Alibaba’s newest business: Modernizing China’s factories

BEIJING: Alibaba Group Holding Ltd helped modernize brick-and-mortar retail with consumer data and online services. Now it hopes to do the same for China’s multitrillion-dollar manufacturing arena.

“This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalization needs,” said Alain Wu, chief executive officer of Alibaba-subsidiary Xunxi Digital Technology Co. Xunxi – which means fast rhino – is the fruition of what billionaire founder Jack Ma called “new manufacturing” in 2016.

Alibaba’s starting point is apparel but it eventually aims to help more manufacturers parse data, automate logistics and maintain just-in-time inventory, much as it already does for Chinese convenience chains and big-box retailers.

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