Understanding Traditional Retail Dilemma and Identifying Possible Solutions Based on New Retail Model: A Case Study of Chinese Market and Fresh Hema

Abstract

The COVID-19 pandemic and online shopping have hit traditional retail which is still struggling to transform, while academics lack an up-to-date and systematic summary of the traditional retail dilemma. In addition, the New Retail business model appears as a potential solution. However, it remains to be seen whether it can provide a more effective means for physical retailers to stay competitive. In this instance, this paper attempts to summarise the dilemma of traditional retail from the perspective of CPT theory and to identify potential solutions that emerged from the New Retail model. The author employs the case study approach to investigate the Chinese retail market and Fresh Hema. Also, the Data Analysis Spiral is used to analyse secondary data. The findings demonstrate that the retail dilemma reflects on the channel, individual, tangible, and tangible aspects and that the New Retail model can handle the majority of problems with the exception of corporate awareness and monetary issues.