As the world's biggest consumer market, China is a must play, must win market. Last year we first discussed this topic in our eCommerce in China - the future is already here report, which identified how eCommerce and digital marketing had transformed, and how over 950 million netizens discover and shop for products.
This insightful report explains the evolution from digital retail to New Retail. For businesses already operating in China, it explains the ways to play in this rapidly changing consumer environment, and for those looking at inspiration it offers a perspective of China as the future of global retail innovation.
This report draws on insights from our quantitative study of the Global Consumer Insights Survey 2018. It explores shopping behaviours of 901 Chinese consumers and over 1,200 consumer interviews as part of various project work. In addition, we also bring perspectives from our experience working with international and local retailers, brands and internet companies.
At the macro level China’s retail market is forecast to grow at a compound annual growth rate of 9% from 2017 to 2021, still robust but slower than 12% from 2012 to 2016. Below these macro figures significant growth opportunities still exist.
Here we explore the Post 80s and 90s generations, products and services catering to the trends of health, premiumisation, lifestyle and experience, and key growth opportunities with city clusters.
Over the last 5 years China’s retail market has experienced a digital growth miracle but its impact has mostly been on the front-office: sales channels and marketing.
We are now entering a period of new retail which will be far more transformation, digitising the entire value chain.
New Retail is full stack digitisation and we are still in the early stage of it. All brands and retailers need to consider how digitisation will impact their total value chain. Forming ecosystems and partnerships are becoming increasingly important, but don’t neglect to build core capabilities that create competitive advantage.