFE Adds 3 Stores in Beijing, Demonstrating Innovative Model
by Ella Kidron
JD.com has opened three more 7FRESH LIFE community stores in Beijing offering round-the-clock meal time solutions for local residents. The three new stores (precise addresses can be found here) are located in Beijing’s busy Chaoyang district, and are expected to cover 250 residential compounds in a 1.5 km surrounding area, providing quality services to around 800,000 people. The steady opening of community stores demonstrates the value of this model to consumers. JD now operates six such stores in Beijing.
7FRESH LIFE combines community “restaurant + fresh food store + convenience store”, serving as a warm and caring neighbor. Parents will find quality fresh ingredients in 7FRESH LIFE, while busy professionals can also get nutritious prepared food. Taking advantage of its omnichannel capabilities, 7FRESH LIFE provides a location-based online channel through its app for consumers to buy from the shop any time and have their products delivered in as fast as 30 minutes.
Community stores are typically defined as those within a 0.5-1.5 km radius, or “life circle”. Jonathan Wang, head of 7FRESH, said in a byline article that was summarized by research analysis firm IGD that the growth of the community store model is in part due to urbanization, which increases the number of middle-class shoppers, who lack time but are unwilling to compromise on quality and lifestyle. Rather than simply being a slimmed down version of a convenience store, community stores focus primarily on meal occasions. As such, they carry a smaller range of products than what can typically be found in a supermarket. JD’s model upgrades the traditional neighborhood convenience store into an omnichannel meal solutions hub. Services like home delivery from 7:30 am to 10:00 pm each day and extended operating hours provide enhanced convenience to neighborhood consumers.
“In the next three years, 7FRESH LIFE will rapidly develop and copy the original prototype model to more communities, using fresher, more precise and more consumer-savvy products to satisfy family meal needs from the kitchen to the dining table,” said Sun Xichao, head of 7FRESH LIFE. By ensuring basic needs of the local community and improving supply capabilities of community stores, JD’s strengths can be used to empower community development.
JD opened its first 7FRESH LIFE in Huilongguan, Beijing at the end of 2019. The store trial data shows that it achieved average revenue of RMB 90,000 per day – strong performance for a store of its size and type.