Retail finds boom agent in Shanghai
Shanghai has the world's largest concentration of major global retailers after Dubai, providing a solid foundation for the metropolitan city to fulfill a key government initiative known as the "Shanghai Shopping" brand.
The metropolitan city has recruited 55.3 percent of the world's retailers doing business locally for the initiative, trailing Dubai's 62 percent for a similar campaign, said Vice-Mayor Xu Kunlin during the China International Retail Innovation Summit held in April.
Last year, more than 3,000 owners of brands and products chose Shanghai to introduce their new products and services for the first time. And 835 stores made their debut in the metropolis, accounting for roughly half of the nation's total.
The city's retail sales, which ranked first in the country at 1.2 trillion yuan ($174.8 billion) last year, are set to grow 8 percent this year, according to the Shanghai Municipal Commission of Commerce.
Massimo Volpe, chairman of the Federation of International Retail Associations, said that China has made great achievements in retail innovation, especially on the front of mobile payments and New Retail.
New Retail refers to the integration, or interlinking, of online and offline shopping using modern technologies, data and customer engagement techniques.
It is a faddish term coined in 2016 by Alibaba's charismatic founder Jack Ma. In his words, New Retail is making the distinction between physical and virtual commerce obsolete.
Retail giant Alibaba has set up its Tmall Innovation Center in Shanghai with the hope that the in-house product co-creation unit, with the aid of big data analysis, stands to help brands come up with merchandise that are better welcomed and appreciated by consumers.
"Helping merchants with new product launches to drive further sales growth is among our top priorities in 2019," said Jing Jie, assistant to Alibaba CEO Daniel Zhang.
The platform is looking to use its data insights for new product launches and expects to provide support for 100 new products with annual transactions of 100 million yuan this year.
Consumers are continuing to seek niche products as a reflection of individual tastes and desire for products of higher quality.
Last year, Shanghai residents topped domestic cities in terms of spending on new products, reaching 3.9 times the nationwide average level. Digital gadgets, apparel, beauty and personal care products and home decoration items are among the top-selling new offerings, according to Tmall data.
The 2nd China International Import Expo, to be held in Shanghai later this year, will serve as another catalyst for new retail experiences.
In light of the growing Chinese economy and the ongoing consumption upgrade, the CIIE will showcase high-end consumer products, augmented reality and virtual reality merchandise, elderly care goods. Additional outdoor space will be offered to automobile and mechanical equipment displays.
New products, technologies and services will be launched through a new unified channel this year, making the CIIE the premiere stage for unveiling cutting-edge technologies and applications, said Liu Fuxue, deputy director of the CIIE Bureau.
Cosmetics giant L'Oreal is planning to offer online-to-offline interactions during this year's CIIE, in a bid to explore new ways to "satisfy people's purchasing impulse as they visit the show", said Lan Zhenzhen, vice-president of L'Oreal China.
"We also plan to introduce products and ideas featuring (a good) lifestyle," said Lan. "As consumption forms the backbone of China's economic development, it is our growing responsibility and mission to impact our consumers in a positive way."
