As China's e-commerce market booms, physical stores becoming testing sites for online shoppers

China's ever growing e-commerce sector has continued to cannibalise in-store visits and sales, according to a new report released this week.

Eighty-five per cent of Chinese consumers chose a digital channel – search engines, brand websites, or social media – when researching a new product or purchase, said PricewaterhouseCoopers in a report examining global e-commerce spending released on Monday.

“With the lines between digital and physical becoming irrelevant to consumers, retailers need to offer brand-defining engagement, such as real-time personalised offers in order to create differentiated services that entice customers to come back,” said Michael Cheng, PwC Asia Pacific and Hong Kong/China retail and consumer leader.

Far more Chinese respondents, 86 per cent compared to 68 per cent of global respondents, said they had intentionally gone to a physical store to check out a product before buying it over the web, with many citing lower prices as the reason for an online purchase.

“To prevent stores being used as showrooms, retailers can adopt in-store technology that uses customer data to design a customised and enriched shopping experience that keeps them in the store. This integrated retail model aligns the customer journey from discovery to fulfilment,” said Colin Light, PwC China and Hong Kong digital consulting leader.