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Original title: Gaoxin Retail is affiliated with Alibaba Supermarket Giants Fighting Digitization Source: Beijing Business Daily
Ali has become more comfortable with the “transformation of the old city”, and the filming of new retailers with Gaoxin Retail in the last three years has also improved. On October 19, Ali announced that he plans to invest 28 billion Hong Kong dollars (about 3.6 billion US dollars) to directly and indirectly own 72% of the shares of Hong Kong Sun Art Retail and become the majority shareholder of Hong Kong Sun Art Retail. last. This move means that Sun Art Retail has been officially listed under Ali’s subordinates, and has moved forward with Ali in terms of financial performance and strategic deployment. Of course, cooperation in the deep water area has also broken the calm wave of the digital transformation of the supermarket industry. Business and supermarket oligarchs and Internet giants have once again become arrogant.
Some analysts believe that, at present, the digital transformation of supermarkets is imperative, through the exploration of the last three years the retail models of Ali and Gaoxin have been verified. With Ali’s additional involvement this time, the RT-Mart and Auchan supermarkets under Sun Art Retail will continue to accelerate on the new retail track, and Ali is likely to create new, more diversified retail formats.
Huge circulation of 28 billion Hong Kong dollars
From the second largest shareholder to the controlling shareholder, the stake ratio went from 36.16% to 72%, and Ali took almost three years. During the period, Ali explained the concept of “new retail” and demonstrated the process of promoting the digitization of supermarkets. At the same time, Sun Art Retail also took three years to transform from a traditional supermarket to a cutting-edge representative of the industry. RT-Mart and Auchan experienced the pain of transformation.
On October 19, Ali announced that it had agreed to invest approximately HK $ 28 billion (approximately US $ 3.6 billion) through its subsidiary Taobao China for AuchanRetailInternationalS.A. And its subsidiaries acquired a total of 70.94% of Jixin Holdings Co., Ltd., which owns approximately 51% of the share capital of Sun Art Retail (06808.HK). After the purchase of the shares, Ali will directly and indirectly own 72% of the shares of Sun Art Retail and will become the majority shareholder.
Sun Art Retail officially merged with Alibaba, and both parties realized the same back and forth. According to the announcement, Sun Art Retail will be merged with Ali’s financial statements. According to the “Hong Kong Company Mergers and Acquisitions Code”, upon completion of the share purchase, Taobao China is required to make a mandatory and unconditional general offer for all issued Sun Art Retail shares at an offer price of 8, HK $ 1 per share in cash. Under the blanket offering, Taobao China could have to pay up to roughly HK $ 17 billion (roughly US $ 2.2 billion) to acquire Sun Art retail shares held by other shareholders.
Since the beginning of the cooperation, more than 400 Gaoxin Retail hypermarkets have become testing grounds for Ali’s new retail, fulfilling the latter’s vision of “transformation of the old city”. Especially after the outbreak of the epidemic, Sun Art’s online business accounted for a further increase, and B2C performance accounted for more than B2B. Sun Art Retail’s financial report for the first half of 2020 shows that the 2020 epidemic has accelerated the development of consumers’ online consumption and accelerated the advancement of digital transformation. The share of the group’s online business has expanded further.
Data shows that, in terms of B2C business, Sun Art’s online retail store average daily order volume exceeded 750 orders in the first quarter, and store average daily order volume exceeded 950 orders in the second trimester. As of June 30, 2020, with the help of Alibaba’s new retail solutions, it has driven a 5.7% increase in same-store sales and the company’s net profit has increased 16.8% year-on-year. It has attracted nearly 50 million users to Sun Art Retail, with active users approaching 1,300. Million.
Eat more fish
Sun Art Retail can be considered a successful case of Ali’s “old city transformation”, in addition toSanjiang Shopping, Bealead and Intime. Many cooperations, on the one hand, completed Ali’s initial vision for physical retail, and on the other hand, allowed digital equipment and developed software and hardware services to find a place.
Back in 2017, Ali invested in Sun Art Retail for the first time. Subsequently, RT-Mart, a subsidiary of Sun Art Retail, immediately launched a new comprehensive retail transformation, including store digitization, data acquisition and management, and supply chain upgrades. This move was also said by the industry at the time that it had prompted a systematic update of “the largest scale, the widest coverage and the largest number of beneficiaries” in the history of China’s retail trade. During the period, the shared inventory business of Taoxianda, Ele.me and Tmall supermarkets was quickly connected to RT-Mart. In the first year of cooperation, at the end of 2017, Tmall supermarket products were placed on the shelves of 167 stores in 20 cities of RT-Mart in eastern China. In July this year, Ele.me provided RT-Mart China and Auchan China with services related to online ordering, online promotion, logistics and delivery.
According to data released yesterday by Ali, 484 RT-Mart and Auchan Supermarkets stores under Sun Art Retail have been fully online and have access to the shared inventory business of Ele.me, Taoxianda and Tmall Supermarket.
At the same time, the supply chain, smart logistics system and new tools developed by Ali’s new retail format Hema Xiansheng are in sync with RT-Mart stores, and there are also successful cases of eating more with a fish. . A reporter from the Beijing Business Daily visited during the National Day and discovered that the hanging chain that was once a representative work of Hema Xiansheng was installed in the RT-Mart store. Products ordered online are delivered to the place of packing via the hanging chain. On the basis of manual payment, the cash register also adds unmanned payment machines. RT-Mart is not as “old” as before.
It is worth noting that Alibaba has passed on the experience of dating Gaoxin retail to former partners and supermarkets seeking digitization. Shopping in Sanjiang,XinhuaduMore than 50 offline hypermarket retail brands across the country, including Zhongbai, CP Lotus, and Greenland Optimal, are all tied to Ali’s digital experience.
According to the report “Top 100 Chinese Supermarkets in 2019”, thanks to Alibaba’s Taoxianda digital store solution, leading supermarkets such as RT-Mart, Greenland and Lianhua accelerated their performance growth in advance. Online sales of the top 100 supermarkets in 2019 approached 50 billion yuan, doubling from the previous year.
Wen Zhihong, partner and head of chain operations at Hejun Consulting, believes that Gaoxin Retail’s involvement by Ali this time further demonstrates Ali’s strategic ambition and determination in the new retail field. Because Alibaba invested a large amount of money in investing in Sun Art Retail three years ago, in a sense it has already indicated its strategic intentions for the new retail market. At the same time, from the perspective of Ali’s actions in the new retail field in recent years, Ali’s investment in Gaoxin can also be expected to be inevitable.
Digital tournament
The multipoint digital transformation of Wumart, Ali and Gaoxin, Suning and Carrefour, Tencent and Wal-Mart, including countless supermarket chains, convenience lists, and family stores that are connected to home delivery, has become a required course in the traditional retail industry. Especially after the epidemic, consumer habits have changed and the digitization of supermarkets has become imperative. When looking at the current national retail market, it is not difficult to find that the Internet giants and traditional retail companies are increasingly integrated.
It is understood that foreign retailer Wal-Mart has successively invested in JD.com, Dada-JD Daojia, and reached a strategic cooperation with Tencent. At the same time, it also launched the “Walmart China Omega 8” innovation platform, which will grow rapidly with startups, all reflecting that it will further consolidate the world. Leadership position of retailers and confidence in the vigorous development of omnichannel.
In 2019, after Suning took over Carrefour, with the support of Suning Green Traffic, it cooperated with Suning’s logistics terminal distribution network to create a home-to-home business model with the lowest cost of performance and the greater punctuality. Furthermore, Wumart and Metro have gradually moved towards online and offline integration based on their multipoint digital capabilities.
In Wen Zhihong’s view, the current wave of digitization in the supermarket industry has arrived and the future business model of the supermarket industry will no longer be left only in the original offline physical stores, but will move towards omnichannelization . Comprehensive opening actually means that the rebuilding of the traditional retail industry, including commodity management, customer service, store management and store planning, have undergone enormous changes. It will be very difficult to develop based solely on your own ability. Companies have different leading forces at different stages of development.
“Take Ali’s stake in Gaoxin Retail as an example. For Gaoxin Retail, Ali’s entry into the stake will give Gaoxin a true leader and leader in the future development of Gaoxin Retail, and Ali’s stake is actually for Gaoxin. Retail Providing sustainable development value. For Ali, greater control of Sun Art Retail will have greater initiative and decision-making power to truly open up online and offline integration. Sun Art Retail offline stores also provide one way for Ali’s entire business ecosystem Good online location support At the same time, greater control of Sun Art Retail will help further strengthen the exchange and conversion of Sun Art Retail members and become a channel low-cost customer acquisition, “Wen Zhihong analyzed.
Li Yongjian, director of the Institute of Financial Strategy of the Chinese Academy of Social Sciences, said in an interview with a reporter for the Beijing Business Daily that the business ecology of e-commerce has spread from online to offline, and offline companies must also find online businesses they can trust to work together. In order to achieve deeper cooperation between them, he is obliged to further unite the chain. Beijing Business Daily Reporter Zhao Shuping Zhao Chi
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