China's eCommerce Market Shifts Focus to Offline Channels

Omnichannel Retail in China: Key Insights 

• Adopting Hybrid Models: As China’s eCommerce sector matures, retailers are increasingly blending online and physical channels to sustain growth and meet evolving consumer expectations in the post-pandemic era.

• Livestreamers Shift to Physical Retail: Facing stagnation in the eCommerce space, livestreamers are moving into offline ventures, with many exploring the supermarket sector to diversify and fuel business expansion.

• Expanding Offline Presence: JD.com is bolstering its offline footprint by launching new stores such as 7Fresh and Huaguan Discount Supermarket, focusing on integrating eCommerce efficiency with traditional in-store experiences and fast delivery options.

As China's eCommerce market matures, retailers are increasingly exploring offline channels to sustain growth, with livestreaming giants and major platforms leading the charge. 

Following the pandemic, brick-and-mortar retail has struggled to recover, with half of the top 20 supermarkets seeing declines in both sales and store numbers, while more than half of the top 100 have reported reduced revenue in 2023. 

Livestreamers Promote Offline Channels 

The stagnation in eCommerce, especially in livestream-led social commerce, has also prompted changes. High-profile controversies involving “super livestreamers” like Li Jiaqi, Dong Yuhui, and “Crazy” Little Brother Yang have led some streamers to diversify their businesses.

Xinba, a top livestreamer, shifted his focus from online sales to the offline supermarket space, launching X-Market in Guangzhou. His recent visit to Henan’s well-known Pangdonglai supermarket suggests further interest in learning from traditional retail giants. 

Omnichannel Gaining Ground 

eCommerce platforms are following suit. JD.com, after selling its Yonghui shares to MINISO, has been expanding its offline presence with new store openings, including 7Fresh in Shanghai and Huaguan Discount Supermarket in Beijing.

The company’s strategy hinges on an online-offline omnichannel model that prioritizes instant delivery, blending eCommerce convenience with the physical store experience.

Omnichannel Retail in China:
Closing Thoughts 

The pandemic accelerated the shift toward eCommerce, but it also revealed the limitations of purely online retail. As consumer habits normalize, the future will likely see a hybrid approach, with omnichannel models dominating the sector. 

Retailers like JD.com and Freshippo will need to integrate online convenience with offline experiences to stay competitive. Over the next decade, China’s retail market will likely focus on blending digital and physical channels, offering personalized, seamless shopping. 

While eCommerce remains crucial, offline stores will regain prominence as consumers seek varied shopping experiences post-pandemic, balancing speed, convenience, and in-person interaction.

Sources: Dao Insights, ECDB