Tag: Lianhua

  • Lianhua Supermarkets highlights ‘togetherness’ in branding revamp

    Lianhua Supermarkets highlights ‘togetherness’ in branding revamp

    Chinese state-owned retailer Lianhua Supermarkets has undergone a complete brand refresh, after 28 years of trading.

    The new look, including a refreshed logo and instore signage and design, is being rolled out across the retailer’s 42 stores in China including Shanghai, Hangzhou, Anhui, Guangxi, and Henan.

    Like many traditional Chinese retail brands, Lianhua’s efforts to attract and retain customers until now were focused on in-store promotion and pricing. However, Chinese consumers have become more sophisticated and the market is more competitive now, meaning brands have to stand out from the crowd and develop a connection with their customers.

    “Numerous digitally-driven and technology-led retail brands have seized the market share and disrupted China’s retail industry bringing fresh and seamless online to offline retail experiences to China’s increasingly discerning consumers,” said a Superunion managing creative director Ray Lan. “In order to deal with the external challenges, Lianhua felt the need to change and define touchpoints to re-establish the connection with consumers amidst fierce competition in China’s retail industry.”

    The agency’s team started the project by interviewing staff and management to understand brand and what it meant to the people who work there. Through this process, Superunion uncovered unique aspects of Lianhua’s culture – from the older, more experienced employees, to their reliable supply chain and neighborhood-oriented stores.

    “The high market coverage of stores is also the biggest difference between Lianhua and its peers. These strengths are part of Lianhua’s long-held heritage and are more pertinent than ever amidst China’s fast-moving, overwhelmingly dense information society, a society that increasingly fears losing meaningful connection,” said Lan.

    Togetherness

    This insight is the core of the brand’s newly created brand positioning of Togetherness, aiming to nurture relationships and solve the pain points that consumers experience in a fast-paced life. Through Togetherness, Lianhua has re-examined the nature of retail and created a more satisfying consumer experience providing high-quality products and consumer services, giving them a more unique positioning in a highly competitive market.

    “Togetherness has been visualized as an elaborate ribbon that ties all elements together. The new eye-catching store signage has become a highlight on the streets of the Yangtze River Delta region with the new key visual communicating a sense of connection among Lianhua, shoppers and the community.”

    As part of the corporate rebranding process, a cross-functional brand committee and a brand team have been established to provide professional brand management training and to ensure the brand transformation progresses smoothly, with passion and engagement from within the organization, both at head office and in-store. Lianhua employees and consumers believe the new logo and brand image brings a modern touch to the household name and is expected to attract younger generation to the store.

    The first stage of the brand rollout will be completed by the end of this year, by which time all stores will have new livery, in-store design, staff uniforms and signage.

    Lan says customer response to date has been positive, with the fresh new look in-store vastly improving the Lianhua brand experience.

    “Creating the Lianhua brand identity was a challenging but fun journey. The new key visual – the “ribbon” – reflects the brand positioning “togetherness” in a very smart way, endowing it with a more vivid and concrete representation. It has become a powerful visual asset of Lianhua, enriching the brand through various touchpoints, and communicating what the brand stands for to customers.”

    Doreen Cheng, CMO, Lianhua Supermarket Holdings, said the company believes retail has the power to bring communities together.

    “Superunion helped Lianhua build a unique brand model of togetherness that comes from the intersection between Lianhua’s strengths (coverage and resource) and the cultural disconnection being felt in Chinese communities. Togetherness will differentiate Lianhua in the competitive retail market, creating a holistic platform for the brand.”

  • Alibaba buys 201.5 million shares in Lianhua Supermarket to become second-largest shareholder

    Alibaba buys 201.5 million shares in Lianhua Supermarket to become second-largest shareholder

    Lianhua Supermarket Holdings’ shares were halted in Hong Kong after the retailer’s stock jumped by almost 22 per cent following the announcement that Alibaba Group Holding has emerged as its second-largest shareholder.

    The stake purchase is the latest in a long line of Alibaba investment in brick and mortar shopping malls, part of a strategy adopted by the e-commerce giant since 2015 to broaden its exposure to markets where online and offline retailers are converging.

    Lianhua shares rose to a two-month high of HK$3.83 before trading was halted on the Hong Kong stock exchange.

    Alibaba, operator of the world’s largest online shopping platform, said it would buy 201.5 million shares of Lianhua, giving it 18 per cent of the supermarket operator and becoming its second-largest shareholder, according to a filing to the Shanghai Stock Exchange issued by the retailer’s parent Bailian Group.

    The investment by Alibaba, owner of the South China Morning Post, follows a February announcement of a strategic tie up with Bailian to use big data to improve sales at its physical stores, the largest retailer by store numbers in China

    As online sales growth slows, Alibaba has been rapidly expanding into traditional retailing in recent months.

    Alibaba announced in August 2015 that it would invest US$4.6 billion for a minority stake in Chinese electronics retailer Suning Commerce Group Co, while in January its announced it is leading a US$2.6 billion bid to privatise mainland department store and shopping mall operator Intime Retail Group.

    In November it bought a stake in supermarket chain Sanjiang Shopping Club Co for US$305 million.

    Zhu Danpeng, a researcher on China’s retail industry, said the online and offline retailing business are converging as they start to realise that they are more complementary than mutually exclusive.

    “Offline shopping fulfils an emotional need of a consumer, which is irreplaceable by the online shopping experience,” he said. “So it is natural for mature e-commerce businesses to want to capture that part of the business.”

    He also said the retailing industry will stratify into different levels of services.

    High-end products such as luxury goods will retail in brick-and-mortar shops where consumers look for a higher level of personal service, while standard grocery and household items are better suited for the online environment.

    Brett McGonegal, chief executive of Capital Link International, said that the trend towards brick-and-mortar shops will allow e-commerce businesses such as Alibaba and Amazon to learn more about the shopping habits of consumers.

    “It closes the gap between warehouse distribution and consumers,” he said, “[With better understanding of consumers’ habits] retailers can put items right where and when you need them.”

    He also said Alipay will be an important component to the convergence of online and offline shopping. He added that Alibaba ultimately wants to allow its users to finish all their shopping and transactions exclusively on its network.

    A JLL market report highlighted that an increasing number of brick-and-mortar shops on the mainland are pushing for online shopping services, which include online voucher schemes, automated check-out and order-online-pickup-offline services.

    JD.com has also been expanding into offline retailing in recent years after it invested 4.3 billion yuan (US$627.3 million) in Yonghui Supermarket and forged a partnership with Walmart.

    JD.com said that it plans to establish more than 1 million convenience stores, with half located in rural China, in five years.