Offline Plans

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The blurring of digital and physical experiences

It is no news that digitally native brands are moving into physical retail. E-tail giants are also working to translate their e-commerce market power into the brick-and-mortar space.

Let’s embrace the new reality: the best retail is connected retail. To succeed with today’s highly connected shoppers, e-tailers are competing to marry digital and physical retail. Amazon (310 million consumers) has introduced high-profile experiments in offline retail in recent quarters, like the cashier-less Amazon Go, Amazon Treasure Truck, and new brick-and-mortar book stores, but Fortune reports that Alibaba (488  million consumers) is “further along the online-to-offline curve than its U.S. doppelgänger.” As part of its New Retail Initiative, Alibaba is incubating a digital-first grocery chain – Hema – where consumers use an app to learn, shop, receive highly personalized recommendations, and schedule 30-minute home delivery. Customers can either use the app from the comfort of their homes or physically shop and scan the product bar codes. The app does not only let customers trace product origins and track delivery, but is also a means for Hema to employ a smart supply-chain management system. Hema now has 35 stores in 9 Chinese cities, and will open another 30 in Beijing by the year-end.

Also explore: A Tour of Hema Market

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