Simply thanks to O2O (Online to Offline) strategies which allow traffic to be driven on digital platforms to physical platforms using coupons, gamification, special offers, etc. Chinese E-Commerce leaders are inspiring and successfully develop new strategies to advance E-Commerce. So what are the latest development trends in China?
Problem of retail in China
All small stores struggling to attract people now have their solution thanks to the Chinese giant Alibaba and its initiative “Integrated Retail” dating from 2018. The concept is simple, to generate visits, small stores have access to a database created by Alibaba which contains demographic and sociological data of the surrounding population, allowing them to adapt their products and their stocks.
Store owners use the platform to order Alibaba products through an app. This same platform gives them insight into what customers are buying and uses analytics to help them with inventory management and resupply strategies. Ling Shou Tong is redefining the traditional supply chain into an efficient digital network. This is part of a larger plan called "New Retail", which is part of Alibaba’s strategy to develop a new economic infrastructure combining online and offline operations in China.
ALIBABA POPUP STORES
Alibaba in ChinaStill in the O2O strategy dynamic, Alibaba has created pop-up stores enabling online and offline purchasing to be combined. These pop-up stores display reduced-quantity items that can be purchased locally, but other items equipped with chips in front of touch screens allow the product to be found on Tmall and / or Taobao shopping platforms. So, for customers who want to get a real overview of the product without cluttering up for the rest of the day, this is perfect. “LIVE” PURCHASES Live video streaming is an undisputed trend in China, whether on social networks or E-Commerce platforms. More and more platforms are bending to this new trend and adding this functionality to their site / APP as Taobao had done allowing KOLs (key opinion leaders) to share their purchases with their community directly from Taobao.
In this context, Alibaba in 2016 had set up a fashion show exhibiting major brands such as Guerlain, Pandora, Tag Heuer, etc. During this "live" parade, users could have direct access to the products on the platform, allowing them to make the purchase immediately.
more information https://www.supermariopc.com/still-the-best-platform-for-e-commerce-in-china.html
About Chinese young consumers
But what is more serious: are these centers really useful for improving the health status of the population? In fact, 63% of the beneficiaries of these services are 40 years old or less. Is the effectiveness of an annual health check on this segment of the population demonstrated, while older populations do not benefit from it?
The interest of repeating a complete assessment annually can be strongly discussed taking into account the health risk profile. In addition, companies - the real payers - do not receive any information that could allow them to set up real internal support programs for behavior change of their employees (market very embryonic otherwise). Without forgetting that these centers only concern 21% of the total population. The screening and prevention centers were the answer to a strong expectation of the population to ensure their medical follow-up, in the absence of a network of general practitioners.
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After 15 years of "experimental" development, it appears that they are not necessarily the answer to China's public health challenges. Market mechanisms have made it possible to provide a first level of response, but without regulation of the public force, the health balance is very mixed and profitability is not there. Private players have focused on customer segments that are a priori profitable and are now diversifying towards complementary offers that are better paid, but without any real objective of impact on health. Will the market alone be able to bring about an effective health check-up practice? The government's objective of doubling the number of general practitioners by 2020 provides an initial response.