The impediment to the growth of e-commerce is no longer consumer demand, which has soared in the past year as many shoppers have been unable or unwilling to visit brick-and-mortar stores due to the coronavirus pandemic.
The drive for efficiency has become even more critical as border closures and lockdown restrictions have made deliveries trickier. Brexit has been an added challenge for many shops in the UK.
The logistics companies that transport these goods from warehouses to our doors are vital to retailers, and even governments as they look to logistics companies to transport coronavirus vaccines. But traditional methods of shipping goods are inefficient and wasteful.
There is now another option for merchants of all kinds. Cainiao lives in the shadow of its parent company, Chinese internet giant Alibaba. But it has been quietly building an unconventional logistics platform that could transform the distribution of products in future.
The brainchild of Chinese tycoon Jack Ma and others, Cainiao is different from traditional logistics companies because it does not own most of the warehouses or depots it cleverly leverages. Instead of buying trucks and fuel, it has built up a 3,000-strong network of “logistics partners” who do the actual deliveries.
Cainiao carefully curates and aggregates established logistics partners. This scale provides merchants with ample data to choose the most efficient delivery option through the Cainiao platform.
The company puts sensors on everything and is bringing about a digital revolution in distribution. After achieving strong traction at home in China’s $2 trillion e-commerce market, the company is starting to expand globally in Belgium, Malaysia, Russia, Thailand and Dubai without ever building a single warehouse.
This asset-light approach has allowed Cainiao to piggy-back off existing infrastructure and to scale up quickly in a mature sector, while avoiding steep fixed costs while being nimbler. This way, it is able to respond quickly to changes in market demand.
At a time when logistics companies are vital to e-commerce and vaccine delivery, this resilient model strengthens supply chains. Brexit complications have further highlighted the need for a strong logistics network today. If a logistics partner goes bust or leaves the platform, it will not compromise the stability of the wider network because the slack can be absorbed quickly.
Technology and data are at the heart of the model, which streamlines deliveries. Cainiao tracks all the transactions in its ecosystem and crunches the data to produce actionable insight that benefits everyone, including the end consumer who gets greater availability of products.
Cainiao uses predictive analytics to forecast consumer demand and help its partners allocate stock and pick warehouse locations. It also uses data from delivery fleets to optimise shipping routes, improving efficiency and trimming fuel costs. When more partners join, not only does the ecosystem diversify, the efficiency of the whole network increases.
The company has also created more than 80,000 “Cainiao Post” stations where people can pick up their orders, with the goods dropped off by local couriers. These stations are embedded within local communities such as schools and create sustainable, viable job opportunities. This form of community entrepreneurship is reminiscent of the township and village enterprises that played a pivotal role in China’s transition to a more market-based economy following reforms enacted in the late 1970s.
The company does not represent an existential threat to traditional delivery operators. Rather, Cainiao can be the rising tide that lifts all boats. Instead, the threat is levied at e-commerce platforms such as JD or Amazon, which has taken an asset-heavy approach, building vast fulfilment centres all over the world.
Since Cainiao is part of Alibaba, it can offer merchants a full suite of services. A retailer could sell their goods on Taobao, Alibaba’s e-commerce platform and process the transactions on its payment platform Ant Financial. Sellers are free to choose other providers. Increasingly, though, they will be tempted to be part of the Alibaba ecosystem for the efficiency gains, which will become more crucial in weathering the coronavirus-induced recession.
But China has launched an antitrust probe into Alibaba, which it accuses of monopolistic practices. That followed the suspension of Ant’s $37 billion initial public offering. How such an investigation will hit Cainiao’s growth remains to be seen, but the open nature of Cainiao’s ecosystem appears to be prepared for the future.
The good news for sellers, who will be on the lookout for stability in these uncertain times, is that, without a heavy base of fixed assets, the company can be agile in responding to market regulators. This reflects how new models of trade can enable wider economic and social success.
Mark Greeven is Professor of Innovation and Strategy at IMD
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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'Hocus%20Pocus%202'
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Chinese Grand Prix schedule (in UAE time)
Friday: First practice - 6am; Second practice - 10am
Saturday: Final practice - 7am; Qualifying - 10am
Sunday: Chinese Grand Prix - 10.10am
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
The specs: 2017 Lotus Evora Sport 410
Price, base / as tested Dh395,000 / Dh420,000
Engine 3.5L V6
Transmission Six-speed manual
Power 410hp @ 7,000rpm
Torque 420Nm @ 3,500rpm
Fuel economy, combined 9.7L / 100km
The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
Other key dates
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Finals draw: December 2
-
Finals (including semi-finals and third-placed game): June 5–9, 2019
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Euro 2020 play-off draw: November 22, 2019
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Euro 2020 play-offs: March 26–31, 2020
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
THE NEW BATCH'S FOCUS SECTORS
AiFlux – renewables, oil and gas
DevisionX – manufacturing
Event Gates – security and manufacturing
Farmdar – agriculture
Farmin – smart cities
Greener Crop – agriculture
Ipera.ai – space digitisation
Lune Technologies – fibre-optics
Monak – delivery
NutzenTech – environment
Nybl – machine learning
Occicor – shelf management
Olymon Solutions – smart automation
Pivony – user-generated data
PowerDev – energy big data
Sav – finance
Searover – renewables
Swftbox – delivery
Trade Capital Partners – FinTech
Valorafutbol – sports and entertainment
Workfam – employee engagement
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Company%20profile
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T20 World Cup Qualifier A, Muscat
Friday, February 18: 10am - Oman v Nepal, Canada v Philippines; 2pm - Ireland v UAE, Germany v Bahrain
Saturday, February 19: 10am - Oman v Canada, Nepal v Philippines; 2pm - UAE v Germany, Ireland v Bahrain
Monday, February 21: 10am - Ireland v Germany, UAE v Bahrain; 2pm - Nepal v Canada, Oman v Philippines
Tuesday, February 22: 2pm – semi-finals
Thursday, February 24: 2pm – final
UAE squad: Ahmed Raza (captain), Muhammad Waseem, Chirag Suri, Vriitya Aravind, Rohan Mustafa, Kashif Daud, Zahoor Khan, Alishan Sharafu, Raja Akifullah, Karthik Meiyappan, Junaid Siddique, Basil Hameed, Zafar Farid, Mohammed Boota, Mohammed Usman, Rahul Bhatia
All matches to be streamed live on icc.tv
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Read more about the coronavirus
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
