Table of Contents
Executive Summary
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- The market
- Impact of COVID-19 on omnichannel retailing
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- 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
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- Figure 2: Research and purchase channels during shopping, October 2020
- Freedom to shop across channels at own convenience
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- Figure 3: Attributes of shopping in omnichannel retailing environment, October 2020
- Social media and ‘shoptainment’ influence purchase decisions
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- Figure 4: Pre-purchase information channels, October 2020
- High interest in new retail services despite low uptake
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- Figure 5: Behaviours involving services in new retail, October 2020
- The ‘person’ in retail is still important for now
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- Figure 6: Behaviours under unmanned economy, October 2020
- Favourable attitude towards omnichannel shopping
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- Figure 7: Attitudes towards omnichannel retailing, October 2020
- What we think
Issues and Insights
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- 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
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- 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
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- The unmanned economy
- Unmanned convenience stores
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- Figure 8: Self service payment at Bianlifeng Unmanned convenience store, November 2020
- Vending machines
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- Figure 9: Hema Fresh medicine vending machine, September 2020
- Express kiosks
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- Figure 10: Luckin self service kiosk, January 2020
- Smart IoT voice assistants
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- Figure 11: Starbucks Tmall Genie smart speakers, September 2019
- Autonomous retail-delivery vehicles
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- Figure 12: KFC self driving food truck, December 2020
- Phygital experiences
- Smart virtual trials
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- Figure 13: Giorgio Armani AR lipstick trial on Wechat, July 2019
- Enhanced customisation with data
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- Figure 14: Yili and Xiaomi AI customised recommendation for dairy products, November 2020
- Phygital life through digital entertainment
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- Figure 15: Douyu and Taobao e-sports livestream for the 618 Shopping Festival, June 2020
- Reality retailing
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- Figure 16: Wanda Moments Hotel with J.Zao by JD, August 2020
Market Drivers
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- 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
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- Creating consistent customer experience across various channel
- Boosting consumer confidence in smart retail
- Creating platforms for customer engagement
Who’s Innovating?
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- Wanda Moments: A smart hotel by Wanda Hotels and J.Zao (by JD)
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- Figure 17: Wanda Moments Hotel with J.Zao by JD, August 2020
- Tong Ren Tang reinvents traditional Chinese medicine (TCM)
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- Figure 18: Tong Ren Tang TCM New Retail Concept, July 2020
- Lawson’s prefabricated convenience store
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- Figure 19: Lawson Prefabricated convenience store, July 2020
- KFC’s 5G autonomous food trucks
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- Figure 20: KFC self driving food truck, December 2020
- E-sports livestreams channels ‘shoptainment’ for Gen Z
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- Figure 21: Douyu and Taobao e-sports livestream for the 618 Shopping Festival, June 2020
The Consumer – What You Need to Know
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- 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
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- Choice of purchase channels depends on the risk of error
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- Figure 22: Research and purchase channels during shopping, October 2020
- Higher online traffic among females and families with kids for clothing and footwear
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- 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
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- 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
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- 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
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- 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
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- Figure 27: Ford and Tmall’s Super Test Drive Centre in Guangzhou, March 2018
- Omnichannel shopping supports emotional experiences
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- Figure 28: Research and purchase channels for shopping home furniture and accessories, by generation, October 2020
Attributes of Omnichannel Retailing
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- Flexibility to choose shopping channels at own convenience
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- Figure 29: Attributes of shopping in omnichannel retailing environment, October 2020
- Seamless transferability between online and offline channels
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- Figure 30: Attributes of shopping in omnichannel retailing environment, by age, October 2020
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- Figure 31: Attributes of shopping in omnichannel retailing environment, by family structure, October 2020
- Tech-enhanced shopping experience for fun and convenience
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- Figure 32: Attributes of shopping in omnichannel retailing environment, by gender and age, October 2020
- Personalised value-added services for better shopping experience
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- Figure 33: Attributes of shopping in omnichannel retailing environment, by family structure, October 2020
Pre-purchase Information Channel
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- Social shopping influences consumers’ purchase decisions
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- Figure 34: Pre-purchase information channels, October 2020
- Interactive social platforms engage young consumers
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- Figure 35: Pre-purchase information channels, by generation, October 2020
- Establish consumer confidence with close in-person interaction
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- Figure 36: Pre-purchase information channels, by gender and age, October 2020
- Instill product interest in busy consumers during leisure activities
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- Figure 37: Pre-purchase information channels, by monthly personal income, October 2020
- Close-knit lower tier cities consumers trust advertisements less
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- Figure 38: Pre-purchase information channels, by city tier, October 2020
Services in New Retail
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- Most have not tried, but want to experience ‘new retail’
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- Figure 39: Behaviours involving services in new retail, October 2020
- Unmanned retail solutions attract busy tech savvy consumers
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- 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
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- Figure 41: Selected behaviours involving services in new retail, by age, October 2020
- Incentives motivate consumers to take their first steps
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- Figure 42: Selected behaviours involving services in new retail, by gender, October 2020
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- 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
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- 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
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- Figure 44: Selected behaviours involving services in new retail, by city tier, October 2020
Behaviours under Unmanned Economy
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- Limited usage of unmanned services among surveyed consumer
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- Figure 45: Behaviours under unmanned economy, October 2020
- Enhance unmanned services for heavy users
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- Figure 46: Usage of unmanned cabinets, by age and gender, October 2020
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- Figure 47: Shopping at unmanned convenience stores, by generation, October 2020
- Kid-friendly unmanned services for parents
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- Figure 48: Behaviours under unmanned economy, by gender and age and family structure, October 2020
- Improve confidence in using unmanned services
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- Figure 49: Behaviours under unmanned economy, by monthly household income and city tier, October 2020
Attitudes towards Omnichannel Retailing
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- Consumers’ favourable attitude can be enhanced
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- Figure 50: Attitudes towards omnichannel retailing, October 2020
- Using data to enhance shopping experience
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- Figure 51: Attitudes towards omnichannel retailing, by age and family structure, October 2020
- Generating additional value through customised services
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- Figure 52: Attitudes towards paying more for customized products, by gender and generation, October 2020
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- 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
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- Figure 54: Attitudes towards omnichannel retailing, by generation and family structure, October 2020
- Sharing of personal product experience as a credible source
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- Figure 55: Attitudes towards trusting customers’ reviews on retailer website, by age and monthly personal income, October 2020
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- Figure 56: Attitudes towards omnichannel retailing, by family structure and education, October 2020
Meet the Mintropolitans
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- MinTs more likely to use omnichannel retailing, leaning towards online
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- Figure 57: Research and purchase channels during shopping, by consumer classification, October 2020
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- Figure 58: Research and purchase channels during shopping, by product category and consumer classification, October 2020
- Unique shopping experience is paramount to the MinTs
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- 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
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- Figure 61: Attitude towards high tech new retail services, by consumer classification, October 2020
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- Figure 62: Attitude towards futuristic retail technologies, by consumer classification, October 2020
- The MinTs appreciate personalised products and services
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- Figure 63: Attitude towards personalised services, by consumer classification, October 2020
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- Figure 64: Willingness to pay and wait for customised products, by consumer classification, October 2020
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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