During the National Day Golden Week (October 1-7) this year, online consumption is showing trends towards refinement, efficiency, and intelligence. Traveling is still the main way people spend their holidays. Overall, both consumption and tourism have shown trends of reshoring from abroad to domestic market and expansion from the first- and second-tier cities to the low-tier cities.

Conspicuous consumption is increasingly popular among Chinese. Data from Tmall shows that from October 1st to 3rd, compared to the same period last year, the sales of aromatic essential oils increased by 239.64%, perfumes by 50.59%, men’s makeup by 69.91%, sunscreens by 79.30% and makeup travel sets increased by 43.49%.

On the eve of the Golden Week, the sales of medical masks for sunburn repair and moisturizing on the Tmall’s healthcare platform showed a 510% increase compared to last year.

Foods and drinks is an ever-lasting theme for holidays in China. Consumers want to eat fresh food conveniently. In the first three days of the Golden Week, the sales of steaks increased by 60%, low-temperature milk by 191.39%, instant food and instant rice by 40.69% and 54.78% respectively, compared to the same period last year.

Tmall Supermarket’s data shows that from October 1st to 3rd, the number of people participated in the flash sale of Maotai (arguably the most famous Chinese liquor) reached 3 million. The sales of liquor increased by 12 times compared to last year. The total turnover of Tmall Supermarket increased by 40% compared to last year.

Hema, the new benchmark for retail, has opened 171 stores in 22 cities across the country. In the first three days of the Golden Week, the average daily sales of Hema stores across the country increased by 22% compared to normal days. In Beijing, Shanghai, Guangzhou, and Shenzhou, the increase was 17.5%; and in second- and third-tier cities, the increase was close to 30%.

Many people who do not want to travel and see crowds of people have chosen to spend their time shopping and eating in Hema stores. According to data from Hema, in-store consumption in the first three days of the Golden Week increased by nearly 30%. The top ten best-selling products were all seafood. The sales of king crabs increased by 3,000%, compared to the same period last year, and over 40,000 Yangcheng Lake hairy crabs were sold.

Home living has become increasingly intelligent. From October 1st to 3rd, on Tmall, the sales of indoor fresh air systems increased by 111%, electric curtains by 168%, home security cameras by 84%, robot cleaners by 17 times and electric mops and brooms by 23 times, compared to the same period last year.

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Koubei is one of Alibaba’s platforms that specializes in providing local services, an area where new retail is an emerging force. New retail is Alibaba’s concept of seamless digital integration of online and offline commerce.

By its upgraded pre-ordering system, smart POS technology, and data-driven operations, Koubei sets to help one million businesses complete smart restaurant transformations. 

Wedome, bakery chain

In June 2018, the bakery chain Wedome collaborated with Koubei to launch the first unmanned smart bakery. With Koubei as the entry point for traffic, consumers can pre-order on the app, and pick-up in store.

In order to improve the consumer experience and eliminate waiting time, Wedome added an image capture cash register technology. Consumers can simply place their preferred bread in front of the register, which will then automatically recognize the items.

In addition, Wedome’s smart shore has incorporated 24-hour unmanned retail services. Consumers can shop for products at any hour, increasing the business time and output.

Wu Fang Zhai

Wu Fang Zhai, founded in 1921, is famous for traditional Chinese food, such as rice dumplings.

The nearly century-old restaurant has undergone a digital transformation with the help of Koubei. Customers can simply scan the QR code from their table to order through the Koubei app. The app will notify them when their order is ready which they pick up from the assigned locker.

Moreover, customers can play an AR game to earn discounts on their meal. They can also use the app to place a takeout order.

After such digital transformation, the revenues, repurchase rate, and per customer transaction of Wu Fang Zhai’s have grown by 40%, 47.5%, and 14.5% respectively.

Furthermore, there is a 24-hour unmanned retail container next to the dine-in area. Consumers can open the container by scanning a code using Alipay at any hour, pick what they want, and leave. The bill will be automatically settled through Alipay.

Other smart technology includes a big screen calling system, augmented reality, and interactive screens. These are all self-service tools that consumers can have hands-on experience with in Koubei’s smart restaurants.

This is an excerpt from CIW eBook: How Alibaba Drives the Transformation of Smart Restaurants