A Tmall physical store in Hangzhou. [Photo: Wechat/Linus]

Alibaba announced on Monday that Tmall.com will license more than 10,000 physical stores in China this fiscal year.

Tmall.com, one of the most popular online trade platforms in China, will cooperate with Alibaba Distribution Platform, a service platform, to upgrade stores in residential communities as its brick and mortar stores via brand authorizing.

These physical stores under the brand of Tmall will be smart and well-targeted. For example, the stores will have convenient supply chain provided by Alibaba Distribution Platform, meanwhile, on the basis of big data, Alibaba Distribution Platform will also give advice on the way of shelf displays and the most popular goods in the neighborhood.

Lin Xiaohai, vice president of Alibaba, said the physical stores of Tmall will be upgraded on the basis of Alibaba Distribution Platform, which provides a series of services such as ordering goods, logistics, sales marketing, and value added service.

So far, Alibaba Distribution Platform has offered services to about 500,000 stores.

"With the help of big data analysis, traditional small shops will save their costs," said Liu Jianfeng, director of the product center of the platform. "In the future, these Tmall physical stores will receive support from Alibaba Distribution Platform on sales marketing and application of smart technologies."