New Retail Era
Oriental Outlook August 31
In a Yintai shopping mall in Hangzhou, capital of east China’s Zhejiang Province, when a registered member of the mall walks in, he or she is identified as such and accorded special services. All the stores in the mall support Alipay, and all the commodities have the same price as on Alibaba’s Tmall.com. This is a typical case of how Alibaba and Yintai are cooperating to explore the new retail industry.
In 2015, Zhang Yong, CEO of Alibaba, and Hou Yi, founder of Hema Xiansheng, which combines bricks-and-mortar stores with online services, began to talk about the upcoming revolution in e-business and the retail industry. In January 2016, Hema Shengxian opened its first retail store in Shanghai, marking the start of the new retail practice.
Nine months later, Jack Ma, Chairman of Alibaba Group, put forward the concept of “new retail” at a conference in Hangzhou, predicting that the era of pure e-business has gone, and the next decade will be dominated by new retail featuring a combination of offline and online business and logistics.
The development of the Internet and the Internet of Things has radically changed retail methods, making it impossible for e-business to stick to conventional commercial and service models. With the Internet penetrating all aspects of people’s daily life, consumers’ habits have also undergone a dramatic change. They ask for more options, better commodities and channels through which commodity