Product details

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Abstract

The case describes the dynamics and potential transition of grocery shopping into New Retail concept - a term introduced by Jack Ma and projected to disrupt the way retail industry is working now. The case discusses and hints that there might be a different game Alibaba and Amazon are playing when merging online and offline shopping and creating a new customer experience with their respective HEMA and Amazon Go initiatives. The hype around the concept with likes of Starbucks and Zara trying to create strategic partnerships with Alibaba for creating the New Retail format suggest that there is a bigger picture involved. The case highlights the difference in the resources and capabilities utilized by the New Retail players and the traditional brick and mortar retailers, such as Walmart, Carrefour and others and suggests that the wholistic 'ecosystem' approach might bring a different flavour to the traditionally low margin industry through leveraging the payment system and creating a last mile delivery platform for further growth.

Time period

The events covered by this case took place in 2015-2018.

Geographical setting

Countries:
China; United States

Featured companies

Hema
Industry:
Retail; Consumer goods; e-Commerce
Alibaba Group
Turnover:
CNY 256 billion
Amazon Go

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Abstract

The case describes the dynamics and potential transition of grocery shopping into New Retail concept - a term introduced by Jack Ma and projected to disrupt the way retail industry is working now. The case discusses and hints that there might be a different game Alibaba and Amazon are playing when merging online and offline shopping and creating a new customer experience with their respective HEMA and Amazon Go initiatives. The hype around the concept with likes of Starbucks and Zara trying to create strategic partnerships with Alibaba for creating the New Retail format suggest that there is a bigger picture involved. The case highlights the difference in the resources and capabilities utilized by the New Retail players and the traditional brick and mortar retailers, such as Walmart, Carrefour and others and suggests that the wholistic 'ecosystem' approach might bring a different flavour to the traditionally low margin industry through leveraging the payment system and creating a last mile delivery platform for further growth.

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Time period

The events covered by this case took place in 2015-2018.

Geographical setting

Countries:
China; United States

Featured companies

Hema
Industry:
Retail; Consumer goods; e-Commerce
Alibaba Group
Turnover:
CNY 256 billion
Amazon Go

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