Tmall x Intersport: New Retail Megastore

What is it?

This co-branded store powered by AI, AR, and other new technologies sports interactive features like smart shelves with interactive wall screens, virtual shopping bags, and smart mirrors with AI shopping assistants that provide more information and recommendations. The initiative supports a government mandate for the population to become more physically fit ahead of the 2022 Winter Olympics in Beijing.

Why does it matter?

In-store technology is another way to educate shoppers about products and to personalize services. This convergence of online and offline shopping is one of the first examples of Tmall merchants embracing Alibaba’s New Retail concept in a physical store.

What can we learn?

Alibaba’s brand presence is starting to cross over from online pure player into the brick-and-mortar retail environment. Offering strategic technology partnerships with brands is helping Alibaba achieve its broader ambition of expanding offline.

Key takeaway: In-store technology provides retailers with new ways to engage shoppers offline. It also allows them to connect to a growing base of online shoppers with the goal of building loyalty.

Tmall Luxury Pavilion: Valentino Virtual Shop

What is it?

This 3D online virtual store on the Tmall Luxury Pavilion, which mirrored a physical pop-up store in Beijing, promoted Valentino’s new collection of shoes and handbags.

Why does it matter?

By operating a physical Candystud Factory pop-up store in Beijing at the same time as the Tmall Luxury Pavilion online store, Valentino illustrated how brands can leverage Alibaba to engage shoppers and take advantage of the New Retail opportunity to seamlessly blend the online and offline world.

What can we learn?

New Retail allows brands to engage shoppers and offer them the same unique shopping experience both offline and online. This multichannel, multidimensional venture demonstrates Tmall’s dedication to boosting its luxury credentials to appeal to higher-spending shoppers who have been less inclined to spend online.

Key takeaway: The luxury goods market will need to modernize and digitize as its shoppers start to embrace online shopping. New Retail technologies offer brands the opportunity to bring the luxury retail experience to online and offline worlds alike.

Cainiao: Cainiao Box Smart Locker Concept

What is it?

It’s a smart locker that shoppers can install outside their door for package and food deliveries. Leaving packages is authorized by facial recognition so couriers can deliver when no one is home. The smart box can be extended to accommodate larger deliveries, and the temperature can be adjusted through a mobile app to keep food hot or cold.

Why does it matter?

The device is currently just a concept. However, the idea is that couriers should be able to deliver more parcels since they will no longer need to wait for shoppers.

What can we learn?

Changes in shopping habits and shopper expectations are the key drivers for upgrading China’s logistics services. Companies like Alibaba that are looking to move up the customer value chain are diversifying their services by offering technology-enhanced delivery services.

Key takeaway: As the battle to perfect the final mile heats up, retailers that want to stay ahead of the competition and strive for higher customer satisfaction should look to invest in smart logistics.

Alibaba Alipay: Code Vendors

What is it?

A new form of retailer in China, Code Vendors are traditional street vendors (selling groceries or street food) who receive a code from Alipay that allows shoppers to buy goods by scanning the code rather than using cash.

Why does it matter?

The initiative is a result of China’s nationwide adoption of an electronic or cashless payment infrastructure, allowing many residents to abandon cash altogether. Digital payments are giving small and micro businesses the means to keep pace with the Internet era and earn a living while also gaining access to Alibaba’s financial services.

What can we learn?

Alibaba is sticking to its mission “to make doing business easy anywhere (for anyone)” with this investment. However, the benefits for Alibaba go far beyond the transaction fees it collects. By extending its reach through retail services to Chinese business entities, nearly 70% of which are individually owned, Alibaba gains access to a huge amount of shopper data it can leverage on its own platforms.

Key takeaway: QR code technology is an indispensable part of everyday life in China, and the rest of the world is quickly catching up with cashless environments. Retailers should keep an eye on the future of payments as shoppers become increasingly mobile.

JD.com: AI-Powered Writing Robot

What is it?

AI-powered writing robot Li Bai draws on JD customer reviews and content from the Internet to generate natural-sounding product descriptions and tailored shopping guides. Li Bai can generate more than a thousand pieces of content per day for JD’s app. It is also being trained to recognize images.

Why does it matter?

Li Bai’s capabilities are helping JD to list vast numbers of products to a superior standard, enabling it to generate more high-quality user content even faster. Optimizing its website content is a key strategy for JD in its mission to create a perfect customer experience and produce sales.

What can we learn?

AI technology and smart content present a huge advantage for eCommerce retailers. Artificial intelligence and machine-learning techniques make it possible to publish content that self-recognizes, self-regulates, and enhances discovery and engagement.

Key takeaway: In the highly competitive eCommerce market, targeted and well-executed content is key to attracting and converting shoppers. In the future, AI will play a critical role in complementing human-generated content.

JD.com: In-Car Delivery

What is it?

JD launched this in-car delivery service in partnership with leading electric vehicle company NIO. The service enables shoppers to have goods delivered to the boots of their cars, whether parked at home, at work, or in another approved area. Personal digital assistant technology allows couriers to locate and unlock the shopper’s car, deposit the order, and lock the boot again.

Why does it matter?

The offering adds a new, convenient option for shoppers with cars who may not be available to accept deliveries in person. The service allows JD to provide a better customer journey, and gives it the ability to complete more deliveries a day.

What can we learn?

JD’s venture into connected car technology provides not only new fulfillment solutions, but also satisfies a global consumer demand for integration between lifestyle and services. We are sure to see more partnerships between retailers and the automotive industry as they explore other in-car technologies, such as advanced ordering.

Key takeaway: Retailers should look to partner with service and technology companies to keep up with the demands of digitally-savvy shoppers.