Inside Alibaba How New Retail Is Changing Everything

Summary

Alibaba's 'New Retail' model merges online and offline shopping, enhancing consumer experience with technology. The concept, exemplified by Hema supermarkets, integrates mobile apps for shopping, payments, and in-store services, with stores doubling as fulfillment centers for rapid delivery. The 11.11 Global Shopping Festival showcases innovations like 'See Now, Buy Now' fashion shows and interactive TV galas, engaging viewers with real-time purchases and games. Brands like Wyeth and Bose leverage New Retail to create immersive, interactive experiences, blurring the lines between online and offline shopping. Alibaba aims to redefine global retail with a fully digital approach, prioritizing convenience and personalization.

Takeaways

• 🛍️ The script introduces the concept of 'New Retail', a term coined by Alibaba, which integrates online and offline retail with logistics, data technology, media, entertainment, and gamification.
• 📱 It highlights the example of Hema, Alibaba's tech-powered supermarket, where all transactions, including in-store purchases and online orders, are managed through a mobile app.
• 🏪 Hema stores function as fulfillment centers, allowing for rapid home delivery to consumers within a 3-kilometer radius, sometimes within just 30 minutes.
• 🎉 The 11.11 Global Shopping Festival is portrayed as a testing ground for shopping innovations, blending entertainment with retail to engage consumers in new ways.
• 👗 The 'See Now, Buy Now' fashion show is an example of retail-as-entertainment, where viewers can purchase items they see on the runway in real time through Tmall.
• 🎊 The 11.11 Countdown Gala Celebration is an interactive variety show that not only entertains but also engages viewers through mobile games to win coupons and promotions.
• 📍 Pop-up stores created in collaboration with brands offer new touchpoints for engaging shoppers both online and offline throughout their consumer journey.
• 🍼 Wyeth, an American baby formula brand, uses New Retail integration for its 11.11 strategy, employing an AR game to draw online consumers to offline stores for deeper engagement.
• 🎶 Chinese consumers are highly mobile and have rapidly adopted online shopping, but still value the opportunity to touch and test products before purchase, creating opportunities for brands and retailers.
• 🚗 Bose's launch of its first smart store in Shanghai allows customers to claim online coupons for in-store use and make reservations for special guided tours, enhancing the shopping experience.
• 🔢 In China, 82 percent of retail still happens offline, indicating significant potential for growth in online retail, with Alibaba aiming to eliminate the distinction between online and offline retail through complete digital transformation.
• 🌐 New Retail is positioned to become a global business model, starting in China and expected to be exported, with Alibaba leading the way in its development and implementation.

Q & A

What is the concept of 'New Retail' as introduced by Alibaba?

New Retail is a term coined by Alibaba to describe the integration of online and offline retail with logistics, data technology, media, entertainment, and gamification to create a seamless shopping experience for consumers and retailers.

How does Alibaba's Huma supermarket exemplify the New Retail concept?

Huma is an internet and technology-powered supermarket where all transactions, including online ordering, home delivery, in-store product research, and payments, are conducted through a mobile app. It also serves as a fulfillment center for online orders, enabling 30-minute delivery within a three-kilometer radius.

What is the significance of the 11-11 Global Shopping Festival for Alibaba's New Retail strategy?

The 11-11 Global Shopping Festival serves as a test bed for Alibaba to showcase and implement various shopping innovations and to demonstrate how New Retail is becoming a reality.

How does Alibaba's 'See Now, Buy Now' fashion show integrate entertainment with retail?

The 'See Now, Buy Now' fashion show is an interactive event delivered to consumers' screens where they can purchase items they see on the runway in real time through Tmall, combining entertainment with the shopping experience.

What is the role of the 11-11 Countdown Gala Celebration in Alibaba's New Retail?

The 11-11 Countdown Gala Celebration is an interactive variety show designed to engage viewers and prepare them for the midnight sales kickoff, incorporating mobile phone games to win coupons and promotions for the shopping festival.

How does Wyeth, an American baby formula brand, use New Retail integration in its 11-11 strategy?

Wyeth uses Tmall's 'Catch the Cat' augmented reality game to attract online consumers to offline stores, such as a pop-up location in Shanghai, where they can engage with the brand through features like an expert salon for child care and parenting advice.

What is the importance of the mobile platform for Chinese consumers in the context of New Retail?

Chinese consumers heavily rely on mobile platforms for shopping, and this has led to the rapid adoption of online shopping. However, they still prefer to touch and test items before buying, which creates opportunities for brands and retailers to integrate online and offline experiences.

How does Bose leverage Alibaba's New Retail model with its smart store in Shanghai?

Bose allows its Tmall fans to claim coupons online for use in-store and make reservations for guided tours of its flagship store. Shoppers can scan a QR code upon arrival to sync with their Tmall account and use the coupons, enhancing the shopping experience and providing Bose with a better understanding of its customers.

What is the current state of retail in China in terms of online and offline sales?

In China, 82 percent of all retail sales currently happen offline, indicating significant potential for growth in online retail. However, Alibaba aims to eliminate the distinction between online and offline retail by promoting fully digital businesses that offer innovative shopping experiences.

How does Alibaba envision the future of retail globally in the context of New Retail?

Alibaba sees New Retail as a defining model for the future of global retail, where the business model created in China will be exported, and the company is working on developing and implementing this model worldwide.

What is the role of pop-up stores in Alibaba's New Retail strategy during the 11-11 Global Shopping Festival?

Pop-up stores are used by Alibaba in collaboration with brands to create new and meaningful touchpoints for engaging shoppers both online and offline throughout the consumer journey, enhancing the overall shopping experience.