Letters | Coronavirus pandemic has left all stores wanting a piece of e-commerce pie
- The transition from physical retail to e-commerce has been accelerated for both consumers and retailers. This trend is unlikely to be reversed
The Covid-19 pandemic has changed the existing shopping paradigm, both economically and technically, making a significant impact on consumer habits. Like rocket fuel, it has accelerated the pace of e-commerce adoption, allowing online retail to cross into the mainstream.
China’s retail giants have been competing to develop online platforms. Alibaba, JD.com and the newcomer Pinduoduo are the three best-known examples. They created, and continue to optimise, their own search engines and data-sharing systems to help match retailers to consumers in a more effective way.
Under the leadership of the Chinese government, both the development of automation and the cashless revolution have been emphasised. Today, online retailers are using AI to provide chatbot services, analyse customer comments and provide personalised services to online shoppers. Artificial intelligence is replacing traditional customer service, and retailers can spend more time on creative online marketing strategies, such as live broadcasts.
In addition to adopting AI, China’s retail giants have also developed digital wallets and deferred payment systems, like Alipay’s Huabei and JD’s Baitiao. These novel instalment (or “buy now, pay later”) plans provide shoppers and retailers with a new way to perform transactions: they offer immediate gratification, simplicity and a better shopping experience overall, especially with regard to meeting the needs of youngsters in China.
In my view, the e-commerce boom will continue beyond the pandemic, which has only accelerated the transition from physical retail to e-commerce. Chinese consumers have become increasingly comfortable shopping online. This is unlikely to change in a hurry.
There are still obstacles to the development of e-commerce, including unfavourable exchange rates and rising transport costs. However, retailers are finding that the adoption of AI has reduced costs related to overwork in physical stores, while increasing sale profits from online traffic across the country.