Yintai Commerce's Chen Xiaodong: Shopping Malls Will Enter the AI Era
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Adhering to the 'channel is king' strategy may lead to 'channel is doom.' Recently, Chen Xiaodong, Chairman of Yintai Commerce Group, emphasized the importance of embracing technology at a conference. He believes that shopping malls will inevitably enter the AI era, with more robots efficiently and accurately handling commercial operations. If businesses continue to rely solely on traditional expansion methods, they may face decline. However, the value of supply chains has not yet been fully realized.
'In recent years, I always thought my learning ability was strong enough to connect with the younger generation, but I later realized there’s still a generation gap between us and Gen Z or post-00s,' Chen Xiaodong said. 'The consumer landscape and demographics have changed, and we need to serve young people using their own 'playbook.'
At the same time, channels have already evolved. Insisting on the old path of expanding channels alone will only lead to failure. However, one thing is certain: the value of supply chains remains underexplored. In the past, mall operators focused mainly on infrastructure. In an era where 'channel is king' has turned into 'channel is doom,' the main gap between domestic and advanced international peers lies in supply chain management.
Chen Xiaodong believes that the next 20 years will be the era of AI, where all industries will be reshaped by AI, and shopping malls will also enter the AI era.
Driven by technology, cameras have evolved from merely 'seeing clearly' to 'understanding,' and will soon make decisions. With 'eyes' and a 'brain,' the 'black box' of mall operations has been opened. It is reported that this year, Yintai Department Stores have deployed 'robots' on a large scale, increasing same-store sales growth by 7%. 'Decisions that previously required managers are now made by robots, with much higher accuracy because robots don’t have performance variance,' Chen Xiaodong said.
Currently, Yintai Department Stores' organizational structure has only four levels from the chairman to employees. 'In the future, I hope to reduce it to two levels,' Chen Xiaodong said, adding that 'employee happiness is what truly matters.'
It is reported that at Yintai Department Store, employees can directly request 'emotional leave' when they are unhappy, without any deductions from their salary or bonuses, and it will not affect their performance evaluations. Moreover, every year during the Spring Festival, Yintai Department Store closes to encourage sales assistants and employees to spend the holiday with their families. Chen Xiaodong appeals, 'I hope more businesses will close for the Spring Festival this year.'