2020
0
Omnichannel Retailing – China – December 2020
2021-01-15T03:03:54+00:00
OX990914
3695
132224
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Report
en_GB
“Omnichannel retailing enhances Chinese consumers’ shopping journey and experience, allowing them to navigate online and offline platforms to find the latest products and the best deals. Driven by technological and…

Omnichannel Retailing – China – December 2020

£ 3,695 (Excl.Tax)

Report Summary

“Omnichannel retailing enhances Chinese consumers’ shopping journey and experience, allowing them to navigate online and offline platforms to find the latest products and the best deals. Driven by technological and socioeconomic developments, many innovative retail formats with futuristic applications will emerge. However, in the near term, omnichannel retailers should focus on developing a consumer-centric experience. As omnichannel retailing involves many touchpoints to capture data that allow retailers to better serve their customers, creating a consistent customer experience across diverse channels will be a constant challenge. Technology will be used judiciously to enhance the shopping experience, and not marginalise the less digitally savvy population. Since omnichannel retailing will prevail in the future, businesses must ensure their services are user friendly, intuitive and inclusive for everyone.”
– Hui Tse Gan, Research Analyst

This report examines the following areas:

  • Expanding customer touchpoints in a shrinking urban space
  • The human factor in retail is still important
  • Phygital “shoptainment” crucial to omnichannel engagement

Table of Contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Impact of COVID-19 on omnichannel retailing
              • Figure 1: Summary of impact of Covid-19 on omnichannel retailing, December 2020
            • Market overview
              • Market drivers
                • Who’s innovating
                  • The consumer
                    • Online shopping is widely accepted, with categorical exception
                      • Figure 2: Research and purchase channels during shopping, October 2020
                    • Freedom to shop across channels at own convenience
                      • Figure 3: Attributes of shopping in omnichannel retailing environment, October 2020
                    • Social media and ‘shoptainment’ influence purchase decisions
                      • Figure 4: Pre-purchase information channels, October 2020
                    • High interest in new retail services despite low uptake
                      • Figure 5: Behaviours involving services in new retail, October 2020
                    • The ‘person’ in retail is still important for now
                      • Figure 6: Behaviours under unmanned economy, October 2020
                    • Favourable attitude towards omnichannel shopping
                      • Figure 7: Attitudes towards omnichannel retailing, October 2020
                    • What we think
                    • Issues and Insights

                      • Expanding customer touchpoints in a shrinking urban space
                        • The facts
                          • The implications
                            • The human factor in retail is still important
                              • The facts
                                • The implications
                                  • Phygital “shoptainment” crucial to omnichannel engagement
                                    • The facts
                                      • The implications
                                      • The Market – What You Need to Know

                                        • Omnichannnel retailers seek a good fit with consumers’ lifestyles
                                          • Technology will drive new omnichannel retail formats
                                            • Customer-centric experience is crucial to omnichannel retail
                                              • Novel concepts push the boundaries of future retail
                                              • Market Overview

                                                • The unmanned economy
                                                  • Unmanned convenience stores
                                                    • Figure 8: Self service payment at Bianlifeng Unmanned convenience store, November 2020
                                                  • Vending machines
                                                      • Figure 9: Hema Fresh medicine vending machine, September 2020
                                                    • Express kiosks
                                                      • Figure 10: Luckin self service kiosk, January 2020
                                                    • Smart IoT voice assistants
                                                      • Figure 11: Starbucks Tmall Genie smart speakers, September 2019
                                                    • Autonomous retail-delivery vehicles
                                                      • Figure 12: KFC self driving food truck, December 2020
                                                    • Phygital experiences
                                                      • Smart virtual trials
                                                        • Figure 13: Giorgio Armani AR lipstick trial on Wechat, July 2019
                                                      • Enhanced customisation with data
                                                        • Figure 14: Yili and Xiaomi AI customised recommendation for dairy products, November 2020
                                                      • Phygital life through digital entertainment
                                                        • Figure 15: Douyu and Taobao e-sports livestream for the 618 Shopping Festival, June 2020
                                                      • Reality retailing
                                                        • Figure 16: Wanda Moments Hotel with J.Zao by JD, August 2020
                                                    • Market Drivers

                                                      • AIoT drives expansion
                                                        • AR and VR enhance entertainment-oriented shopping experience
                                                          • 5G supports a digital population’s demand for instant gratification
                                                            • Retail in a shrinking urban space
                                                            • Opportunities and Challenges

                                                              • Creating consistent customer experience across various channel
                                                                • Boosting consumer confidence in smart retail
                                                                  • Creating platforms for customer engagement
                                                                  • Who’s Innovating?

                                                                    • Wanda Moments: A smart hotel by Wanda Hotels and J.Zao (by JD)
                                                                      • Figure 17: Wanda Moments Hotel with J.Zao by JD, August 2020
                                                                    • Tong Ren Tang reinvents traditional Chinese medicine (TCM)
                                                                      • Figure 18: Tong Ren Tang TCM New Retail Concept, July 2020
                                                                    • Lawson’s prefabricated convenience store
                                                                      • Figure 19: Lawson Prefabricated convenience store, July 2020
                                                                    • KFC’s 5G autonomous food trucks
                                                                      • Figure 20: KFC self driving food truck, December 2020
                                                                    • E-sports livestreams channels ‘shoptainment’ for Gen Z
                                                                      • Figure 21: Douyu and Taobao e-sports livestream for the 618 Shopping Festival, June 2020
                                                                  • The Consumer – What You Need to Know

                                                                    • Building an effective phygital omnichannel shopping experience
                                                                      • Exploring ‘high tech to high touch’ channel attributes
                                                                        • Engaging consumers through social media and ‘shoptainment’
                                                                          • Creating access, understanding and interest in new retail services
                                                                            • Growing unmanned services with human characteristics
                                                                              • Expanding omnichannel shopping experiences
                                                                              • Shopping Channels

                                                                                • Choice of purchase channels depends on the risk of error
                                                                                    • Figure 22: Research and purchase channels during shopping, October 2020
                                                                                  • Higher online traffic among females and families with kids for clothing and footwear
                                                                                    • Figure 23: Research and purchase channels for shopping clothing and footwear, by gender and family structure, October 2020
                                                                                  • Experienced beauty shoppers rely more on online channels
                                                                                      • Figure 24: Research and purchase channels for shopping beauty and personal care products, by gender and monthly personal income, October 2020
                                                                                    • Consumers warm up to online purchase of fresh groceries
                                                                                      • Figure 25: Research and purchase channels for shopping fresh groceries, by age and maritial status and city tier, October 2020
                                                                                    • Reliable information needed for buying OTC and health supplements
                                                                                      • Figure 26: Research and purchase channels for shopping OTC and health supplements, by generation and education, October 2020
                                                                                    • Tech-enabled opportunity to encourage online purchase of cars
                                                                                      • Figure 27: Ford and Tmall’s Super Test Drive Centre in Guangzhou, March 2018
                                                                                    • Omnichannel shopping supports emotional experiences
                                                                                      • Figure 28: Research and purchase channels for shopping home furniture and accessories, by generation, October 2020
                                                                                  • Attributes of Omnichannel Retailing

                                                                                    • Flexibility to choose shopping channels at own convenience
                                                                                      • Figure 29: Attributes of shopping in omnichannel retailing environment, October 2020
                                                                                    • Seamless transferability between online and offline channels
                                                                                      • Figure 30: Attributes of shopping in omnichannel retailing environment, by age, October 2020
                                                                                      • Figure 31: Attributes of shopping in omnichannel retailing environment, by family structure, October 2020
                                                                                    • Tech-enhanced shopping experience for fun and convenience
                                                                                      • Figure 32: Attributes of shopping in omnichannel retailing environment, by gender and age, October 2020
                                                                                    • Personalised value-added services for better shopping experience
                                                                                      • Figure 33: Attributes of shopping in omnichannel retailing environment, by family structure, October 2020
                                                                                  • Pre-purchase Information Channel

                                                                                    • Social shopping influences consumers’ purchase decisions
                                                                                        • Figure 34: Pre-purchase information channels, October 2020
                                                                                      • Interactive social platforms engage young consumers
                                                                                        • Figure 35: Pre-purchase information channels, by generation, October 2020
                                                                                      • Establish consumer confidence with close in-person interaction
                                                                                        • Figure 36: Pre-purchase information channels, by gender and age, October 2020
                                                                                      • Instill product interest in busy consumers during leisure activities
                                                                                        • Figure 37: Pre-purchase information channels, by monthly personal income, October 2020
                                                                                      • Close-knit lower tier cities consumers trust advertisements less
                                                                                          • Figure 38: Pre-purchase information channels, by city tier, October 2020
                                                                                      • Services in New Retail

                                                                                        • Most have not tried, but want to experience ‘new retail’
                                                                                          • Figure 39: Behaviours involving services in new retail, October 2020
                                                                                        • Unmanned retail solutions attract busy tech savvy consumers
                                                                                          • Figure 40: Selected behaviours involving services in new retail, by monthly personal income and family structure, October 2020
                                                                                        • Older consumers keen to experience unmanned services
                                                                                          • Figure 41: Selected behaviours involving services in new retail, by age, October 2020
                                                                                        • Incentives motivate consumers to take their first steps
                                                                                          • Figure 42: Selected behaviours involving services in new retail, by gender, October 2020
                                                                                          • Figure 43: Selected behaviours involving services in new retail, by age and monthly personal income, October 2020
                                                                                        • Value of customisation is not apparent to consumers
                                                                                          • Figure 43: Selected behaviours involving services in new retail, by gender and generation, October 2020
                                                                                        • Reception of innovative new retail services varies across city tiers
                                                                                          • Figure 44: Selected behaviours involving services in new retail, by city tier, October 2020
                                                                                      • Behaviours under Unmanned Economy

                                                                                        • Limited usage of unmanned services among surveyed consumer
                                                                                            • Figure 45: Behaviours under unmanned economy, October 2020
                                                                                          • Enhance unmanned services for heavy users
                                                                                            • Figure 46: Usage of unmanned cabinets, by age and gender, October 2020
                                                                                            • Figure 47: Shopping at unmanned convenience stores, by generation, October 2020
                                                                                          • Kid-friendly unmanned services for parents
                                                                                            • Figure 48: Behaviours under unmanned economy, by gender and age and family structure, October 2020
                                                                                          • Improve confidence in using unmanned services
                                                                                            • Figure 49: Behaviours under unmanned economy, by monthly household income and city tier, October 2020
                                                                                        • Attitudes towards Omnichannel Retailing

                                                                                          • Consumers’ favourable attitude can be enhanced
                                                                                            • Figure 50: Attitudes towards omnichannel retailing, October 2020
                                                                                          • Using data to enhance shopping experience
                                                                                            • Figure 51: Attitudes towards omnichannel retailing, by age and family structure, October 2020
                                                                                          • Generating additional value through customised services
                                                                                            • Figure 52: Attitudes towards paying more for customized products, by gender and generation, October 2020
                                                                                            • Figure 53: Attitudes towards waiting longer delivery of customized products, by monthly personal income and city tier, October 2020
                                                                                          • Creating convenient benchmarks for product value
                                                                                              • Figure 54: Attitudes towards omnichannel retailing, by generation and family structure, October 2020
                                                                                            • Sharing of personal product experience as a credible source
                                                                                              • Figure 55: Attitudes towards trusting customers’ reviews on retailer website, by age and monthly personal income, October 2020
                                                                                              • Figure 56: Attitudes towards omnichannel retailing, by family structure and education, October 2020
                                                                                          • Meet the Mintropolitans

                                                                                            • MinTs more likely to use omnichannel retailing, leaning towards online
                                                                                              • Figure 57: Research and purchase channels during shopping, by consumer classification, October 2020
                                                                                              • Figure 58: Research and purchase channels during shopping, by product category and consumer classification, October 2020
                                                                                            • Unique shopping experience is paramount to the MinTs
                                                                                              • Figure 59: Willingness to pay for unique shopping experience, by consumer classification, October 2020
                                                                                              • Figure 60: Interest in pop-up stores, by consumer classification, October 2020
                                                                                            • Tech-enhanced shopping brings convenience and fun to the MinTs
                                                                                              • Figure 61: Attitude towards high tech new retail services, by consumer classification, October 2020
                                                                                              • Figure 62: Attitude towards futuristic retail technologies, by consumer classification, October 2020
                                                                                            • The MinTs appreciate personalised products and services
                                                                                              • Figure 63: Attitude towards personalised services, by consumer classification, October 2020
                                                                                              • Figure 64: Willingness to pay and wait for customised products, by consumer classification, October 2020
                                                                                          • Appendix – Methodology and Abbreviations

                                                                                            • Methodology
                                                                                              • Abbreviations

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