Research on the reconstruction of consumers, goods and scenes in new retail based on new technology

: The concept of ‘new retail’ proposed by Alibaba is gradually getting recognised and being practiced by the world- leading e-commerce enterprises and traditional retailers, further, it will result in the reconfiguration of retail formats around the world. As a new retail benchmarking enterprise incubated by Alibaba, HEMA fresh has attracted extensive attention from domestic and foreign media and business circles. Based on the typical new retail format of HEMA fresh food initiated by Alibaba, ‘fresh supermarket + catering experience + online business warehousing’ innovative business model, this study systematically analyses the reconstruction path of new retail format driven by new technology, and finds that customers, goods and scenes are the three leading elements in the reconstruction process of new retail format. These three elements evolve and match with each other under the support of a new technology environment, creating new consumption scenarios for consumers. Finally, this study looks forward to the future of the new retail industry.


Introduction
The founder of Alibaba Group, Jack Ma, for the first time publicly spoke about the concept of 'new retail' in October 2016. He stated that the pure e-commerce era would end soon and the future retail business would include online, offline and modern logistics. Subsequently, the General Office of the State Council of People's Republic China issued the Opinions on Promoting the Innovation and Transformation of Physical Retailing (The general office of the State Council [2016] No. 78) on 11 November [1], which clarified the guiding ideology and basic principles for promoting innovation and transformation of physical retail formats. It also specified the policies regarding adjusting the business structure, innovating the model of development, cross-border integration, optimising the development environment and strengthening political support. At 2016 Ali Fest, Zhang Yong, chief executive officer of Alibaba Group, provided further explanation of the 'new retail' concept: it is driven by big data, the completion of the reconstruction of people, goods, and scenes produces chemical reactions that form a new consumption value and experience.
As we talk about global markets, the U.S. e-commerce giant Amazon announced the acquisition of Whole Foods, the nation's largest natural and organic food chain store, for 13.7 billion dollars on 16 June 2017. On 23 January 2018, the offline retail store Amazon Go which is run without any humans working as cashiers, was put into operation. The store is an example of combining offline shopping experience and online retail technologies. Chinese domestic market has multiple competitors. Alibaba bought into Sunning cloud business for 28.3 billion yuan in August 2015, and during the next three years, Alibaba cooperated with Intime Group, Sanjiang Shopping Club, Brilliance Group, the New Huadu Supercenter, Sun Art Retail Group, etc. Numerous offline players started cooperating with Alibaba, changing their traditional supermarket and department shops, launching a new global marketing strategy in order to achieve multi-scenario coverage and intelligent marketing of omni-links, omni-medias, omni-data and omni-channels. As the largest competitor to Alibaba, JD (A selfemployed e-commerce company founded by Liu Qiangdong) also speeds up its layout development and proposes the new concept of unbounded retail, which breaks the boundaries between manufacturers, brands and platform providers through consumers, scenarios, supply chain and marketing, and fully integrates the flow of data and promotes the overall industrial efficiency. In addition, other retail companies around the world also actively collaborate to develop their own new retail economic model. The series of practices shows once again that the concept of new retail has been recognised by leading domestic and foreign e-commerce and traditional retailers, triggering the structure change of retail formats around the world. This paper will focus on the endogenous logic and theoretical exploration of the innovation path of retail industry driven by technology, and introduce relevant representative examples to demonstrate that the emergence of new technology promotes the transformation of the retail industry, so as to enrich and improve the new retail theory, hoping to provide a reference for future marketing practice and theoretical research.

Reference review of new retail
The emergence of mobile Internet further connects consumers to consumers, consumers to things and things to things. It has several main features: (i) Fragmentation, users can access the network at any time, and many applications can be carried out at the same time. (ii) Integration, the mobile terminal can run multiple service programs at the same time, and the mobile Internet provides a wider channel, which creates the possibility of business collaboration between applications. (iii) Intelligence, the terminal of the mobile Internet, can carry out positioning through multiple sensors, and collect the surrounding environmental information. (iv) Differentiation, the user's needs have the characteristics of personalisation and diversification, and different users can access the network to complete different needs. In general, the key to a series of new retail technical support comes from big data, cloud computing, and mobile Internet. Other new technologies derived from it include the Internet of things, machine learning, virtual reality, augmented reality, mobile search and multimedia recognition, etc. [2].
Although the above technologies have lead e-commerce to booming in recent years, as the Internet population stagnates, retail companies have begun to focus on awakening the traditional retail environment, where a combination of online and offline will improve consumers' shopping experience through seamless integration [3]. Chen [4] believes that future new retail is similar to the O2O model. The company will use the combination of the Internet, e-commerce, and physical shops as the core to achieve the data interflow of product information, membership information and transaction information through online and offline integration. Hong [5] believes that the basic characteristic of new retail is that physical goods, service goods, and various experience activities are all integrated, i.e. the whole process of modern circulation, integration, systematisation, and intelligence. Bodhani [6] believes that the traditional shopping experience has not disappeared, but the technology used by online shops has surpassed in-store retail technology to some extent. In this context, Pantano [7] introduces the concept of 'smart retail', referring to using retail technology to improve the quality of shopping experience, and technology is considered 'the driving force for innovation and improvement'. Dan et al. [8] believed that it is because of the improvement of new technologies, such as the Internet of things, big data, cloud computing and artificial intelligence that the retail industry drives the manufacturing industry to share industry information and drive collaboratively, so as to accurately meet the needs of consumers. However, in the evolution of technology, the first is more information-driven business-driven upgrades; the second is the upgrading of modern Internet-based, cloud-driven business models; the third is the superposition of the advantages of traditional physical retail and modern e-commerce; the fourth is reengineering of business processes based on informationisation, scalability, and intensification [9]; the fifth is the integration of business flow, logistics, and information flow with the further innovation of the commercial industry chain. The reality also confirms the importance of technology-driven retail development, and Roggeveen et al. [10] believed that the retail industry is at the forefront of adopting the Internet of Things, which is expected to change the way consumers experience shopping. Pantanoa et al. [11] provided an overview of the total number of patents involved in retailing during a specified period as five years and concluded that the technology aimed at improving the shopping experience is the most popular, and retailers may turn to more innovative strategies to come up with innovative consumers solution.
Based on the new retail theory and related literature review, it can be concluded that the new retail concept is inevitable for the development and evolution of the industry, and Internet technology plays a crucial role in the retail industry reform. Due to the new retail concept is put forward in a short time, the theoretical research is relatively less, and the results mostly stay in the new technology to participate in the reform of the retail industry, while the path research on how to promote the reconstruction of the business form by the new technology is slightly insufficient. Our team believes: First, the reconfiguration of retail formats cannot ignore the support of Internet technologies and a new series of technologies. Second, technology is a hidden factor in the existence of new retail, which has led to the change and reconfiguration of the new retail explicit elements. This paper will focus on the endogenous logic and theoretical exploration of the technology-driven retail transformation path.

Consumer reconfiguration
In order to obtain accurate consumer information, consumers can automatically become members as long as they use the HEMA Fresh App payment to connect the data between online consumers and offline consumers. Consumers in all consumption scenarios are unified identifiable identity, according to the consumer registration information and daily shopping activities accumulated big data, the construction of a complete picture of the user. Finally, it is concluded that the most significant feature of the consumer population is: (i) The age of the consumer is 25-35 years old. (ii) Married women. (iii) Price-insensitive consumers who demand a high degree of freshness and quality service. Consumers are insensitive to the high price of freshness quality services. Through online access to accurate demographic factors, HEMA Fresh can be targeted at this segment of the population for further in-depth marketing. Based on the user's portraits, HEMA Fresh analysed the consumer needs of the target group in depth, instead of conducting simple online recommendations. Instead, it emphasises a closer, more trusting and more human relationship with the consumers in the radiation area. The backstage segmented the consumer population again through consumers' eating habits, service preferences, shopping habits, life trajectories, family conditions, friend groups, birthdays, etc., followed by content packaging and referral marketing through online channels. Such as HEMA Fresh App's 'big mouth headlines', regularly distributes to consumers food and health knowledge and cooking skills that include their own products. Consumers can take pictures to exchange and share the shopping experience. This content of information is uploaded by HEMA Fresh on a food community. It can stimulate consumer psychology of interest to stimulate consumers to buy. Data shows that the average monthly per registered users to buy 4. 5 times, its midline orders accounted for 50% and the online conversion rate is 35%.

Scenes reconfiguration
HEMA Fresh intelligence store front end consumption area combines supermarket, the dining centre, the experience centre and the fan operation centre. Stores have further enhanced consumers 'offline shopping experience by introducing new technologies, such as using VR and AR technologies to demonstrate product usage methods and deepen consumer product awareness. Electronic price tags show more product details and consumer reviews to assist consumers in making consumer decisions. 3000-5000 m 2 of store virtual shelves can carry SKU up to 3000. Shanghai Jinqiao store in 2016 won a turnover of 250 million yuan and area-effectiveness 56,000 yuan, however, other competitors won averagely only 15,000 yuan. Doll machines and mini KTV have also been deployed into shops to meet the growing entertainment needs of consumers. In addition, compared with the traditional commercial super, in the consumption area, HEMA Fresh provides food services, fully established 'pick and eat' fresh product consumption scenes, improving sales rate of fresh product at the same time to drive the growth of offline passenger flow. Offline experiences based on LBS technology are also integrated into shops, such as regular new product launches, fan exchanges, commodity tasting sessions and DIY baking for parents and children. These experienced activities will be conducive to the brand in the hearts of consumers to establish a clearer understanding, but also let consumers form a profound sense of the scenes. The mobile network based on memory historical data can meet the demand of fragmented consumption scenes.

Product and service mixture innovation:
Most of the fresh products of the traditional supermarket are not simply processed or deep processed, which is a kind of extensive retail. HEMA Fresh, according to the demographic factors of the conclusion, is to fully comply with the 'lazy economy' trend, in view of the increasingly rapid pace of the city and the target population focus on high-quality research and development of new products. They have the common feature of simple processing or deep processing based on raw goods, reducing the time consumers need to cook their food after buying. Service innovation is the main force point of HEMA Fresh's commodity innovation. HEMA Fresh launched the SOS channel to provide emergency delivery of household emergency goods service, and the average delivery time within the distribution range is only 18 min. In January 2018, HEMA Fresh announced that emergency distribution for household emergencies would cover 7 days and 24 h of uninterrupted supply, thus showing that HEMA Fresh's perception of the user's mind and consumption scenes are very accurate. In particular, it solves the late-night needs and privacy needs of users.

Digital supply chain based on HOMS:
The most important feature of the supply chain is to realise the full digital operation of end-to-end. By creating a Hydropower plant Optimal Maintenance system in the cloud and information accumulation for each link. For example, the member system, inventory system, price system, marketing decision and settlement system are unified by hanging chain, electronic price tag, smart pos machine and other whole links smart hardware. The supply chain can be traced back, taking the 'daily fresh' products, which provides fresh vegetables and meat. For example, HEMA Fresh sends the next day's sales plan to the cooperative farm at 16:00 base according to the sales data. Farmers in accordance with the plan pick, pack, transport by cold chain logistics to HEMA Fresh store. Vegetable fresh meat packaging becomes standardised; price unified products; consumers do not need the special selection to consume. If there are sales of the remaining 'daily fresh' products, it can be made into food and beverage in the food supply system. It also avoids the loss of the food material to the maximum extent by cold chain logistics of B2B, a standardised product that avoids the consumer to choose and the follow-up plan of the raw and ripe linkage. Also, HEMA Fresh achieved integrated customisation services within the working day users only need to choose the HEMA Fresh App in advance to buy the food they want to buy, after submitting the request. They can also enjoy their own custom service on weekends. Through the comprehensive digital optimal maintenance system, HEMA Fresh realised the fine supply of the product. The pull supply chain with sales order and instant restocking include the following modes: (1) S2B (Store to Customers), which means that shops directly supply goods to consumers through the above line and below the line. (2) C2B (Customer to Business), which means HEMA fresh carries on the large-scale service to the consumer through the form of pre-sale. (3) B2C (Business to Customer), which means that HEMA acts as Mobile Taobao's supplier of Amoy Xianda self-employed fresh delivery service. (4) B2B (Business to Business), refers to HEMA Fresh to other supermarkets, catering industry to provide temporary raw materials supply services. The innovation of the above supply chain lies in not only the consumer-driven, accurate capture of consumer minds, but also the ability to quickly respond to consumer demand, reach consumers through various channels, maximise and reduce marketing costs.

Instant logistics based on WMS:
The disadvantages of the traditional B2C e-commerce prewarehouse are that the loss cannot be controlled. Fresh-keeping is difficult, the rent and cost of cold chain logistics distribution are high, the immediate demand is not satisfied and the flow cannot be converged. HEMA Fresh sets the back end of the store as a warehousing distribution area, reducing the rental pressure. The ERP management system fine control the management process for less loss. It takes to connect line and line for store and App sharing inventory, and sets up the logistics performance service network within 5 km and promise to complete the distribution within 30 min for the free distribution fee of all commodities. Due to the distribution, time is controllable, the distribution mode is non-cold-chain thermostat distribution, in the premise of ensuring the quality of further control of the cost. After receiving the online order based on the warehouse management system (WMS), the picker displays the order according to the mobile handheld terminal personal digital assistant (PDA). Mobile handheld terminals have the functions of receiving, returning, loading, counting, moving, packing, checking and so on, including inventory management, picking and distribution. After receiving the order, PDA will display the goods' position, name, number, quantity to be sorted and quantity to be picked up. The picker will pick up the picking bag and go to the retail area or the storage area after receiving the order. First, the number of picking bag is scanned by PDA to ensure that the logistics can be traced. Each time a commodity is found, the sorter scans the bar code with PDA to complete the picking of a single commodity and the whole picking process does not exceed 10 min. Then the automatic transmission system will transfer the goods to the confluence area; the backstage will pick up the goods to pack into the distribution box, using the vertical lifting system to the delivery port. In the delivery phase, the adoption of cloud computing advantage of scale, the adoption of the best 'petal logistics route', not only to improve delivery efficiency, but also to send in the return route can also be sent.

Technology-driven reconfiguration path of consumers, goods and scenes
From HEMA for the example of fresh, we have built a new evolution path cube of retail formats (Fig. 1) to illustrate how relevant new technologies can promote the objective operation path of retail format reconstruction. New retail is a new retail format based on big data and mobile Internet, cloud services such as cloud storage and cloud computing, web services, such as web services, mobile phones and other applications and terminal services, mobile intelligent, hard services components are layer upon layer of technical support tools and online + offline collaboration power, forming a hidden factor in the format reconfiguration. Observable consumers, scenarios and commodities are the main drivers of development logic. They describe the key role of technology in the process of channel integration.

Path of consumers reconfiguration
The basic logic of human reconfiguration is: first, through the analysis of consumer information that has been captured online, the user portrait is obtained, and the network end is based on the different needs and usage scenarios of different consumers. Develop the corresponding marketing strategy to meet the needs of personalised and accurate consumers. Second, an offline collection of consumer digital information, forming offline primary flow to online 'hatching', rather than simply draining. Third, through the membership system, unified membership rights and interests, the cloud will be online and offline consumer information in-depth fusion, from the traditional retail industry 'know everything' reconfiguration ( Fig. 2).

Path of scenes reconfiguration
The reconfiguration of the scenes under the new retail format is mainly reflected in: first, through the cloud to establish the online omni-channel marketing matrix, formulate marketing strategy and distribute products and content from the whole network to the terminal. Retailers and consumers to maintain a high frequency of interaction, access to a consumer pain point, grasp the consumption circle, create a new consumption scenes, gather all data, whole link, all media and all resources to create the ultimate user experience; second, the offline intelligent store takes the new technology as the breakthrough, through the diversified intelligent terminal, the network end and the cloud cooperation, solves the traditional store low-efficiency question and strengthens the user experience; third, the online and offline channels will be fully integrated, unified service system, to achieve customer flow, orders, transactions digitisation, build the whole channel marketing, adapt to the new retail personalised, fragmented, mobile new scenes (Fig. 3).

Path of goods reconfiguration
The reconfiguration path of the new retail goods is mainly reflected in: first, around the personalised consumer demand and mobile, fragmented consumption scenes, innovative product and service combination, to achieve the digitisation of goods and unify online and offline products and services. Second, reconstructing the online and offline of the supply chain, relying on the cloud big data to quickly establish consumer awareness, the network end of the whole process of digital management of the flexible supply chain, to achieve pull distribution. Third, improve the terminal logistics, build an immediate logistics system, further improve the efficiency of logistics, shorten the space-time distance between consumers and goods (Fig. 4).

Summary and prospects
HEMA Fresh shows that in the new retail era, when big data, cloud computing and other new technologies grow mature, retailers regard consumers as the core, promote the full integration of online and offline from the cloud, network, terminal. Supply chain management effectively ensures the quality of brands and products, while improving the efficiency of consumer shopping experience has been enhanced, become an important direction of retail transformation. To be sure, HEMA Fresh is not all about new retail technology and features, but it can still foresee the following points that will need to be further developed in the future: (i) From IT to DT. In the traditional IT era, the accumulation of social data is insufficient; we should continue to explore the maximum value of data as a 'new energy' and let retail business fully enter all datadriven DT era. (ii) From closed to open: traditional management systems such as ERP and CRM, which are developed for enterprises, should change from a single, closed service mode to open each system with big data. Establish a data service platform and business industry service system. (iii) The transition from rigid and complex traditional management processes to control process data, from data to intelligence, to a more flexible management mode. (iv) From control to collaboration, through data opening and sharing, the platform power is fully realised, the fine division of labour between the Internet of things and Internet of things is realised, the full collaboration is realised and the maximum efficiency is brought into play by the combination of online and offline. Establish a new retail format in which experience and efficiency coexist.