Actually, this year, 618 will held his seventh birthday party, and not only his friend JD.COM, but also Alibaba, VIP,KAOLA,YMatou，etc, will join in this great party. Cao Lei, Director of the China E-Commerce Research Center(CECRC)sum up 6 characteristics and new tendencies: SERVICE: Changing from selling to meeting customers’ inner needs The slogan of TMALL was changed from “TMALL is Enough”to “Shopping in TMALL for A Good Life”, added the vision of trying their best to meeting customers inner needs. The first VR cinema hit the ground, which is the important symbol for GOME New Retail, and GOME is looking forward to open 100 VR cinemas in the future. CUSTOMER:Plebians to patricians In the past retail world, getting common people(plebians) gets the world, but now,after the New Retail appeared, every e-commerce is changing the customer orientation from common people to higher and higher people(patricians). SCOPE: From online to online plus offline In the past birthday party, 618 only invited online friends to attend, but now, he will invite more online and offline friends to join them in a big feast. Many offline stores are drived this year by the online promotion, like Sunning, more than 4000 stores will join in the 618 party. REGION: From home to abroad As more cross-border e-commerce join in, like Kaola, Mia,YMatou,etc, the party is given more international element,and more international brands are involved. PROMOTION：On to off turn into off to on In the past party, e-commerce(on) directed the brands(off) to promote, but this year, e-commerce makes use of the big date to direct the selling plan, category and inventory INFLUENCE:Catch up with and even surpass Double 11 Double 11 is the biggest shopping festival in China, and with TMALL’s attendance this year, 618 seems to be the second biggest festival in China.
Recently, Bailian Group announced Alibaba became the second biggest shareholders with 18% of Lianhua Market. The current market capitalization values about RMB 630million. O2O makes people more convenient, which is the new layout of Alibaba. New Retail-Business Ecosystem Bailian Group is a local large-scale comprehensive company in Shanghai, has over 5000 retailing stores in China, including large-scale comprehensive supermarket, supermarket, shopping center and convenience store(C-store), etc. Lianhua Market is the second tier company of Bailian Group, and has 3618hypermarkets and supermarkets in China by the end of 2016. Before putting forward the New Retail, Alibaba has already cooperated with dozens of traditional retailers. March of 2014, Alibaba invested HKD 5.37 billion in Intime, became the biggest shareholders; in 2015, Alibaba put RMB 28.3 billion in Suning, became the second biggest shareholders. After the cooperation with Lianhua, Alibaba willtake a big step forward in product, membership and service systems through Internet and big data, aiming toestablishan business ecosystemthat‘offline’is in focus, lining up in product, payment, logistics, membership, etc. with‘offline’. Community Business in the Spotlight Community business is to people what water is to people just becauseof thehurried lifestyle today. Young people doesn’t cook today, so C-storesare catching on to meet their demands. Cheap, morehealthy and deliciousbento is on the top of the store data. In Shanghai, two parties exist. Japan C-store, based on family, focuses on fresh food and self-brand product, which is heavy asset mode; focusing on franchise expansion, local C-store is in light asset operation. Once C-store meets Internet, a new mode appears.CITIC Group and Guoan Group is testing the water.For the service purpose, they created an online and offline community platform using innovativetechnology, likeInternet, cloud computing, big data, etc, achieving 15-minute walking service circle, local 1-hour door-to-door service, 24-hour store, full line reservation service on the Internet. What is noteworthy is that Alibaba may bring us different retailing experience after Alibaba took shares of Lianhua Supermarket, cause QIUK C-store belongs to Lianhua, and has already opened 1513 stores in China.
On May 25, Walmart announced it will step into JD.com as the first try in China e-commerce. It will provide more than 1700 best sellers in JD.COM. With the warehouse, deliveryman,drone using in JD.COM, customers will receive the products that day if they pay it before 11am. Walmart will hold 5 percent of JD.COM, cause Walmart e-commerce operational department has been sold to JD.COM in June of 2016 after establishing joint venture with Yihaodian. Since then, with the help of JD.COM and Yihaodian, Walmart is developing very fast. December of 2016, Sam’s Club and Global flagship came online in JD.COM; the same time, Walmart invested 50million dollars in New Dada(Joint Venture of JD.COM and a logistics company); April of 2017, Asda appeared in China, specially selling UK brands. As the quick online development in China, the proportion of holding stocks in JD.COM is also increasing, from 5% to 10.8% to 12.1% until this February. The key factor for Walmart online development is just in China. According to Nielsen Data, in China, the e-commerce contributed to 11% retailing sales, but in America, just 8%; the growth rate of e-commerce sales in China is up to 53%, but only 12% in America. According to the feedback of Chinese market, many oversea retailers are trying to change the development strategy in China, or even leave China. Carrefour from France announced net loss of 58 million dollars in 2016 in China, and recently, it starts with small stores. 131 Tescos and Vanguard(The second supermarket chain in China) has merged, ending the 10-year independent operation in China. Marks & Spencer shut down 10 stores in China due to consistently lose money. So yes, it is the right way for Walmart to step into JD.com.
Yango Group Co.,Ltd.bought the High-end Handed Down Cantonese Mansion- Chengdu Chateau Ermitas Project on June 1. It was reported that the project covers an area of 170 acres, greening rate of up to 41%,but only have 162villas in the first stage mainly covering three architectural forms:detached, semi-detached and townhouse. Yango said that Chateau Ermitas is located in the core of Tianfu New Area, the weathervane of city development in the south. North of the project, southern CBD, shopping and leisure center, exhibition center, Tianfu software park and Xinchuan technology park gathering together; southern of the project, obvious advantages for the future CBD of Tianfu New Area and traditional luxury area. Kindergarten, health club and swimming pool inside, business and natural environment endows the project big attraction to high-end people. And, more remarkable, Yango group acquired 3 projects with one month, including Wuhan China City, known as the biggest urban complex in Hankou District, and Guangzhou Jiangwan New City, one of Eight Attractions of Guangzhou. After the three acquisitions up to June 1, Yango Group is estimated to have externally guaranteed around RMB100.352 billion.
Fulllink Shopping Mall Developer: Beijing Fulllink Property Development Limited. GBA: 30,000m2
China World Shopping Mall Developer: China World Trade Center GBA: 60,000m2
Capital Times Square Developer: Beijing Capital New Times Square Development Co., Ltd GBA: 120,000 sq.m
LE MALL Developer: BWCSC GBA: 290,000m2
Yitian Holiday Plaza Developer: Shenzhen YITIAN Real Estate Group Co., Ltd. GBA: 135,800 m2
Seasons Place Developer: Financial Street Holding Co., LTD GBA: 89,000m2