May 20, 2020

Alibaba spends $2.88bn to partner with Auchan in new retail venture

Jack Ma
Ecommerce
Alibaba
Retail
2 min
Alibaba spends $2.88bn to partner with Auchan in new retail venture

Chinese e-commerce giant Alibaba has announced a strategic alliance with Auchan Retail SA and Reuntex Group, which it hopes will bring together the company’s online and offline strengths in order to explore growth opportunities in the Chinese food retail sector.

Alibaba will invest $2.88bn in Sun Art Retail Group, which is currently owned by Auchan and Reuntex. The ecommerce giant will obtain an indirect stake of 36.16% while Auchan will retail 36.18% and Reuntex will retain 4.67%. This has been achieved by Alibaba purchasing from Reutnex’s stake, and Auchan’s initial stake being boosted.

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This comes as Alibaba develops its “New Retail” vision which hopes to work closely with retail partners to provide “a seamless offline and online experience” in retail.

Since 2015, Alibaba has invested around $9.3bn in total in brick and mortar stores, some of which are unmanned. Just recently, its new ally Auchan launched a series of small unmanned “Auchan Minute” stores across China following a successful pilot.

China’s food retail market is currently worth $500bn and Sun Art is a leading offline food retailer in the country, with around 12mn sq m of store space across China. The company is based in Hong Kong and has been providing “O2O” (online to offline) services in China since 2015.

Sun Art operates a total of 446 hypermarkets in 29 provinces in mainland China. Some are marketed at RT-Mart and others as Auchan.

Daniel Zhang, CEO of Alibaba, has stated of the alliance: “Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalised services in the digital economy.”

 

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Jun 9, 2021

Q&A: Professor Loredana Padurean, Asia School of Business

DigitalTransformation
AsiaSchoolofBusiness
smartskills
Leadership
Kate Birch
3 min
Teaching the MIT Sloan Executive Education program at Asia School of Business, Prof. Padurean talks innovation, smart skills and digital transformation

As someone who is creating Asia Pacific’s business leaders of the future, what do you believe are the essential skills leaders require?

In many ways, we need leaders who are Renaissance women/men or polymaths, as opposed to specialists of an industry or a field. A polymath is a person with profound knowledge, proficiency and expertise in multiple fields and today’s leaders have to be able to combine various ideas, look at problems in novel and useful ways, and develop a broad and yet still deep set of skills, talents, and knowledge.

You’ve coined ‘smart’ and ‘sharp’ as skills of the future. What are these?

They are replacements for ‘soft’ and ‘hard’ skills, a concept coined by a US Army doctor in 1972 who observed that his pupils had different skills: dealing with machinery required ‘hard’ skills, while dealing with people and paper were ‘soft’ skills. This concept has served us well since, but I find it too binary, not to mention the semantic implications of the words themselves.

Soft implies gentle, delicate, mild, quiet, tender, weak. However, there is nothing soft in navigating competing perspectives and cultures, handling and delivering critical feedback or dealing with office politics. Instead, I prefer to call these skills ‘smart’. Hard implies rigid, difficult, heavy, static. But how can we think of engineering or software development as static or rigid? I believe ‘sharp’ is more apt as such skills need constant updating or sharpening. 

I think it’s time to reflect on these classifications, because we can drastically change someone’s perspective by how we choose to talk about and frame something. 

How important are smart skills in leadership today?

Smart skills are more important than ever because we live in a world of extreme diversity: generational, ethical, value-based, gender, etc. Gone are the days when giving an order was an effective act of leadership. I personally work with people from five different continents and across five different generations, therefore as leaders, we need to know how to adapt, motivate, inspire and connect. We need to increase our investment in learning about them in action, especially as smart skills are more difficult to develop.

I believe that a successful leader today has to be both smart and sharp. Take cognitive readiness, one of my top 10 smart skills. In order to be cognitive ready, one has to master system dynamics, one of my top 10 sharp skills. Also, did you know that one of the primary reasons why digital transformation fails is not the absence of digital literacy, a sharp skill, but the need for more validation and adaptability, both smart skills. So, instead of thinking of these skills as binary, I prefer to think of them as the yin and yang; co-existing and complementing each other. 

So, you can teach leaders smart skills then?

Yes, you can, via a combination of the classroom experience, plus an action component supported by deeply embedded reflection. At ASB we call this Action Learning, and we teach it both in the MBA and in the executive programs. For example, in teaching a leader emotional maturity as a smart skill, first they need to learn what it is, and then act on it, before reflecting on what we did and how we did it. And then to repeat it, but this time with more expertise and awareness. It’s not easy, but that’s why my favourite mantra is ‘the job is easy, the people are not’. 

Discover Professor Padurean's successful skills for a digital transformation here

 

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