What is New Retail?

“New Retail is not just a concept or trend, it is the new reality," Lim Ming Yan, president and group CEO of CapitaLand Group declared at the New Retail: New Concept, or New Trend panel at Bo’ao Forum For Asia (BFA) 2018 recently.

"New Retail, or as how I see it ‘omni-channel retail’, is a reality challenging all industry players to integrate online, offline, logistics and data across a single value chain. Every company in the retail sector whether born online or offline, is moving to seamlessly integrate the two. Companies from both sides of the line, be it Alibaba, Amazon or Walmart, are clear that neither an offline-only nor online-only business model will work; it is in the combination of offline and online (O&O) where long-term success can be found,” Lim continued.

The theme for this year’s BFA is “An Open and Innovative Asia for a World of Greater Prosperity”. The New Retail panel that day formed part of the forum’s Innovation module, which discussed the model of “innovation-driven development” as a viable option for Asian and emerging economies to leapfrog developed nations. Hans-Paul Burkner, chairman of Boston Consulting Group; Yi Qing, CEO of China e-commerce portal operator OSell; He Yangqing, chairman of home appliances retailer Gome Retail; and Zhu Yueyi, CEO and founder of e-commerce platform for fresh flowers Reflower, were also present at the panel which was moderated by Wu Bofan, a commentator in China and co-host of finance radio programme, the Dong-Wu Talk Show.

Lim added: “As the world leader in New Retail, China leads the world in online sales, setting the record of single day transactions of over RMB168 billion (US$26.65 billion) during Singles’ Day in 2017. With the continued advancement of logistics and technology, there is no doubt that China and its companies would continue to lead the way in the quest to integrate online with offline and vice versa. This is a good development, as continued breakthroughs translate to better opportunities for all players in the retail industry. CapitaLand stands ever ready to embrace the challenges and opportunities provided by New Retail to create a better shopping experience for all.”

Even as new technologies disrupt traditional business models, Lim was clear that real estate remains an important part of a holistic customer journey, as affirmed by leading digital players seeking to gain a foothold in the physical space. He reiterated CapitaLand’s strengths lie in its extensive experience in developing and managing “best-in-class” operating platforms; as well as its strong relationships with shoppers and retailers.

The BFA, modelled on the World Economic Forum held annually in Davos, hosted heads of governments and business leaders from around the world in Hainan, China, to exchange views on pertinent issues affecting the future of Asia and the rest of the world.