design:retail - June 2019 - 54

libaba Group is the world's largest online and mobile
commerce company, with nearly 700 million mobile
active users (as of December 2018). For a company
that has dominated online marketplaces not only
through connecting buyers and sellers, but by
elevating an ecosystem of services from logistics
and payments to marketing and digital media, it
is no surprise they are committed to the future of
retail, or as they call it, "New Retail."
"At Alibaba, we are redefining retail and commerce as we know it. We refer to this as New
Retail, the digitization of the entire retail value
chain, including merchandising, in-store operation, marketing, logistics, customer service and
payments," says Xulin Guo, chief of staff to the CEO of
Freshippo, Alibaba's supermarket chain in China that currently serves as the most sophisticated example of New
Retail. "The result for customers is a reimagined shopping
experience that seamlessly blends online and offline."
While it is extremely successful in its own right, Freshippo serves as a testbed for innovations and the technology
developed for it has been applied across China to enhance
other retail experiences.
The first Freshippo was opened in Shanghai in January
2016, and there are now more than 100 stores in 19 cities
across China. While they look like a traditional supermarket, there are three key components to the overall design:
supermarket, restaurant and warehouse.
At the heart of the experience, whether online or offline,
is fresh food. Hand-selecting fresh food is important for
Chinese consumers, so the product is clearly marked with
the day of the week it arrived in the store. The store uses

intelligent supply-chain data to predict the demand of perishable food. The labeling system reassures customers that
the products are safe and fresh. Freshippo also prides itself
on a global product offering with fresh products from more
than 100 countries and regions. In fact, about 40 percent of
its products are from overseas. Further transparency is created by allowing consumers to scan products for access to
traceability information. They can find out where it came
from, as well as receive suggestions for preparation, recipes
and additional ingredients.
For consumers who choose the in-store experience,
there is also an in-store dining option. After selecting fresh
seafood, it can be prepared and served in the in-store restaurant. This adds to the overall Freshippo experience, again
emphasizing fresh food while infusing a sense of community. Some locations even feature Freshippo's robot concept
restaurants. Customers use an app to book a table, identifying their location in the restaurant, and once seated, scan
the QR code at the table and place their order. The kitchen
receives the order and when it is ready, it is delivered by robot waiters, relying on RFID chips and multiple sensors to
find the right path to the customer's seat. Another robot,
for clean-up, comes to tables upon request to collect dishes.
Whether shopping or dining, when the customer is
ready to go, the checkout process is completed at artificialintelligence (AI)-powered, self-checkout machines using
the Freshippo app or even facial recognition to pay.
As part of the New Retail concept, Freshippo stores
are also designed as fulfillment centers. This third component of the store supports Freshippo's 30-minute free online
delivery. Considered a neighborhood store, it is meant
to serve those within a 1.8-mile radius. The app reflects

Freshippo grocery
stores look like
a traditional
supermarket, but
seamlessly integrate online and
offline shopping
with an emphasis
on the customer
experience.

design:retail - June 2019

Table of Contents for the Digital Edition of design:retail - June 2019