Alibaba’s ‘New Retail’ Revolution: What Is It And Is It Genuinely New?
At a private dinner with Michael Evans, President of Alibaba, he told a personal story which also helped to illustrate the concept. Evans was returning a jacket to a physical store, which he had purchased via e-commerce. The store was not able to recognize the item and make the connection between online and offline inventory, and wouldn’t accept the return. “That’s when I realized what New Retail is and what it isn’t”, said Evans.
He went on to talk about the intersection of the “consumer value proposition” and the “merchant value proposition” inherent when online and offline are properly integrated. From a consumer’s point of view, it’s just easier to shop and the store flexes to the shopper’s individual needs. From an operator’s perspective, when everything is connected and data is visible and plentiful, efficiency and productivity is maximized.
I didn’t totally "get it" until I toured Freshippo. As a customer, I can interact with the supermarket as the mood and need takes me, all driven by the Freshippo or Taobao apps on my phone (integrated with Alibaba’s Alipayplatform of course). I can shop traditionally in store. I can “click and collect”. Or I can order and have products delivered (in 30 minutes or less within 3km – about 1.8 miles of my home). (Quick side story – VMLY&R* Asia co-CEO Yichung Tay was cooking at home, and realized he was out of garlic. No problems – he ordered on his mobile, and Freshippo delivered the ingredient in time for him to finish making the meal. With that kind of service, no wonder proximity to a Freshippo store is starting to factor into people’s real estate choices.)
So this is “New Retail” in action. And it doesn’t stop at supermarkets. Alibaba’s New Retail platform is being used to digitize hundreds of thousands of stores across China. Via their Ling Shou Tong (“Retail Integrated”) program, mom-and-pop convenience stores are being digitally upgraded, plus selected locations for RT-Mart, Intime shopping malls and Easyhome all had a New Retail makeover for the 11.11 Global Shopping Festival.
See the full story here: https://www.forbes.com/sites/jonbird1/2018/11/18/alibabas-new-retail-revolution-what-is-it-and-is-it-genuinely-new/#7ec6620a6ad1