Hema, Sinochem in tie-up to sweeten branded strawberries

Hema Fresh, the new retail chain of internet giant Alibaba Group, is looking to cultivate and brand its indigenous strawberries through a collaboration with Chinese conglomerate Sinochem.

The duo agreed to establish dedicated planting bases in a radius of 200 kilometers to cities where Hema has outlets, and ensure instant delivery to consumers within 24 hours. 
The pair claimed its strawberries, branded as Quanhong, or "fully red", are of premium quality, due to the use of big data and real-time tracking that ensure a smooth cycle from planting and circulation to sales.

Customers can purchase the Quanhong strawberries, which are picked up one day in advance and remain on the shelf for only 24 hours, via Hema's mobile app or its physical stores.

Qin Hengde, president of the agriculture business unit of Sinochem, said the tie-up will accelerate the modernization process of China's agriculture by giving the sector a data-driven makeover.

"The introduction of Quanhong strawberries represents a bold restructure to the current agricultural chain," said Hou Yi, president of Hema. "Because the strawberry is such a fragile fruit, we aim to address the long-lasting pain points of the supply side (over or under supply) and the demand side (purchasing stale fruits) using technology."

The duo hoped that the newly-nurtured strawberry can top 1 billion yuan in sales by 2022, and such pilot programs can be extended to other fruits and vegetables like tomatoes, oranges and apples.

Almost four years in the making, Hema has seen indigenous brands claim over 10 percent of its ever-expanding product portfolio, the company said in October.