Entity Business Development in China

By this time let us understand and analyse about development of entity business in China. Perhaps the most of readers seldom know about Asia. So as narration and analysis are necessary.


Among the 2,700 typical retail enterprises monitored by the Ministry of Commerce of China, entity retail sales in 2017 grew by 4.6% year on year, 3 percentage points faster than the same period in 2016; operating profit grew by 8.0% year on year, 6.5 percentage points faster than the same period in 2016; total profits grew by 7.1% year on year, 11 percentage points faster than the same period in 2016. Among them, specialty stores, supermarkets and department stores show a trend of rapid growth. At the same time, China’s online retail sales in 2017 exceeded 7.2 trillion Yuan, an increase of 32.2% year on year, achieving a good six-year growth rate.


The high growth of retail sales represents more and more new things in entity business. For this reason, entity business in 2017 is the year of giant competition and the explosion of new things, “marriage” (merging and acquisition), “online and offline” and “new experience” has become the key words. It embodies three aspects below,

Giants Alibaba and Tencent

In 2017, Alibaba and Tencent respectively set foot in the physical market at different levels. Alibaba entered furniture stores, life services, super-fast sales, Department stores, home appliance digital industries as including EasyHome, ELE.Me, Centurymarket, Sanjiang.com, Yiguo.com, SuNing.com, BL.com and other brands.


Tencent has also entered the life service, clothing business, merchants, online e-commerce industry including Meituan.com, Wanda Group, HLA, Yonghui SuperStores, Carrefour, Liqun Group, Missfresh.cn, JD.com and other representing brands. Meanwhile, JD.com announced in 2018 that the first offline store called “unbounded retail” will be located in the Shanghai Free Trade Zone, and joined more than 100 old brands to establish the “China old brand Internet unbounded retail alliance”.

New Type Retail Supermarket and Unmanned Retail

As we all know, the battle between Alibaba and Tencent is not over yet, and many new type retail supermarkets have opened the road to competition. The representing brands are 7Fresh, RISO and so on. They are new retail supermarkets because they have subverted the traditional business model and consumer behavior, through the Internet, data and technology capabilities, fresh + catering + merchandise retail + take-out + O2O combination model, improving retail efficiency and upgrading shopping experience.


Integration of Online and Offline

According to statistics, in 2017, more than 600 brands of furniture Tmall new retails, With the empowerment of data and technology, the annual sales volume of some brands has increased by more than 80%. At the same time, there are endless cases of online brands moving to offline entities such as YO!HO, Everlane, Hammer technology and so on.



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