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Southeast Asia isn’t ready for China’s ‘new retail’

14 9 10

TWO years ago, Alibaba founder Jack Ma unveiled his vision of “new retail” – a merger between online and offline retail, as well as logistics.

Today, many so-called “traditional retail” stores – including mom and pop stores – are adopting this model.

However, experts believe that while the “new retail” model is popular in China, it might prove to be a hard sell for retailers outside the country.

What is “new retail”?

Until today, more than 70 percent of retail in China still happens offline, according to Statista. Aiming to bridge the gap between offline and online, Jack Ma’s vision of new retail is broken down into four parts.

Firstly, it’s transforming the grocery shopping experience. Not unlike Amazon’s efforts with Amazon Go, customers scan and pay items with their phone.

A slight difference from its western counterpart, though, is the in-store chefs that cook a shopper’s groceries on demand, and deliveries that are made in under half an hour from its initial order.

Amazon Go employee Mari Avellaneda stocks shelves using a mobile device at the Amazon Go store, on January 22, 2018 in Seattle, Washington. After more than a year in beta Amazon opened the cashier-less store to the public. Source: Stephen Brashear/Getty Images/AFP

Another example is the automobile vending machines, where users can choose and test drive the cars they........

© Asian Correspondent