Customers use their smartphones to shop and pay for their groceries, which are delivered within the hour for those up to three kilometres away. Around 70% of Hema’s sales come from online orders.
Another shining example of New Retail is Luckin, the dark horse in the Chinese coffee market. It has charged past its competitors, including Starbucks, by meshing trends in China’s tech industry with the coffee shop model. Less than nine months after its start-up, today it’s worth US$1 billion.
Protein powers up in health and wellness
Asia has enthusiastically embraced the health and wellness trend. People want to be healthy and fit, look good and use exercise as a basis for socialising. Dairy protein is increasingly recognised for its nutritional benefits and the yoghurt market is booming.
While offering significant opportunity for global dairy players, the challenges of operating in Asian markets are likely to present speed bumps along the way. However, with a seemingly insatiable appetite for dairy in the region, market growth should continue at full steam for some years to come.