New Retail Model Means What?

Ever since Jack Ma introduced a concept, “New Retail Model” in October 2016, the professionals related have been analyzing, interpreting and mapping out the concept; nevertheless, what is the new retail model? What is the difference between the new format and the traditional one in retailing business? What industry opportunities the new format of retail will blow around? At a time, all sorts of opinions about the concept sprung up. Alibaba remarked, “New retail model is the re-construction of human beings and merchandises”, while Jingdong believed, “The transformation of retailing business is in the change of the infrastructure for retailing business.”

Let’s put aside the above points of view, what we can be sure about is retailing business has stepped into a new phase, going through a big revolution. Today, we will comb through how the following several key steps will change under the retailing revolution. There is a diagram for you to read, explore and find out implied information.

 

“Triple-Reconstruction” on New Retailing Business		Management on Products & Supply Chain	→	Holistic Sales Path	→	Ways to Reinforce the Connection with Consumers
		↓		↓		↓
		Reconstruction of Management on Products & Supply Chain		Reconstruction of Holistic Sales Path & Setting		Reconstruction of the Ways to Reinforce the Connection with Consumers
		↓		↓		↓
		New Products & Models of Distribution		Sales Windows of online & offline Integration		New Ways to Connect & Maintain Consumers (Individualized Maintenance & Marketing)

 

Decision-Making & Analysis Based on Artificial Intelligence

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Intelligent Decision-Making System Based on the Big Data of Production & Logistics

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Intelligent Decision-Making System Based on the Analysis on Consumers’ Behavior

 

Big Data Chain

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Big Data on Supply Chain & Logistics

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Big Data on Consumers

 

Revolution in Supply Chain Flow

In the age of new retail, the essentials for the management over supply chain flow mainly remain unchanged. The capacity for integration of data logistics information, 3D yet intelligent conditions for storage and standardized management over quality control, as we can see, are attributed to the function that Cai Niao Guo Guo, an express delivery App software performs in the lay-out of Alibaba’s new retail format. In September 2017, Ju Hua Suan, also called “Real Bargain”, a group purchase website under Tmall launched an event aimed at rushing to buy the Yangcheng Lake hairy crabs; only within 1 minute, 140 thousand hairy crabs, fresh and alive, were sold out. This event helped the group purchase website get the first place in Chinese national sales on hairy crabs from the Yangchenghu Lake. What behind a great number of orders cannot be separated from the support and operation of the intelligent logistics system driven by Alibaba’s Big Data; obviously, high efficient logistics of Tmall becomes the new orientation for Chinese retailing industry of fresh foods.

Revolution in Terminal Settings of Retail Entities

For the traditional retail entities, the beautiful yet fashionable construction and decoration of department stores and shopping malls, as well as a large variety of goods available, courteous and thoughtful service adorned with agreeable environment full of delightful illumination and attractive displays along with layouts are the necessary elements, bringing pleasant shopping experience to their consumers; however, the similar settings have shown too commercial over the past decades. For most consumers, the eye-candy same shopping experience is continuously getting less and less impressive day by day.

The setting revolution under the new retail model should, based on the main directions of entertainment, interaction and experience, greatly incorporate the themes of entertainment, arts and humanities into business environment, and transplant various crossover elements onto retailing business in order that more humanistic concerns, colorful and diversified shopping experience, as well as fresh-new commercial environment and ambience are provided for consumers.

With emphasis on casting new retail settings for sales, the founder and CEO of He Ma Xian Sheng (the typical representative of new retailing business under Alibaba) Yi Hou, pointed out, “The core of He Ma Xian Sheng Model is to re-constitute the values of new consumption on the basis of new consuming environment.” Upon the demanding features of nowadays consumption, he along with his colleagues re-designed a set of new retailing forms, including “Fresh Moment”, “What You Get is What You See”, “One-Stop Shopping Mode”, “Make Eating Enjoyment and Cooking Recreation” all of which manifested brand-new values on consumption, adopted by their outlets. By structuring the values the consumers approve of, He Ma Xian Sheng has won over the consumers who depend much more on the services it has provided; in this way, its viscosity with consumers is increasingly reinforced.

For the retail complexes, the catering industry chosen by He Ma Xian Sheng is a breakthrough point, which new retailing business can seek for. The reason is that catering is not merely a direct experience center for consumers but also an immediate flow center of consumers. Aside from He Ma Xian Sheng which is focused on the setting with eating as center, the selling spaces such as the “Super Species” by Yonghui Supermarket, the “Whale Selection Future Stores” by Century Lianhua and the “Shopin Plus” by Shopin. net, assemble multi-variant settings, where catering, science and technology, home furnishings and books stores are all included.

Reconstruction on Business-to-Consumer Relationship

The most authentic pinpoint for retailing business is that everything is oriented by consumers’ demands; concurrent with this, barriers from technology and channels are to be broken and the best brand experiences are to be re-created. No matter how the ecologic environment of retailing business changes, this fundamental pinpoint will not be altered; thus, we face a major trial from the reconstruction on business-to-consumer relationship in the age of new retailing business, when every consumer is deeply tied to their smart phones.

How to reconstruct the relationship? The essential of the core lies in data. Whoever can collect, analyze and classify the information closely connected with consumers’ payment preferences, consumption channels and habits, membership profiles and E-cards’ balances, he will achieve the optimization and update on operation, marketing and service experience.

Store marketing expert Zhang Bei is the leading representative aimed at helping reconstruct the business-to-consumer relationship in new retailing field. Committed to providing 60 million off-line retailing entities with intelligent store marketing service by building up data bank on consumers’ information for stores, it has set up 2 intelligent marketing platforms aimed at seeking for new consumers and maintaining existing patrons. The former helps stores connect with potential clients by using consumption big data to achieve accurate marketing and guide new clients to specific stores; the latter helps stores collect and process the data on the existing clients of the stores to achieve automated marketing for the consumers and the patrons’ repurchase.

As we can see, the brands such as Ajisen Ramen, Guangzhou Restaurant, Qing-Feng Steamed Dumpling Shop and Bingsheng Restaurant Group, by means of Zhang Bei Marketing Expert’s reconstruction on business-to-consumer relationships, have gained fresh yet eye-catching performance in the fierce competition of retailing business.

From retail to new retail, what has increased is not merely a single word but the new sales settings, new business-to-consumer relationship and new supply chain flow. With the revolution triggered by retailing field, consumers benefit from the new retailing business and enjoy more efficient service together with higher quality products; thereby, the retailing businesses which concern about efficiency and consumers’ experience will truly fly higher and higher with the advantageous winds blown by new retail model.

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