Summary of Key Points
Recently, retail giants such as Hema, Yongwang, and Xiaoxiang Supermarket have turned their attention to the "micro-drinking" business, introducing new services like beer vending machines, small bars, and self-service bartending stations in an attempt to encourage young customers to grab a drink while shopping. However, in practice, consumer acceptance has been low (for example, people who drive to the supermarket are unlikely to drink), and there are significant shortcomings in terms of professional competence (limited selection of drinks and lack of community engagement). Additionally, the beer vending machine market has seen the entry of various players, including professional chains, liquor conglomerates, and craft beer brands. Although the industry appears promising, business outcomes vary widely (some stores generate daily revenues of 3,000-4,000 yuan, while others barely break even), and long-term competition is still to be seen.
1. Supermarkets Going Creative with Alcohol Sales: Selling by the Half-Dozen or Freshly Brewed Beer, and Even Small Bars
Supermarkets are no longer just selling bottled alcohol on shelves; they are creating more "contextual" experiences:
- Hema's Wine Store: The first store in Xuzhou uses a "store within a store" format, selling liquor by the 50ml portion (starting at 2.9 yuan per half-dozen) and craft beer by the liter, with about 16 different varieties. Many customers have asked when the service will be available in their local stores.
- Yongwang WINE BAR: Stores in Guangzhou and Foshan have set up bars next to the deli section, offering a free beer with every purchase of goods over 18 yuan. A 65ml glass of wine costs 6.9 yuan, and Asahi beer is available for 15.9 yuan per 480ml, but not many people sit down to drink there on weekdays.
- Xiaoxiang Supermarket: The first store in Beijing has a freshly brewed beer station, offering its own craft beer at prices ranging from 5.9 to 9.9 yuan per 330ml, which is much cheaper than outside.
- Ito-Yaohuatao: Stores in Chengdu have self-service bartending machines that allow customers to mix sake or cocktails for 2.9 yuan, focusing on the concept of "affordability and convenience."
These initiatives aim to cater to young people who want to drink something but don't want to go to a bar, turning supermarkets into convenient micro-drinking spots nearby.
2. Why isn't Selling Alcohol in Supermarkets Going as Well as Expected?
The idea of grabbing a drink while shopping sounds appealing, but there are several practical challenges:
- Low Consumer Acceptance: Most people drive to the supermarket and don't plan to drink; even those who try it once are unlikely to return if they're not impressed.
- Lack of Professionalism: Compared to specialized beer vending machines, supermarkets offer a much narrower selection of drinks (professional stores typically have 30-40 varieties, while Hema only has 16), and they lack the ability to build strong community relationships. The founder of Guanye Beer Vending Machines said, "Professional stores select drinks based on community needs and use WeChat groups to retain customers, but supermarkets just open multiple outlets without the same scale or loyalty."
- Incompatible Context: The primary purpose of a supermarket is to buy groceries; drinking there feels out of place compared to more convenient options like street-side beer vending machines.
3. Why Do Supermarkets Try This Unprofitable Business?
The reason is simple: Online platforms have taken over much of the retail business, so supermarkets need to offer unique experiences to retain customers.
A supplier for Yongwang explained, "Physical supermarkets are under significant pressure from online platforms, so they must add dining and drinking options to encourage customers to stay longer and buy more goods."
The logic behind selling alcohol in supermarkets is similar to offering fast food or baked goods: it's not about making a large profit from the drinks themselves, but using the opportunity to attract customers and potentially drive additional sales of other products.
4. The Beer Vending Machine Market: Many Players, but Who Will Win?
The beer vending machine market is already crowded with various players:
- Professional Chains: Brands like Tang San Liang (founded in 2023, with 100 stores) and Zebra Hero (120 stores) focus on building strong community relationships and offer a wide range of drinks (30-40 varieties), adjusting their menus seasonally (e.g., fruit wines in summer, hot drinks in winter).
- Liquor Conglomerates: Gujing Gongjiu has opened "Light Health Society" beer vending machines, selling liquor for 2.9 yuan per half-dozen, along with low-alcohol fruit wines; Kouzi Jiao has launched "Kouzi Wine Shop" stores.
- Craft Beer Brands: Xianpi Fulu Jia has over 3,000 stores, focusing on freshly brewed beer at affordable prices (5.9-14.9 yuan per glass).
Each player has its strengths: liquor conglomerates have established brands, professional chains have community loyalty, and supermarkets have access to a large customer base. However, there are also challenges, such as some stores generating only a few thousand yuan in daily revenue with margins below 50%. Franchisees complain that the monthly cost of 12,000 yuan may not be recouped if sales don't reach 40,000 yuan.
5. The Future of the Beer Vending Machine Market: Plenty of Competition Ahead
The market seems promising, but success is still uncertain:
- Opportunities: Consumer acceptance of freshly brewed drinks is increasing, and there is demand in lower-tier cities like Mianyang and Guigang, along with many untapped areas.
- Challenges: Supermarkets need to address issues like making it convenient for drivers (e.g., by providing carpooling services or alcohol-free options) and improving the quality of their drinks and community engagement.
As industry experts say, "This is a long-term battle, and no one has a clear advantage yet. It will depend on who can create the best customer experience and build strong loyalty."
In summary, supermarkets' attempts to enter the drinking business are part of the broader effort to innovate in physical retail. However, they face challenges such as mismatching the shopping experience with drinking needs and lacking professional expertise. The beer vending machine market is competitive, but few players have truly achieved profitability, indicating a long road ahead for all involved parties.