For consumers who want to keep their facial data in a good shop, this means that the clerk can understand the snacks they like when the customer walks into the store.
The boutique shop has allowed consumers to choose to use Alibaba's face-scanning tablet for payment, and the company has begun using Alibaba's other services for more successful marketing.
For example, Huang Xiao, the head of the e-commerce company, told Reuters that a consumer who likes salty food, owns an SUV, and has already become a family may see a road trip for the Spring Festival. The recommended good flat shop snacks are recommended.
“Through partnerships, our strategy is more targeted, sales behavior goals are more clear, and resource allocation is more reasonable,” Huang said.
Alibaba's project is called A100, and its clients include Nestlé and Procter & Gamble. It is also an important driving force for Alibaba to re-adjust its relationship with merchants in China – providing consumers with a large amount of consumer data in exchange for a wider and more compact Partnership.
This shift is indispensable for the so-called “new retail” or “borderless retail” of Chinese e-commerce companies, which combines online shopping data with physical store retail data to provide highly personalized services. intelligentMobile phoneThe shift in the use of payments, the rise of facial recognition technology, and the tolerance of Chinese consumers to data sharing between businesses has driven this shift.
Other services that Alibaba offers to retail customers include shopper activity – “heat maps” – to help stores better design product layouts and their chat applications.
Seeking more data
Maintaining business satisfaction and convincing them to sign up for more services has become more and more urgent for Alibaba and competitor Jingdong. As domestic e-commerce revenue growth slows, both companies are looking for diversification.
E-commerce companies can increase data collection by providing data-driven tools to retail stores. “It’s not just about capital, it’s about growing. I hope they can find ways to make money,” he said.
Jingdong, which provides similar services to Alibaba, said that the company had helped the American diaper brand "curious" to understand why the popularity of Chinese competing products has increased the curious use of diaper materials that are more absorbent and more comfortable after moistening. Jingdong said that after 2018, curious sales on the Jingdong website increased by 60%. A spokesperson for curious brand owner Kimberly Clark declined to comment on the details of the cooperation with JD.
Other tools provided by JD's retail customers include a human-powered chat bot driven by artificial intelligence, which is said to “perceive” the consumer's mood and adjust its tone to be more understanding. Jingdong also launched a checkout function in some convenience stores in Hong Kong. Convenience stores using this feature can scan multiple items at once and then use the associated account to settle the charges. It is said that this feature can reduce the checkout time by an average of 30%.
Alibaba and Jingdong executives said that they are not currently charging other companies for most data services, and pointed out that the new partnership also promotes the sale of other services, such as cloud computing and logistics services.
Nestlé, which sells Haagen Daaz and Nespresso in China through third-party retail stores, said that after accessing Alibaba's distribution center data (which can provide real-time updates of orders), the company Only one warehouse is reserved today, but four were needed before.
In the past, good shops and Nestlé had to deal with different departments of Alibaba for distribution, payment, cloud computing and messaging. But now, they only need to work with a team from Alibaba. The team specializes in connecting with a partner company and offers a range of tailored services.
Alibaba has not disclosed the number of companies currently participating in its A100 project, but some analysts said that only large companies will have the opportunity to benefit from the project, because small companies are not big enough, and these important organizational changes may not be necessary.
However, one risk that retailers still face is that they may be overly dependent on e-commerce partners.
Any brand that wants to enter the Chinese market independently is still difficult. Alibaba and JD.com represent two major online retail channels in China. In the face of such fierce competition, Amazon announced in April that it would close its online store in China.
More broadly, how large e-commerce companies manage their data can be considered fair to all parties who use them, and it remains a difficult question.
For example, EU regulators launched a preliminary antitrust investigation against Amazon in September last year because people were worried that the company was collecting similar data from other brands or could be used to promote their own competing products. However, at present, Alibaba and JD.com do not produce their own branded products, but they have invested heavily in retail stores. (Mur)