In the landscape of Chinese retail, opinions are increasingly polarized, presenting a complex debate among industry leaders and entrepreneurs. On one side stands a group of optimists, spearheaded by figures like Ye Guofu, the founder of Miniso. His journey from modest beginnings to a global retail giant is underscored by pivotal moments that shaped his vision. Ye's auspicious lunch at a local eatery called Pang Dong Lai—where he praised the dumplings as better than those found at five-star hotels—was not just a culinary encounter; it illustrated his intrinsic belief in the potential of grassroots businesses. Fast forward to three years later, he surprised many by acquiring Yonghui Superstores for a staggering investment of 6.3 billion yuan, confidently asserting that “if you don’t understand it, that’s exactly how it should be.”

On the opposing side, pessimists like Hou Yi, the former CEO of Hema, express a starkly different outlook. In recent interviews, he lamented a lack of strategic understanding among contemporary retailers, stating that many entrepreneurs simply don’t grasp the intricacies of the market. This sentiment reflects a broader anxiety coursing through the industry, particularly exacerbated by the rapid changes instigated by new leaders like Pang Dong Lai, whose approach has seemingly upended conventional retail wisdom.

The divergent philosophies represent a larger narrative at play in the Chinese retail sector, which can be characterized by its fluctuating responses to contemporary challenges. Over the past year, the “adjustment revolution” led by Pang Dong Lai has captured the attention of the retail community. Ye Guofu has publicly acknowledged Pang Dong Lai as his inspiration for acquiring Yonghui, highlighting that Yonghui exhibited signs of positive transformation. In contrast, Hou Yi is skeptical, believing that these adjustments only address short-term issues without tackling the underlying systemic challenges facing the industry. This difference in perspective reflects broader themes of adaptability within Chinese retail, where the industry grapples with the fundamental question: “Why do consumers no longer enjoy shopping in supermarkets?”

This question, while seemingly straightforward, reveals deep-rooted complexities. The stratification of consumer demand, traditional retailers' adherence to outdated models, the dominance of foreign retail giants, and the overwhelming influence of online shopping have all coalesced, complicating the landscape for those attempting to innovate. In many ways, Pang Dong Lai is not a disruptor but rather a catalyst for a transformation that is forcing established retailers to rethink their strategies.

Looking ahead, 2024 is being anticipated as a watershed year—a potential “awakening” moment for the industry. The rhetoric around "new retail," a concept propelled by Alibaba's founder Jack Ma during the Cloud Computing Conference in 2016, is set to evolve. Ma predicted then that the era of pure e-commerce would soon give way to more integrated models of commerce, where online and offline experiences would harmonize seamlessly.

In the years that followed, all major players, including JD.com and Tencent, began exploring what they termed “boundary-less retail.” These innovations were largely spurred by the untapped potential of online-to-offline models that promised to revolutionize consumer interaction. However, beneath this glossy surface of innovation lay an unsettling reality for traditional big-box retailers.

Once-favored categories such as department stores, apparel, and consumer electronics found themselves under siege from the economically challenging environment of e-commerce and a diversified competitive landscape. Brands offering community-based group purchases, discounted membership models, and specialized franchises emerged rapidly, thus heightening the competition and posing existential threats to established players.

What ensued was not just a corporate struggle but a capitulation from traditional retailers to their digital counterparts. Seeking survival, these businesses turned towards partnership with their arch-nemeses—massive tech companies. From the perspective of brick-and-mortar retailers like RT-Mart and Yonghui, those partnerships afforded them three significant advantages: integration of online and offline operations, leveraging the e-commerce platforms to regain customer traffic, and an opportunity to reevaluate their approach to product curation and logistics.

However, the anticipated outcomes of this restructuring have not materialized as hoped. The realities of consumer behavior and inflationary pressures proved formidable obstacles. Major retailers like Yonghui have faced staggering financial losses, culminating in a cumulative deficit exceeding 9 billion yuan over the past four years. Even the parent company of RT-Mart had to contend with a similar lackluster performance, aside from a brief profit rebound. The restructuring efforts, currency fluctuations, and a potential end to consumer spending sprees have forced many to reconsider the efficacy of these tech partnerships.

As the dawn of a new era unfolds in 2025, a collective consciousness seems to be rising across the sector. The traditional models of retail are experiencing introspection and renewal, driven not just by the influence of online giants but by the dynamic consumer marketplace itself, which demands authenticity and quality.

The retuning of product offerings, service quality, and instilling a better customer experience seems paramount for survival. Both old and new retail must embrace the realization that their core tenets—products, pricing, and service—remain unchanged at their essence.

Against this backdrop, both e-commerce giants and traditional retailers are wrestling with the fundamental question of building consumer trust and aligning their strategies for a sustainable future. This pivotal fork in the road requires retailers to acknowledge historical mistakes, shift their mindsets, and establish robust networks that prioritize customer satisfaction.

In conclusion, the future of retail in China will no longer support myths; rather, it will necessitate grounded, practical approaches to reclaim consumer loyalty and adapt to an ever-evolving market landscape. From community-driven introductions to product innovation and a reconceptualized supply chain, the potential for revitalization within both segments is vast. The coming years will reveal whether the industry can break free from its cyclical dependencies and consciously steer towards a more successful horizon.