Table of Contents
Executive Summary
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- Market overview
- Who’s innovating
- The consumer
- Most surveyed consumers have not tried New Retail formats but show intense interest
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- Figure 1: Interest and trial of New Retail formats
- Unmanned stores show strong promise in lower tier cities
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- Figure 2: Interest in unmanned stores, by city tier
- Overtime meal occasions are best fit for self-heating vending machines
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- Figure 3: interest and trial of meal vending machines, by employment
- Married consumers with kids are loyal customers of mini karaoke booths
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- Figure 4: Interest and trial of mini karaoke visits, by family structure
- Convenience in beauty is growing
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- Figure 5: Interest and trial of self-service makeup room, by gender and age
- Mini workout pods are about excising in your own time
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- Figure 6: Interest and trial of micro workout pod, by city tier
- Innovative retailing is an extension of experiential retail
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- Figure 7: Triggers to shop at New Retail channels
- Understanding what consumers want is key for New Retail formats
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- Figure 8: Barriers to New Retail channels
- Self-checkouts and self-ordering are new norms
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- Figure 9: Interest and trial of New Retail services
- New experiences grab consumer eyeballs
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- Figure 10: Reasons to visit pop-ups
- Product recommendation by smart device is gaining popularity
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- Figure 11: Attitude towards product recommendation, by generation
- Familiarity is not that meaningful for young consumers
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- Figure 12: Attitude towards familiarity
- What we think
Issues and Insights
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- Unmanned stores are not a ‘pull’ product
- The facts
- The implications
- Pop-up stores are in
- The facts
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- Figure 13: YSL Beauty Club on The Bund
- The implications
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- Figure 14: TISSOT bus for 5.20
- Vending machines are good for diversified submarkets
- The facts
- The implications
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- Figure 15: Farmers Fridge in downtown Chicago
The Market – What You Need to Know
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- Market overview
- Market drivers and challenges
- Who’s innovating
Market Overview
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- Unmanned stores – Need to better understand consumer behaviour and needs
- Community-based unmanned stores
- Full-service unmanned stores
- Fresh food and drink unmanned stores
- Vending machines – Great potential for cost-effective solution to reach customers
- Mini karaoke booths – Popular new entertainment
- Self-service makeup rooms – Sanitation is a key concern
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- Figure 16: Interior of seventeen beauties
- Micro gyms – A community-oriented social space
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- Figure 17: Pure Run mini workout pod
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- Figure 18: Park Box in a high-end residential community
- Figure 19: Supermonkey warehouse gym
- Mystery boxes – Driven by curiosity
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- Figure 20: Mr. Wish mystery box vending machine
- Pop-up stores are powerful sales and marketing tools
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- Figure 21: Mojosh’s pop-up event at Jiuguang department store
- Figure 22: Nutella’s pop-up event in Hong Kong
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- Figure 23: Prada’s exclusive bar
- Figure 24: CoCo game center
Market Drivers
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- IoT ecosystem in China is pushing for retail revolution
- AI and consumer data are shaking up retail
- Real estate industry is looking for next growth opportunity
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- Figure 25: Self service area at metro station
- Government support for New Retail formats
Challenges
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- Consumer-centric experience is king
- Barrier to entry is on the higher end
Who’s Innovating?
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- Just temporarily exclusives
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- Figure 26: Burberry tram cruising the streets of Hong Kong
- Figure 27: Weddings day for singles
- Mixing & matching is an interactive advertising tool to drive traffic
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- Figure 28: Pop Mart vending machine at a shopping mall
- Figure 29: Pop Mart’s physical store near a public university in Shanghai
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- Figure 30: Vita water station in Hong Kong
The Consumer – What You Need to Know
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- Unmanned stores are still very new to customers
- Management and self-employed are active users of meal vending machines with heating systems
- Mystery boxes are kids’ favourite
- Married with kids are loyal customers of mini karaoke booths
- Convenience in beauty is growing
- Micro workout pods are about excising in your own time
Innovative Formats
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- Unmanned stores
- Most surveyed consumers have not tried New Retail formats but show huge interest
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- Figure 31: Interest and trial of New Retail formats
- Unmanned stores show strong promise in lower tier cities
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- Figure 32: Interest in unmanned stores, by city tier
- Unmanned stores can be futuristic and retro at the same time
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- Figure 33: Interest and trial of unmanned stores, by generation
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- Figure 34: Interest and trial of unmanned stores in tier one cities, by generation
- Kids can be a deciding factor
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- Figure 35: Interest and trial of unmanned stores, by children in household
- Meal vending machines with heating systems
- Overtime work meals are best fit for self-heating vending machines
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- Figure 36: Interest and trial of meal vending machines, by employment
- Mystery/lucky box vending machines
- Mystery boxes are designed for curiosity seekers
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- Figure 37: Interest and trial of mystery/lucky box vending machine, by family structure
- Mini karaoke pods
- Married consumers with kids are loyal customers of mini karaoke booths
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- Figure 38: Interest and trial of mini karaoke visits, by family structure
- Self-service makeup touch-up vending machines
- Convenience in beauty is growing
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- Figure 39: Marie Dalgar’s collaboration with Tmall
- Figure 40: Interest and trial of self-service makeup room, by gender and age
- Micro workout pods
- Micro gyms are about excising in your own time
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- Figure 41: Interest and trial of workout pod, by household income
- Lower tier city residents are fond of community
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- Figure 42: Interest and trial of micro workout pod, by city tier
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- Figure 43: Interest and trial of mini workout pod, by children in the household
Consumer Motivations
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- Innovative retailing is an extension of experiential retail
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- Figure 44: Triggers to shop at New Retail channels
- Entertainment and trendiness are two game changers in lower tier cities
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- Figure 45: Reasons to shop at New Retail channels
- Understanding what consumers want is the key for New Retail formats
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- Figure 46: Barriers to New Retail channels
- Lower tier city citizens are more practical
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- Figure 47: Barriers to New Retail channels, by city tier
New Retail Services
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- Self-checkouts and self-ordering are new norms
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- Figure 48: Interest and trial of New Retail services
- Lower tier cities are more open to self-checkouts and self-ordering
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- Figure 49: Interest and trial of self-checkout, by city tier
- Families with children open to self-ordering
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- Figure 50: Interest and trial of self-order, by family structure
- Virtual product trials a trend in the making
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- Figure 51: Interest and trial of virtual trial of products, by gender and age
- Gender plays an important role when it comes to product recommendation
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- Figure 52: Interest and trial of product recommendations by smart devices, gender and age
Pop-up Stores
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- New experiences grab consumer eyeballs
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- Figure 53: LV pop-up
- Exclusivity, familiar brand and attractiveness are three pillars
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- Figure 54: Zhihu pop-up
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- Figure 55: Reasons to visit pop-ups
- Social media is the information channel
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- Figure 56: Silk Mix Beijing Stage
- Figure 57: Silk Mix Online Program
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- Figure 58: Silk Mix pop-up event
- City tier plays a role in pop-up formats
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- Figure 59: Reasons to visit pop-up stores, by city tier
Consumer Attitudes
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- Self-service represent efficiency and convenience
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- Figure 60: Attitude towards self-service
- Product recommendations by smart devices gaining popularity
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- Figure 61: Attitude towards product recommendation
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- Figure 62: Attitude towards product recommendation, by generation
- Familiarity is not that meaningful for young consumers
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- Figure 63: Attitude towards familiarity
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- Figure 64: Attitude towards privacy, by age
- Singletons and couples seek new experiences while families look for the safe option
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- Figure 65: Attitude towards peer review
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- Figure 66: attitude towards peer review, by family structure
Meet the Mintropolitans
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- Shopping futurists
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- Figure 67: Attitude towards product recommendation, by consumer classification
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- Figure 68: Attitude towards self-service, by consumer classification
- Figure 69: Attitude towards peer review, by consumer classification
- They are an open minded bunch
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- Figure 70: Attitude towards price, by consumer classification
- Figure 71: Pop-up stores participation, by consumer classification
Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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