If you need evidence of the U.S. retail sector’s precarious condition, consider that over 9,000 stores closed last year, and another 12,000 are on the chopping block this year, according to commercial property firm Cushman & Wakefield.
Despite a 4.2 percent rise in 2017 over the previous year, U.S. retail growth is lumpy and clearly not firing on all cylinders. Every week brings gloomy news of bankruptcies or downsizings. Online sales, meanwhile, have been climbing, underpinning the sector’s overall growth.
U.S. retail is at a crossroads, with brands and retailers still trying to decide whether e-commerce is friend or foe. On one hand, e-commerce is killing traditional brick-and-mortar business, but on the other, you’ll have a hard time finding a company whose future growth strategy doesn’t rest on developing its online channels.
Watch: Alibaba’s New Retail Explained
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For those who live within three kilometers of the market, Hema’s ability to deliver in as fast as 30 minutes is its best asset. Each store serves as its own warehouse and logistics center that collects, fulfills and delivers customer orders as fast as they come in, online or offline.
Taking the Pain Out of Car Shopping
If you’ve ever bought a new car, you’ll appreciate what New Retail is doing for the experience in China.
Instead of visiting one dealer at a time and spending hours perusing mega-lots and facing pressure from a salesman, Alibaba is rolling out “auto vending machines.” It recently launched its first with Ford in the bustling southern city of Guangzhou and plans more in the near-future.
The Ford auto vending machine lets customers browse makes and models inside their app, choose one they want to test drive, pick it up from an unmanned vending machine and drive it for up to three days. After experiencing the car in a no-pressure situation, they can make an appointment to visit a dealer when they’re ready to buy.
“The technology advancements provided by the Alibaba platform are…giving brands new options to totally rethink how they operate, how they engage with the consumer,” said Jason Ding, a Bain & Co. partner in Beijing, who co-authored a recent report on New Retail with AliResearch.
Watch: Test drive Tmall’s new car vending machine
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Mall Rats of the World, Don’t Despair. Here Comes New Retail
And what about malls? While tumbleweeds can be seen blowing through the aisles in the U.S., Alibaba has begun pumping up China’s malls with a dose of New Retail. The way to customers’ hearts is to have what they want, in the size and color they want, when they want it. The reality of the mall-shopping experience is that you often find the right pants, but not the right size or color in stock.
New Retail in the mall means less of a chance that you’ll walk away empty-handed. Stores are equipped with “virtual shelves,” and if you don’t find your size or color in stock, you can still select the product you want on a screen, punch in your size, color and other specs, scan with your app, and have exactly what you want delivered directly to your home.
Even the powder room of malls can be a New Retail experience. Step into the ladies’ room, and while you’re waiting, check out the “magic mirror” on the wall to experiment, virtually, with new makeup colors. Like what you see? You can buy it from the vending machine.
Watch: Alibaba, Intime Partner to Build ‘Smart’ Ladies Rooms
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Source: Corinne Duquin