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10.2020 Cover Story

A.Mart starts the Hypermarket 3.0

A. Mart / Chen Linghua
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With the improvement of people's living standards, the demand for consumption is also upgrading and evolving. The cover story of the month introduces how A. Mart that has been established for 30 years practices the concept of sustainability and innovation in the new retail era and the transformation of economic structure under the post pandemic situation to start hypermarket 3.0 and create hyper mall in the new era.

 

In recent years, the rise of the Internet has led to the trend of home economy and online shopping. On top of that, supermarkets and convenient stores are aggressive to gain more market shares. Although the performance of the hypermarket industry has been growing continuously for nearly 14 years, under the impact of supermarkets and convenient stores, the growth trend has obviously slowed down. With the continuous rise of consumption consciousness which attaches importance to the quality of life and high consumption ability, the demand of consumers has transferred from the purchase of goods in the past to the supremacy of "consumption experience". The focus of consumption is whether the store can show personal values and rich experience. Shopping itself is expected to become a leisure and entertainment activity, rather than a routine activity due to lack of goods. According to Deloitte survey, compared with traditional goods, consumers are willing to spend 20% more on customized goods. The retail industry can increase the net profit of revenue by 12.7% by providing differentiated products and services. It is expected that the differentiation of service and experience will become a new marketing point in the future.
        
Facing the severe challenge of the environment and the "new retail era" in which consumers dominate the market, it is an urgent action for A. Mart to integrate the virtual and physical channels, create customer experience differentiation, and then increase revenue and profit. Peter Drucker once said “The best way to predict the future is to create it”. In the face of the unpredictable future, A. Mart launches a new type of hypermarket store and expands the new retail territory.

        

Launch Hypermarket 3.0       
Hypermarket Evolves into Hyper Mall

Year 2020 is an important time for the transformation of the hypermarket industry. From the first generation of traditional hypermarket that only sold necessities 30 years ago to the second generation of hypermarket with store streets and restaurants, A. mart's hypermarket store has officially evolved from hypermarket to hyper mall in 2020. After two years of development, A. Mart has set up "the third generation of hypermarket type: hypermarket 3.0" in the Taichung City Shuinan economic and trade park. The store covers an area of 3000 square meters, with a total floor area of 12,000 square meters and 400 parking spaces. It is the first green building retail store in Taiwan and also a multi-experience pavilion for family life technologies, providing a full range of family purchasing experience.

Two Highlights, Three Features and Seven Innovations for a New Purchasing Experience

In order to cater to the new retail model centered on consumer experience, the Shuinan store at Taichung City has launched two highlights, three features and seven innovations to provide the best service for consumers

        

 Two Highlights
  • A new type of hypermall combining shopping mall with supermarket.
  • With "family" as the core, it provides a comprehensive shopping experience.

Three Features
  • Spacious aisle: the shelf is reduced by 30%, and the height is pulled down to reduce the sense of oppression, making shopping more relaxed and comfortable.
  • Wide range of family facilities: as the children of Shuinan business district account for 30% of the children in Taichung City area, Shuinan store has set up reading area, game area, children's trolley, children's rickshaw, parent-child club and other warm services on each floor.
  • Valet Cooking: all meat and seafood products (except frozen products) sold in the store can be cooked for customers at store, providing a one-stop service of buying, cooking and eating.
Seven Innovations
  • The first green hyper mall adheres to energy conservation. It has been certified with the "green building badge".
  • The first environment-friendly demonstration hyper mall, the plastic packing bags are eliminated in the baking area completely, paper bags are provided for the bakery products, which effectively reduces the plastic consumption. In addition, reduce the printing volume of DM paper, encourage consumers to check the official website or download the official app to read EDM.
  • It is the first time to have a customized embroidery service in hyper mall. Consumers can have unique commodity as long as they buy the specified embroidery products in the store.
  • The first low-temperature treatment room for seafood products that adopts transparent compartment, and the cooking process is visible.
  • It is the first time to have an open kitchen in the store for cooked food to ensure the hygiene and safety of dining.
  • The smart parking discount on the hyper mall app is created. After shopping, consumers can quickly leave the parking lot by scanning the receipt and binding the car number on the app.
  • A5 Japanese beef can be cooked in the store, top dishes with affordable charges to serve the customers.

In addition to actively introducing innovative and differentiated experiences, A. Mart also conducted a survey on customers' purchase experience. The results showed that more than 85% of the customers satisfied with the store, especially with "wide aisle, lower shelf", "clean and hygienic seating area" and "pressure-free decoration". They also thought that Shuinan store "broke the traditional hypermarket and was more like a shopping center or premium supermarket". A further study of the service items preferred by customers, it is found that "Valet Cooking" is most popular among customers, which shows that the new business model of "buy now, cook now, and eat now" has been accepted by the majority of customers. A5 class Japanese beef which is offered exclusively in the Shuinan store aims at the people who prefer eating out and develops the new concept of “hyper restaurant”.
        
In response to the unique "parent-child positioning" of Shuinan store, the newly launched membership services of "parent-child club", offers such as "reading space", " dining space" and "experience activities" for parents and kids, also rank among the top in customer satisfaction, so that young parents in shopping malls can enjoy a more comfortable and relaxed parent-child interaction experience.
        
The custom-made fashion has become popular in recent years. A. Mart hyper mall also innovated a new customized service of "embroidery workshop". It can not only make personalized embroidery, but also leave interesting and meaningful special marks on hats, bedding, etc., which has won the favor of customers.

A. Mart Shuinan store in Taichung was opened as a brand-new type of hyper mall. On the first day of soft opening on August 18, 15,000 people were attracted to the store, and the daily turnover reached nearly NT$8 million. This hypermarket 3.0 store will show you the persistence and effort of A. Mart in the past 30 years.

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