How “New Retail” Is Changing Eight Retail and Consumer Sectors in China
New Retail is a model that sees the integration of online retail, offline retail and logistics across a single value chain powered by data and technology. The model was initiated by Alibaba in China but has since been adopted by others in various forms. In this report, we review recent trends in New Retail to understand how it has played out in different retail and consumer-services sectors in China.
- Chinese e-commerce platforms, predominately Alibaba and JD.com, have offered digitalization and logistics services to help brands and physical retailers use the New Retail model. The platforms are also working to strengthen after-sales service.
- Brands and retailers in almost all retail sectors have adopted in-store technologies such as smart mirrors, smart shelves and interactive touchscreens to enhance the in-store shopping experience and make in-store operations more efficient.
- Traditional physical retailers such as supermarkets and department stores are increasingly digitalizing their offerings to connect with online platforms and mobile apps. The O2O fresh food supermarket is the poster child for New Retail but expansion has slowed.
- Even the more traditional healthcare industry is embracing digitalization and online-offline integration.