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Authors | Huang Yu, Chen Yingyi
Leading player in new retail, Hema, has introduced new variations in its spring vegetable series, bringing edible chrysanthemums to more people's tables.
In early March this year, edible sugar heart chrysanthemums grown in Xiaolan, Zhongshan, entered the retail market for the first time through Hema's channels and were sold to over 40 cities via Hema's nationwide warehouse and logistics system, becoming the &#34;top seller&#34; in Hema's spring vegetable series.
Hema began offering spring vegetables and spring flowers four years ago. This year, Hema has over ten varieties of edible flowers for sale, with edible chrysanthemums being the first new variety launched this year.
It is reported that this edible chrysanthemum has undergone ten years of variety improvement and cultivation technology breakthroughs, successfully achieving stable production throughout the four seasons. Due to its unique taste of concentrated sweetness and crispness without bitterness, it was sold out within a week of its launch, with a repurchase rate ranking first in Hema's spring vegetable series.
From the water-loving flowers of Dali, Yunnan, to the sugar heart chrysanthemums of Zhongshan, Hema's range of edible flowers is becoming increasingly diverse. Data shows that the overall sales of Hema's spring vegetable series are expected to increase by 70% year-on-year by 2025.
The popularity of edible chrysanthemums has led to a supply shortage at the current base. Qu Juanhua, the person in charge of the Zhongshan chrysanthemum base, stated that the base is working hard to plant a second batch of chrysanthemums, which is expected to be available in Hema stores nationwide in July.
Zhongshan chrysanthemums have a long cultural history, and in recent years, their popularity has gradually spread through initiatives like the Cantonese Cuisine Master Program, cooking competitions, and tastings by national leaders. Coupled with the well-known health benefits of chrysanthemums, their market potential is significant.
In November last year, Huang Shihang, director of the Zhongshan Municipal Bureau of Commerce, and Xu Chengbin, secretary of the Shiqi Street Party Working Committee, visited Hema's Shanghai headquarters, where both parties expressed preliminary intentions for cooperation.
The collaboration between Hema and the Zhongshan chrysanthemum base is based on the market potential of edible chrysanthemums and the implementation of Hema's four-year-long spring vegetable and flower strategy.
Ensuring that consumers can enjoy fresh and delicious spring flowers and vegetables is not easy; this business has a short time frame, high transportation costs, and high technical barriers.
Liu Zhiqiang, the vegetable procurement head for the Guangfo-Dongguan-Zhongshan-Zhuhai region at Hema, told Wall Street Journal: &#34;That's how Hema operates; we tackle all the difficult things. We want customers to feel the seasonal changes and to be able to taste different seasonal products from across the country.&#34;
Clearly, for Hema, maintaining a rich spring flower and vegetable series will undoubtedly solidify its unique position in consumers' minds regarding fresh produce.
In developing the spring vegetable category, Hema also has its own supply chain advantages. Hema has compressed the supply chain from the picking of Zhongshan chrysanthemums to the store to as short as 12 hours through a combination of &#34;direct sourcing from the origin + air transport + modified atmosphere preservation&#34; technology; at the same time, relying on a mature cold chain model ensures freshness without additives.
It is reported that this year, Hema further upgraded its three-tier network of &#34;origin warehouse - regional warehouse - store,&#34; adding dedicated cold chain warehouses for short-shelf-life vegetables, achieving &#34;pre-cooling immediately after picking and zero transfer during transportation.&#34;
Data shows that this link reduces the flower loss rate from the traditional model of 30% to below 8%, providing a guarantee for farmers' income increase.
Wall Street Journal learned that after years of efforts from both upstream and downstream, seasonal spring vegetables have become increasingly accepted by a wide range of consumers. Taking elm money and locust flowers as examples, five years ago, they could only be sold for one month at Hema, but now, through migratory bird-style layout of bases and large-scale planting, this year's sales period has reached two and a half months, and the production cost price has also decreased by 30%.
In recent years, China's retail industry has entered a painful period of transformation and change, and how to achieve high-quality growth through refined operations has become a consensus in the industry.
At the end of last year, Hema's new CEO Yan Xiaolei introduced in an internal letter that over the past nine months, Hema has carried out comprehensive reforms around three core strategies: &#34;returning to user value, focusing on development direction, and promoting organizational construction.&#34;
On this basis, Hema's development direction focuses on two core business formats: Hema Fresh and Hema NB. The former replicates the successful model, while the latter refines the optimal model, aiming to &#34;hit a scale of 100 billion.&#34;
After a series of adjustments, Hema has successfully turned losses into profits. Data shows that Hema achieved double-digit growth last year on the basis of nine consecutive months of overall profitability, with the number of customers increasing by over 50%.
At the same time, Hema Fresh plans to open 72 new stores in 2024, covering 21 cities, setting a new high for the number of stores opened in nearly five years. By the end of 2024, the total number of Hema Fresh stores nationwide will be close to 430, covering 50 cities.
In the fiscal year 2025, Hema Fresh will accelerate its expansion, planning to open nearly 100 new stores and enter dozens of new cities.
In the retail industry, &#34;model replication&#34; is not a panacea; finding a path suitable for deep cultivation and building competitive barriers is the key.
Hema Fresh has always been the main force of Hema's new retail and a differentiated embodiment that distinguishes it from other supermarket formats. It already possesses mature digital genes, omnichannel integration capabilities, and the ability to build its own brand products.
The successful practice of edible chrysanthemums this time is a manifestation of Hema's logistics chain advantages. In the future, by adhering to refined operations, Hema's path will inevitably become more and more stable

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In 2025, the overall sales of the Hema Spring Vegetable Series increased by 70% year-on-year

- Hema, a leading player in new retail, has successfully introduced edible sugar heart chrysanthemums to the market, reaching over 40 cities through its logistics network.  
- The edible flower category has expanded significantly, with sales of spring vegetables increasing by 70% year-on-year, and the sugar heart chrysanthemum quickly sold out due to its unique taste and health benefits.  
- Hema's strategic focus on fresh produce and efficient supply chain management has led to profitability and plans for rapid expansion, with nearly 100 new stores set to open in the 2025 fiscal year.

Hema has turned chrysanthemums into a "bestseller" on the dining table