Mar 12, 2019
4 min

New Retail Briefing #5: Alipay Pushes Cross-Border Payment; JD.com Continues Unstaffed Delivery Initiatives Abroad

Insight Report
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Nitheesh NH
New Retail Briefings “New Retail” is a model for integrating online retail, offline retail and logistics across a single value chain powered by data and technology. The term was introduced by the Alibaba Group, although many companies in China and globally are implementing various elements of the model. In this biweekly series, we review the latest trends in New Retail, with a focus on major digital platforms and multichannel retail companies in China. What’s New in New Retail? Alibaba Pushes Cross-Border Mobile Payment Initiatives          Alibaba has been promoting cross-border use of its mobile payment solution Alipay. First, the company announced that users of AlipayHK, the Hong Kong version of Alipay, can use AlipayHK in certain Greater Bay Area cities in southern China at any location that accepts Alipay.  AlipayHK account holders can also use it at the department store chain Daimaru Tenjin in Fukuoka, Japan. Alipay is also expanding operstions in North America through a partnership with Canadian cross-border payment provider SnapPay to introduce the Alipay app to Chinese supermarket chain FoodyMart in Canada. This move positions Alipay to tap into the large market of Chinese immigrants and students in Canada, in addition to Chinese tourists. [caption id="attachment_79986" align="aligncenter" width="620"] A passenger pays for a car ride using Alipay
Source: Alizila.com
[/caption]   Alibaba Teams Up with Office Depot to Tap into US Small and Medium Businesses Alibaba’s B2B trading platform Alibaba.com has formed a strategic alliance with US business services and supplies company Office Depot. Under the deal, Alibaba will gain access to Office Depot’s large network of distributors and 10 million small and medium businesses (SMBs) in the US while Office Depot will have access to Alibaba’s global network of 150,000 suppliers, enabling Office Depot to diversify its product offering. The companies have already launched  a new, co-branded website targeting US SMBs. In the long term, the partners hope to enhance the cross-border logistics and fulfillment services for US SMBs and act as a service to help them expand outside the US. JD.com’s Luxury Shopping Platform Toplife Merges with Farfetch JD.com bolstered its strategic partnership with online luxury fashion marketplace Farfetch by merging its luxury shopping platform Toplife into Farfetch’s China unit Farfetch China. Under the agreement, Farfetch will gain the number one entry point on JD.com app, giving Farfetch access to JD’s 300 million customers. JD.com strives to build a one-stop services platform for luxury brands seeking to reach customers in China, including customer service, logistics and warehousing. The company recently launched the JD Luxury Express to deliver big-ticket luxury items. The merger of the two platforms brings JD one step closer to achieving its goal of being the “Premier Luxury Gateway to China” for luxury fashion brands. JD.com Teams Up with Rakuten in Unstaffed Delivery Solutions in Japan JD.com signed an agreement with Japan’s Internet services company Rakuten to develop drone delivery and autonomous delivery robot services in Japan. Rakuten has been investing in unstaffed delivery solutions and completed its first unstaffed delivery trial in Japan in 2018. This is the second overseas foray for JD.com’s drone delivery business following its first overseas drone delivery trial in Indonesia in January. [caption id="attachment_79988" align="aligncenter" width="620"] JD.com’s drone delivery
Source: Jdcorporateblog.com
[/caption]   [caption id="attachment_79989" align="aligncenter" width="760"] Source: Company reports/Coresight Research[/caption]   Investments and Acquisitions in New Retail To expand New Retail abilities, Alibaba, Tencent and JD.com have invested in logistics firms, online marketplaces, content creation companies and even brick-and-mortar stores. These are some highlights: [caption id="attachment_79991" align="aligncenter" width="760"] Source: Company reports/Coresight Research[/caption]   [caption id="attachment_79992" align="aligncenter" width="760"] Source: Company reports/Coresight Research[/caption]   [caption id="attachment_79993" align="aligncenter" width="760"] Source: Company reports/Coresight Research[/caption]

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