Analysis on the “New Retail” Model : Take Freshippo as an Example

With the continuous decline of the domestic Internet demographic dividend, domestic e-commerce platforms are seeking new profit growth points. Offline physical retailers are constantly transforming and upgrading in the process of competing with e-commerce for the market. In the context of increasingly fierce competition between online and offline retailers, how retail companies can gain a favorable position in the industry through innovation in business models is worth thinking about. Freshippo corporation focuses on the fresh food market, and it created a “new retail” format by integrating physical retail with O2O (online to offline) model. Freshippo's marketing has a consumer-oriented closed-loop structure. Having 197 stores in China by the end of 2019, it now has successfully become the head of the fresh food e-commerce industry, and its unique development model has become the benchmark of the “new retail” industry. Therefore, in this paper, Freshippo was taken as the research object, to explore the optimization of its business model in the “new retail” environment. The author analyzed the Freshippo's products and services, management and organization, financial plan as well as marketing, then used business model element theory to analyze the characteristics of its current business model, analyzed its causes and summarize its existing problems with big data, finally carried out the optimization of its business model and proposed development strategies suggests. Through the research, it is concluded that Freshippo must conform to the market demand of domestic consumption upgrades, increase investment in technology and talents, and use big data technology to guide retail, understand customers' preferences and predict sales.