Does Chinese e-Commerce prevail traditional economy like Amazon does in the US?

Does Chinese e-Commerce prevail traditional economy like Amazon does in the US? 

I discussed the Amazon - Whole Foods deal in the perspective of Chinese e-Commerce in my Principles of Management Class (June 19, 2017). Interestingly, many Chinese business students do not have any objection about e-Commerce because they are highly integrated with a few key e-Commerce tools like Alipay, WeChat pay, and Taobao. This Chineses people's reaction is interesting, and I would like to share a reflection essay of my student. 

More than I expected, Chinese e-Commerce business is getting more deeply integrated with people's daily life than any other country. 

June 2017. 

Jeonghwan (Jerry) Choi

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Source: Alibaba buys 32% stake in grocery chain Sanjiang: http://retailinasia.com/in-shops/alibaba-buys-32-stake-in-grocery-chain-sanjiang/

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REFLECTION ESSAY

Alibaba prevails Off-line Market. 

Course: Principles of Management

Module 7: Planning & Strategy

Name (Pingyin & English): Zhuchen Wang & Oliver

Alibaba is the dominant e-commerce giant in China, but now it is moving into the brick-and-mortar space. Last year, Alibaba has invested $305 million in Sanjang Shopping Club, a discount supermarket in China, that would give Alibaba a 32% stake in the offline retailer (Reuters, 2016). It is Alibaba’s long-term strategy that integrates its online shopping with offline brick-and-mortar stores. The decision made by Alibaba shows that the integration of online and offline channels may help those e-commerce giants to keep its market share even earn more profits. There are many reasons that relate to the change, including improving the efficiency, data analytics, and customer convenience.

First, integration of online and offline can improve the society’s efficiency.Once Alibaba has the offline channel, it could manage the whole supply chain to combine its online shopping services with the offline physical store’s experience. For instance, you have to buy the fresh food in the grocery store by yourself because those products require a more hands-on experience than delivering, and also there should have someone to receive the goods. With the new retailer service, customers order groceries online and chose the nearest convenience store, then drive to that store where they can get the bags right away which save time and money.

Second, leveraging data to analyze customer’s buying patterns.Alibaba is working with several brands such as PepsiCo and Mattel to help them identify customer preferences through data analytics. This gives the e-commerce giant insight into what products customers prefer to purchase offline. Analysis of this data can help the company to work towards its integrated retail offering, where certain products are offered offline and others can be conveniently bought online.

Third, to combine to the online and offline strategy can improve the consumer convenience. E-commerce is soaring and food-delivery businesses are taking off because human beings are fundamentally lazy and they do not want to leave the couch to buy stuff. Now, once the Alibaba expanded its service to offline grocery stores, people could elect to have the fresh veggies and organic dips delivered to their homes and apartments. It will improve the consumer convenience.

As the retail landscape evolves, the “online-only” model will face growth limitations. Under the requirements of improving the society efficiency, using data to optimize buying options and consumer convenience, Alibaba took an important action on its strategy.In my perspective, I think it is a wise choice for because it will benefit not only to the customers but also to the whole industry. The presence of brick-and-mortar stores remains important to many customers, and there are several products which customers still prefer to buy in person. Alibaba’s strategy formulates a bright picture of future.

Reference

Reuters. (2016, Nov. 18). China's Alibaba buys into supermarket chain Sanjiang Shopping. Retrieved June 20, 2017 from http://www.reuters.com/article/us-sanjiang-shop-alibaba-idUSKBN13D1T2