The CEO of Hema issued an internal letter stating that its revenue in 2025 increased by over 40% year-on-year.

Author | Peng Qian

Editor | Qiao Qian

In the first year of promoting the "Dual - Wheel Drive" strategy, Hema presented a good report card.

At the beginning of 2026, Yan Xiaolei (nickname: Bai He), the CEO of Hema, sent an internal letter to all employees, revealing Hema's achievements in the past year. In 2025, Hema achieved a year - on - year revenue growth rate of over 40%.

36Kr exclusively learned that Hema achieved full - year adjusted EBITA profit for the first time in the fiscal year 2025. At the press conference celebrating Hema's 10th anniversary on August 7, 2025, Yan Xiaolei, the newly - unveiled CEO of Hema, also mentioned this data. She also added details: "Hema was profitable every month in the past fiscal year."

As early as the end of 2024, Yan Xiaolei set a goal: to make Hema reach the scale of 100 billion yuan and become the No.1 retail brand in China in the future. The annual report of Alibaba for the fiscal year 2025 (from the end of March 2024 to the end of March 2025) showed that Hema's GMV in that fiscal year had reached 75 billion yuan.

Also at the end of 2024, Yan Xiaolei clearly stated in an internal letter for the first time that Hema would focus on two core business models: Hema Fresh and Super Hema NB. The former is responsible for quickly replicating the mature model, while the latter focuses on community - based services, forming complementary advantages. The year 2025 was the year to implement and test the Dual - Wheel Drive strategy.

Over the past 10 years, Hema, which has experienced accelerated store - opening, decelerated adjustment, and strategic focus, has made different strategic choices at different stages. Now, against the backdrop of drastic changes in the consumption environment, Hema wants to seize new development opportunities and accelerate its expansion.

The "Dual - Wheel Drive" Strategy Yields Results, and Hema Accelerates

Under the "Dual - Wheel Drive" strategy, Hema's business has become more focused, concentrating resources on expanding two store formats: Hema Fresh and Super Hema NB. In 2025, Hema Fresh entered 40 new cities, and over 200 new Super Hema NB stores were opened.

Hema's decision to expand its service areas at this time is actually the result of the combined effects of internal and external factors.

From a macro - environmental perspective, the internal driving force of China's economy has undergone structural changes. While first - tier cities maintain steady growth, economic and consumption growth in emerging non - first - tier cities has become increasingly significant. A report from CIC shows that emerging cities are becoming more attractive to the population, and these regions are playing an increasingly important role in the country's economic development, and are expected to become the most potential market areas in the next five years.

Opening stores in potential markets is almost a consensus among leading players in the industry. Sam's Club planned to open 8 new stores in 2025, 6 of which were located in non - first - tier cities such as Zhangjiagang, Hefei, Jiaxing, Wuhan, and Zhongshan. Many new Hema Fresh stores are also opened in such cities. Data disclosed by Hema shows that Hema Fresh entered 21 cities and regions in 2024. Just in the Yangtze River Delta region, it entered 6 counties including Changshu, Tongxiang, Yiwu, Zhuji, Deqing, and Zhangjiagang. In 2025, it entered 40 new cities, including Tianjin, Shijiazhuang, Linyi, Luoyang, Nanyang, and Yibin. Public reports show that almost all newly - entered cities saw full - house openings.

Hema Fresh is also looking at more northern cities. Previously, most of Hema's stores were concentrated in the Yangtze River Delta and Pearl River Delta regions, with over 60 stores in Shanghai alone. In mid - 2025, Hema Fresh entered Tianjin and Hebei for the first time, which was an important node in its expansion in the north.

After 10 years of development in the instant retail field, Hema has basically completed the full - scale layout and achieved stable growth in first - tier cities through its large - scale Hema Fresh stores. In terms of product strength, supply chain construction, store operation, and expansion experience, it has the ability to serve the entire market. So in 2025, Super Hema NB, another major store format of Hema, also entered a period of rapid expansion.

36Kr previously reported exclusively that Super Hema is an affordable community supermarket brand under Hema, which is differentiated from Hema Fresh. In an environment of consumption segmentation, it provides differentiated products and services and opens stores at a rate of 20 per month.

According to insiders at Hema, after several years of exploration, the business of Super Hema NB has gradually matured, and the brand has entered a new stage of name - changing, upgrading, and opening franchises within a limited scope. At the same time, as the store format and model have been refined, Super Hema NB will also expand beyond the Jiangsu, Zhejiang, and Shanghai regions: before the Spring Festival this year, Super Hema NB will open 2 stores in Dongguan, Guangdong for the first time, which will be an important step in its national expansion.

Product Strength Is the Core Competitiveness

In its first 10 years, Hema built systematic capabilities in multiple dimensions such as the supply chain, private brands, and digital operation around products.

Hema's product manager also emphasized that products are the starting point for users to understand, recognize, and love Hema, and are also the core competitiveness of Hema. Self - developed brands such as "Hema Bakery", "Hema Workshop", "Hema Supplements", "Global Goodies", "Direct Supply from Origins", "Daily Fresh", and various innovative products have all established a strong consumer perception, enabling Hema to always have a place in the highly competitive retail industry.

For example, baking is a first - level category at Hema. According to the person in charge of Hema Bakery at the 10th - anniversary press conference, currently, this category is divided into two major types: one is innovative and leading products that are unique to Hema, such as resistant starch, slow - fermented toast, and the Otder series under research; the other is popular single products in the market but with limited coverage. Hema will leverage its advantages in scale and supply chain, integrate industrial belts, and conduct large - scale production and supply based on unified quality standards, truly allowing products from first - tier markets to penetrate the entire market and enabling local specialty products to flow more quickly across the country.

How to create unique and innovative products? According to the above - mentioned bakery person in charge, Hema will use data capabilities to assist in the analysis and decision - making of each category and single product; conduct market research in developed countries such as Europe, the United States, Japan, and South Korea every year to explore new product consumption trends; and then mobilize resources from upstream raw material suppliers, suppliers, and manufacturers in the industrial chain for collaborative development.

Facing the new consumption environment, Hema is also exploring new product consumption trends.

With the official release of the implementation plan for the "Weight Management Year" activity advocated by 16 departments of the National Health Commission, healthy living has truly been put on the agenda. Hema has also started to focus on the health field, including but not limited to energy certification and labeling for light - food salads and sandwiches, and launching a series of health - preserving drinks in cooperation with the time - honored brand Li Liangji.

Behind the product strength, Hema is also constantly optimizing its supply chain and raising the standard of "freshness". As 36Kr learned, Hema has built 8 supply chain centers, over 300 direct - procurement bases, and 8 logistics transfer warehouses. Its supply chain network, which covers the whole country and even extends overseas, can now ensure that honeydew melons from Xinjiang and salmon from Norway can arrive on the same day.

Under the new consumption structure, emotional consumption is becoming a new trend. Hema has also added scented candle gift sets, increased the supply of fresh flowers by 40%, and adjusted product packaging according to the needs of single - person consumption.

Hema was one of the pioneers in the instant retail field. After experiencing some setbacks, it has regained its growth momentum. Now, the supermarket industry is crowded with both new and old players. Under full - scale market competition, Hema has accelerated its expansion again. The report card presented under the "Dual - Wheel Drive" strategy has set a good start for its new 10 - year journey.

Here is the full text of the internal letter:

This article is from the WeChat official account "36Kr Future Consumption". Author: Peng Qian. Published by 36Kr with authorization.