The first unmanned restaurant opens in Hangzhou, Zhejiang province, in January. [Photo by Xu Kangping/For China Daily]

Tech giants team up with retailers to bring cashless shopping, facial recognition and more to stores

Two years after overtaking the United States as the world's largest consumer market, China is gaining pace in revolutionizing the retail-scape, with merchants hailing the dawn of the New Retail.

New Retail refers to the integration, or interlinking, of online and offline shopping using modern technologies, data and customer engagement techniques. It is a faddish term coined in 2016 by Alibaba's charismatic founder Jack Ma. In his words, New Retail is making the distinction between physical and virtual commerce obsolete.

"Although online retail will continue to grow, the share of shoppers' spending online of their overall spending is expected to remain at the same level," said Matthew Crabbe, Asia-Pacific research director of consultancy Mintel. "That means online retailers need to combine online-offline offerings in order to continue growth."

Agreed Wu Weijia, an equity analyst who focuses on internet-based businesses at ICBC International Holdings Ltd. She said the inevitable slowdown in online shopping volumes has forced internet giants to march into offline retail, which accounts for roughly 85 percent of China's 36.6 trillion yuan ($5.3 trillion) retail market.