Alibaba gathers
consumer data at new convenience stores in China

Sales activation

Sales activation

05 August

Alibaba gathers consumer data at new convenience stores in China

In March, Chinese e-commerce operator Alibaba Group Holding opened a convenience store, called Yike EGO, in a shopping center in Shanghai

(Author : China Knowledge)

The first Yike EGO is somewhat large for a convenience store with a floor space of about 500 sqm. On July 4, the second Yike EGO opened inside another commercial complex about 20 km away. The Alibaba store introduces delivery service. It also sells medical products, which is unusual at convenience stores in China. Meanwhile, the stores have a huge open kitchen and eat-in space at the rear of the store.

Alibaba is aiming for dominance in the country's rapidly growing convenience store market. The internet giant has already invested over USD 9 bln in the retail industry. It aims to gather detailed data on purchases through brick-and-mortar stores, rather than to grow earnings.

It has already collected a huge amount of data on purchases from its online shopping site, its e-payment service provider Alipay, and other companies under its umbrella.

It is thought that the data on such purchases is far more likely to reflect customer demand and it is therefore highly important for retailers. Online purchases tend to be made based on the weight and price of products and are not necessarily the ones a consumer wants immediately. Conversely, customers buy goods based on their immediate needs and less on price at convenience stores.



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