Asia, home to over 4.5 billion people, is the largest retail market and offers extensive opportunities for brick-and-mortar and online retailers. The Chinese market, in particular, is experiencing unprecedented growth driven by the region's vast population and increasing urbanisation pressures. This has led to an influx of new brands and businesses, driving up property prices and the need for efficient use of space while promising new opportunities.
The 'new retail' concept is revolutionising Asian consumer experiences, driven by digital transformation. With logistical challenges, 'new retail' seeks to address the needs of the changing APAC consumer.
Chinese ecommerce giants Alibaba and JD.com have integrated online and offline shopping experiences to commit to expanding 'new retail' throughout the region. This pushes fundamental retail outlets, like Chinese Supermarkets, to respond to these changes.
Chinese consumers are shopping widely globally with a significant focus on Asia-Pacific. Alibaba had 2.32 billion transactions from 60,000 overseas buyers during Single's Day in 2020.
Integrating technology in retail ranges from scanning cashless payments to influencing consumer habits via loyalty apps and promotions. Mintel's research shows that consumers in Indonesia and Thailand increasingly use smartphones for various services, such as food ordering and online grocery shopping.
Businesses are advised to adapt to the changing industry and engage with beneficial technologies, known as Retailtainment.
Famous fast food brand KFC embraced retailtainment, creating a Colonel Sanders game character in a mobile game. Menu items also appeared in the game, allowing players to interact with their brand.
This is a prime example of how the growing Asian market promises new opportunities to retailers willing to leverage technology to their advantage.
