Real-world retail beckons China's youth

Irreplaceable value

Experts say physical commerce offers advantages that online platforms cannot fully replicate. Offline environments allow consumers to explore without algorithmic recommendations, giving them greater initiative in discovery.

"Physical spaces provide tangible touch-and-feel, perceptible atmospheres, and immediate experiential feedback, elements that cellphones and screens cannot replicate," said Hu from Roland Berger. "These elements fulfill a basic human need for authenticity and certainty."

Li He, an associate professor of sociology at Renmin University of China, said modern daily life has become highly digitized, with sensory experience often reduced to visual and auditory forms in online spaces. From a phenomenological perspective, cognition and emotion are closely tied to physical interaction with the world.

"Offline consumption compensates for a weakened sense of existence," Li said."Young people want to confirm their existence as a physical body in the real world. Shared behaviors such as cheering, applauding, or participating in the same activity at the same time help individuals feel part of a larger community, offering emotional support and a sense of belonging."

Rachel Lee, general manager of consultancy Worldpanel China, said that while young people's purchasing behavior in the fast-moving consumer goods market continues to shift online overall, the growth rate of that trend has slowed noticeably. Offline formats such as snack assortment stores, discount stores, and neighborhood supermarkets are gradually becoming new favorites among young consumers for their convenience and relaxed shopping environment.

"Gen Z attaches greater importance to experience and emotional connection during consumption," she said.

To attract young consumers, she added, physical retailers need to clearly define their target groups and design products and services around specific usage scenarios rather than relying solely on scale or price advantages.

Qi Zichen contributed to this story.