Alibaba's vision of future consumption



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It was half past midnight on November 12 and Alibaba had just announced a record $ 30.8 billion in e-commerce purchases for 2018 Singles Day. Instead of joining the steady stream of outgoing reporters In their hotels, I stood in front of a robotic arm that turned from side to side to prepare the cocktail I had just ordered.

I had scrolled through a list of drinks available via a mobile menu – which included a gin tonic and a hot toddy – and settled on a lychee martini because the bartender (human) responsible for the show was said that it was the drink prepared by the robotic arm. for Jack Ma, co-founder and executive chairman of Alibaba, about an hour ago. If a lychee martini was good enough for the richest man in China, it was good for me.

"Jack Ma did not drink the martini … but [Alibaba chief executive] Daniel Zhang had a pandan latte, "said the same employee, after explaining that the robot was also a mixologist and barista to create alcoholic concoctions and drinks containing caffeine with ease and precision. If consumers want to personalize their drinks, they can do it on their smartphone and the machine will fine-tune the proportion of alcohol mixed with cocktails or coffee.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The robotic arm, original idea of ​​Shanghai Ratio of start, was one of the many exhibits at the exhibition "The Ideal Living" – a glimpse into what future life might look like if Alibaba, who Morning of South China"data-reactid =" 35 "> The robotic arm, original idea of ​​Ratio, the start-up based in Shanghai, was one of the many exhibits presented at the exhibition" The Ideal Living "- an overview of the future life might look like if Alibaba, who holds the Morning of South China, had his way.

Ratio's robotic arm receives commands via a smartphone. Customers scan a QR code, select drinks from a menu and pay via the Alipay mobile payment service. The start-up, which operates a physical store in Shanghai's Raffles Place Mall, uses Alibaba's cloud services and payment system to facilitate customer orders, says company founder Gavin Pathross.

Next to the bartender robot, there was a Hema mini supermarket – Alibaba's concept of New Retail grocery – with fruit shelves, raw oyster trays and several chefs nearby that could prepare sushi and even offer you a fresh coconut. On the other side of the lobby, Alibaba had recreated a room at its next Flyzoo hotel, which will open its doors to customers in December. Described as a "hotel of the future", customers register via facial recognition. The room is equipped with smart devices that can be controlled via its intelligent Tmall Genie speaker.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The exhibition, located next to the Day Singles The media center that hosted hundreds of journalists watching the GMV ticket of Alibaba in real time exceeds 200 billion yuan, demonstrates Alibaba's ambition not only to dominate e-commerce in China, but to play a leading role in the technological upgrading of the entire consumer industry for 1.38 billion people in China.
"data-reactid =" 54 "> The exhibition, located next to the media center of Singles Day, hosted hundreds of journalists who were monitoring the billion yuan in real time on the GMV of the day. Alibaba, which demonstrates Alibaba's ambition to dominate e-commerce in China today, but to play a leading role in the technological upgrading of the entire consumer sector for the population of 1.38 billion people in China.

This includes everything relating to meals, entertainment, travel and grocery shopping, within a growing Chinese middle class that is becoming richer and richer as consumers Chinese millennium are gaining momentum with increased spending power.

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"The majority of online shoppers [today] are those who were born in the 1980s to the early 2000s and who grew up in a period of strong growth in the economy and consumption, "said Chu Junhong, associate professor of marketing at the Business School of the National University of Singapore. "They are often the only children in the family and will not easily feel the economic hardship and will not react."

In the coming years, despite economic uncertainties related to current trade tensions between the United States and China, Alibaba wishes to seize "the long-term trend of an increase in Chinese consumer consumption," said Joseph C. Tsai, Executive Vice President of Alibaba. , who was speaking to reporters during an interview on Singles Day.

The company is also in a "unique position" to help businesses become more digital, he said.

Journalists present at the event were invited to visit the Hema supermarket, which houses a restaurant with robots as waiters, as well as the Starbucks Reserve Shanghai Roastery, which provides access to augmented reality features via the # 39; Taobao application of Alibaba. Starbucks customers interested in learning more about the coffee roasting process while sipping a cup of nitro coffee can simply point their smartphone cameras at the store's machines to learn more.

The media also visited an RT-Mart hypermarket, equipped with Alibaba's New Retail technology, which includes an indirect logistics system that allows customers to transport their shopping bags online to a delivery point.

The stores are all part of the Hangzhou-based company's New Retail concept, which integrates online and offline commerce to give customers a better experience, allowing them to shop whenever and wherever they want. Merchants also benefit as Alibaba believes that the proposed technology solutions can help them run more efficiently and generate more revenue.

"The goal of New Retail is … to help digitize the entire consumer market, which currently accounts for about 36 trillion yuan ($ 5 trillion) in China. Said Daniel Zhang, general manager of Alibaba, to the press Sunday. .

"If you look at the rhythm online [of consumption] we are now at about 20 percent [of the market]but if we can digitize brick and mortar stores offline, the entire consumer market constitutes a market and a customer base. "

The idea is that by helping to connect the online and offline retail business of a store, the two companies can share the same inventory, the same supply chain and the same system. customer management, allowing brands to serve a single group of customers, whether they buy in-store or consult online. for online articles.

Examples include smart display technology for fashion stores and even cosmetics stores, allowing users to virtually try different outfits with the item superimposed on their image, captured by the camera. The same can be done for makeup, where users can try several lipsticks or eye shadow. After "trying", users can order online for home delivery.

Alibaba, with its massive consumer data on the 600 million consumer purchases of its platform, has advanced the future of consumption. A year ago, the company launched its Tmall Innovation Center (TMIC), a research alliance comprised of professionals who work with brands to examine consumer knowledge and buying habits in order to Reverse engineer the type of products that consumers may like.

The best example is Snickers Bar, a chili infusion created after data showed that Chinese consumers who buy a lot of chocolate tend to prefer spicy snacks.

TMIC has also worked with other brands, including Dove, where she helped create two different types of chocolate gift boxes – tea and dessert. The center also helped Chinese skin care brand Pechoin to launch a mid-range skin care serum after the data showed that there was a market deficit for such a product in the market. 39, skin care industry.

"It takes about six months to design a new product, which reduces the time needed [by traditional methods of product creation] at least half, "said Duan Ling, director of Tmall Innovation Center or TMIC.

Using algorithms and large data, TMIC is able to help global brands create products that appeal to Chinese consumers as they become more familiar with the brands and quality of the products they purchase.

TMIC is already working with 600 brands from 15 different industries, Duan said. More than 300 products have been created, many of which are sold on Tmall, giving brands immediate access to consumers rather than conducting expensive marketing campaigns to encourage offline shopping.

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Admittedly, much of Alibaba's technology is still relatively new and often seen as something new for the consumer. The company's installation in New Retail, which generated billions of dollars in offline retail spaces, reduced margins and frightened investors. The New York-listed company has seen its share price fall by about 30% since its record high of $ 210.86 in mid-June and is currently trading at around $ 150 per share in a global technological context.

In addition, the technology used in more than 90 Hema supermarkets is not yet widespread in the hundreds of thousands of supermarkets in China, although the company has already partnered with hypermarkets like Sun Art and RT- Mart to help them scan some of their offline outlets. stores. Rivals such as JD.com and Tencent have also invested heavily in off-line retailing, as Chinese Internet giants enter the race for the development of the most appropriate solutions to solve the puzzle of the Internet. online and offline retail and take advantage of it.

Similarly, the concept of fitting rooms and mirrors in augmented reality is still a novelty, while the use of smart speakers in cars and even at home to control devices remains a concept relatively new for many Chinese consumers.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Until the merchants in China and even around the world are beginning to embrace the technology of Internet consumers like Alibaba, consumers like me will look forward to the day when everything, whether it's buying a dress in a store, turning on the lights and remote air conditioning, and even collect packages, can be done in one click a smartphone, a voice command or a facial scan.
"data-reactid =" 97 "> Until traders in China and even around the world start embracing the technology of Internet companies like Alibaba, consumers like me will look forward to the day when everything, It is to buy a dress in a store, to activate remotely the lighting and air conditioning, and even the collection of parcels, can be carried out at the l & # 39; 39; help a tap on a smartphone, a voice command or a facial scan.

Meanwhile, I'm just enjoying the future of consumption thanks to a perfectly shaken Lychee martini, prepared by a robotic and elegant arm. It was as delicious as any of the lychees martinis I've had in the past and that were prepared by humans.

Bartenders and smart hotels: Alibaba's vision for future consumption first appeared at the South China Morning Post

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