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Although online retailing has expanded dramatically over the past decade, research on the topic by economic geographers remains sparse. One recent hitherto unstudied trend has seen online retailers establishing physical grocery store networks in the Chinese market. This paper utilizes a case study of Alibaba’s Hema grocery store chain to identify and analyze the distinctive and innovative methods that online retailers are adopting in the Chinese food retail market in the context of developing physical stores. Four aspects of innovation are examined, namely: format innovation involving the store as a local fulfillment centre providing efficient last-mile delivery; developing a more consumer-centric retail model; transforming domestic supply networks; and sourcing live seafood globally. These developments are all achieved and facilitated by the strong data-driven capabilities of Hema in the context of the wider Alibaba platform ecosystem. Overall, the paper demonstrates how the digital data capabilities of online retailers embedded in wider platform business groups are rapidly altering the competitive landscape of the food retail sector in China. |
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