Unmanned retail thrives in China, brings convenience to consumers

Unmanned retail, which usually appears in areas with high traffic, is gaining in popularity with consumers in China.

One common form is the vending machine. Found in many places with high traffic such as waiting halls of train stations, student dormitories, office buildings and residential areas, they provide buyers with drinks, snacks, breakfast and fruits.

A customer buys products from an unmanned vehicle in central China's Hunan Province. (Xinhua/Chen Zeguo)

A vending machine can satisfy the sudden craving for some snacks. A college student surnamed Gao in Beijing, for example, can easily grab hot coffee at a vending machine in the dormitory, after finishing writing a paper late at night. With the help of a vending machine, one can also quickly quench his or her thirst after exercising.

Compared to conventional retailing, the machine costs less but earns more, as it needs less space, runs 24 hours a day, and its body and display screen have considerable advertising value.

The vending machine is one vivid example of the expanding contactless economy in China, whose development is largely attributable to a series of favorable policies. The Ministry of Commerce rolled out a plan on the construction of 15-minute radius community life circles in urban areas in July 2021, which encouraged the development of smart shops in residential areas, unmanned convenience stores, and vending machines. Five months later, China's State Council voiced support for building digital consumption scenarios in brick-and-mortar stores, promoting contactless services, upgrading consumption scenarios, and cultivating consumer awareness and habits for digital consumption in a development plan for the digital economy for the 2021-2025 period.

Experts believe that developing unmanned retail will be a major measure to boost consumption and domestic demand. In some Chinese metropolises, it has become a key part of urban development and an important way to boost the building of smart cities.

Convenience store brand Lawson opened its first store with contactless payment services in Shanghai in October 2022. The store has an unmanned shopping section, where consumers only need to scan a code to enter. After finishing selecting products, they can leave the section right away, without paying their bills in the conventional way, and will receive the electronic bill on their smart phone a few seconds later. This is because the AI cameras in the store can identify the products they pick, and the bill is paid automatically.

"This is really convenient. Unlike conventional stores which are always crowded during morning rush hours, it saves the time for queuing up to pay," said a customer.