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Weekly Focus: Alibaba Rolls Out Auto Test-Drive Centres

This week, Alibaba is back in the spotlight with a new service that lets its Tmall customers find and book cars for a three-day test drive.

The Chinese e-commerce giant unveiled two facilities in Shanghai and Nanjing, due for launch in January, that they dubbed 'Super Test-Drive Centres'.

Designed to function like an automotive vending machine, Alibaba said the new service would enable its customers to browse, book test drives, and purchase a vehicle via the company's Taobao mobile app.

For instance, users could scan a vehicle on the road and use the app to identify the car's brand and model. Tmall users then would be able to select the vehicle, from an available pool of more than 100 options from manufacturers such as Mercedes-Benz, BMW, and Volvo, and book a three-day test drive. If they enjoyed the ride and wished to purchase the vehicle, they also could do so via the app.

The test-drive service, however, only would be available to Tmall users in China with a minimum score rating of at least 700 points on Zhima Credit, which was Alibaba's credit-scoring system for consumers. They also would need to be accredited Alibaba Super Members, who had a Taoqizhi rating of at least 1,000.

To schedule a test drive, Tmall users would have to submit their basic information and confirm their eligibility, and pick up their test vehicle at the designated centre with a log-in code or facial recognition.

Users also could only test drive each model once and were limited to five test drives during the first two months of the service launch.

Tmall's automotive marketing director Huan Lu said: "Our thinking behind the 'car vending machine' is focused on helping users solve certain problems they face in the car-buying process. To do that, we are building a physical, experiential store that offers staff-less car pickup through facial recognition, three-day 'deep' test drives and a one-stop-shop that displays [cars from] all mainstream brands at once."

According to Alibaba, some 100 Maserati cars were sold within 18 seconds during a flash sale on Tmall last year. Alfa Romeo also moved 350 Giulia Milano cars in 33 seconds in March during its flash sale on the e-commerce site.

Following the launch of the first two facilities, Alibaba said it planned to roll out dozens more across China in the next 12 months.

Lazada boasts record-breaking sales at shopping festival

While the Chinese e-commerce giant puts on its wheels, its subsidiary Lazada has wrapped up its month-long online shopping festival with a 'record-breaking' USD$250m (£187.58m) in gross merchandise value (GMV).

This was more than double last year's figure, the Singapore-based e-commerce site said, pointing to its 12.12 Online Revolution event that was first launched in 2012. Lazada in 2016 clocked USD$40.5m (£30.13m) in GMV at the shopping festival.

To cope with the increased demand, the vendor said it chartered flights from Indonesia and Thailand to deliver goods ordered from international merchants.

Lazada operates across six Southeast Asian countries, including the Philippines, Thailand, Malaysia, Indonesia, and Vietnam, and was acquired by Alibaba in April 2016.

This year marked the first cohesive efforts to tap its parent company's expertise, technology, and wider ecosystem, during which Lazada held a live variety show in Thailand on 10th November, as well as deals and flash sales. Another live finale event was held in Indonesia on 12th December.

In a separate announcement, Alibaba announced that H&M would set up an online store on Tmall in early 2018. The move would mark the Swedish fashion group's first online sales platform, and in China, apart from its own official website.

H&M said it would tap the Chinese site to also introduce items from its sister brand, H&M Home, which sold home accessories. Its street-style brand, Monki, already was available on Tmall.