{"id":2884,"date":"2018-11-28T11:52:32","date_gmt":"2018-11-28T06:22:32","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=2884"},"modified":"2024-06-07T11:14:55","modified_gmt":"2024-06-07T05:44:55","slug":"alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/","title":{"rendered":"Alibaba\u2019s \u201cNew Retail\u201d Strategy:  The Key To Surviving The Retail Apocalypse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f84eb4c936a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f84eb4c936a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#digitizing-the-value-chain-to-reach-the-innovative-modern-consumer\" title=\"Digitizing the value chain to reach the innovative, modern consumer\">Digitizing the value chain to reach the innovative, modern consumer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#digital-is-the-new-normal-for-brick-and-mortar-stores\" title=\"Digital is the new normal for brick-and-mortar stores\">Digital is the new normal for brick-and-mortar stores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#chinas-internet-giant-alibaba-the-pioneer-of-new-retail\" title=\"China\u2019s Internet giant Alibaba: The pioneer of New Retail\">China\u2019s Internet giant Alibaba: The pioneer of New Retail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#alibabas-futuristic-new-retail-experiences\" title=\"Alibaba\u2019s futuristic New Retail experiences\">Alibaba\u2019s futuristic New Retail experiences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#chinas-retail-revolution-powered-by-alibaba-and-tencent\" title=\"China\u2019s retail revolution powered by Alibaba and Tencent\">China\u2019s retail revolution powered by Alibaba and Tencent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/titans-of-transformation\/alibabas-new-retail-strategy-the-key-to-surviving-the-retail-apocalypse\/#what-other-retailers-can-learn-from-alibabas-retail-strategy\" title=\"What other retailers can learn from Alibaba\u2019s retail strategy\">What other retailers can learn from Alibaba\u2019s retail strategy<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">8<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span style=\"font-weight: 400;\">It\u2019s not an easy time to be a brick-and-mortar retailer, especially in the U.S. <\/span><a href=\"https:\/\/qz.com\/1244098\/alibaba-fuses-online-offline-channels-for-new-retail-experience\/\"><span style=\"font-weight: 400;\">More than 9,000 stores shut<\/span><\/a><span style=\"font-weight: 400;\"> last year all across America, and another 12,000 are headed to the guillotine this year. Sales within physical stores are stagnant, while those of online retailers are racing ahead. E-commerce sales grew 10 times faster than in-store retail between 2008 and 2013. So, on one hand, e-commerce is killing traditional retail, but on the other, the future of traditional retail depends on retailers and brands developing their online channels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While America\u2019s brands and retailers figure out whether e-commerce is friend or foe, China has already eclipsed the U.S. to become a must-play, must-win market.<\/span><\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2897\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/1_IqEpHq_XrbjM8o7XZiPsew-300x155.jpeg\" alt=\"\" width=\"564\" height=\"291\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/1_IqEpHq_XrbjM8o7XZiPsew-300x155.jpeg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/1_IqEpHq_XrbjM8o7XZiPsew-768x396.jpeg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/1_IqEpHq_XrbjM8o7XZiPsew.jpeg 1000w\" sizes=\"(max-width: 564px) 100vw, 564px\" \/>\n<p><span style=\"font-weight: 400;\">It\u2019s become the largest retail market in the world and is also the world\u2019s biggest e-commerce market with online retail sales in the first quarter of this year touching $307 billion, as per <\/span><span style=\"font-weight: 400;\">PwC\u2019s <\/span><i><span style=\"font-weight: 400;\">Global Consumer Insights Survey 2018 China Report<\/span><\/i><span style=\"font-weight: 400;\">. Online retail sales in the U.S. during the same period reached only $124 billion. Sheer size and scale make China a significant strategic opportunity, but it\u2019s <\/span><i><span style=\"font-weight: 400;\">retail innovation, <\/span><\/i><span style=\"font-weight: 400;\">which places it in a category of one.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"digitizing-the-value-chain-to-reach-the-innovative-modern-consumer\"><\/span><b>Digitizing the value chain to reach the innovative, modern consumer<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Consumers today are armed with smartphones and an entirely new set of expectations. China is home to <\/span><span style=\"font-weight: 400;\">784 million smartphone users<\/span><span style=\"font-weight: 400;\"> and now, e-commerce, mobile payments and social media have become ubiquitous components of a consumer\u2019s buying journey.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cChinese consumers are much more willing to share data and have high expectations they will receive a personalized experience because of it,\u201d a <\/span><span style=\"font-weight: 400;\">PwC report<\/span><span style=\"font-weight: 400;\"> shows. In fact, Chinese consumers are known to be at the forefront of new innovations: 44% would be open to a drone delivering their products versus 22% globally. That\u2019s impressive. Additionally, 67% of Chinese consumers expect retailers to personalize their retail experience based on the up-to-date data they have on them, versus 42% globally.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"digital-is-the-new-normal-for-brick-and-mortar-stores\"><\/span><b>Digital is the new normal for brick-and-mortar stores<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s become crucial for retailers to reimagine and redefine their stores for the digital age. The ones who embrace this challenge are the only ones who\u2019ll survive the so-called retail apocalypse. Because the fact is that they are catering to consumers in an always-on, on-demand world. Brick-and-mortar retailers, undoubtedly, have an enormous opportunity to leverage the unique benefits offered by old-fashioned, in-person shopping. Using the power of digital they can truly enhance their interactions with customers, generate brand value, build loyalty, and optimize their in-store product offerings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><a href=\"https:\/\/www.mckinsey.com\/business-functions\/marketing-and-sales\/our-insights\/the-future-of-retail-how-to-make-your-bricks-click\"><span style=\"font-weight: 400;\">Sephora uses iPads<\/span><\/a><span style=\"font-weight: 400;\"> to provide customers with deep product content whether it\u2019s a particular makeup that can enhance your party look or a lotion that can cure a rash. Customers can bring their purchases to the iPad for scanning; it enables them to see more information about the product, read reviews, etc. All of these features are also available as a mobile app. Such an offering can dramatically impact sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, consumers experiencing a variety of interactions with digital platforms and digital media have helped rewrite the arc of the consumer decision journey. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, a shopper looks for choice, convenience, and accessibility. Incorporating online-only features\u2014product reviews from other buyers, personalized recommendations, one-touch everything\u2014enables shoppers to buy on their own terms. Hence, to compete with online-only players, traditional retailers have to successfully innovate; else they won\u2019t survive. Interestingly, <\/span><b>t<\/b><em>he future of global retail is happening now\u2014in China. And, Alibaba is leading the charge.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"chinas-internet-giant-alibaba-the-pioneer-of-new-retail\"><\/span>China\u2019s Internet giant Alibaba: The pioneer of New Retail<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Alibaba founder Jack Ma realized that the future of retail will not be a question of offline versus online. In fact, those two can\u2019t be the only options. Enter <\/span><i><span style=\"font-weight: 400;\">New Retail<\/span><\/i><span style=\"font-weight: 400;\">. New retail is based on the simple premise that the future will not involve total domination of e-commerce. Instead, it\u2019ll involve <\/span><i><span style=\"font-weight: 400;\">digitization<\/span><\/i><span style=\"font-weight: 400;\"> of all commerce.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New retail will include transforming not only consumer engagement but also the entire value chain. It\u2019s full stack digitization. Retailers will be able to develop smarter and more flexible supply chains capable of managing inventory across offline and online channels. At the same time, data will play a more important role than ever before in product development. Brands and retailers will begin to see everything through the lens of technology enablement, business impact and customer experience. <\/span><\/p>\n<figure id=\"attachment_2901\" aria-describedby=\"caption-attachment-2901\" style=\"width: 564px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2901\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/bizinsider-new-supermarket-300x200.jpg\" alt=\"\" width=\"564\" height=\"376\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/bizinsider-new-supermarket-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/bizinsider-new-supermarket-768x512.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/bizinsider-new-supermarket-1024x683.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/bizinsider-new-supermarket.jpg 1300w\" sizes=\"(max-width: 564px) 100vw, 564px\" \/><figcaption id=\"caption-attachment-2901\" class=\"wp-caption-text\">Source: Business Insider<\/figcaption><\/figure>\n<blockquote><p><span style=\"font-weight: 400;\">\u201c[<em>Alibaba<\/em>] has evolved its mission in a new environment, a new era,\u201d <\/span><a href=\"https:\/\/www.scmp.com\/tech\/enterprises\/article\/2164651\/alibaba-says-new-retail-strategy-paying-hema-shopper-data-shows\"><span style=\"font-weight: 400;\">said Alibaba chief executive Daniel Zhang<\/span><\/a><span style=\"font-weight: 400;\">, adding that it has changed from just allowing users to meet and trade on its platform, to now letting users even live and work using the company\u2019s services. \u201cAlibaba uses big data, analytics, machine learning and artificial intelligence to create value from data, to help businesses and partners improve operations.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">iResearch data indicates the consumer services market in China is estimated to be worth a <\/span><a href=\"https:\/\/www.scmp.com\/tech\/enterprises\/article\/2164651\/alibaba-says-new-retail-strategy-paying-hema-shopper-data-shows\"><span style=\"font-weight: 400;\">whopping 25 trillion yuan by 2020<\/span><\/a><span style=\"font-weight: 400;\">. And, the on-demand food delivery market alone is expected to be worth 872 billion yuan by 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe hundreds of millions of consumers [today] don\u2019t just need physical goods. As they upgrade their lifestyles, they need more digital content, more services,\u201d Zhang added.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alibaba operates China\u2019s largest e-commerce platforms and boasts of more than half a billion consumers shopping on its marketplaces. Online sales penetration in China is the highest globally, but brick-and-mortar retail still accounts for more than 80% of total retail sales. Still in a nascent stage, Alibaba\u2019s <\/span><i><span style=\"font-weight: 400;\">new retail <\/span><\/i><span style=\"font-weight: 400;\">concept is already proving to be a game-changer in the retail innovation landscape. <\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"alibabas-futuristic-new-retail-experiences\"><\/span><b>Alibaba\u2019s futuristic <\/b><b><i>New Retail<\/i><\/b><b> experiences<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Are you one of those people that dislike trundling a shopping cart up and down the aisles, perusing the shelves and then finally settling for what the store has in stock in frustration, and also standing in long queues to pay?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, at Alibaba\u2019s new offline Hema supermarket chain, you have none of those hassles. Hema looks like any other supermarket: you can buy fruits, groceries, fresh seafood, and more. But it\u2019s <\/span><a href=\"https:\/\/www.cnbc.com\/2018\/08\/30\/inside-hema-alibabas-new-kind-of-superstore-robots-apps-and-more.html\"><span style=\"font-weight: 400;\">not an ordinary store<\/span><\/a><span style=\"font-weight: 400;\">. Enjoy a smartphone-powered experience at Hema\u2014in the store or from the comfort of your home. If you\u2019re shopping within the store, then you can scan the barcodes using your phone to get product details and even recipe ideas. Payment\u2019s cashless, too! You can do it through the Alipay platform embedded in the Hema app or via Taobao.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best part: if you live within three kilometers of the market, then get your deliveries in as fast as 30 minutes. Every Hema store has its own warehouse and logistics center that collects, fulfills, and delivers orders as quickly as them come in, offline or online.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the last one year, Alibaba has expanded Hema to more than 65 stores. At a few Hema stores, customers can even pay by scanning their faces at kiosks. Connected to a Hema store in Shanghai, the retail powerhouse recently introduced its new Robot.He restaurant. Inside, customers use their phone to scan a QR code at their table and to order from the menu\u2014all using the Hema app. From there, most dishes, except for large dishes requiring a human server, are delivered to tables by robotic devices. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take a tour of the Hema supermarket and experience the <\/span><i><span style=\"font-weight: 400;\">new retail<\/span><\/i><span style=\"font-weight: 400;\"> concept for yourself:<\/span><\/p>\n<p>https:\/\/www.youtube.com\/watch?v=XNt18b5hOVE<\/p>\n<blockquote><p><span style=\"font-weight: 400;\">&#8220;Alibaba has a very ambitious strategy of the convergence of online and offline retail,&#8221; <\/span><a href=\"https:\/\/www.cnbc.com\/2018\/08\/30\/inside-hema-alibabas-new-kind-of-superstore-robots-apps-and-more.html\"><span style=\"font-weight: 400;\">said Gil Luria<\/span><\/a><span style=\"font-weight: 400;\">, director of institutional research at financial services firm D.A. Davidson &amp; Co. &#8220;If you think about what\u00a0Amazon\u00a0aspires to do with\u00a0Whole Foods, you just need to go to Hema and you get a preview of that&#8221;<\/span><\/p><\/blockquote>\n<p><a href=\"https:\/\/www.scmp.com\/tech\/enterprises\/article\/2164651\/alibaba-says-new-retail-strategy-paying-hema-shopper-data-shows\"><span style=\"font-weight: 400;\">Alibaba believes<\/span><\/a><span style=\"font-weight: 400;\"> that its Hema Supermarkets are \u201crobust and profitable.\u201d Hema could double average profit margins of around 2%-4% at traditional supermarkets and shops, CFO Maggie Wu Wei reveals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the company, because it offers a combination of online and offline shopping, the average monthly spending by customers increases. People who shopped both online and offline at Hema spent an average of 575 yuan monthly, compared to less than 300 yuan for completely online, or completely offline consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alibaba knows everything you\u2019ve purchased as a customer. So it saves that information so that the next time you shop you can have those same goods delivered to your house. Getting people offline to become comfortable ordering online may be a key pillar to Alibaba&#8217;s strategy. Hema, in fact, could possibly be the single best example in the world today of the next great innovation in retail\u2014the personalized physical space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from supermarkets, Alibaba is also taking the pain out of car shopping. As part of the New Retail experience in China, you can buy a car from Alibaba\u2019s <\/span><a href=\"https:\/\/www.alizila.com\/video\/test-drive-tmalls-new-car-vending-machine\/?utm_source=quartz&amp;utm_medium=website&amp;utm_campaign=30mar2018\"><span style=\"font-weight: 400;\">auto vending machines<\/span><\/a><span style=\"font-weight: 400;\">. You can browse makes and models within an app, choose a car you want to test drive, pick it up from a vending machine, and then drive it for up to three days. Isn\u2019t that cool? Gone are the days of spending hours with a talkative salesman, and making appointments. Make an appointment with a dealer only when you\u2019re ready to buy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks to Alibaba, mom-and-pop convenience stores have got a new retail makeover. They\u2019re the lifeblood of many communities across China, and until Alibaba\u2019s <\/span><a href=\"https:\/\/qz.com\/1244098\/alibaba-fuses-online-offline-channels-for-new-retail-experience\/\"><span style=\"font-weight: 400;\">Ling Shou Tong program<\/span><\/a><span style=\"font-weight: 400;\"> came along, they hadn\u2019t been upgraded in years. What Alibaba did was to build an app to digitize each store\u2019s inventory management. It connected these businesses to a central warehousing and logistics system. Ling Shou Tong\u2019s analytics platform also helps anticipate customer preferences, enabling proprietors to know what to order, when to order, and how much to order. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another great use case of New Retail: virtual shelves. If you don\u2019t find a pair of trousers in a particular color or size in stock, you can still select the pair you want on a screen, punch in your size and color preferences, scan it with your app, and have it delivered directly to your home. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;They&#8217;re betting significantly on offline and the new retail strategy,&#8221; Luria <\/span><a href=\"https:\/\/www.cnbc.com\/2018\/08\/30\/inside-hema-alibabas-new-kind-of-superstore-robots-apps-and-more.html\"><span style=\"font-weight: 400;\">added<\/span><\/a><span style=\"font-weight: 400;\">. &#8220;The stock price would probably be a lot higher right now if they stayed in online, but they&#8217;re putting a lot of their profits into executing this online-to-offline strategy.&#8221;<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"chinas-retail-revolution-powered-by-alibaba-and-tencent\"><\/span><b>China\u2019s retail revolution powered by Alibaba and Tencent<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">High-tech stores, futuristic drones, sophisticated online-to-offline networks and a huge cadre of affordable manpower is fueling China\u2019s retail revolution, and at the helm are Alibaba and social media-gaming pioneer Tencent. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alibaba, for nearly 19 years, built the backbone of China\u2019s massive e-commerce machine. It has invested heavily in everything from facial recognition AI startup SenseTime to electronics retailer Suning. Both Alibaba and Tencent are each valued at <\/span><a href=\"https:\/\/www.scmp.com\/business\/companies\/article\/2130497\/alibaba-joins-tencent-exclusive-us500-billion-market-value-club\"><span style=\"font-weight: 400;\">about $500 billion<\/span><\/a><span style=\"font-weight: 400;\"> on public markets. They\u2019re labeled as the Berkshire Hathaway of the Chinese economy, investing in hundreds of companies at all stages. They both gain invaluable insights that drive everything from product assortment and pricing to hyper-targeted marketing and store locations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As <\/span><i><span style=\"font-weight: 400;\">new retail<\/span><\/i><span style=\"font-weight: 400;\"> changes from jargon to oft-used phrase, Alibaba rivals Tencent and JD.com have also thrown their hats into the ring. Following in Hema\u2019s footsteps, JD.com <\/span><a href=\"https:\/\/hbr.org\/2018\/08\/theres-only-one-way-to-break-into-chinas-crowded-retail-market\"><span style=\"font-weight: 400;\">launched 7Fresh supermarkets<\/span><\/a><span style=\"font-weight: 400;\">, which are equipped with smart carts that help guide customers to their desired aisles. Tencent has also partnered with Wanda Commercial Management Group in a joint venture to accelerate its \u201csmart retail\u201d strategy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"what-other-retailers-can-learn-from-alibabas-retail-strategy\"><\/span><b>What other retailers can learn from Alibaba\u2019s retail strategy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Things move incredibly fast in China, and vision can quickly transform into reality. There are huge opportunities to be captured in China\u2019s booming retail landscape. But in China\u2019s crowded market, retailers will have to make some hard choices: either align with Alibaba or align with Tencent to capture a slice of the retail pie.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The winners in <\/span><i><span style=\"font-weight: 400;\">new retail<\/span><\/i><span style=\"font-weight: 400;\">, of course, will be those brands and retailers that can integrate creativity, strategy and innovation to help achieve their value proposition. Retailers will need to focus on <\/span><span style=\"font-weight: 400;\">consumer-centric innovation<\/span><span style=\"font-weight: 400;\">, understand what the modern consumer truly wants, and then combine customer insights with design thinking to create the right products and services. Additionally, they\u2019ll also have to adopt a whole new approach to digital. This will involve up-skilling as well as embedding digital transformation across the business. <\/span><i><span style=\"font-weight: 400;\">New retail<\/span><\/i><span style=\"font-weight: 400;\"> is certainly a work in progress. It will require brands to constantly refine and reinvent themselves to define the future of retail.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">8<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> It\u2019s not an easy time to be a brick-and-mortar retailer, especially in the U.S. More than 9,000 stores shut last year all across America, and another 12,000 are headed to the guillotine this year. Sales within physical stores are stagnant, while those of online retailers are racing ahead. E-commerce sales grew 10 times faster than  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":2888,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1160,1522],"tags":[176,88,180],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Alibaba\u2019s \u201cNew Retail\u201d Strategy: The Key To Surviving The Retail Apocalypse<\/title>\n<meta name=\"description\" content=\"Traditional retailers face tough times as online shopping surges. To survive, they must invest in their online presence. 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