Tmall Hu Weixiong: Building The Whole Future Business Route With A New Retail Mentality

According to the world clothing shoes and hats net, recently,

Hu Weixiong, CEO of Tmall group, delivered a speech on the theme of "global business milestone and new retail future".

The following is a pcript of his speech, which is compiled by reporters.

Good afternoon, everyone. Today, let's talk about how to build a new retail scene around food.

For the future

The first concept brings to you that new retail is not just a new retail business advocated by Ali, nor is it a new retail business advocated by Tencent.

New retail, more with

The new retail related side is a strategy to build the whole future business route with a new retail mentality.

New retail is not O2O, it's an incremental business.

New retail has an illusion. The most important thing is not a simple O2O strategy.

If the new retail business is to be successful, it must be that your store is big enough and strong enough. If there is no strong Online position, it will not be able to get through with offline.

This is the reason why we lost a lot of O2O models in the past. You didn't form a closed loop, didn't create demand, and didn't see the insight of consumers.

Second key issues.

The new retail future must be a closed loop of data. If the data loop is not generated, it is a meaningless part.

Online is a complement to the traditional strengths of many brands online.

So, at the end of the online, new retailers pay more attention to offline consumers.

Online consumers are a superimposed effect rather than a stock game.

The characteristics of the lines that we see today are unique, but these are the characteristics that did not exist in the past throughout the whole line.

If we link this feature to create new demand through the new retail model, this assumption is very valid.

So the Alibaba's view is that the new retail strategy is to create incremental business and create a new possibility in incremental business rather than a simple stock game.

This is different from the way O2O used to play.

In addition, we notice that the biggest change of consumers is that he is increasingly pursuing this quality, health and convenience.

Online consumers and Chinese consumers have a very strong desire for this extreme speed. So when we say that consumers want to pursue this kind of extreme service, we have to use new retail logic to solve the problem.

Today, our traditional Online models are the same. I order second days for warehouse delivery.

There is a hypothesis in the future. Why do not we need to sell many retail outlets that are socialized? All offline stores can provide our customers with the most convenient delivery service. I believe this is true. This is also an important part of our distribution system with many large companies, especially the zero sellers.

We have noticed a more important path timeline. Under the traditional department store, traditional CPS or traditional shoppingmall, there will be a new format in almost 20-50 years. Especially after 2010, we are moving into the mobile era today.

We found that this part of the change is becoming shorter and shorter. It is 50 years before a new species can emerge. Today, there is a new species every 20 years. We predict that it is possible that 10 years will be the new species. In other words, there will be new retail formats in 2020.

Why? Because consumers are happy and old.

The second key is the iteration of technology. I saw the article of WAL-MART founder yesterday, which is very interesting. He has two judgements. The first judgment is that when we first opened a big supermarket, we reached a conclusion that a second tier city could not increase its density. All of them were opened at the weekly side of the city. The cost of finding a shop would be low, so the scale could be enlarged.

Because of the low cost, the original two stores in the downtown area can open 4-6 stores in the outskirts of the city, and increase the density by increasing the density.

He made the second assumption that we neglected. He said that we must not underestimate the speed of urban expansion. Today's suburban area has become a city center after five years, which is fatal.

This change was not observed by his opponents. When the expansion of these cities suddenly appeared like Shanghai, from the Nanjing road to the Xuhui Road, he had 20 stores at that time, and his opponent would go to Xujiahui to open a shop and found that he could not enter.

What is the trend seen by Alibaba? We think that these stores will have new species in the future. We can use new technology to empower, forever data empowerment, thinking that we can change them and change them.

Ali's new retail business will be strong.

Where is the value of new retail? Low cost, we can understand that second is coverage and third is digitalization.

What does mulch mean? In fact, with one word, we think that new retail can take care of more new people. There are several figures that are very exciting.

We notice that the crossover rate between the online and offline stores is only 8%-10%, which is very impressive.

In Britain or in the United States, the figure will be as high as 30%. If his crossover rate is above 30%, all brands will be very worried. It is a stock economy, and no more than a left pocket to a right pocket.

But when today's crossover rate is only 5-10%, the Internet creates a new crowd.

So once again, we have proved that the theoretical inference we have just said is correct. China's Internet business has just started ten years or twenty years.

The third is also more critical. What is digitization is technological breakthroughs. There is a big data showing that anyone who uses heavy data, the longer they indulge in mobile phones, will become the deep users of the brand, while the value of a deep user contribution is 3-5 times that of a user. This is our proposition.

We let the digital part penetrate into all shops, there are more machine shopping guides, more AR technology, VR technology, and even face recognition. These technologies have passed through, and we can turn these consumers into deep users of our brand.

Let's look at the path and how to link the retail market and consumers. Because the final new retail is still coming back to the original source, which is to restructure the consumer's shopping. So I believe this is not difficult from the paction, purchase and membership. For the brand side, as the role of the Internet in the whole interaction with consumers is getting bigger and bigger, the original brand is directly facing the consumer through a shop directly facing the consumer. This story is no longer established. What consumers want today is the complete experience of online and offline segmentation. This is a complete test.

So the reconstruction path is a complete O2O reconstruction, rather than a diversion problem.

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We can see that we are highly respected for new technologies. Only technological breakthroughs can really give consumers a strong perception of the part of people, goods and places. We strongly emphasize the construction of a new retail scene around the brand, and build a new retail scene around the retail terminal. It is the two main line to enter, not a single dimension.

We strongly emphasize that after entering the path, we must have a global operation of consumers.

It's not a line, nor a line, it's all across.

We can see the driving force of the whole big data, we can make a brand to express in Tmall's largest flagship store, and also can be expressed in the largest chain store online.

After all data streams, can the second step be able to find some core businesses and consumers, and can do second touches in two months?

This completed medium and long term closed loop is the comprehensive deconstruction of people, goods and fields.

New retail is a win-win for online and offline businesses.

It is very entangled to say whether new retail is on the advantage of online or offline.

As far as I can say, the new retail business is a win-win situation.

The first advantage is that we can win customers all over the world.

What is the global audience? Such as online and offline multi terminal action, a piece of marketing, online recruitment of new customers, new recruits can be recruited under the line, so this is to get through; second, he can make precision marketing, because the online and offline consumers have very different differences, so they can make two dialing strategies, so precision marketing is also unique to new retail. The third is the most important. We see that it is off store Sell, and online can offer off shop sales. What we are interested in is the possibility that these consumers will happen online. We are pursuing this kind of ability, and this is a supplement to the brand side.

It's a complete separation from sales and online sales.

Finally, an organization, the new retail will eventually be full. How can we make all our BA participate in the big feast of new retail? If they embrace the new retail, our efficiency will at least increase by 30%-50%, and today is very likely to be achieved.

The most important view of Alibaba on the whole new retail business is change.

As we said ten years ago and twenty years ago, we should embrace the Internet. Today we should have the same courage to embrace the new retail business. It is a new business format. It is different from the pure Internet model pushed back 20 years ago. If you want to embrace it again, you can remodel your business model.

Second, he will have a new positioning. The new retail business is incremental business, not stock. If you believe it is a new increment, believe it is aimed at young users, and even provide better service for the young users of your customers' excellent quality assets.

Finally, it must be digitalized, and data closed-loop must be completed. New retailers do not make simple links, do pformation, and ultimately create the future needs of consumers through data empowerment and technology empowerment, and then give them better services and better products.

So this time we will see that there will be three models in the future after the whole new retail business, the pure e-commerce model, the new retail model and the social business model. In fact, this is what we think will be intertwined with the diversified models in the future electricity supplier. The challenge to the business and the brand will be enormous.

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