This is the English version of my original post in French. .ppt this time with links to the videos ! We can hear a lot currently about "New Retail" in China. It's the current favorite topic of Jack Ma ! During the recent "Single Day", ALIBABA smashed again all the records by achieving a GMV of 25 billion dollars ... According to the leaders of the group, this figure could be reached by bringing innovations and fluidity between offline and online purchases: This is what they call the "New Retail" You will find in this presentation some concrete examples of retailers that exploit the convergence between offline and online and that propose new modes / types of distribution.

1. Graphic: Asia Briefing LTD

2. Agenda
 Context
 Hema (Alibaba)
 Xing Bian Li
 Bingo Box (Auchan)
 BIU (Suning)
 Taocafe (Alibaba)
 Conclusion

3. CONTEXT
 Chinese households are in a logic of discovery of consumption,
products and brands.
 Purchasing power of Chinese households will continues to increase
and therefore it will have a positive impact on consumption
 Modern physical distribution: Walmart, Lianhua, Century Mart, RT
Mart, Carrefour or H & M, Uniqlo, Metersbonwe... does not
dominate the market. These retailers do not cover the whole
Chinese territory. Therefore Chinese consumers haven’t got well
established purchases habits (no loyalty to a POS / channel).
 Internet and e-commerce have favored access to consumption
thanks to the ease of purchase, the large choice and the delivery
flexibility.

4. CONTEXT
 Significant investments in digital infrastructures made by the
Chinese Government which allows most Chinese to have a very
good access to the network.
 The internet population is a yound and connected population. 70%
of internet users have between 10 and 39 years...
Internet figures
Internet, users * 751 millions
Penetration rate * 54%
Smartphone users * 970 millions
Internet mobil * 695 millions
Online Payment ** 469 millions
Wechat users ** 889 millions
* 1er Sem 2017, ** 2016

5. NECESSARY REQUIREMENTS
 Smartphone + App + QR code : Basic elements of New Retail

6. Hema (Alibaba)

7. Hema (Alibaba)
 Retail and entertainment:
consumers can ask chefs to cook
the fresh products they buy
online (in the POS or at other
places). In this PoS it’s mainly
seafood products.

8. Hema
(Alibaba)
 Retail and
entertainment:
consumers can ask
chefs to cook the fresh
products they buy
online (in the POS or
at other places). In
this PoS it’s mainly
seafood products.

9. Hema -Alibaba
 50% of the surface of the
supermarket is occupied by
restaurants.
 Business model: Tenants pay a
rent + % on turnover made with
products purchased in the POS
 Textile and deco products placed
in the middle of the food court.

10. Hema
(Alibaba)
 Regular
supermarket area:
Mainly imported
brands &
products

11. Hema (Alibaba)
 Use of the mobile phone to get product information and to pay
online

12. Hema (Alibaba)

13. HEMA (Alibaba)
 Prerequisite:
 Download the App Hema
 Alipay
Delivery
PoS or
Restaurant
Drive In
Order
30 mn max /
rayon de 3 km

14. Xing Bian Li (New
Convenience)
 “Convenient store” 100% online
payment – No cash !

15. Xing Bian Li (New Convenience)

16. Xing Bian Li (New Convenience)
In the POS, choose
your products,
then scan QR code
or ean13
Price, product Info Basket

17. Xing Bian Li (New Convenience)
Connection to Wechat for
payment
QR code to open the exit
door

18. Xing Bian Li (New Convenience)
 Prerequisite:
 Download the App
Xing Bian Li
 Alypay / Wechat pay
On Shelves
products
Counter
products
Basket
Products
Info

19. Bingo Box (Auchan)

20. Bingo Box (Auchan)
Download the
App and then
scan the QR code
to open the door

21. Bingo Box (Auchan)
Choose your
product, then
scan it on the
automatic pay
station
Payment
with
Wechat

22. Bingo Box (Auchan)
Ticket with QR code
to open the exit
door

23. Bingo Box (Auchan)

24. Bingo Box (Auchan)
 Prerequisite:
 Download the App
Bingo Box
 Alypay / Wechat pay
QR code to open
the door
Products
choice
Automatic pay
station
QR code
for exit

25. BIU
(Suning)

26. BIU
(Suning)

27. BIU
(Suning)

28. BIU (Suning)
 Prerequisite:
 Download the App
suning
 Payment Suning
Enter: Facial
Recognition
Product
choice
Exit: Facial
Recognition
Payment
Suning App

29. Tao Cafe (Alibaba)

30. Taocafe
 Prerequisite:
 Download the App
Taobao
 Alipay
QR code + facial
recognition
Products
choice
Exit gates

31. Conclusion
 "New Retail" for the consumer - my view -:
 The smartphone is the central tool. It allows to initiate the shopping
(PoS entry, recognition as a customer) and to finish it (PoS exit,
payment)
 Association of physical PoS and cell phone / internet brings simplicity,
no cash needed, no cashier. It also allows a personalization of the offer
on the web page of the customer.
 "New Retail" for the Distributor - their point of view -:
 Reduction of the operating costs. This is the arguments of Auchan
(Bingo Box) and Bian Li Xing
 An additional step in the optimization of customer data. The more the
client connects to in different places and for different uses, the more
'artificial intelligence’ can then anticipate purchases, generate demand,
and also optimize management of the assortment and inventory.

32. Conclusion
 Current status:
 Hema, Bingo Box, Xing Bian Li and Biu are PoS that exist. They are in
development and propose a business model.
 Taocafe is a concept. Taocafe has been opened for 4 days only, in
Hangzhou, during a show Alibaba
 A favourable legal framework:
 There is no protection of personal data in China. All actors, e-commerce
websites, systems of online payments, telephone operators, banks,
hospitals, restaurants... can keep your data and use and / or market
them !