E-commerce giants seek share of offline retail

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‍The Double 12 Shopping Spree seems to not generate much buzz than its bigger brother – the November 11 Single’s Sales or the Double 11.

It, however, could still generate tons of cash for e-commerce companies including Alibaba, JD.com and even Amazon that are not satisfied and are trying to cater offline customers.

Alibaba, which created the Double 12 shopping concept, is now reaching out to offline retailers. People can now find special Double 12 coupons similar to those found for the November 11 festival for stores on Koubei, Alibaba's affiliate specializing in online-to-offline services. The idea became popular among offline retailers.

“The younger generation prefers online shopping. So, we are trying to promote ourselves in ways they are familiar with and to let them know they can find deals online and get them offline," said Li Juan, the store director for one of the largest Carrefour supermarkets in Beijing.

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At the same time, Koubei and Alibaba could get data from offline businesses.

“As a part of Alibaba's eco-system, we have huge data analysis capabilities. What we are trying to do is to help offline retailers manage their data,” a Koubei official told CGTN.

While Chinese e-commerce companies enjoyed significant growth in recent years, shoppers still spent more at physical stores. Online sales for fast-moving consumer goods grew 26 percent year-on-year in 2016, much faster than the offline growth of just 1 percent, but online sales accounted for a quarter of the total only.

More and more traditional offline retailers are exploring online opportunities. Home appliances seller Suning has seen its sales doubled or even, in some cases, tripled during online shopping festivals, outperforming Alibaba and JD.

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E-commerce firms appear to have learned that online shopping holidays are not enough and they are trying to collect more and more customer data to connect the dots.

Amazon and JD.com are now using artificial intelligence to boost business. They are also producing products like speakers, smart television and smart refrigerators.