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 other companies in China and in other countries 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? Alipay Partners with Barclaycard to Officiate Mobile Payment in the UK Following a two-year pilot program, Alibaba announced it will officially launch Alipay in the UK, in cooperation with leading payment service provider Barclaycard. Barclaycard will include Alipay in its current payment system, which will greatly increase Alipay’s reach into the UK as Barclaycard handles almost half of the country’s credit and debit card transactions.          The partnership was driven by the increasing number of Chinese tourists visiting the UK. The UK government estimates the number of Chinese tourists will jump to 483,000 this year, up 43% from 2017. And, spending by Chinese tourists will increase to around £1 billion ($1.33 billion) this year, up 50% from 2017. This move into the UK follows Alipay’s accelerated expansion in the North America market over the last two months: pharmacy chain Walgreens and supermarket chain FoodyMart both accepted Alipay as the payment method. [caption id="attachment_81731" align="aligncenter" width="640"] Alipay app
Source: Alizila.com[/caption]     A.S. Watson Launches Virtual Makeup Try-On Feature on its Mobile Apps Beauty and personal care retailer A.S. Watson has teamed up with ModiFace, L’Oréal’s AI and AR company, to launch the virtual makeup try-on service called ColourMe on mobile apps connected to its stores in Malaysia, Taiwan, Thailand and Singapore. The features let users “try on” 300 makeup products – virtually – so users can see what the makeup would look like without having to actually put it on. The feature will also recommend “looks” that might suit the customer, lets users create their own looks and even capture photos and videos of their virtual make up looks. If customers like the products they “try on,” they can order them directly from the app for home delivery or in store pick up. Digitalization not only enhances efficiency in the supply chain but also creates a more convenient shopping experience for consumers. In-store technology that assists consumers to make purchase decisions such as virtual mirrors is not uncommon in beauty retail. With the virtual makeup technology available on mobile apps, it allows more freedom and flexibility for consumers to try on different makeup virtually away from stores. The service is in trial stage and will be rolled out gradually to other markets in Asia and Europe, according to A.S. Watson.   [caption id="attachment_81732" align="aligncenter" width="640"] #ColourMe Virtual Makeup Try-on on Watsons app
Source: A.S. Watson Group[/caption]   Alibaba Invests in STO Express On March 11, Alibaba With this investment, Alibaba now has minority stakes in most of China’s major courier companies, including YTO Express, Best Inc. and ZTO Express. Courier companies STO Express, YTO Express, Best Inc. and ZTO Express are members of Cainiao Network, Alibaba’s logistics affiliate founded in 2013 which includes over 10 Chinese courier companies and various logistics players, joined into one network to offer comprehensive services including warehousing, delivery and cloud-based logistics management. Alibaba’s investments in these four courier companies consolidates its market position, as the companies together account for about half of all the parcels delivered in China – and stiffen competition with JD Logistics, JD.com’s logistics affiliate, generally perceived as the market leader in China’s courier market.   [caption id="attachment_81733" align="aligncenter" width="669"] 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_81734" align="aligncenter" width="640"] Source: Company reports/Coresight Research[/caption]   [caption id="attachment_81735" align="aligncenter" width="640"] Source: Company reports/Coresight Research[/caption]   [caption id="attachment_81742" align="aligncenter" width="640"] Source: Company reports/Coresight Research[/caption]