On February 20, Alibaba Group and Bailian Group jointly announced that they will cooperate in all-rounded integration, technology research and development, membership system, supply chain integration, payment and logistics. This undoubtedly signifies a new war in the retail business. In the era of commercial transformation, the traditional retail industry feels the impact of both e-commerce and rising rental, and indeed this is a harsh time for retail businesses with many shops closing down. In fact, the large-scale closing down of retails shops is not primarily caused by e-commerce. It is more of an issue of business model where different shops are selling similar products, and this means the problem of homogenization is rather serious. Another issue is high costs, including labor costs, rent, tax burden and others. The trend now is traditional businesses integrated with e-commerce.