Alibaba, Bailian Group open ‘Easy New Retail’ outlet in Shanghai
longsok, Wednesday, Mar 13, 2019
Alibaba and Chinese multi-format operator Bailian Group have jointly opened an ‘Easy New Retail’ convenience store in Shanghai. The 500 sq m outlet, which trades from 7:00 am to 12:00 pm, features a dining area, a kitchen, a coffee bar and a bakery. Fresh food, including hot meals, accounts for two-thirds of the store’s offer, with only one-third dedicated to packaged goods. Customers can place orders via Alibaba’s Taobao platform before collecting them in-store.
Alibaba teamed up with Bailian Group in February 2017 to drive its “New Retail” strategy, which sees the distinction between physical and virtual commerce vanish to provide customers with seamless multi-mission shopping experiences. Shanghai alone will see its metropolitan population grow by four million to 33 million people during our five-year forecast period to 2023, with the majority of people digitally addressable and seeking convenient fresh food solutions amid busy urban lifestyles.
CPGs need to consider not only Alibaba’s dominance in the ecommerce sphere, but also its expanding importance in the physical retail landscape. The ecosystem operator will use data from its multi-sector online operations to inform the product assortment of its growing store network. This means that, to win some of the limited shelf space dedicated to CPG, suppliers must leverage their ecommerce performance on Alibaba, optimizing range, content, price points and pack sizes.