Bain and Alibaba: The Future of Chinese Retail Is Hyperlocal

Bain and Alibaba: The Future of Chinese Retail Is Hyperlocal

Visitors and shoppers walk through Shui On Group’s in Shanghai, China. Getty Images.

A new white paper released by the consultancy and Chinese retail giant stresses that brands must invest in omnichannel, location-based services to cultivate customer loyalty, China Daily reports.

Where the Chinese market became accustomed to e-commerce in various forms over the decade between 2010 and 2020, customer acquisition rates have since slowed, making it all the more important for brands and retailers to build long-term relationships with existing shoppers to stand out in a crowded, more democratised online ecosystem.

To do this, businesses need to tailor strategies to specific target groups (for example, beauty-obsessed shoppers) according to their consumer journeys, which will differ according to their age and location.

“There is often this misperception that it is critical to raise brand penetration in order to beef up sales. But our research suggests that it is frequency and spending per purchase that really make a difference in sales, and both of these gauges are reflective of brand loyalty,” Jonathan Cheng, a Bain partner and head of retail practice in China, told China Daily.

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