Jason Yu: “The new retail is a new reality for brands”
In this Perspectives video Jason Yu, Managing Director Greater China, talks about the FMCG sector in China and the rise of “new retail” in the region.
Online commerce is still developing solidly in the region:
“E-commerce in China continued to report very strong growth in 2017 across all regions and all city tiers”.
Besides this continuous expansion, the region also witnessed the evolution of new retail which, as Jason Yu explains, is basically “the integration of the online and offline worlds”, and adds:
“That means that online retailers are now increasingly moving to the offline world.”
Our Managing Director for Greater China is categorical when asked about the role of this new retail in driving FMCG performance in the region:
“Definitely. In 2017 we saw that not only brick-and-mortar stores are showing recovery but also e-commerce continued to show very strong growth. And all e-commerce players are helping or empowering the brick-and-mortar retailers to actually regain their business.”
How can brands leverage the new retail to drive business growth? This new retail is a new reality for brands:
“We are seeing that many big FMCG brands are increasingly embracing this new reality by working very closely with their online business partners like Alibaba and Tencent, and also with offline retailers, to create a coherent costumer experience.”
As a conclusion, he states that brands “will actually have to drive an online-offline integration in this increasingly competitive world.”