Lin Xiaohai, vice president of Alibaba group and general manager of retail Communications
Retail pass is Alibabas B2B platform for fast moving products. In August 28th, Lin Xiaohai announced at the retail strategy conference that it opened up 150 small stores including POS, including the POS store, the operating system of the digital store, and the 10000 outlets for new products. It provided financial support for small shops, including interest free credit, unsalable sales and overdue compensation, and opened up Taobao, hungry and big. The resources of Alibaba economy such as RT-Mart help small shops drain and increase revenue.
According to Lin Xiaohai, after the 1.5 million stores are connected to the small store operating system of retail link, a number of small stores with a daily turnover of more than 10000 yuan will emerge.
Why should Alibaba pay attention to offline retail stores and what is the ultimate goal of service retail stores? Lin Xiaohai told surging journalists that the largest distribution channel in the FMCG industry is not e-commerce or hypermarkets, but 6 million small stores in China, which together account for 40% of the FMCG market share.
Retail link is like a B2B version of tmall. Brand merchants enter retail channel and sell goods to small stores. In the middle, we charge Commission. This is no different from tmalls business model, but we have one more thing than tmall, which is the supply chain. From a strategic point of view, FMCG industry can not be all online, you can only rely on local services, to store services. In addition, the user groups of small stores are quite different from those of Taobao. Most of them serve the elderly and children. Once our operating system is in place, a small store can serve 200 users a day, and a million stores will be 200 million users a day. This is actually a huge user data and a new operation position. It is very valuable for Alibabas user growth, payment strategy and new retail strategy.
It is understood that there are 11 solutions in the operating system given by Alibaba digital economy to businesses, and retail channel is responsible for the solution of channel distribution. At the strategic conference of Alibaba retail link in 2018, CEO Zhang Yong of Alibaba Group commented that we dont want to become a Berlin Wall between brands and millions of small stores because of Alibabas participation Zhang Yong said that retail link should become a platform for data flow, helping brand merchants and distributors understand the needs of millions of small shop owners across the country; on the other hand, it can empower small shop owners with data and technology.
According to surging news reporters, Alibaba is trying to integrate retail outlets with the power of big RRM, Alipay, hungry, rookie and other forces in the ecosystem, and form a set of combined boxing. For example, from the perspective of service radius, RT Mart radiates 10 kilometers, HEMA creates a 3-kilometer life circle, and millions of retail stores fill in the middle gap, completing Alibabas full coverage of offline instant consumption scenarios.
As for how to combine retail express with other business lines of Alibaba, Lin Xiaohai takes RT Mart as an example to explain to the surging news reporter: RT mart and retail express actually sell the same kind of goods. It is the source of Ka goods, and I am the source of channel goods. However, there must be overlapping among some sources. For overlapping sources, we are also thinking about whether there are lower prices and higher services Space. In addition, we are also wondering whether we can supplement the supply of goods. Retail products only have room temperature products, while RT Mart has low temperature and cold chain. If we connect RT marts low temperature and cold chain into retail link and reach small stores, we can improve our competitiveness. RT marts fresh food can also be done through retail stores to do community group buying. In fact, the leaders of community group buying are basically small shop owners, but the source of retail express is not suitable for group buying.
As to whether the cooperation with RT Mart has made any substantial progress, Lin Xiaohai told surging journalists: we are conducting a pilot project in Ningbo. If the pilot project is effective, it will be extended to the cities where RT mart is located and enrich the product supply of small stores.
It is reported that retail link has set up an innovation department, one of which is community group buying, closely cooperating with RT marts fresh food supply chain. In addition, retail link has continued to promote the access of small stores to the hungry Mo distribution platform, creating a community business circle combining online and offline, so that the legs of small stores can be extended beyond 300 meters.
This year marks the fifth anniversary of the founding of retail link. For the business that attaches great importance to the supply chain, the initial investment is still quite large. I have been investing in the past few years, but this year I think it can be controlled. If we say that the gross profit of a start-up company can be even, it is basically at the stage of the establishment of the business model. Between September and November this year, I estimate that retail link will have a milestone. Lin Xiaohai disclosed to the surging journalists.
According to the data from retail express, at present, more than 95% of Chinas well-known FMCG brands have settled in the retail channel. The supply chain system jointly built by retail express and rookie has covered 83% of Chinas streets, and the on-time delivery rate is more than 96%.