While brick-and-mortar shops are racing each other to get ahead in the online market, it seems e-commerce shops are going in the reverse. The concept of new retail has been picking up speed in the US and China. Retail companies in Southeast Asia are now joining the chorus, by providing shoppers with not just products, but experience, too. CGTN's Miro Lu has more.

This may look like an ordinary grocery store, except you can't buy anything without an app on your phone. More and more, e-commerce companies around the world are headed in this New Retail direction. The main idea is to provide customers with a unique shopping experience that combines the best from both the physical and digital shopping worlds. Honestbee is a homegrown start-up, which began with providing users with personal shoppers who pick up and deliver groceries from traditional supermarkets to your doorsteps. It operates in a few countries including Singapore, Malaysia, Thailand, and the Philippines. In October, the online company took some of its business offline.

JOEL SNG, FOUNDER & CEO HONESTBEE "I think companies want to be able to reach out to their customers and customers live online and they live offline. We live in the physical world. I think it's the job of every company to be able to reach out and get to their customers across all channels."

This concept has taken off in other parts of the world: US e-commerce giant Amazon and Alibaba's chain of supermarkets in China are iconic examples. China leads the world in e-retail, with about 83 percent of its population shopping online. But while New Retail has gained momentum in the two giant economies, e-commerce chains in Southeast Asia are still finding their footing.

E-commerce in Asia Pacific accounted for 12.1 percent of retail sales between 2016 and 2017. Experts say that New Retail is a way for e-commerce companies to tap into the shopping that still happens offline.

CUSTOMER "We like the space because it's very spacious and we feel comfortable. There's a lot of new concept food as well, and a lot of merchandise we don't see in the regular supermarket. That's what makes me come back a second time."

CUSTOMER "I've used Honestbee online before for dry cleaning. It's my first time in an actual store and I guess because they have such a huge range as a digital company, when they translate to a retail space, they're able to offer a huge variety, which might be more difficult for a traditional supermarket."

Traditional stores are also dipping their toes in the New Retail pool. In November, property developer CapitaLand, which owns 19 shopping malls in Singapore, opened NomadX, a multi-label concept store offering a new blend of physical and digital experience, including smart mirrors, interactive product walls and cashless payment. CapitaLand's deputy managing director Chris Chong says 70 percent of their customers still prefer to shop in stores.

CHRIS CHONG, DEPUTY MD CAPITALAND "Online shopping has its advantages. However, brick and mortar will always have a role to play because shoppers would still like to come down and take a look at the new products; they want to touch, they want to feel, and they want to smell. These are things the online platform will not be able to offer."

MIRO LU SINGAPORE "While it seems this venture into New Retail in Southeast Asia is a shot in the dark, it is clear that both e-commerce and traditional vendors in the region are betting on it to succeed. Miro Lu, CGTN, Singapore."