Chinese mall takes digital route in the name of ‘new retail’, opens online store
Jumax store powers Hong Kong-listed Beijing Capital Grand to record Singles’ Day sales
Malls are starting their own digital stores as they hitch their bandwagon to the concept of “new retail” pioneered by the Alibaba Holding Group chairman, Jack Ma Yun. The “online-offline integrated experience” is increasingly being used by Chinese retail property operators, who see it as a critical way of gaining insight into consumers’ shopping patterns and responding to these quickly.
A major reason for the spike in revenue was the heavy discounts offered by outlets during the festival – some sent out “buy 300 yuan, get 300 yuan” coupons – a routine practice among most malls.
Another reason, according to Bryan Feng Yujian, the chief executive of Beijing Capital Grand, was its newly launched digital store, Jumax, which operates on the WeChat platform used by most Chinese mobile phone users.
“Our outlets target middle-class consumers of ages between 25 and 35. In China, all of them use mobiles. So winning them over the phone is critically important,” he said.