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China: Fresh Hema plans to build 1,000 Hema villages in rapid development of made-to-order agriculture

Recently, at the "China Retail Circle Conference and 2021 Fresh Food Retail Development Forum", Fresh Hema stated that during the "14th Five-Year Plan" period (by the end of 2025), they will build 1,000 Hema villages across the country and will be located in domestic agricultural production areas. A total of 100 billion RMB worth of agricultural products will be purchased.

Shen Li, vice president of Fresh Hema, claimed that this is an important link in Hema's launch of the "Rural Infrastructure Construction Strategy". Efforts to develop made-to-order farming, on the one hand, rely on user feedback from the end of the sales to bring more market information and user needs to the field. On the other hand, they agree on the purchase amount and value before agricultural products are planted to stabilize the prices of agricultural products. In the future, Fresh Hema will also screen projects in Hema Villages, build warehouses and processing centers around Hema Villages, and explore agricultural industrialization with local partners.

It is understood that starting from 2019, the Hema Village model has begun to test the waters. Up to now, there are 136 Hema villages across the country, covering 19 provinces (autonomous regions and municipalities). According to Shen Li, Hema has recently updated a set of brand usage standards and management practices for Hema Villages. In addition to the made-to-order farming model, Hema also imposes rigid requirements on the planting area of the contracted varieties and the uniqueness of the product quality.

The analysis believes that as various brands of supermarkets continue to strengthen the supply chain construction, the supply chain dispute has entered a fierce stage, and at the same time, the made-to-order agriculture is about to usher in a period of rapid development. Fresh Hema's move is seeking differentiation in fresh produce and an increasing competitive capacity.


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