Changes in customer behavior and advances in digital technology have also changed the way consumers behave in shopping. Companies in the retail industry need to find a new business model to adapt to the change. Several entrepreneurs in China are applying the new concept of “new retail” in response to the changes in consumer behavior.
“New Retail” concept is the term Alibaba uses to describe the blending of online and offline commerce. Prof. Yang Sun, from the Northeastern University, China, said that “new retail” was a transformation of the retail industry from a traditional model to a more integrated and automated one.
“The concept of new retail is the integration of online, offline, logistics, and data across a single value chain,” Yang Sun highlighted through a guest lecture session entitled “Retailing in China,” held by the Bachelor of Management, SBM ITB on Thursday(12/2/2021). The event was held hybrid (online and offline) and attended by students from the international business class.
In addition, “new retail” is bridging e-commerce, physical retail, and logistics to improve the efficiency of selling and buying and improve the shopping experience. Yang Sun then said that big data became the core of the “new retail.” It is because, through big data, companies can understand the customer’s preferences toward a product.
Moreover, through big data, companies can also analyze the consumers’ shopping habits and analyze the number of sales. As a result, it brings benefits for retail companies. He commented, “It enables efficient delivery and reduced surplus inventory.”
Besides Alibaba, Hema Fresh Store also tries to implement the “new retail” concept in their business model. For Alibaba, it opened cashier-free retail and automated store named Tao Cafe.
At the Hema Fresh Store, they have a service that enables the consumers to order food online. “Order your food; Hema can cook for you and deliver it to your home or company,” said Yang Sun.