Last week, the cavernous halls of the Shenzhen World Exhibition & Convention Center pulsed with anticipation. As Chinashop marked its 25th anniversary, more than 65,000 visitors and more than 1000 exhibitors converged under one roof for what has become Asia’s most influential platform for retail innovation. 

What began in 1999 as a modest trade show for physical retail chains has evolved into a bellwether of China’s retail future, a sprawling ecosystem of sensors, smart carts, digital avatars and algorithms.

Organised by the China Chain Store & Franchise Association (CCFA), this year’s Chinashop arrived at a decisive moment. Retailers globally are grappling with slowing consumer demand, rising operational costs and shifting consumer behaviours. Against this backdrop, artificial intelligence (AI) is no longer a moonshot technology. It is a pragmatic answer to some of the industry’s thorniest problems, from labour shortages to real-time personalisation.

Walking the exhibition floor at Chinashop 2025 felt like touring a living lab. Across six zones and nine themed sub-exhibitions, spanning smart logistics, digital payments, intelligent warehousing and next-gen vending, exhibitors showcased how AI quietly orchestrates everything from supply chains to sentiment analysis.

In parallel with the exhibition, a series of top-tier industry forums brought together thought leaders, retail executives and global tech pioneers. While the 2025 China Supermarket Conference explored how distribution innovation and retail transformation can reposition supermarkets in the digital economy, the inaugural ‘All-retail AI spark conference’ convened more than 100 global experts and 1000 corporate delegates to examine AI applications across the retail chain.

The Hi-Shop Zone and product tasting showcases helped bridge the gap between tech application and sensory engagement. Dozens of targeted workshops, including the Golden Wing Competition finals, store-in-store supermarket model seminars and the AI Reshaping Retail Innovation Forum, created continuous momentum throughout the event.

Beyond digitisation: Towards AI-enabled retail

This year, Chinashop emphasised how AI is rapidly reconstructing retail ecosystems. From smart hardware to full-chain data systems, the expo revealed how generative AI, machine vision and real-time computing are supporting the next wave of retail intelligence.

Pei Liang, honorary president of the CCFA, opened the AI Spark Conference with a sober but stirring reflection.

“Artificial intelligence is an evolution of retail technology,” he said, “but it cannot exist in a vacuum. It requires a foundation of digital maturity.”

That foundation, Pei argued, has been laid over decades of digitisation, from supply chains to inventory management to customer loyalty platforms. But AI demands something more: structured knowledge. 

“Retail has accumulated knowledge from procurement to pricing, but it’s still fragmented. Our challenge is to convert that into a system AI can work with,” he said.

“Considering the application of artificial intelligence in the retail industry within a broader developmental context provides us with a systematic and holistic judgment on future technological measures.” 

If Pei provided the philosophical scaffolding, it was speakers like Dedi, CIO of Meiyijia, a national convenience store chain with more than 33,000 outlets and serving more than 200 million customers monthly, that gave AI a distinctly tactile texture.

Dedi unveiled a sweeping transformation of Meiyijia’s stores: smart shelves that communicate restocking needs in real time, climate systems that adjust air conditioning based on predicted footfall and AI-powered assistants that guide customers through promotions at the point of decision.

“With intelligent technology, we’ve connected all the internet-enabled devices in a store into one unified system. With this system, we can predict when consumers are likely to visit, and optimise which areas need lighting or climate control. In low-traffic periods, we reduce energy consumption in those areas,” he said. 

The numbers are no longer speculative. Meiyijia’s pilot of intelligent lighting and HVAC systems now saves each 40sqm store an average of RMB13,000 (roughly US$1800) annually in energy costs. More importantly, the user experience is no longer hostage to an owner’s decision to flip a switch.

For him, AI is not merely a tool for analysis. 

“AI, in essence, is like a digital employee. This employee relies on various models and smart devices, including smartphones, to generate more application scenarios. These devices help us better perceive user needs and enable new forms of interactive service. In the past, all of this depended on an employee’s own understanding and knowledge. But now, with these devices and services, it’s easier to bring ideas to life. In this intelligent era, we are rethinking the collaborative relationship between people and AI,” he explained during his speech at Chinashop. 

However, many companies remain stuck in what Meiyijia’s Dedi called “data disconnection.” Processes are digitised but fragmented. Systems exist, but employees don’t trust them. In such cases, AI becomes a mirage, expensive, impressive and ultimately unused.

That’s why, he argued, 80 per cent of AI investment should target the core business. 

“Too many companies chase breadth. But we learned to start with what drives our profits, store operations, inventory management, employee training. AI must succeed where it matters,” Dedi said.

Others echoed this pragmatic philosophy. “What remains unchanged,” said Jinzi Nan, general manager of FMCG Retail Industry at Ant Group Alipay, “is the human desire for beauty, ease and joy. AI should serve those constants, not just the metrics.”

“Retail is no longer about just selling,” said Tong Liang, director of the Retail Research Institute at Hanshuo Technology. “It’s about prediction, personalisation and participation. The customer now asks, and the store must answer.”

In this future, product discovery will feel less like a hunt and more like a dialogue. Instead of searching, customers will ask. Instead of guessing, brands will recommend. “The logic of shopping is reversing,” added Liang. “AI turns retail into a question-and-answer engine.”

Product power and the new value equation

As Chinese consumers shift from price-sensitivity to a “quality-price ratio,” product power has become the primary battleground. Chinashop responded by organising a dedicated showcase of Chinese retail’s most renowned and high-quality consumer goods, split into five theme zones: Member-Exclusive Products, Local Specialties, Foreign Trade Goods, Healthy Diet and Private Labels & Best-Sellers.

To help solve the supply-demand mismatch, Chinashop debuted the “Consumer goods channel marketing innovation summit”.

Purchasing managers from retail giants including China Resources Vanguard, Rainbow, JD Supermarket, CP Lotus, Liqun and Wushang released real-time procurement needs. More than 100 targeted one-on-one matchmaking sessions were held with product manufacturers, accelerating the journey from exhibit to shelf.