In Alibaba ‘smart centers,’ customers can see how items would look on them, and find out other details about materials and prices on mirrored screens. (Bobby Yip/REUTERS)
Online or in store?
For 2018, Alibaba is promising special discounts on 1.5 million products in 3,700 categories, from 180,000 brands from China and 74 other countries. The company plans to fulfill much of the enormous order volume from its robot-automated warehouse where 700 robots will automatically pick up items and assemble packages for shipping to customers.
Many companies are working to develop their electronic customer base, particularly with mobile apps. But there is still big money in the real world.
Though landmark retailers like Sears and J.C. Penney are struggling in the U.S., the vast majority of global shopping is still done in-person, rather than online. Newer mega-retailers like Walmart, Target and Best Buy are thriving in the U.S. and elsewhere. Even pure e-commerce retailers such as Amazon are moving offline, opening cashierless Amazon Go stores and physical bookstores, buying Whole Foods, and partnering with Kohl’s to handle product returns.
In China, Alibaba has moved into physical stores, too, acquiring the InTime department store and mall chain and opening 60 Hema supermarkets that don’t accept cash and where customers’ food purchases can be prepared before they check out. The company has also set up 100,000 convenience stores as places where customers can try on products in augmented reality and pay with facial recognition systems.
The future of retail
Shoppers around the world want to be able to buy both online and in physical space, from any device and by any payment method – all while getting a high level of customization and service experience. This goes beyond the simple mechanics of telling a smart speaker like Amazon Echo, Google Home or Apple’s HomePod to order more laundry detergent.
Artificial intelligence systems are analyzing customers’ behavior, which can make routine shopping for items like facial tissues and soap faster and easier, by remembering what brands a customer likes, and how often to order refills. AI can also suggest products customers might want to buy, based on their previous purchases – as Amazon already does. That can make shopping for luxury products, splurges and gifts more fun and engaging.
The global retail market is adjusting to China’s rising economic power, and Chinese customers’ desire for AI-enhanced mobile shopping experiences. Singles Day’s spread across the world suggests a new chapter of computer-enhanced shopping experiences is beginning.
This article by Venkatesh Shankar originally appeared in The Conversation.