Inside Alibaba How New Retail Is Changing Everything

Alibaba Cloud Indonesia

24 Jan 202105:29

Summary

TLDRAlibaba'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.

Outlines

00:00

🛍️ The Emergence of New Retail

This paragraph introduces the concept of 'New Retail', a term coined by Alibaba, which integrates online and offline retail experiences. It discusses the shift from consumers going to products to products coming to consumers in the e-commerce era and the challenges faced by physical stores. Alibaba's vision is to merge these two realms, creating a seamless shopping experience that benefits both consumers and retailers. The script highlights the 11.11 Global Shopping Festival as a platform to showcase this new reality, with examples such as the tech-powered supermarket 'Homa', which uses mobile apps for various shopping activities and serves as a fulfillment center for online orders, enabling rapid delivery within a three-kilometer radius.

05:03

🌐 Alibaba's Global Impact on Retail Innovation

The second paragraph delves into Alibaba's role in shaping the future of retail globally. It emphasizes that the business model being developed in China, particularly the 'New Retail' concept, will likely be exported and adopted worldwide. The script mentions the company's collaborative efforts in creating innovative shopping experiences, suggesting that the rest of the world will have to adapt to these new standards set by Alibaba. The paragraph concludes with a nod to the ongoing work in this domain, hinting at the potential for further advancements in retail technology and consumer engagement strategies.

Mindmap

Keywords

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. In the video, it's highlighted as a significant shift from traditional retail where consumers used to visit stores to purchase products. Now, e-commerce allows products to be delivered to consumers anywhere, anytime, which is a key aspect of Alibaba's new retail strategy.

💡Brick and Mortar Stores

Brick and mortar stores are physical retail outlets with a physical presence, as opposed to online stores. The script discusses the challenges these stores face due to the rise of e-commerce. However, Alibaba's new retail model aims to integrate online and offline experiences to benefit both types of retail, mitigating the problems faced by traditional physical stores.

💡New Retail

New Retail is a term coined by Alibaba, which encapsulates the integration of online and offline retail with logistics, data technology, and other elements to create a seamless shopping experience. The video emphasizes how new retail is becoming a reality, with Alibaba's 11.11 Global Shopping Festival serving as a platform to showcase these innovative retail practices.

💡Homa

Homa is Alibaba's internet and technology-powered supermarket. It represents the innovative aspect of new retail where the mobile app is central to all activities, including online ordering, home delivery, in-store product research, and payments. The script mentions Homa's unique feature of serving as a fulfillment center for online orders, enabling rapid delivery to nearby consumers.

💡Fulfillment Center

A fulfillment center is a warehouse that processes orders for shipment. In the context of the video, Homa's stores double as fulfillment centers, allowing for quick delivery of online orders to consumers within a three-kilometer radius, exemplifying the integration of online and offline retail in new retail.

💡Facial Recognition

Facial recognition is a biometric identification method used to access a system or verify identity based on the user's facial features. The script mentions that customers at Homa can pay through facial recognition, showcasing another innovative aspect of new retail that enhances the shopping experience.

💡11.11 Global Shopping Festival

The 11.11 Global Shopping Festival, also known as Singles' Day, is an annual event initiated by Alibaba that has become the world's largest online sales day. The video describes it as a testing ground for various shopping innovations and a significant event to demonstrate the capabilities of new retail.

💡Retail as Entertainment

Retail as entertainment refers to the concept of making shopping experiences fun and engaging, like Alibaba's 'See Now, Buy Now' fashion show. The video script describes how this interactive show allows viewers to purchase items they see on the runway in real-time through Tmall, blending entertainment with retail.

💡Pop-up Stores

Pop-up stores are temporary retail spaces that brands use to create a unique shopping experience or promote a product. The script mentions that Alibaba collaborates with brands to set up pop-up stores that engage shoppers both online and offline, enhancing the consumer journey.

💡Augmented Reality (AR)

Augmented reality is a technology that overlays digital information or images onto the real world, enhancing the user's perception. The video script refers to Tmall's 'Catch the Cat' AR game as a way to bring online consumers to offline stores, illustrating the use of AR in new retail to create interactive and engaging shopping experiences.

💡Alipay

Alipay is a mobile and online payment platform operated by Ant Group, which is widely used in China for various transactions. In the context of the video, Alipay is mentioned as a payment method in new retail scenarios, such as at pop-up stores and smart stores, showing the integration of digital payment solutions in the shopping experience.

Highlights

In the golden age of e-commerce, products come to consumers, posing challenges for brick and mortar stores.

Alibaba is building a new retail model that integrates online and offline retail seamlessly.

New retail is a concept coined by Alibaba, combining online and offline with logistics, data technology, media, and gamification.

HuMA is Alibaba's tech-powered supermarket where everything is managed through a mobile app, including in-store purchases and online order fulfillment.

HuMA's innovative feature is its dual role as a store and a fulfillment center for online orders, enabling 30-minute delivery within a 3 km radius.

Homeok is evolving with new retail, allowing customers to pay through facial recognition.

The 11-11 Global Shopping Festival is a testbed for Alibaba's shopping innovations.

Retail as entertainment is a trend in China, exemplified by Alibaba's 'See Now, Buy Now' fashion show, allowing real-time purchases through Tmall.

The 11-11 countdown gala is an interactive variety show that engages viewers through mobile games for coupons and promotions.

Pop-up stores created by Alibaba in collaboration with brands offer new touchpoints to engage shoppers both online and offline.

Wyeth, an American baby formula brand, uses new retail integration for its 11-11 strategy, including an AR game to bring online consumers to offline stores.

Bose launched its first smart store in Shanghai, allowing online fans to claim coupons for in-store use and reservations for special guided tours.

Shoppers at Bose's store can check in with a QR code, sync with their Tmall account, and use coupons while paying through Alipay.

In China, 82% of retail happens offline, presenting an opportunity for online retail growth and integration with Alibaba's new retail model.

Alibaba aims to eliminate the distinction between online and offline retail, creating businesses that are completely digital and offer innovative shopping experiences.

New retail is expected to define global retail operations in the future, with Alibaba leading the way in creating and exporting this business model.