Old Version

New Retailing Fuels Consumption Upgrade

Retailers should pay attention to younger generations, as they are fueling the consumption sector, says expert

By Zhang Qingchen Updated Oct.12

Consumption is one of the mainstays of economic growth, and in the first half of the year, the consumption sector contributed 78.5 percent to the country’s economy, according to the Ministry of Commerce.

New retailing that relies on the internet and makes the most of big data, artificial intelligence (AI) or other advanced technologies to transform and upgrade production, logistics and sales is pushing a consumption upgrade that means consumers can have various shopping experiences online and offline. This smart shopping means they tend to purchase high-quality products, Pan Helin, an economist at the Chinese Academy of Fiscal Sciences, commented in the Guangming Daily.  

New retailing brings experience-based consumption, which combines online and offline business. For instance, Alibaba's Hema Fresh brick-and-mortar stores allow people to shop in store, but they also deliver door-to-door in a three-kilometer radius within 30 minutes.  

More people are buying high-end electric appliances on e-commerce platforms, but traditional retailers are also using new techniques such as payment via facial recognition, which improves the shopping experience.

Pan said consumers born after the 1980s and 90s are becoming the backbone of the consumption sector. Thus, new retailing should pay more attention to this group’s shopping needs.