Cai Jing Wang·2025-08-08 03:33Core Insights - Hema is undergoing significant changes, including the closure of all membership stores, indicating a shift in its business strategy [1][2] - The new CEO, Yan Xiaolei, is focusing on core business areas, specifically Hema Fresh and Hema NB, moving away from the previous exploratory approach [1][8] - Hema aims to achieve an annual GMV of 100 billion yuan within three years, reflecting its ambition for growth and market expansion [8] Business Strategy - Hema has confirmed the closure of its membership stores, with the last remaining store set to close by August 31, 2024 [1][2] - The decision to close membership stores aligns with Hema's strategy to concentrate resources on its main business lines, Hema Fresh and Hema NB [6][8] - The membership fee for Hema X members was 258 yuan per year, with a discount for continuous subscriptions, but the company is now shifting away from this model [2][3] Market Position - Hema's membership store model was initially inspired by successful international counterparts like Costco, but the company is now pivoting to a more traditional retail approach [6][7] - The company has reported a GMV exceeding 75 billion yuan for the fiscal year 2025, marking its first positive adjusted EBITDA [7][8] - Hema is expanding its footprint in lower-tier cities, with plans to open numerous Hema Fresh stores, indicating a strategy to penetrate deeper into the market [8] Competitive Landscape - Hema faces increasing competition in the hard discount sector, with new entrants like JD and Wumart launching similar store formats [9] - The integration of Hema's membership system with Alibaba's Taobao platform is expected to enhance its market presence and customer engagement [9] - The evolving retail landscape necessitates that Hema not only scales its operations but also strengthens its internal capabilities to maintain consumer loyalty [9]