Start with Alibaba and JD.com to talk about the present and future of new retail

　　Unconsciously, the era of e-commerce talking about heroes has quietly come to an end, and new retail has become a high ground for many bigwigs to compete for. Organize new products, develop new business formats, create new environments, apply new technologies, and integrate new business formats. New retail experiments are blooming everywhere in China at an unprecedented speed.

　　What is new retail? Where is the value of new retail?

　　At the 2016 Hangzhou Yunqi Conference, Jack Ma proposed the concept of new retail. A year has passed, and the appearance of new retail has gradually become clear. The so-called new retail is actually a data-driven pan-retail form centered on consumer experience. It integrates supply chain logistics, new technologies, and new finance, and creates a new consumption format with multiple consumption scenarios and multiple shopping options.

　　New retail is like a line, linking the production, sales and consumer ends, in order to achieve less loss, higher efficiency, better service and higher profits.

　　New retail convenience store--create new traffic entrance

　　Taking JD.com’s new retail convenience store, JD.com’s new channel, as an example, JD.com’s supply platform Zhangguibao provides convenience stores with rich categories and guaranteed quality products; JD big data analysis guides convenience store operations so that store owners can adjust their products in a timely manner; upgrade and transform small stores with advanced marketing thinking to help store owners sort out their brand image. JD.com’s new channel, on the one hand, coordinates online and offline retail, and on the other hand, opens up the direct supply of goods made by brand owners based on demand judgments to terminals, ensuring the attractiveness and stickiness to customers entering the store.

　　JD.com’s new retail practice is more based on obtaining offline traffic entrances, and through competitive logistics speed, quality products, and brand experience, relying on big data to collect and analyze it, establishing a closer connection with front-end consumers.

　　Smart supply chain--speed up logistics efficiency

　　According to data provided by Alibaba, Cainiao Network has launched a big data intelligent algorithm to allocate order routing, achieving accurate matching between express delivery companies' parcels and outlets, with an accuracy rate of more than 98%, and an increase in sorting efficiency by more than 50%. Traditional retail is subject to too many agents and too complex intermediate levels. The link between the production and consumer ends is often intermittent. On the one hand, the products need to be circulated at all levels to be delivered to consumers, and they risk staying in a certain link at any time, which seriously affects the retail speed; on the other hand, profits are needed for each level to survive, and the cost often increases a lot from production to consumption. Cainiao Logistics integrates resources from all parties through big data to achieve intensive allocation, reducing information asymmetry between supply and demand parties, reducing various costs in each chain, achieving better services and more profits.

　　Cainiao Network’s smart logistics is an important cornerstone of Alibaba’s new retail practice. Only with the support of smart logistics, online and offline integration, and the exploration of various new services and new experiences can be made possible.

　　New business format supermarkets--reshape multi-scenario services

　　New retail is in full swing, and Yonghui's "super species" is also expanding rapidly. No longer limited to traditional supermarkets, "Super Species" is committed to creating a complex new retail ecosystem of future supermarkets and catering, and integrates multiple projects incubated by Yonghui: salmon workshop, Bolong workshop, Boniu workshop, wheat workshop, Yongyuehui, living kitchen, healthy life organic hall, Jinghouhuahua Art Hall, etc. This is more based on the development of experience consumption. Consumers no longer meet a single service and expect to get as much service as possible in one shopping. Relying on new technologies, new retail accurately surveys consumer needs and provides consumers with a one-stop consumption experience that integrates food, drink, play and fun.

　　Super species are somewhat similar to Hema Fresh in terms of morphology. If you compare it, one is offline and the other is online, but they are also driven by consumer experience.

　　Three major development directions of new retail

　　Just like Hema Fresh is regarded as a model of new retail because of its integration of multiple scenarios (supermarket + catering + convenience stores + vegetable market + e-commerce + logistics) , the future of new retail lies in building a sales space based on scenario positioning. The retail industry will eventually develop into a new retail model that is aimed at all online and offline customers, providing omnichannel, full categories, full time periods and full experience.

　　Technology upgrades support the development of new retail. Just as every industrial revolution depends on technological progress, the development of new retail is also inseparable from the progress of technological equipment, big data system, and payment system. Without near-field induction terminals, application scenario positioning, virtual fitting mirrors, sensors and other technologies, we will improve merchant offline application scenarios and realize real-time interconnection between devices and people; without the collection and sorting of consumer information by big data, prediction of market demand; without the convenient payment experience supported by the payment system, new retail cannot be discussed.

　　Supply chain upgrades drive the acceleration of new retail. New retail overcomes the disadvantages of supply and demand disconnection and separation of supply and demand under the traditional business model, and supply and demand are connected. Through big data, the entire chain from the production end to the consumer end is connected, and the loss is reduced, efficiency is improved, service upgrades, and profit increases are achieved. This makes it possible for new retail to pursue the ultimate experience.

　　Consumption upgrades drive the faster development of new retail. China's per capita GDP statistics in 2016 found that the three municipalities directly under the central government exceeded 110,000 yuan, including the three municipalities directly under the central government, and the per capita GDP of nine provinces exceeded 10,000 US dollars. Correspondingly, my country's consumption structure has entered a stage of rapid upgrading. Consumers not only put forward higher requirements for product quality, but also began to pay attention to personalized expression, and the emotions and culture behind the products have become the reference for consumption. In addition, consumers have also put forward higher requirements for services, with diversified consumption scenarios and multiple shopping options becoming consumers' expectations.

　　New retail is no longer just selling goods, not just having fun, but integrating several highly matched consumer needs to provide consumers with a more valuable consumer experience.

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