Traditional retail business around the world is taking major hits from a slow economy and online shopping, but it seems the industry as a whole is rather optimistic about future growth.

This year’s World Retail Congress (WRC) was held in Dubai from April 4 to 6, and retailers gathered there to share opinions.

WRC Chairman Ian McGarrigle noted the threats from the digital age, but said he believed that physical space will continue to play a big part.

“On average... around the world, probably 90 percent of retail sales are done through physical space. So, you know, that will change, the proportion will change, but we can’t ignore that.”

The optimism might have been backed by a fast-expanding consumer market in Asia.

The Global Retail Sentiment Index published this week says almost one in five identified Asia as a driving force behind expansion, with India and China at the top of their lists.

And data firm e-marketer said China overtook the US in 2016 as the world’s biggest consumer market, worth around 4.9 trillion US dollars.

But, it’s also China where shopping habits are changing fast in response to the digital age.

People in China spent almost 900 billion US dollars on the Internet last year, almost half the total spent around the entire world.

And e-commerce companies say there is still plenty more room for growth in China.

“So far, our business is still concentrated in Tier 1, Tier 2, Tier 3 cities (major Chinese cities). And there’s tremendous opportunity in Tier 4, Tier 5 or even rural areas. So, what we need to do is make sure we build our brand awareness and recognition there,” said Laura Xiong, senior vice president of China’s online shopping website JD.COM.

China’s appetite for online shopping is expected to more than double by 2020, with similar predictions for the wider Asia-Pacific.

It’s a bit early to tell whether physical retail will be phased out, but the digital trend is definitely unstoppable.