HANGZHOU, Sept. 16 (Xinhua) -- China's tech giant Alibaba Group revealed its new manufacturing model on Wednesday -- the Xunxi Digital Factory.

Xunxi is a cloud intelligence-powered manufacturing levels playing field for small and medium-sized enterprises (SMEs), enabling access to small-batch customization and agility in production, according to a press release of the company.

Powered by Alibaba's cloud computing infrastructure and Internet of Things, the Hangzhou-based factory offers SMEs a digitalized end-to-end manufacturing supply chain that allows for fully-customized, demand-driven production.

At an early stage, apparel was identified as the starting point for Xunxi -- a sector in which the lengthy production cycles and high inventory levels have long been a problem for small and large players alike.

With new technologies, such as real-time resourcing, process and cost planning, automated in-house logistics, and Xunxi's manufacturing operating system, the factory can produce small-batch orders at reasonable costs and with shorter delivery time, consequently increasing manufacturing efficiency from 25 percent to an average of 55 percent.

"Data is the core of new manufacturing, and harnessing data insights is key to capturing new opportunities in the shift in consumer preference for personalized rather than mass-produced goods. New manufacturing transforms traditional manufacturers with data-driven intelligence and technology to move towards a more agile model of production, based on real-time demand," said Alain Wu, CEO of Xunxi Digital Technology Company, Alibaba Group.

"This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalization needs," Wu said.