Summary of Which Areas of China’s Retail Industry Are Worth Your Attention?

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China’s 2019 New Retail Impact Summit took place in Shanghai in April. Wei Zhe, founder of venture capital fund Vision Knight Capital, gave a keynote speech titled “New Retail: Reshaping the Commercial Structure.” He offered insights into the trending industry concept “new retail,” which demographics to pay attention to, and which areas retail companies need to improve to succeed. Despite a couple of points that could do with a more in-depth explanation – possibly due to the time limit of the occasion – his speech provides practical information on how to navigate the complex landscape of China’s retail industry.

About the Author

Wei Zhe is the founder of Vision Knight Capital, a venture capital fund. 

 

Summary

To be successful in retail you need to know who your target customers are: Who will buy your product and how can you reach that segment of the market? And to prosper in “new retail​​​” – which means integrating your online and offline businesses for a cohesive shopping experience – you should pay attention to three subsets of the market:

  1. Young people born in or after 1995 – The first cohort of this generation graduated from college in 2018 and will now have income to spend. This group is akin to America’s baby boomers who also grew up in a period of increasing affluence. As a result of China’s one-child policy, they have no siblings. Unlike previous generations, they won’t settle for products that are merely easy-to-use or function well: They’re looking for products that offer entertainment value on top of functionality.
  2. Re-emerging two-child families

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