This article is adapted from China Playbook, our subscription-based strategy hub for decision-makers navigating China’s ever-shifting consumer landscape.
In a country where nearly everyone is an avid internet user and ecommerce has become second nature, how does offline retail in China continue to evolve to meet ever-shifting consumer expectations?
“New retail” — a concept driven by Alibaba to integrate online and offline experiences through big data and emerging technologies like AI — was once hailed as the future of commerce in China. But does it truly work for every brand? And how should new entrants or repositioning brands make the right retail decisions in this complex market?
Below is a short clip from our 10-minute in-depth discussion with Robin Trebbe, Hot Pot China advisory board member and former VP of Adidas China, on China’s retail transformation and how brands can stay ahead.
Online and Offline: Connected, Yet Distinct
According to Robin, success in China requires a consistent brand strategy across channels — but with distinct optimisation for each.
“You need to play, especially in China, differently offline and online. The experience must be different. The pricing might be different for certain products and even within the different online channels, you might have different products and pricing positioning”, he says. “Make sure you do online right, you do offline right, and then, where possible, try to connect it as good as possible.”
While online shopping continues to dominate for convenience and price discovery, physical retail spaces are becoming increasingly important as brand builders.
Retail as a Brand-Building Platform
With store traffic slowing, physical locations must evolve beyond transactional purposes. Robin points out that stores should now serve as community and experience hubs — spaces that bring the brand’s world to life.
“You need to really find the right location and then create this as an experience for the consumer, a community place,” he explains.
Location plays a critical role in achieving this. Rather than opting for the most expensive malls or commercial districts, brands should align store placement with identity and audience.
“If you are a running brand, it [should be] close to a park or maybe to a river where you can run. It might be, if you're a bike brand, next to a great cycling track. If you have a food store, it might be close to where people go out and hang out on the weekend,” Robin adds.
New Opportunities in a Challenging Landscape
Despite ongoing retail headwinds, China remains a fertile ground for physical retail growth. For both new brands and those repositioning themselves, success lies in crafting unique, community-driven experiences that extend beyond the point of sale.
As Robin puts it, "Physical retail is very important and will hopefully always be a place to meet, but it will have a different role in the future to play."
In short, the evolution of China’s retail landscape isn’t about online versus offline. It’s about how the two work together to build stronger, more authentic brand relationships.
Are you ready to unlock your unfair advantage in China?
This article is adapted from our subscription-based strategy hub, China Playbook. Watch the full video here, or click the button below to subscribe for free updates.
Cover image via Unsplash