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Alibaba has been recruiting independent store owners in China to adopt its retail management platform in their stores,according toQuartz.
The platform, named Ling Shou Tong, was originallyrolledout in August 2017, and, as of Singles’ Day 2017, 600,000 stores, or 10% of China’s mom-and-pop shops, wereusingit.
Working with third-party stores is a new way for Alibaba to expand its physical footprint and increase its involvement in brick-and-mortar retail, both of which have been afocusfor it as of late.
Alibaba’s retail platform gives brick-and-mortar stores technological tools, while also securing data and fulfillment centers for the e-commerce titan.
Alibaba and JD.com may end up in a battle as they try to woo third-party stores to utilize their technologies. Alibaba vice chairman Joseph Tsai has previously said that the retailer may look to partner with stores, rather than acquiring them, to avoid accumulating too many real estate assets, and Ling Shou Tong appears to be a move in that direction. But Alibaba isn't the only company trying to work with third-party stores. JD.com recently announced that it will open hundreds of unmanned stores, and that it intends to license its technology to third-party retailers.
Both e-commerce titans likely want to be the retail innovation platform that third parties rely on, as that would allow them to access the stores' data, storefronts, and more. This may lead to an arms race of sorts, with both companies trying to offer the best retail innovations and analytics in order to attract independent stores. Alibaba appears to be gearing up for such a battle, as it already has 2,000 employees who recruit stores to use Ling Shou Tong.
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