Core Insights - The food retail industry is experiencing a shift from traditional retail formats to specialized vertical categories, accelerating the process of chain development [1][7] - The overall digitalization level in the food retail sector is low, and increasing the chain rate will drive digital transformation focused on efficiency upgrades and experience reconstruction [1][10] - The digital reconstruction of the food retail industry is based on the concept of "people-goods-scene," with the cash register system serving as a key data touchpoint [1][13] Digitalization Demand Background - The food retail industry has a low digitalization level, primarily consisting of decentralized community stores and small shops, but is entering an accelerated phase of digital transformation due to the rise of new business formats [10] - Digitalization can integrate the supply chain, optimize procurement costs, and enhance management efficiency while reducing inventory waste [10] Evolution of Food Retail Formats - The transition from traditional supermarkets to specialized vertical formats is a response to high loss rates and low efficiency in traditional retail [7] - New formats such as brand snack chains, community fresh supermarkets, and fresh pre-staging warehouses are emerging, promoting overall chain development in the food retail sector [7] Digital Framework of Food Retail - The core of food retail digitalization lies in reconstructing the collaborative relationship among people, goods, and scenes [13] - The cash register system, supply chain management system, and omnichannel operation system form the "iron triangle" of food retail digitalization [13] Cash Register System - The cash register system enhances operational efficiency through integrated payment, inventory management, and dynamic promotions, serving as a data hub for the "people-goods-scene" interaction [20][24] - Different product categories require tailored cash register systems to meet specific sales and promotional needs [20] Supply Chain Management System - The supply chain management (SCM) system integrates the entire process from procurement to sales, enhancing efficiency, controlling costs, and mitigating risks [27][30] - SCM systems enable intelligent replenishment and inventory optimization, crucial for managing perishable goods [27] Omnichannel Operation System - The omnichannel operation system integrates online and offline data flows, creating a unified customer view and enhancing marketing strategies [34][36] - It focuses on data accumulation, customer engagement, and operational analysis to drive business performance [34] Market Outlook - The Chinese food retail market is substantial, with the GMV expected to exceed 7 trillion yuan in 2024 and grow to 8.7 trillion yuan by 2029 [39] - Digitalization is becoming a key competitive factor, with significant growth potential for digital vendors that can capitalize on market opportunities [39] Industry Trends - The food retail sector is transitioning from a sales-driven to a demand-driven model, with vertical vendors poised to seize opportunities through refined category management [43] - Digital vendors in the food retail space are expected to leverage cloud-native architectures and data-driven strategies to enhance operational agility and market responsiveness [46]