The nineteenth World Knowledge Forum (WKF), held on Dec.10th to 12th in Seoul, South Korea, invited a galaxy of people. Estonian president Kersti Kaljulaid, former Secretary-General of the United Nations Ban Ki-moon, former chair of Federal Reserve Jenet Yellen and more than 250 politicians, renowned economists, business elites and leaders of world-renowned business groups spoke at the forum.
Ban Ki-moon addressed the opening ceremony saying that the world was facing unprecedented challenges in terms of politics, economy and society, making it imperative to solve these problems through collective wisdom. He hoped that the scholars and elites from all fields at this forum would deliver their own efforts and offer constructive advices to guide the world towards common prosperity and peace.
Xiao Xin, founder and CEO of Xianlife, delivered a speech under the umbrella theme of “New Retail Revolution in Chinese Convenience Stores” on the morning of Dec.12th. He took artificial intelligence (AI) as the key point and told a story of helping convenience stores become the “light of the city” that warm urban individuals through AI application. Mr Xiao elaborated how did the use of AI in the daily operation of convenience stores in China improve consumer experience—that AI can provide accurate suggestions on inventory and goods with in-depth understanding of each consumer's online and offline preferences, and grasp of the supply chain and logistics.
AI, as an auto deep learning system, is able to understand the interaction between customers in stores, goods, and shelves through technical means including cameras with face recognition algorithm and smart shelves with censors. Additionally, with data from the online traffic platforms that cooperates with Xianlife, including Tmall and Eleme Inc., AI can offer operation plans through unique and simultaneously self-upgrading algorithm. Deep learning enables AI to constantly collect new data from user’s behavior. After re-analysis and re-calculations, it eventually forms a continuously upgraded data cycle that helps stores better understand users’ need.
At present, Xianlife has rapidly established a dense store network in target cities by investing to hold controlling interests or become shareholders to integrate urban chain convenience stores into network. It also established and expanded community stores terminals by jointly investing with large property companies. By far, there are more than 5,000 self-run and cooperative convenience stores in cities in China including Beijing, Hangzhou, Xi'an, Taiyuan, Changsha, and Guangzhou. In Beijing, Xianlife owns the largest convenience store chain, Haolinju supermarket, in the city.
Market potential of convenience stores in China needs further exploration. Statistics show that one convenience store serves 1,491 people in South Korea on average, 2,226 in Japan, 36,000 in China, and 7,185 people even in metropolis like Beijing.
Compared with the traditional stores, renovated Haolinju stores with digital technology have delivered pleasing outcomes: daily unit volume increased by 130% on a year-on-year basis, the inventory turnover rate grew by 110%, the repeat purchase rate was doubled, and product replenishment rate increased by 70%. And rate of damaged cargo decreased by 70% while the gross margin upped by 30%.
Mr Xiao said at the end of speech that Xianlife was committed to introduction of AI to the country's convenience stores to improve their operational capacity and users’ experience.
After the speech, Mr Xiao gave insightful answers to up-to-date questions about the development of New Retail in China regarding partially-automated stores like Amazon go and Tmall Future Store. At the 2018 Computing Conference, Tmall Future Store made its debut. It is Alibaba's exploration in all-round digital operation of bricks-and-mortar stores, and is also a possible algorithm-driven solution to retailing with a set of deep learning technology that can digitally sense, analyze and interact with customers, products, and stores. Xianlife, as a close operation partner of Tmall Future Store, participates in the whole process of store design, product sorting, background management system and front-office management.
According to WKF committee official, Mr Xiao’s Xianlife embodies China’s New Retail empowerment. His attendance in the WKF not only mirrors the world's focus on the development of New Retail, but also shows the acknowledged achievements of Xianlife in this field.
The theme of the three-day forum is “Collective Intelligence: Overcoming Global Pandemonium.” Participants will discuss the current international order, the world economic circumstances, and technological innovation brought about by the Fourth Industrial Revolution to find intelligent solutions to problems and challenges facing the world today together.
Established in 2000 by Maeil Business Newspaper, World Knowledge Forum serves as an agent to promote balanced economic development and common prosperity in the world through knowledge sharing. In the three-day forum, there are also special talks from NASA, Uber and other world-famous international Science and technology institutions and firms.
