In 'new era', hyperlocal retail to be future, finds Bain study
Hyperlocal retail－location-based omnichannel sales of goods－is set to become brands' new battleground to win and retain customers over the next decade, said global consultancy Bain & Co.
With e-commerce penetration rates already high in large parts of China, the retail game has evolved from one of acquisition of customers to one of winning the share of consumer spending, according to the Hyperlocal Retail Brand Growth White Paper that Bain released with Alibaba Group.
"With growth of new customers slowing down, we are entering a new era competing for customer loyalty," said Jonathan Cheng, a Bain partner and head of retail practice in China. "Hyperlocal now becomes so important because it is building a much closer relationship with people where they are."
Cheng said the country's retail landscape has experienced three phases: the transition from traditional mom-and-pop stores to hypermarket chains between 2000 to 2010; the massive digitalization leapfrog from 2010 to 2020; and the ongoing rivalry for customer loyalty, characterized largely by the rise of hyperlocal retail, which includes the popularization of proximity e-commerce and online-to-offline sales.
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