Automation fails to win China convenience store war

Japanese-style focus on products also takes off as tech proves tricky

20180915N China convenience store

Technical problems shut down an automated Jian24 store in Shanghai. (Photo by Naoki Matsuda)

NAOKI MATSUDA, Nikkei staff writer

SHANGHAI -- Chinese convenience stores are rushing to adopt automation, often with limited success, and the chains are looking to their experienced counterparts in Japan for other inspiration to stand out in a packed market boasting over 70 operators.

A new player in the industry showed off an unstaffed store featuring the latest technology, including artificial intelligence and facial recognition, at a May meeting of the China Chain Store & Franchise Association. "From now on, stores will have to be built with AI," a representative of the company said at the meeting.

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