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The bright future of physical retail, by Raphaël Palti
The bright future of physical retail, by Raphaël Palti 1678 1119 Altavia

Since its birth, fifteen years ago, the growth of e-commerce has been rapid. And this year, once more, the share of online sales is expected to enjoy two-figure growth worldwide. Is this an omen of the imminent end of brick and mortar?

On the contrary, I think that the profound change that the retail sector is currently undergoing represents, for historic retailers, a new opportunity to reinvent themselves and to ensure a bright, lasting future for physical retail.

 

Having increased 20% in just one year, online commerce represented 1,860 billion USD in 2016, i.e. 8.7% of total retail sales worldwide. A share that is expected to pass the 10% mark in 2017. In developed countries, more than half of consumers make purchases online and, in emerging countries, the increase in internet access provides e-commerce with the potential for considerable growth.

Although, in light of the above figures, it seems unthinkable to question it, will the rapid growth of online commerce mark the demise of physical retail? The answer is no. I have no doubt about it. And what’s more, I am convinced that physical retail, the famous brick and mortar, has a bright future ahead, and I can give (at least) five reasons for this:

 

1 – The figures confirm it: the e-commerce wave is no tsunami

In the USA, the second largest e-commerce market in the world, just behind China, the share of online sales stands at just over 8%. And yet, as significant as it is, this figure cannot overshadow the remaining 92%, well and truly occupied by the physical networks. Similarly, projections indicate that, worldwide, e-commerce will represent just shy of 15% of the market by 2020. And to emphasise this point, the share of online sales will not end up exceeding 20 to 25%.

 

2 – The pure players themselves do not believe in a 100% digital future.

Within the space of scarcely two years, many leading e-commerce players have shown a growing appetite for physical retail. In Europe, this was particularly the case for the French firm Spartoo, which, in 2015, opened its first physical store, with plans to open around fifty by the end of 2018. In the USA, the takeover of Whole Foods by Amazon bears witness to the same aspiration. Lastly, in China, Alibaba has already invested no fewer than €7 billion in physical retail by acquiring shares in the Suning and Sanjiang chains.

Of course, this sensational début by the web giants in the world of physical retail is likely to cause concern for historical retailers, and quite rightly so. Nonetheless, is it not proof in itself that pure players themselves believe that the future of retail will play out, at least in part, in real life? Is it not a sign of an awareness, by e-merchants, of the importance of human beings in the quality of the connections between them and their customers and, similarly, in the longer-term success of their businesses?

 

3 – Setting physical retail against e-commerce is meaningless.

With a growing number of hybrid merchant concepts, like showrooms, where you can come to touch and test a product before purchasing it online; with the Drive, where only product selection and the transaction take place online; with the development of applications – intrinsically, of purely digital products – capable of analysing products in a bricks-and-mortar store, can we still talk about physical retail? Can we still talk about e-commerce? There is no longer such a thing as pure players. But in the end, did they ever actually exist in the strict sense of the word? Take delivery to relay points, for example. Does this not involve a physical shop? We have entered an omnichannel era, where the dichotomy between physical retail and e-commerce is no longer required.

 

4 – The physical businesses of tomorrow have not yet made an appearance.

And then, asking ourselves about the survival of physical retail is just as absurd as questioning the sustainability of the city. And of course, the city isn’t going anywhere! What makes it meaningful are its places for socialising and meeting people. Acquaintances, friends and family. Users and service providers. Retailers and customers.

We can’t imagine the city of tomorrow without shops. And most of tomorrow’s shops have not yet been invented. Tomorrow’s store will not be physical or digital, it will, above all, be social. So, its transformation will be constant, because now, test and learn, with and for the customer, will become law.

 

5 – The revolution of historical retailers is under way.

One thing is for certain, tomorrow’s retail will be designed with historical retailers or at least those that have actually established, or re-established, a connection with their customers. A connection that goes beyond just the simple transaction: connecting with a customer means listening to them, establishing a dialogue and interacting with them, with the sole aim of better meeting their expectations.

 

It is time to tip agility and creativity towards the historical players. And it is clear that their revolution has now started: testing of a fully automated supermarket by Auchan in China, delivery by Walmart of shopping to your fridge even – and this is the cherry on the cake – while you are out, etc. There are already plenty of examples and there will be plenty more in the future. In the future, and more than ever before, creativity and innovation at the service of the customer will be the foundation of new commerce. More than ever before, the rebirth of physical retail is set to be exciting!

 

By Raphaël Palti, 

CEO and founder of Altavia

 

Sources : Statistica – Worldwide retail e-commerce sales; Statistica – e-commerce share of retail sales worldwide; Crédit Suisse; Ecommerce Nation; Marketingland.com – E-commerce accounted for 11.7% of total retail sales in 2016; Kantar Worldpanel; Le Monde – Spartoo étend son réseau de boutiques; Clubic; Le Monde.fr

 

Beyond the hype: Augmented and Virtual Reality in 2018
Beyond the hype: Augmented and Virtual Reality in 2018 1677 1119 Altavia

With the recent launch of IOS11 by Apple and ARKit that comes with it, Apple opened the way for mainstream Augmented Reality. Despite the fact that the Iphone has a lower penetration rate that Android devices on a global scale, I believe the launch of ARKit and IOS11 will bring a boost to marketers seeing the potential benefits of bringing this technology in the mix. ARkit brings augmented reality to all of the more recent Iphone models, while Google’s platform Tango is only deployed on a limited number of devices.

There’s plenty of opportunity for retail to adopt Augmented Reality. A consumer today who is considering a product, could be pulled over the line by providing him or her with services that allow to visualise the product and inspect it from all angles or that allow them to see how the product could fit or be used projected in real life.

 

Ikea recently launched Place. An app that seamlessly integrate Ikea products into your home while you are looking through the camera of your mobile. It allows you to see if the item fits into your style or in the size of your home . Ikea had this type feature before but you needed the catalogue as a marker and the fitting wasn’t always flawless. Now through ARkit, the app understands the geometry of the room and perspective and then places the item perfectly.

 

https://www.youtube.com/watch?v=-xxOvsyNseY

 

The social platforms are also picking up AR. The camera feature in the facebook app is using AR for these funny masks or animations and Snap is launching their own 3D world lenses which could bring a new boost to the platform.

 

 

While we see obvious applications of putting AR at work, VR is another cookie. While the hardware and software platforms are producing not less then stunning experiences, everything will stand with the adoption of the headsets.

 

It is expected that the mass adoption of VR will go through mobile first. The platforms to do so are ready. We see VR video on youtube, 360° on Facebook and what not. The possibilities there are endless and retailers and brands could benefit big time from this on the condition they are able to get the headsets distributed.

 

As video is the absolute king for distributing content, we can start imagining how impactful interactive 3D video could become once the consumer is emerged in it. Shoppable VR experiences where we can bring the user a lot closer to and into the product or shopping environment. It needs no argument that Virtual Reality also has the potential to enrich the consumer experience in store, wether it is in the travel industry, home deco or DIY.

 

 

Prevision

Companies are starting to get their first tests on the water and see how these new technologies can either impact product knowledge consumers are craving for or enhance the consumer experience online or in store. The expectation is that these technologies will grow exponentially in the next years. AR because it will be widespread in our pockets, for VR we still need to see what the next generation headsets will bring.

 

Are you also looking at how these technologies could enhance experiences or services you bring to your consumers? We’d be happy to assist.

 

Tim Wolfs
Chief Digital Officer Europe

“Successful retail is that which enables the client to be successful”, by Raphaël Palti
“Successful retail is that which enables the client to be successful”, by Raphaël Palti 1678 1119 Altavia

For a long time, I have been convinced that retailers have everything to gain from supporting their clients to better serve them. Today I’m even more convinced, now that new technologies allow the customer, who was formerly a mere consumer, to have full control over their purchases.

“Customer is king”: every retailer has spoken these words. Even if only once. Yet until recently it would have been relevant to question the truth of this statement, given the increasingly powerful mass market seen over the past fifty years and the fact that it is impossible to truly and effectively listen to customer expectations.

 

To say nothing of that fantastic liberating tool, new technologies. A tool which the consumer has been able to use to become a truly active player: the customer now has the authority when it comes to their purchasing.

 

Mere logisticians serving customers

This change may ultimately lead to distributors being mere logisticians serving customers. After all, these platforms already exist, especially in the digital sector. Take Airbnb or BlaBlaCar as examples. These are simply interfaces serving customers who play the roles of retailer, consumer and critic in turn. This is the ultimate acceptance of “consumer to business to consumer (C2B2C)”.

 

C2B2C is more than a model for e-commerce. It is, I believe, the major trend towards which retail is going to (and should) evolve. And this, whether in its gentlest form: the customer being taken into account when a service is designed, or a more involved form: the customer becomes a purchasing advisor, or in its ultimate form: as detailed above. As they gain autonomy in their relationship to retail, find out more information, share and coordinate, consumers discover the breadth of their talents.

 

Customers working for other customers

The twenty-first century customer is now a hotelier, chauffeur, tourist guide and food critic. By sharing his or her passions, the customer is effectively working for other customers and thereby regaining power over the whole buying cycle.

 

Retail can no longer do without this power: more than ever, successful retail is that which enables the customer to be successful. Distributors can achieve this by being guided exclusively by their clients and not making the mistake of believing that retail is just about buying and selling products.

 

Extreme customer support

This change will need to be comprehensive. Retailers should support customers in extreme ways, going beyond mere words to action. To assist with this transformation, it is up to those of us who serve the customers of our clients to help them structure the ways in which they listen to customers and use participation and collaboration wisely.

 

By Raphaël Palti, CEO and Founder of Altavia.

 

 

Comment la technologie permet aux consommateurs de court-circuiter les grandes surfaces dans leur consommation du bio

How does technology allow consumers wanting to eat organic to bypass supermarkets?
How does technology allow consumers wanting to eat organic to bypass supermarkets? 1596 1176 Altavia

 

Consumers are becoming increasingly demanding when it comes to food. According to the ANIA (French National Food Industry Federation)/Opinion Way Barometer 2015, food expenses are where French people least want to cut corners. They are also paying more attention to the quality of what they eat: ingredients and nutritional value went up 18 and 4 points respectively in the selection criteria ranking compared to 2013. This was at the expense of price and use-by dates, which went down 7 and 13 points respectively in comparison with 2013. According to the CSA Research survey for Agence Bio published in January 2017, 83% of French people trust organic products. More are consuming organic products on a daily basis (10% in 2015; 15% in 2016).

Supermarkets have already reacted by installing stalls selling cheese, meat, fish and bread to humanise the shopping experience. Fruit and vegetable sections have also been updated with mist machines and explanatory information for quality and freshness purposes.

However, supermarkets are also having to cope with a rise in alternative approaches being taken by consumers shopping organic…

 

1 – The supermarkets’ problem

 

According to a 2017 UFC-Que Choisir study, supermarkets are facing a range of problems to do with organic produce.
- Researchers found supermarkets have much higher margins (+96%). This means organic foods are 79% more expensive than their conventional equivalents.
– Less organic choice: for example, 43% of the time it is impossible to find conventional and organic tomatoes and apples in the same store. In 23% of cases neither product can be bought organic.

 

2 – Customer/consumer expectations

 

Households say they eat organic for health reasons (66%), for environmental reasons (58%) and for quality and taste (56%). (CSA Research for Agence Bio//January 2017).
They want GM-free products without artificial flavours and colours checked to meet precise specifications and guaranteed as well as proof that no animals are harmed in their making.

3 – Service positioning (technological tools and what they offer)

 

As well as AMAPs (consumer networks helping local farmers by committing to buy fruit and vegetable boxes ahead of time), more transparent services requiring less commitment are emerging.
“Passive” apps let users locate those selling organic products and offer a full service including delivery. This alternative approach is being set up to satisfy different types of organic consumer.

 

 

La Bio en Poche is an app which shows users places near them selling organic products (shops, markets, restaurants, AMAPs, etc.) using the geolocation function on their phones. In addition to offering geolocation, the app also suggests recipes, has fun and educational content and the latest organic news.

 
La Ruche qui dit Oui ! : every week subscribers can order products on sale from partner producers. The order is delivered during the week to their local Assembly venue.

 

 

Bienvenue à la ferme is the main direct sales network for farm produce and tourism. Product sales, restaurants, fun activities and stays on the farm: all this and more lets consumers learn more about organic food in France.

 

 

 Marchés des Producteurs de Pays is a Chambers of Agriculture brand. These markets bring together local producers committed to following a good practice charter which guarantees consumers:

 

– high-quality produce
– local and seasonal produce and specialities of the country
– high-quality production and processing methods
– direct contact with producers
– transparent farming practices

Markets can be regular, seasonal or one-offs and all highlight the richness and diversity of our produce, enabling consumers to purchase the best local products direct.

 

 

 Mon-marche.fr offers the widest selection of premium fresh products alongside useful information and excellent service.
Consumers can shop online with 60 traders at Rungis International Market in Paris and have their orders delivered.

 

 

 Baladovore Baladovore lets users find their location and the growers and organic products nearest them. You can use the app to look at their products and find what you are interested in without having to travel.

 

 

 4 – How can supermarkets respond?

 

Some supermarkets have already brought in solutions to support this change in the way we shop and eat. Here are two interesting examples taken from retail:

Coop Italy: An interactive experience for transparency and education.
The Italian retailer has installed interactive mirrors which provide information about the fruit and vegetables in its supermarceto del futuro in Milan: traceability, best season for consumption, menu ideas, etc. This adds value to the service and provides consumers with everything they need to feel reassured.

 

COOP Milano

McDonald’s: Education and partnerships with official certifications to reassure consumers.

As shown in recent marketing campaigns, the brand is trying to communicate its involvement with local organic producers to reassure consumers about product quality. Featuring official certifications in adverts reassures the consumer that the brand is being truthful and offering quality products.

https://www.youtube.com/watch?v=bJLOdGPUON0

 

Carrefour joins the fight for wider crop variety.

In its “Forbidden Market” campaign, the brand squares up to the law forbidding the sale of certain varieties of produce. The brand positions itself as committed to and fighting for better consumption.
(The advert is noticeably similar to the one from McDonald’s: we are now seeing the conversation around organic products being institutionalised by mass-market stakeholders.)

 


Although these responses to the organic “crisis” in the mass-market are contextual examples which deal with companies’ own issues, we must also consider inviting consumers to reflect on possible solutions in order to understand what holds them back, motivates them and the ways in which they use products. When it comes to the “purchase” stage of the consumption cycle, it’s all about usage. By making an effort to develop solutions consistent with consumer usage, the transition to new ways of shopping and eating will occur more smoothly and leading positions can be pre-empted as offers and services will be in line with consumer expectations.

 

 

By Sidney Debaque
Strategic planner Cosmic Agency

 

 

YongHui Fresh

YongHui Fresh is taking on Hema (Alibaba) and Bingobox and goes even one step further…
YongHui Fresh is taking on Hema (Alibaba) and Bingobox and goes even one step further… 1024 768 Altavia

This lunch I discovered close by my office the newly opened YongHui Fresh (from the YongHui supermarkets chain which used to be quite well known among retail professionals as a good benchmark when it comes to fresh products)…

 

Now we all know Hema Fresh supermarkets bought by Alibaba… Well… YH Fresh went one step further and has made the cashier (tills) totally obsolete and useless… here how its works. Just amazing:

 

1- SCAN

You enter this small store of no more than 100 sqm and instantly see that all products are pre-packed and have a digital price tag with of course its associated QR code. So far nothing more than #Hema… Both sell fruits and vegetable and live crabs…

 

Both Hema and YH Fresh have also some grocery items, imported goods. YH Fresh is far smaller and therefore caries much less SKUs but the idea is the same and YH Fresh plus clearly in the convenience store league more than the supermarket one.

 

YongHui Fresh grocery products

 

YongHui Fresh fresh products

 

2 – PAY (with your mobile of course) 

Then, what cames next is a game changer… You (I did it) scan the code bar of the product you want to buy (you can, just like online) add, delete, scan again and so on.. Just use your WeChat barcode scan for instance and one you are done, you are asked to pay… then comes the magical part… you pay with WeChat for example and that’s it. Your purchase is done, you get out of the store. I showed my mobile to one of the staff there who was still on training and I went out of the store.

 

YongHui Fresh price label

 

 

3 – GO

3 cashier desks (tills) were here, but I bet they won’t be much used since everybody is so used to pay by phone that they might be soon be replaced by additional shelf space…

 

YongHui Fresh cashiers

 

Shopping in China is everyday more and more simple totally seamless:

1 – Scan

2 – Pay

3 – Go…

 

By Stéphane Joly, Altavia Asia

mise en intelligence collective

Collective intelligence – When the employee takes on responsibility for the business
Collective intelligence – When the employee takes on responsibility for the business 2048 1365 Altavia

The Belgian BU Altavia ACT*  is unique. What is special about it? An innovative management based on collective intelligence. From the initial motivation to the business impact, Anne-Catherine Trinon, CEO of the Brussels agency, tells us all about this management model which is gaining more and more momentum.

But first of all, what is collective intelligence?

It is a process that lets us develop teams from obedience to independence and co-responsibility. Each employee therefore takes on more responsibility in the business.

 

Why give more independence to employees?

In a SME, a company director spends most of their time putting out fires, going from team to team to solve their problems. Giving each individual more independence means that they have more responsibility for what they do. So teams manage their own problems, with the aim of creating a more collaborative environment, while the company director is free to focus on their main task: developing the business and their vision, and finding new clients to expand the organisation.

 

Anne-Catherine Trinon

Anne-Catherine Trinon,, CEO d’Altavia ACT*

Rely on people, a winning decision

“I made the choice to rely on people”, explains Anne-Catherine. “What I wanted was for my teams to be just as happy to be working for the business in 5 years time.” And the least that we can say is that it works! Altavia ACT* has a very low staff turnover compared with other companies in the market.

 

“People are the driving force of a company.”

 

A way of thinking that goes against the mainstream

The concept was surprising at first. For centuries, the work model has not changed very much: the lower workers worked for their superiors by following and applying their instructions to the letter and without question. So a change in thinking really needs to happen at all levels. It is necessary to learn how to work independently and with confidence. This change takes time: at least 5 years to implement this process and change the company’s DNA.

 

And the return on investment in all of that?

Even though this model requires time and money, it will gain it too. We have seen that when teams are given independence, the managers are free to work on developing the business. As for the employees, they are equipped to identify and solve any problems that arise, so internal management runs more smoothly. More clients and potential clients are likely to be seduced by this way of operating. Clients become real partners. They are included in the discussion and can follow the progress of their projects in real time. The latest collaborative tools also contribute to this special and transparent relationship between Altavia ACT* and its clients.

 

Values or nothing

Before embarking on this journey, the company must have a clear vision, based on values determined collectively by the entire team. We must also be aware that once the process has begun, there is no going back: freedom given cannot be taken back, says Anne-Catherine.

Les français et la consommation responsable

The French and responsible consumption
The French and responsible consumption 1677 1119 Altavia

We’ve been living on credit since Wednesday 2 August. According to calculations by the Global Footprint Network NGO, this was “Earth Overshoot Day” for 2017: the date by which mankind had consumed as many natural resources as the planet can renew in an entire year.

The French people are increasingly aware of the ecological emergency facing us, and are gradually learning more about responsible behaviour. But assume the whole sustainable development effort themselves? No chance.

The Greenflex sustainable consumption barometer

Each year, the consultancy company Greenflex, which proposes sustainable solutions for businesses, publishes its barometer survey “We’re all in it together! The French and responsible consumption” . Let’s take a moment to look at the 2017 version, carried out with a representative sample of the French population, involving 3,800 people aged from 15 to 74 years old.

 

“At a time when the French are beginning to look to the future once again and display (slightly) greater openness to others, responsible consumption continues to make headway but takes second place to the simple desire to consume”, states the introduction to the 2017 Barometer. Despite this, the French people are not willing to shoulder the effort required for “sustainable development” alone. They clearly expect each stakeholder in society (the state, companies and brands, associations and distributors) to play their part too. In this new ecosystem, their expectations vis-à-vis these stakeholders are more than ever proportional to their mistrust of them, and this is particularly the case concerning the companies and brands”.

 

Health: a key factor

Among the major trends for 2017, Camille Lebret, CSR Project Leader at Altavia, reminds us that:

– Health is the key factor in responsible consumption: 45% of consumers would purchase environmentally friendly products as a priority because they have less of a negative impact on health;

– Although the French are increasingly vigilant concerning the quality of the products they buy, though they may now be consuming differently they nevertheless continue consuming;

– As 53% of the French population see it, consuming responsibly means consuming differently, including: products which are covered by quality labels, which are local, organic and derived from fair trade, etc.

– Consumers have less confidence in the major companies: in 2017, only 27% the French population stated that they trust them;

– Distributors (retail) are seen as a credible alternative to the specialised stores and major brands;

 

The health issue plays a central role. The barometer is presented as “introducing underlying attitudes to responsible consumption. In a world which is perceived as harmful, people consider it necessary to preserve their health, particularly by choosing sustainable products. A clear sign of this trend, is that the very definition of a quality product now encapsulates a desire for health”.

A willingness to act… but not alone

To the question “In your opinion, how important are the following stakeholders when it comes to taking concrete action to promote sustainable development?”, those interviewed rated companies and brands in first place; in second place came the state; in third place individuals themselves; and finally the distributors. Considered by the French population as the fourth most important stakeholder when it comes to bringing about change (compared to 6th in 2014 and 5th in 2016), the legitimacy accorded to the distributors where sustainable development is concerned is increasing, and rivalling that of the major brands.

 

 Opportunities for the retail sector

“Generally, the barometer survey highlights fresh dynamism”, states Camille Lebret. “With their answers, the French people are showing that they are more optimistic and have greater confidence in the future. They are once again looking to the future, which is good news for the store chains, the brands and the mass retail sector”.

 

Some store chains have clearly understood that it was necessary to respond and to expand the range of responsible products. “An Opinion Way survey has shown that 89% of the French population feel that a company can achieve high performance while at the same time having a positive social and environmental impact” adds Camille Lebret.

 

Franprix, the local urban store chain belonging to the Casino group, recently launched a new concept, “Franprix Noé”. The shop, which is located in rue Mouffetard, in Paris, is devoted to responsible consumption. Here, consumers will find organic, fair-trade and locally produced products selected for their quality and flavour. On the store window, it is stated that: “Here, every customer can be sure that the products they buy contribute to the trend towards more responsible consumption. We give pride of place to organic and fair-trade products, but more too, as we are also open to non-labelled products which deserve our trust and confidence for their quality and origin. Above all, we promote flavour, health and happy living”.

 

For its part, Carrefour Bio is launching in Spain, in Madrid. Situated in Calle Velarde 1, the store proposes more than 1,800 organic products in a 140 m² sales area.

 

Today, every store chain in the mass retail sector proposes an organic section for its customers, chiefly selling food products. According to the Agence Française pour le Développement et la Promotion de l’Agriculture Biologique (French Agency for the Development and Promotion of Organic Farming), “the market share of the supermarkets and hypermarkets is approximately 45%, ahead of specialised organic distributors (37%), and direct sales by producers to consumers (13%) and craftsmen or retailers (5%)”.

car-sharing economy in China.

QR codes, big data, facial recognition, data sharing, user predictive behavior assessment to fuel the young car-sharing economy in China.
QR codes, big data, facial recognition, data sharing, user predictive behavior assessment to fuel the young car-sharing economy in China. 1678 1119 Altavia

Like anything else in China, local companies are not afraid of getting into a massive fight with the same idea in order to get market share; not afraid at all to share the cake. As a result, exactly the same way we saw dozens of bike-sharing companies budding for the last year, more than 30 car sharing companies have rolled out a total of 4,158 cars on Guangzhou’s roads as of the end of July.

The number of shared cars is still rising in and it is projected to reach 20,000 by the end of 2018.

 

Earlier in August, the Ministry of Transport and Ministry of Housing and Urban-Rural Development issued a policy promoting the development of the car sharing industry.

The policy requires car-sharing companies to check the ID and driving license of car renters and record the information in the car-rental contract.

 

Go fun, one of the car-sharing companies, headquartered in Beijing, said that it has begun to apply facial recognition technology to check whether renters’ faces match the photos in their IDs and driving licenses.

 

The company also claimed that technologies including which detect driver fatigue, and driver evaluation will be applied in the future.

Although the number of shared cars keeps rising, it is still difficult to find a shared car on the road. According to Gofun, their cars are mostly distributed in Tianhe district, Haizhu district, Baiyun district and the train station.

 

Similar to bike-sharing, the car-sharing industry also requires a deposit and renters need to take good care of the cars. In this aspect, car sharing companies in Guangzhou are striving to set up a credit system.

car rent china

A car renter uses her mobile phone to scan a QR code to open the door of a shared car. [Photo/xkb.com.cn]

To be noted that this credit system issue has been smartly addressed by Alipay / Ofo. If your “Zhima credit” instant rating on your Alipay app is high enough, you will not be required to make the 299 Rmb deposit.

Go fun is trying to use a credit system to replace the guarantee deposit which uses a recording device in the car to track drivers’ actions and uploads dangerous driving behavior to the credit system.

According to the Guangzhou Car Sharing Special Committee, a bad credit database has been founded to sort out the bad credit data from car sharing companies and promote data sharing for the whole industry.

 

As usual, pragmatism will prevail and honestly, let’s hope that, the same way bike-sharing is helping to reduce our carbon footprint, car-sharing will also have a positive environmental impact for the benefit of the greatest number.

 

Who would have fought, a little more than one year ago that #Mobike and #Ofo would have put Chinese people back on bicycle while car have been among the most desire thing to possess for most of Chinese?

Will Chinese people be ready to share a car? Abandon for an instant the social status car is bringing them?

In many cities it would make sense since the average number of passengers in a single car is clearly below 2 people…

 

By Stéphane Joly, Executive Vice-president, Altavia Asia

 

Offline stores in China are all but not dead…
Offline stores in China are all but not dead… 1678 1119 Altavia

As rightly written in China daily recently, not only Alibaba but also its main competitor, JD.com are going full steam in opening physical stores in China. Both of them do not just open stores like classic / old fashion offline retailers… they leverage on the online data they have accumulated and turn their physical stores into retail labs. Not only they want the shopping experience between off and online to be seamless, they want it to be of the same fabric…

 

JD goes for:”retail experience shops” while Alibaba develops its vision of “new retail”. To expand faster in the physical world, JD is pushing the franchise model… Pragmatism is key for this new future.

 

Extract from FAN FEIFEI (China Daily), Updated:August 2017 :

 

JD“JD.com Inc, China’s second-biggest e-commerce player, plans to open 200 more bricks-and-mortar stores－mainly offering consumer electronics products－by the end of this year. In doing so, it will be in direct competition with Suning Commerce Group and Gome Electrical Appliances Holding Ltd, two of the biggest electronic offline retailers in China.

 

Using a franchise model, the shops will be powered by the company’s cutting-edge technology. Upon entering a JD store, a camera recognizes customer faces and tracks the duration of their stay and where they spend the most time.

 

JD will make use of big data analytics technology to keep offline stores stocked with recommended categories and suggested amounts of products, while localizing the selection depending on consumer-buying preferences in each location.

 

“By expanding our offline business, we believe we can make shopping both online and offline better for service partners and consumers,” said Hu Shengli, president of JD Electronics.

 

So far, there are 92 JD retail experience shops, and the number will increase to 300 by the end of this year, according to JD. The stores are mainly located in key business districts, shopping malls and supermarkets, such as Walmart and Wanda Plaza.

 

“At present, offline sales still make up … 70 percent of the total sales. JD has an upper hand in supply chain management, from procurement, transportation to quality control, and hopes to expand its offline reach across the nation, depending on its current advantages,” said Lu Zhenwang, CEO of Shanghai-based Wanqing Consultancy.

 

However, JD doesn’t pose a threat to Suning and Gome as the number of its offline retail shops is limited, Lu said. “The company will face some difficulties to open stores in fourth-and fifth-tier cities.”

 

China’s online shopping is seeing robust growth, with total online retail sales hitting 2.47 trillion yuan ($370 billion) in the first five months this year, up 32.5 percent year-on-year.

 

However, physical goods sold online accounted for only 13.2 percent of total retail sales in the same period, according to the National Bureau of Statistics.

 

Back to square 1: Offline is far from dead but need to be enriched by the data collected and analyzed from Online transactions to better serve customers.”

 

By Stéphane Joly, Executive Vice President, Altavia Asia

Alibaba wants to change the way we shop for fresh food off and online
Alibaba wants to change the way we shop for fresh food off and online 2048 1536 Altavia

Here comes Hema Market (盒马集市)

Despite its US $ 150 Million investment Alibaba has been quite low-key running the Hema Markets chain… Hema Market (盒马集市) is a rather premium, fresh offline chain here in Shanghai that refuses to label itself as a “supermarket” but rather as an “e-commerce experience store”. Hema Market is like an expanded version of C!ty’super (premium supermarkets). Its main focus is fresh food and dry grocery.

Hema (“盒马”) is a homophone and wordplay of hippo (河马), replacing “river” with “box” –a name associated with other members of the “Alibaba Zoo” (previously they’ve rolled out Tmall — cat, Alitrip — pig, Antgroup — ant, etc).

 

 

In early 2016, Hema made the transition from fresh food e-commerce and food delivery to offline markets. They opened their stores in places that are a bit further away from downtown Shanghai. This latest store opened a couple of months ago, located in the busy part of Pudong, underneath the shopping complex Shanghai Bay.

 

 

But what makes the Hema Market so particular ? 

  • They are Cashless…(cash looks like a dying king), Alipay being the only payment method allowed.
  • The stores are used for both pick-up and online delivery within the same day only and as fast as within 1 hour.
  • Shopping online with Hema requires the application to be installed on your smartphone.
  • Digital price tags are installed in store for an efficient pricing.

 

 

The Hema Market could be divided roughly in two parts: First, a regular supermarket providing dry food (imports and local), pre-packed fruits and pre-packed veggies, dairy, beverages… and, secondly, a third party food and beverage consignment like many food courts that we can find in China.

 

Hema employees can be seen taking and processing orders from online shoppers. They’re selecting items, packaging them, and sending them off to the delivery department using conveyor belts.

 

 

 

It is interesting to see Alibaba keeping investing on the offline retail, trying new way to #makeretailgreatagain.

Some of my colleagues, here in Shanghai, who tried Hema delivery,  were all satisfied with the prices, efficiency of delivery and quality of the goods they ordered, which for fresh goods is a deal breaker.

 

Nice place to visit for a retail geek, nice place to have some decent food for lunch, and nice place to see an efficient way of picking in store for online deliveries!

 

 By Stéphane Joly

 

 

 

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