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September 17, 2020

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Alibaba’s digital factory

Alibaba Group yesterday unveiled its Xunxi Digital Factory, a Hangzhou-based smart manufacturing facility which will support customized and demand-driven production.

It will offer a trend and sales forecast model for apparel makers with a minimum of 100 units at one production batch and a delivery period of seven days, compared with a normal batch of 1,000 units and 15 days of delivery time.

The facility will also be extended to manufacturers in other industries.

“This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalization needs,” said Alain Wu, CEO of Xunxi Digital Technology Co, an affiliate of the e-commerce giant.

It also marks a key strategy as part of a scheme called “New Retail, New Manufacturing, New Finance, New Technology and New Energy,” which was introduced by Alibaba’s founder Jack Ma in 2016.


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