Alibaba’s Next Generation Retail vision and pioneering practices are changing the future of retail in China. Learn about real-world retail transformation best practices, supported by Alibaba Cloud’s leading cloud computing, big data and AI. Get inspired by the best practices and embark on your transformation journey. See webinar recording of this presentation at: https://resource.alibabacloud.com/webinar/live.htm?spm=&webinarId=47

1. Evolving to
Retail Cloud
Connecting Your
Business to Customer

2. Opportunities - Retail Value Chain Bridges Your Business and Customers
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Enabling open, efficient,
synergetic supply chain with
cloud computing and big data
02
Cloud
Logistics
Cost savings and
increased benefits for
logistics with new
technology and new
modes
03
Smart
Manufacturing
Empowering the
manufacturing with big data
analytics and cloud
computing
04
Channel
Distribution
O2O, Omnichannel and
other emerging services for
distribution
05
Online to
Offline (O2O)
O2O is an emerging retail
channel that connects
customers and products
Precision marketing,
and closed-loop
marketing methods for
optimizing marketing
and operations
07
Consumer
New consumer
experience and
immersive service
01
Smart Supply Chain
06
Marketing &
Operation

3. Business and Customers - the Main Drivers Behind Retail Transformation
67%Improve customer experience
Optimize business operations
Survive as a business / organization
Transform products / services
Develop new revenue streams
Exploit new game-changing technologies
Empower employee
Prevent disruption / capture market share
Retail
56%
52%
34%
42%
29%
24%
26%
First mover advantage 17%
Source: Microsoft, www.redpixie.com
Enhance
In-store & Support Experience
Predict
Customer Behavior Analytics
Create
Omni-channel Experience
Manage
Consistent information across all channels
BusinessandCustomers
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4. Innovation and Customer-facing Technology Allow Seamless Integration
of Online and Offline Commerce
Online
Offline
Advantage：
• Better experience offline
• Face-to-face (personalized) customer service
• Real-time and quick response
Advantage：
• Not limited by physical space and service-staff
• Easy to collect and analyze customer information
Integrate
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5. Innovative Technology Enables Smart Cashier-less Stores
Smart Shelf Facial Recognition
VIP IdentificationBehavior Tracking
Magic Mirror
Personalized Recommendation Image Search by Picture
Self-service
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6. Smart Store with Retail Cloud Solutions Offer Better Recommendations
with Data Integration
Consumer Visit Shopping Mall Enter Store Browse Products Select Products Try Clothes Make Payment Leave Store
Shopping Mall Retail Store Shop Shelf Products Fitting Rooms Checkout Counter Store Exit
Applications of Data and Analytics
Tracking Behavior
Data
Shopping Guide
Data
Ad Display
in shopping malls
Tracking Behavior
Data
Interactive
Marketing Data
Personalized
Service
Recommendation
Shelf Display Data
Tracking Data
Shelf Display
Analysis
Product Data
Product Browsing
Data
Shelf Display
Analysis
Preference Data
Shopping
Tips
Order Data
Payment Data
Personalized
Service
Recommendations
By Settlement Data
Inventory Data
Storage
Optimization
Settlement Data
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7. Traffic Analysis
Monitor Store Traffic Analyze Store Traffic
Real-time monitoring of store’s traffic using WiFi technology helps in optimizing sales and operations. With Alibaba Cloud
Big Data, you can gain a comprehensive insight into customer characteristics and take well informed data-driven decisions.
Customer Foot Traffic
Customer Profiles
Store Ranking
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8. Store Site Selection
Customer Profiles Customer Expansion Site Analysis Site Selection
Perform profile analysis on members
(pilot test groups), extract core
attributes based on business
requirements
Balance
Book
Credit
Card 51talk
Five
Grain
Using label characteristics of pilot test
groups, you can select similar user
groups from the data pool of all users,
and enlarge the similar population size
to carry out a wider range of group
behavior analysis
Thermal distribution of population
area time window, change trend,
trajectory characteristics...
Compile a list of locations for new
stores, locations for marketing
activities, and the optional range of
advertising sites
Educated
Comprehensive analysis of
regional economy
Family income level, family
composition, regional economic
characteristics...
Analysis of hotspots
office buildings, government,
schools, hospitals, shopping
malls, urban and rural areas
Competitor Analysis
Shop distribution, Business
Circle portrait...
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9. Intelligent Supply Chain
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10. Sales Forecasting
Integration Analysis Sales Forecast
You can make sales forecasting and demand predictions using your store’s historical data, competitor’s data as well as
forecasting modeling techniques.
Analysis of different
dimensions of business
sales, purchase volume,
and inventory
Choose from a range of
filters, including, type of
brand, products, and
season
Sales Forecast Using Factor Analysis
Historical sales data Forecast sales data
线性回归模型 GBDT模型
Holidays Origin ……
Sales Forecast Using Time Series Analysis
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11. Inventory Optimization
• Using historical data, sales
forecast, current inventory
analysis, ABC analysis, inventory
turnover analysis, and inventory
simulation, you can optimize
operations.
• According to the sales of different
goods and sales frequency, you
can determine classification (A / B
/ C), and use a different inventory
strategy for each category.
• Alibaba Cloud's High-
Performance Computing platform
can simulate inventory operations
for advanced supply chain alerts.
Case StudyIntroduction
The Analysis to the Inventory Turnover Ratio(ITO)
The Inventory Simulation Analysis
Multiple Layer ABC Analysis
Tmall Category Result
After optimization, Inventory rate fell by
22.6% in the whole, rate of shorts stood at
2.2%, at the same time increased prediction
accuracy reached 80%, the accuracy
increased by about 20%.
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12. Precision Marketing
Core
Competencies
1.Insight
Online and offline
profiles, Business
districts, address
analysis
2.Analysis
Analyze profiles
and business
districts
3.Discover
Enlarge customer base
4.Reach
Inactive customers,
new target
customers
5.Evaluate
Effectiveness,
Optimization, Monitor
public opinion
1
2
3
4
5
Who is your customer
and what is your core
business model?
What are their
characteristics?
How can we attract
more customers?
How ads reach the
inactive users?
Is the ad effective and
does it appeal to
potential customers?
Precision
Marketing
Closed-Loop
Marketing
Effectiveness
Evaluation
Target
• Customer
• User segmentation
• Customer Value Analysis
• Precision Launch
• Forecast Marketing
effectiveness
• Media planning
• Impact assessment
• Public opinion
analysis
• Optimization analysis
• Activate latent demand
• Product optimization
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13. Customer Profiling
Build a multi-dimensional customer profile using a dataset consisting of both online and offline activity.
Customer profiles can significantly aid in user research, marketing activities, and decision making.
Profile
Assets
Vehicles
Real Estate
Career
Education
Location
Residence
Favorite Places
Favorite Commercial Areas
Life Stage
Married
Graduated
Preferences
Travel
Online
Brands
Car
Buy New , Buy Used,
Rent, Maintain.
House
Social
Life, Love, Interests,
social…
Life
Travel, Food,
Experiences...
Gadgets
Navigation, Cellphone,
Communication…
Read
Sports, Anime,
Entertainment…
。。。
Buy, Sell, Rent,
Decorate…Basic
Attributes
Gender
Age
Occupation
Education
Spending Power
Shopping Venues
Brand Preferences
Luxury Preferences
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14. Recommendation - Thousand People, Thousand Faces
Gain insights into consumer rationality and emotional appeal by using Big Data analytics.
KIA
Dance/Aerobics/Gymnastics
Ford
Football
Toyota
Basketball
Roewe
Mahjong/Chess/Puzzles
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15. 360o Customer Characteristics
• Oral status
• Toothpaste
preference
• And more
• Car brand
• Vehicle age
• And more
…
• Style
preference
• Unit
• And more
• Shin type
• Efficacy
• And more
• Gestation age
• Powder milk
preference
• And more
• Hair quality
• Efficacy
• And more
Oral care
industry
Wash nursing
industry
Decorating
industry
Auto
industry
Other
industries
Beauty
industry
Maternal and
child industry
Social attribute
Natural attribute
Interests and preferences
Consumption preference
Gender
Age Zodiac
Height
And moreWeight
Economic conditions
Family status
Social position Political religion
Geographic location
Values
Entertainment and interest Lifestyle and personal
preference
ESSENTIAL ATTRIBUTES
YEARN AND NEEDS
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16. Personalized Online Recommendation
Customer A Customer B Customer C
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17. Business Monitoring and Visualization
A live touchscreen dashboard helps you explore information in an interactive manner.
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18. We Will Guide You in the Digital Transformation of Your Retail Business
Envision Retail
• Retail Assessment
• IT Strategy
• Retail Roadmap
• Gap Analysis
32
1
Build the Core
• Enterprise platform to support
business and data capability
• Innovation to customer
experience
• Data collection through touch
points
Go Beyond
• Optimize business operation
and customer experience
• Data Ecosystem
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