BABA(US:BABA) Nan Fang Du Shi Bao·2026-01-04 13:56Core Insights - 1688 is transitioning from a trading platform to an AI-driven digital supply chain platform by 2026, aiming to enhance decision-making for businesses through an independent AI agent [1] - The year 2025 is identified as the year when small and medium enterprises (SMEs) fully embrace AI, with AI significantly improving product gross margins in a competitive B2B environment [1] - 1688's strategy "All in AI" involves launching and iterating various AI products tailored for both buyers and sellers, including an AI version of the 1688 app and specialized AI tools for cross-border entrepreneurs [1] Group 1 - As of December 30, 2025, over 290,000 out of more than 1 million merchants on the 1688 platform are using AI daily [1] - Merchants using the AI version of 1688's integrity service saw a 73% increase in transaction volume and a 31% increase in repurchase rates compared to those not using AI [1] Group 2 - In a recent speech, the CEO of 1688 highlighted the potential of a "digital twin market," where business ideas can be tested in a virtual environment using AI before implementation in the real world [5] - The AI version of 1688's integrity service offers four core capabilities: AI product selection, AI smart marketing, AI customer management, and AI business analysis [5] - 1688 aims to create a comprehensive AI agent that understands customer businesses and data, providing decision-making support and optimized workflows for SMEs in industrial clusters [5]