Online disrupting traditional retail channels in China


February 4, 2015 | By RetailME Bureau

According to McKinsey & Co, the online revolution is expected to boost productivity, creating 46 million new jobs in China by 2025, many of them higher-skilled. The losers will be as many as 31 million traditional roles.

While such creative destruction is a global phenomenon, its speed and scale in China is unparalleled, believes Cao Lei, director of Hangzhou-based China E-commerce Research Centre, a private research agency. “The Internet helps improve productivity and efficiency, but it can be quite painful for traditional businesses. Bookstores fail first followed by clothing chains, consumer electronics stores and air-ticket booking offices. And in the future, bank branches and other traditional services facilities may fail as well,” Lei adds.

The shift online could contribute up to 22% of the nation’s productivity growth by 2025, accounting for 7-to-22% of the total increase in GDP from 2013-25, indicates McKinsey. By 2025 that could translate into as much as $2.2 trillion in China’s annual GDP.

Clashes between the old and new economies are set to intensify, forecasts Ouyang Rihui, deputy dean at the Academy of Internet Economy, a research agency within the Central University of Finance and Economics in Beijing, adding that the loss of retailers is just the beginning of the effect of technology on jobs. “The real challenge for China will be at the front-end of production — imagine a day when most manufacturing is automated. At the end of the day, the new economy will win,” Rihui concludes.

Comments

comments

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /



The Frozen Chicken’ as Spinneys was fondly referred to back in the 

Continue Reading

August 8, 2022 | By Shruthi Nair

Veppy.com, a Q-Commerce marketplace startup just announced their go live date in the 

Continue Reading

July 20, 2022 | By Justina Eitzinger

GMG, a global well-being company retailing, distributing, and manufacturing a portfolio of leading 

Continue Reading

July 19, 2022 | By Justina Eitzinger

Lulu Group International recently introduced the world’s first AI-powered Food Delivery Robot 

Continue Reading

May 9, 2022 | By Shruthi Nair

Eid Al-Fitr is an occasion to gather with your friends and family 

Continue Reading

April 29, 2022 | By Zubina Ahmed

Leading retailer LuLu Group further strengthened its presence in the Emirate of 

Continue Reading

April 28, 2022 | By RetailME Bureau

Jones the Grocer, the Australian gourmet grocer and café chain, announces further 

Continue Reading

April 28, 2022 | By RetailME Bureau

What is a perfect healthy snack for Ramadan? An assortment of  dried 

Continue Reading

April 14, 2022 | By Zubina Ahmed

With Ramadan almost at it’s first week, we are wondering where can 

Continue Reading

April 6, 2022 | By Zubina Ahmed

In spirit of the holy month, Amazon announced that it will contribute 

Continue Reading

April 5, 2022 | By RetailME Bureau

As consumer behaviour is changing and the demand for delivery is expanding, 

Continue Reading

March 30, 2022 | By Shruthi Nair

As part of the ‘Gift an Iftar’ campaign, Festival Plaza, part of 

Continue Reading

March 30, 2022 | By RetailME Bureau




f
Download Images RetailME Magazine