#Alibaba is considering selling Hema and RT-Mart# Ali's move is the final wake-up call for offline entities.
Over the years, Ali has done a costly experiment. RT-Mart Hema Yintai is already a leader in traditional supermarkets, and it is worthless in Alibaba's view. Suning.com is also included.
The reason for engaging in "new retail" back then was that 85% of China's consumption was offline. RT-Mart is the largest supermarket in China, and former CEO Daniel Zhang personally leads the board of directors. Hema is the most willing to spend money on the fresh supply chain.
But after seven years, Ali found himself in it. Although it is 85% offline, it does not lay eggs, and it has to be raised at a cost. RT-Mart has lost 9% of its market value.
Alibaba, Tencent, and JD.com played new retail for a long time, and the final winner was Pinduoduo. No matter how high the martial arts are, they are afraid of kitchen knives, and Pinduoduo small kitchen knives have one move: cheap. Focus on online traffic.
In other words, no matter how tossed the offline physical business, from the perspective of investment and income, most of them are negative equity. From a long-term point of view, there are no long slopes and thick snow, only potholes.
Ali rarely does this kind of thing and concedes defeat. Generally, even if you admit losses, you will not be out. It's time for a new era.
For brick-and-mortar business, China's two deepest giants, Alibaba and Tencent, are unable to survive them.
In fact, from Alibaba, Tencent, to Huawei, to central enterprises, the general direction in the past two years has been contraction. It's about cutting out the money-losing deals, and the storytellers.
Where there is no income, it is difficult to absorb incremental investment. The Internet is still incremental.
