Hanshow and Microsoft have formally signed a long-term global strategic partnership agreement at Microsoft's headquarters in Seattle. Building on their existing collaboration in cloud infrastructure, IoT, data platforms, and AI innovation, the two companies will further advance cooperation in retail Physical AI solutions, store digital twins, Azure cloud services, and joint go-to-market initiatives to drive the digital and intelligent transformation of the retail industry.
Strategic Synergy Deepens: From Joint Innovation to Ecosystem Building
Hanshow and Microsoft have maintained close collaboration in digitalization for years. Since joining the Microsoft AI & IoT Insider Lab in 2019, Hanshow has conducted joint exploration and product innovation with Microsoft in areas including store IoT architecture, cloud-based SaaS platforms, data intelligence, and retail scenario AI applications. Microsoft Azure has become one of the key cloud foundations for Hanshow's global business, continuously supporting the connection and management of hundreds of millions of terminals worldwide. Leveraging Microsoft's global cloud infrastructure and ecosystem, Hanshow continues to advance joint solution development and market expansion, providing retailers with more scalable and practical digital store solutions.
This strategic partnership upgrades the MOU signed in 2024 to a group-level, global-market-oriented long-term alliance. The two parties will further deepen store digital twin and Physical AI solutions around the "AI x Data" capability framework, enhancing the visibility, agility, and intelligence of store operations.
Digital Twin and Physical AI: Enhancing Retail Operations
As retail digitalization enters a deeper phase, stores have become comprehensive intelligent nodes integrating data perception, operational scheduling, and user experience. Centered on this trend, Hanshow and Microsoft will focus on store digital twins and Physical AI as core directions to build future-oriented retail infrastructure:
Store Digital Twin: The two parties plan to explore foundational store digital twin capabilities for modeling store assets, layout, inventory, and equipment status, supporting simulation and operational optimization. Leveraging Hanshow's extensive expertise in electronic shelf labels, AI cameras, smart shopping carts, smart robots, smart marketing screens, and related platform capabilities, they will advance digital solutions covering full store scenarios, building a framework encompassing NexShelf smart shelving, NexConnect smart shopping carts, NexMate smart robots, NexOptim store operation digitalization, and NexGrid digital energy management — gradually constructing a store digital twin capability framework spanning perception, intelligent decision-making, and precise execution.
Physical AI-Driven Solutions: Leveraging Microsoft Azure's advantages in cloud computing, big data, AI Agent, and edge computing capabilities, the two parties plan to collaborate on Physical AI solutions for overseas retail markets, connecting store devices, data flows, and cloud-based AI to enable real-time perception, analysis, and action within stores. They will jointly advance the construction of a retail technology architecture spanning "device — edge — cloud" to improve retail operational efficiency.
Security and Compliance Framework: Based on Microsoft Azure's secure, reliable, and scalable global cloud infrastructure, combined with Hanshow's practical experience in retail digitalization scenarios, the partnership will continuously enhance capabilities in cross-regional deployment, data governance, and local regulatory compliance, providing global retailers with a more robust and secure store digitalization support system.
AI-Driven Innovation: xPilot Moves Store Management from Visualization to Intelligent Action
During NRF 2026 APAC, Hanshow and Microsoft jointly launched xPilot, a one-stop real-time intelligent store execution platform built on Microsoft Azure. The platform features an open cloud-native architecture, integrating IoT, large AI models, and retail-specific analytics models to create a complete closed loop from perception to execution to verification. It aggregates all business data on a unified platform, centrally scheduling all execution tasks as the store's intelligent decision-making hub, empowering the entire chain from frontline staff and store managers to headquarters and upstream suppliers.
Stronger Together: Elevating Technological Leadership and Global Service Capabilities
This deepened partnership represents a profound synergy between Hanshow's retail digitalization capabilities and Microsoft's AI technology. Both parties will continue leveraging their respective strengths in industry understanding, technology platforms, global ecosystems, and local services to advance the deployment and iteration of next-generation retail digitalization capabilities, delivering AI-powered digital store outcomes focused on enhancing store experience and operational efficiency.
The two companies will further integrate their resource advantages to accelerate the transition from solution exploration to scaled application; leverage Hanshow's global localized operations network and Microsoft's worldwide cloud infrastructure and partner ecosystem to provide integrated service support for multinational retail groups; jointly identify and pilot lighthouse customers to validate Physical AI scenarios and iterate solutions based on real-world feedback; and co-author or commission third-party white papers on AI digital stores, Physical AI architecture, agentic AI for store operations, and sustainability topics.
Li Liangyan, Senior Vice President and Head of Global Sales at Hanshow, stated: "This partnership opens a new chapter in Hanshow and Microsoft's long-term collaboration. Together, we will bring trustworthy, scalable, and future-oriented store digitalization solutions to more retailers worldwide, providing them with a stronger technology foundation, greater operational agility, and long-term business value."
Philippe Brochard, Chairman of Hanshow's Advisory Board, noted: "Retail transformation requires the power of ecosystem collaboration. Hanshow is partnering with industry leaders like Microsoft to build an open, scalable, and practical innovation ecosystem partnership model, delivering digital transformation solutions tailored to retailers' operational needs."
Sandy Gupta, Microsoft Vice President and Head of ISV Business, stated: "The retail industry is entering a new stage of development. Only through coordinated efforts among ecosystem partners can we accelerate the application of cloud computing and AI technologies in retail, truly addressing the operational challenges of physical retail. Microsoft's cloud services and AI capabilities, combined with Hanshow's deep expertise in store digitalization, will help retailers achieve smarter, more efficient physical retail operations with upgraded experience and innovation."
