Business Model Innovation and Evolution of Freshippo -- A Global Online-to-Offline Development Analysis from Premium Membership to Low-Price Discount Stores

Xiaoyu Li ()
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Xiaoyu Li: Auburn University

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 1016-1023 from Springer

Abstract: Abstract Freshippo, which was launched by Alibaba Group in 2016 as a benchmark for new retail, has a development history that could be regarded as a landmark case for the digital transformation of China's retail industry. According to the “2024 China Supermarket Top 100” data released by the China Chain Store & Franchise Association in July 2025, Freshippo has risen to become one of the third-largest retail enterprises in China's supermarket industry. These rankings place it just behind Walmart China and Kangcheng Investment (China). This achievement signifies that after years of exploration, Freshippo has preliminarily validated the success of its business model. Underpinning this success, Freshippo's attempt to transform its membership-based model stores into discount stores has played a significant role in its development journey. Under this transformation strategy, Freshippo's profit margin has seen significant development. This paper will investigate whether this transformation has had a positive impact on Freshippo by examining its profit margins. The findings of this investigation will offer actionable insights for industry practitioners navigating digital transformation. To show how strategic format pivots could be leveraged to enhance financial sustainability in competitive retail landscapes.

Keywords: Freshippo; New Retail; Discount Stores (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-642-5_107

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