"In 2016, Alibaba founder Jack Ma envisioned the concept of New Retail: the seamless merging of offline, online and logistics for a dynamic new world of retailing. Instead of having to compromise between on and offline shopping, firms should be aiming to offer the best of both worlds, reacting to consumer demand in real-time, adjusting prices based on market equilibrium, harnessing technology in ways consumers relish. And arguably, Ma has delivered."
"According to eMarketer, online sales are set to grow 30% in 2019, with 35% of China's retail sales now happening online, and by 2020 Chinese consumers will account for an astonishing 56% of global online retail sales. It's New Retail in action, and luxury forms a huge part of it. Tencent predicts that China will contribute 41% of global luxury consumption by 2025, powered by millennials and Gen Z."
"48% of Chinese luxury consumers are under 30 and the way they're looking to shop is - for the luxury market - radically different to the norm for luxury consumers in the West. These younger digital natives are increasingly happy shopping for high-end goods with their thumbs. The seamless merging of physical and digital retailing is now a prerequisite to success in China."
New Retail merges offline, online and logistics to create seamless shopping experiences. China is poised to become the world's largest retail market as online sales grow rapidly, with 35% of retail sales online and Chinese consumers projected to account for 56% of global online retail sales by 2020. Luxury spending is surging, with Tencent forecasting China will contribute 41% of global luxury consumption by 2025. Nearly half of Chinese luxury consumers are under 30 and prefer mobile, integrated experiences. Luxury brands increasingly adopt WeChat stores—60% have at least one—while 40% still lack presence on the platform.
Read at The Drum
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