Integrating virtual and physical channels, Aimai grows against the trend

Online shopping is closing in on physical retail opportunities. Aimai Chief Operating Officer Zhuang Jinlong announced that the trial operation was a success, with December sales growing against the trend. Starting today, 50,000 products including fresh produce will be available for immediate delivery through online shopping in 10 major metropolitan areas.

With salaries in Taiwan, China failing to rise and even falling, consumers are shopping at physical stores and then buying cheaper online to save money, causing online shopping to erode the business opportunities of physical channels. Many physical retailers have already invested in developing and building online shopping systems, and among them, the hypermarket chain Aimai was the first to announce successful integration.

Zhuang Jinlong pointed out that Aimai launched online shopping in July, and online shopping business opportunities are expected to reach NT$150 million by December, with NT$30 million expected in December alone.

Zhuang Jinlong said online shopping will not be profitable at first, and more than NT$50 million has been invested so far in developing the system and platform, of which frozen hardware equipment alone accounts for NT$20 million to NT$30 million; the constant-temperature electricity cost for fresh products is also 30% more expensive than for general products; but if they do not do it, the physical business opportunities will be eroded.

He said the average transaction value at physical stores is NT$900 to NT$1,000, while online shopping saves fuel by not requiring a drive and offers free shipping once a certain amount is reached, raising the average transaction value to NT$1,200 to NT$1,500; in addition, Aimai is the first to make fresh products available for online shopping, with delivery in nine hours, which not only allows online shopping to boost the relatively weak Monday-to-Friday weekday performance of physical channels, but also revealed that Aimai's online shopping conversion rate reaches 5% to 6%.

The trial operation found that the main market is north of Hsinchu, accounting for 60%; delivery time in Taipei City is within five to six hours.

Zhuang Jinlong said that leafy vegetables costing NT$20 to NT$30 per bunch can be bought online, and in the initial launch period, until January 7 next year, shipping is free as long as the order reaches NT$588.