Vibrant Chinese Market: New retail tries to increase high-quality consumption

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In this age of e-commerce, buying online has become the norm. But some customers miss the in-store shopping experience. CGTN's Sun Tianyuan visited a seafood grocer owned by ALIBABA. It combines the store feel with the advantages of finding products online.

Hema Fresh stores actively attracts online shoppers back from the digital world. On weekends, a store like this in Beijing receives over 10,000 customers per day.

MU SHENGYANG, COO HEMA FRESH (BEIJING) "You see what you buy, both at the physical stores and on Hema's application. We provide convenient services both online and offline for consumers."

In two years since the concept of new retail was introduced, Hema has 90 stores in 16 cities. Experts say it's a game-changer.

DR. XU HONGCAI, DEPUTY CHIEF ECONOMIST CHINA CENTER FOR INT'L ECONOMIC EXCHANGES "New retail has greatly reduced costs in general and improved efficiency by linking production, distribution and consumption together as a trio. It has also satisfied consumers' need for high quality services."

SUN TIANYUAN BEIJING "New retail has redefined commerce via a seamless connection and combination of online and offline markets. And it is using technology and logistics to push Chinese consumption to a whole new level."

Combining modern logistics with big data, the stores can deliver products to consumers in under 30 minutes.

DR. XU HONGCAI, DEPUTY CHIEF ECONOMIST CHINA CENTER FOR INT'L ECONOMIC EXCHANGES "It's a stage of consumption upgrading. As disposable incomes grow, spending power rises. And there's a growing demand for high quality products and services."

Seafood is one of Hema's signature products. The stores provide everything from Canadian lobster to Fujian yellow fish. All are fresh out of the water, shipped and arrived within 24 hours.

MU SHENGYANG, COO HEMA FRESH (BEIJING) "Some seafood like Russian king crab is quite exotic to consumers. In case they don't know how to cook it, we also provide cooking services at the store."

Including seafood, the store has about 7,000 types of products in stock.

Half are imported. So for the company, this year's China International Import Expo is a huge event.

DR. XU HONGCAI, DEPUTY CHIEF ECONOMIST CHINA CENTER FOR INT'L ECONOMIC EXCHANGES "As China further opens up its market for foreign companies to share the dividends of its development, Chinese consumers and companies can also benefit from more choices of overseas products and services."

While China is transitioning from a big manufacturer into a great consumer, new retail is expected to lead the world's biggest market, and provide more opportunities worldwide. Sun Tianyuan, CGTN.