Online transactions from Alibaba, a Chinese e-commerce business, was reported to have totaled more than eBay and Amazon combined. However, its fast and widespread reach and lead their e-commerce strategy into maturity, prompting a new one: “New Retail” strategy – combining both online and offline locations.
The “New Retail” strategy is an ecosystem of digital services which aims to have no distinction between online and offline shopping, that is by digitalising traditional retail shops. They have enhanced customer experience through implementing augmented reality, AI and facial recognition.
‘How?’, you ask? Watch this short video on “Alibaba’s New Retail Strategy” that explains it all:
With New Retail Strategy, consumers are better targeted, understood and served online and offline. A personalised recommendations and precise search results would increase customer satisfaction and purchases, decrease product returns and reduce cognitive dissonance. Consumers could also shop anywhere, anytime.
This means that it is of increasing importance for brands to encourage webrooming and showrooming behaviour by having its stores integrated and creating a indistinguishable experience by being seamless.
This puts pressure on the retail industry to invest in more innovative technologies that would better serve customers and providing them a delightful experience. It is important for companies to focus on the customer journey as consumers now are purchasing based on these experiences rather than the product itself.
With technology, they also need to ensure that technical support and update is prompt, reducing technical downtime that would backfire from its intended goal.
As Alibaba makes its way into Australia, what suggestions would you provide to help them ensure its survival?