China’s voice recognition king iFlyTek goes against the grain with forecast that offline sales will grow more
- iFlyTek plans to open 1,000 physical stores this year, bringing its overall offline retail network to about 3,000 stores
China’s artificial intelligence (AI) speech recognition champion iFlyTek is going against the grain with a bet that bricks-and-mortar sales will remain a major retail sales channel in future.
The Hefei-based company expects offline stores to steadily rise and contribute around 70 per cent of its total sales in future, from an even split between online and offline last year, according to iFlyTek vice-president Li Chuangang. He did not specify an exact date for the forecast.
The company plans to open 1,000 physical stores this year, bringing its overall offline retail network to about 3,000, he said, adding that despite an increase in expenditure on the infrastructure, offline shops are still necessary.
“Some internet companies start with e-commerce, finding it easier [to manage],” he said after a briefing, a transcript of which was verified by the company on Thursday. “But to be a truly great brand, an offline [sales channel] is indispensable and will play an increasingly important role as brands grow.”
Shenzhen-listed iFlyTek has two online virtual stores and is working with 20 authorised sellers on Alibaba’s Tmall platform, while maintaining about 6,000 shop attendants at physical shops.
Chinese AI champion iFlyTek back in the red amid coronavirus pandemic
“An ideal target for offline sales is around 70 per cent,” said Li. “We believe it [offline] still has great potential.”
iFlyTek’s sales approach goes against the grain of the current move by many merchants to take their business and sales online amid the lockdowns and social distancing measures adopted by governments around the world to combat the spread of Covid-19.
iFlyTek also unveiled an updated version of its AI-powered smart recorder, with a much faster transcription speed covering seven foreign languages. The company has a range of products including a smart translator, teaching robots and educational toys.
Founded in 1999 and based in Hefei, the capital of eastern China’s Anhui province, iFlyTek has become the country’s foremost developer of advanced speech recognition and natural language processing systems. With state-owned China Mobile as its largest shareholder, the company has made its products available in 200 countries and territories around the world.
In March, iFlyTek established a new joint venture with South Korean software company Hancom Group. Their venture, called Accufly. AI, launched its AI outbound calling system to assist South Korea’s government in providing information to individuals who have been in close contact with, or have had, a confirmed Covid-19 case.
