Aug 10, 2017
James visits Beijing to learn more about China retail.
He meets up with the JLL Beijing Retail Research team: Steven
McCord, Sam Zheng, Lesley Chai, Ming Ji and Linda Yu.
They check out a smart-phone-operated vending machine.
Sam Zheng says that most of his meals are ordered online
through O2O, but he doesn't buy luxury items online for fear of
counterfit goods. He also gets his laundry done on O2O, which
delivers haircuts, food delivery, nail polishing and more.
Steven McCord says that Beijing online sales account for 20%
of retail sales. In the past year that percentage
has plateaued All the people who will shop online
are doing it now. We may be on the cusp of a backlash away
from online. People want to get back to shopping malls for the
social elements that they offer. Labor costs are rising in
China and last-mile delivery of ecommerce is going to get more
Ming Ji goes to shopping centers for fun, food and desserts.
She buys most of her daily goods, even fresh fruit, online.
Older generations still want to go to shopping centers and
outlet stores to buy cloths. Shopping centers are very family
oriented and full of kids. Price matters, so Ming would likely not
shop as much online if delivery costs became more expensive.
Linda Yu pays for most things with her phone. She jokes
that if you forget your wallet, it's no problem if you still have
your phone. Alipay and Wechat pay are two of the most popular
digital wallet apps in China.
Lesley Chai has seen a popularity in VR kiosks in China.
Players pay less then ten dollars to play VR video games for
30 minutes. This is popular for people waiting for movies
Beijing SKP is the mall with the highest sales in the
country: $1.4 billion USD annually. Wanfujing is China's most
famous shopping street.
Links mentioned in the show:
is the director of retail research in the
Americas for JLL.