Alibaba partners with Shanghai retail conglomerate Bailian Group

HANGZHOU - China's leading e-commerce firm Alibaba and Shanghai-based retail conglomerate Bailian Group announced a strategic alliance Monday to push forward partnership in "New Retail" formats.

"The strategic partnership will allow Alibaba to put its New Retail concept into practice, changing customer experience and efficiency of logistics and services," said Alibaba's CEO Zhang Yong.

The alliance does not involve capital ties at this stage.

Bailian Group is a state-owned enterprise in Shanghai. Its main business covers department stores, shopping malls, outlets, large stores, supermarkets, convenience stores and specialty retail formats, as well as operating in non-ferrous metals, ferrous metals, automobiles, chemical lighting, electricity, timber and fuel, etc. It operates 4,700 stores in more than 200 Chinese cities.

Zhang said the two parties had reached a consensus on creating a new shopping scenario, using big data.

In a bid to reshape the retail landscape, China's e-commerce companies such as Alibaba have been strengthening their presence in offline retail channels.

Jack Ma, Alibaba Group Founder and Executive Chairman, said the partnership will trigger a reform in the retail industry. It will integrate online and offline business to combine tradition and innovation.

Alibaba's previous venture in offline retail include its share-swap deal with Suning Commerce Group and a privatization deal to merge with brick-and-mortar retail chain Intime.

Ye Yongming, chairman of Bailian, said traditional retailing requires technology to provide consumers with new shopping experiences anytime and anywhere.

Consumption contributed 64.6 percent to China's GDP growth last year, as the country moves from an export and investment-driven growth model into one that draws strength from consumption, innovation and the service sector.

Retail sales rose 10.4 percent in 2016, slightly down from 10.7 percent in 2015, according to the National Bureau of Statistics.

Shanghai-listed Bailian shares rose by the 10-percent daily limit Monday to 17.82 yuan ($2.6) on news of the announcement.