Transformation of chinese retail industry: how to meet the new challenges by electronic business?

Abstract

The past few decades witnessed the rise and expansion of electronic business (EB). An increasing number of companies are dealing with electronic commerce many of whom are well-known nationwide or worldwide leaders such as the Alibaba Group or JD.COM. On one day, 11th of November of 2014, the trading volume of Taobao reached 6 million RMB. The unprecedented development of EB has threatened traditional retail firms. Manufacturers as well as retailers need to reconsider their methods and make new strategies to satisfy the needs of modern customers in the new era of omni-channel retailing. This paper first introduces the status quo of the retail industry in China before analyzing competition between online shopping and the traditional format of selling in shops. Then the research forecasts the direction of future development and puts forward strategies that should be taken in order to meet the new challenge. In summary, concerted efforts in an all-round approach combined with international cooperation seem to be a robust strategy in face of retail transformation in global economics.