Walmart-owned Yihaodian foodstore chain has become the first to roll out a nationwide virtual shopping service in China.
Many retailers are struggling to realise the multi-channel promise of effectively balancing both online and offline sales. 'Big box' retailers, including the world's three largest supermarkets Walmart, Carrefour and Tesco, have had to curb their expansion plans in China as online purchasing continues to impinge on in-store sales.
QR codes Image: Michael Kappel |
To keep up with the Chinese prediliction for online shopping, innovative Chinese retailer Yihaodian is opening 1,000 3D, or virtual, stores in Beijing, Shanghai, Guangzhou and Shenzhen, where customers will use a special 'app' to browse and purchase goods on their phones. Once paid for, Yihaodian promises to deliver the goods immediately.
Yu Gang, chairman of Yihaodian, claims the approach “combines traditional retailing with e-commerce”, allowing customers to “enjoy virtual window shopping in a nearby neighborhood as well as the convenience of online purchasing.” Yu's company more than tripled revenues in 2011 to 2.7 billion yuan ($429 million up from 805 million yuan ($128 million) in 2010.
The mobile application is available on both Apple's iOS and Google's Android operating systems and will scan the increasingly widely-adopted QR code to identify each and every one of the 1,000 products in the 1,200 metres-squared store.
UK-based megastore Tesco has also been experimenting with a similar technology in South Korean subway stations, displaying products on posters smattered around the underground network.