Kunpeng Project
Alibaba couldn't hold on and had to give up the new retail business
Once upon a time, Alibaba, with its strong financial strength, combined the entire e-commerce with physical commerce and became a powerful force. However, things did not go as well as he thought, and it was surprising that he invested a lot of money in real estate, but it was all at a loss. Now, in the face of such a grim reality, Alibaba has to give up new retail areas and focus on e-commerce, cloud computing and other fields. This choice is embarrassing, and the pride of the year was defeated by reality after all.
Alibaba's dream is shattered, and the new retail business.
Alibaba has confidently invested heavily in the physical sector, including the purchase of Intime Department Store, RT-Mart and the establishment of Hema Fresh, and has ambitions to cover all aspects. But the truth is cruel, in less than a few years, there were serious losses in all three major industries, which seriously affected the company's development. CEO Wu Yongming was forced to announce that he would shift his focus to the core business of e-commerce and cloud computing. Alibaba's decision is not an easy one, and it also shows that it is throwing away its beautiful new retail business plan. But the fact is that a physical enterprise like Hema not only can't make money, but also has serious problems, which is a huge blow to the company.
Read more: Alibaba's ambitions are always fraught with dangers and challenges. I once thought that it was right to do business, but in the volatile market environment, this idea seems so unrealistic. Ng made a pragmatic decision to abandon all non-core industries and focus on e-commerce and cloud services in order to stabilize the company's operations. Abandoning new retail, that is, Alibaba has to reluctantly abandon the grand blueprint that has taken countless painstaking efforts to build in the past, reflect on the current market situation, and prudently face various tests in the future.
1. The dismal operation of the physical enterprise.
Alibaba's real estate company has gone wrong, and not only has it lost a lot of money, but it has also affected the company's bottom line. Hema Fresh has won the favor of many consumers with its high-quality product positioning and humanized service, but its unreasonable payment model has made many consumers shy away from it. Hema used to be popular for a while, and today, with the rapid development of e-commerce, physical stores have also been tested by new tests. The traditional industry, which cannot make money, has become a stone that hinders Alibaba's progress, and it has to be cut down, leaving the once ambitious company at a loss.
Expansion: The difficulties of traditional business operations have left Alibaba deeply confused and worried. Hema Fresh sells high-quality and humanized services, but in the process of operation, various inconvenient places also make many customers angry. Especially in terms of payment model, Freshippo's sales performance has been greatly impacted. With the rise of e-commerce and the change of people's lifestyles, brick-and-mortar stores like Hema Fresh have become more and more competitive in the market, and the inability to make profits has gradually become a thorn in Alibaba's heart. And now, he has to give up his main business, which is a helpless choice.
Alibaba's abandonment of the new retail sector reflects a grim market competition and cruel facts. A gamble is not necessarily valuable, and stable operation is essential for the long-term development of a company. This is a painful sacrifice for Alibaba, but it is also a necessary choice. In the mall, no one can be perfect, and no one can do it.