Alibaba Solidifies Brick-and-Mortar Retail Push with Bailian Supermarket Partnership

Executive Summary

• On February 20, Alibaba announced the formation of a strategic partnership with Chinese retailer Bailian Group to explore new forms of retail opportunities across the brick-and-mortar and e-commerce ecosystems.
• The strategic cooperation between the two companies includes: a) developing retail technology that leverages artificial intelligence, the Internet of Things (IoT) and big data; b) improving efficiency in logistic and supply-chain management; c) increasing the visibility of inventory management at traditional retailers; and d) enhancing more seamless and functional membership programs via geolocation, facial recognition and other systems.
• In our view, this partnership lies in the embodiment of Alibaba’s long-term vision of “New Retail”, which depicts a world where physical and virtual commerce are seamlessly integrated. Alibaba will continue to revolutionize the old ways of traditional retail.