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AI, Fun & Social: what online retail can learn from Digital China
17 Oct 2025
China is widely seen as a laboratory for the future of digital retail. There, artificial intelligence (AI), experience-driven engagement (Fun) and social interaction (Social) are transforming e-commerce at speed and scale. Digital strategist Björn Ognibeni explains why western markets can learn from this Digital China approach – and what steps retailers should take now to stay relevant.
Reading time: 3 minutes
“We always look to the US – but little has changed in e-commerce there. In China, people are genuinely rethinking things.”
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Key insights
AI as a driver for new business models
In China, artificial intelligence is not only used to increase efficiency but increasingly to reshape entire business models. AI enables new forms of shopping – from personalised product recommendations to virtual consultations and interactive commerce experiences.
User experience over advertising mechanics
Western social media platforms rely on advertising-based business models that drive engagement through emotionalisation and polarisation. In contrast, Chinese platforms integrate social interaction and commerce, focusing on harmonious, positive user experiences. Their aim: community, trust and willingness to buy – not click maximisation at any cost.
Relevance through relationships
Brands remain successful when they create genuine closeness and trust. In China, customer loyalty is strongest where people feel part of a shared experience rather than passive recipients of advertising.
Case study: TikTok refugees in the United States
When a potential TikTok ban loomed in the US, many creators migrated to the Chinese platform Xiaohongshu (RED) – a social commerce app centred on community and inspiration. There, they were warmly welcomed: users offered guidance, shared cultural insights and encouraged open exchange. Many described the atmosphere as friendly, respectful and collaborative – a refreshing contrast to the often competition-driven culture of western social media networks.
Three practical tips for retailers
Rethink – using AI to transform business models Go beyond optimisation: use artificial intelligence to redesign processes, assortments and customer experiences. That’s how real innovation emerges – not just greater efficiency.
Create experiences – making e-commerce more emotional Turn online shopping into an experience. Use storytelling, videos or mixed reality to bring your products to life. Emotions drive loyalty – not discounts.
Build relationships – real dialogue instead of newsletters Encourage interaction instead of one-way communication. Community formats and feedback tools strengthen trust and long-term customer loyalty.
China demonstrates how AI, social interaction and experience orientation are redefining online retail. Understanding how digital innovation works there helps anticipate trends that will also shape western markets.
AI can do far more than streamline processes. It helps redesign assortments, customer advice and shopping experiences – opening up entirely new business opportunities.
Relevance is built through relationships rather than reach. Brands that engage in dialogue, integrate feedback and foster trust remain visible – even in a platform-dominated market.
Transformation begins with experimentation: test new formats, strengthen customer dialogue and try out initial AI tools. Action matters more than perfection.
Björn Ognibeni
Practical Visionary & co-founder ChinaBriefs.io
Björn Ognibeni is a business consultant and digital strategist. As strategic director of the XR Lab at the University of Münster, he researches the potential of virtual realities for brands and companies. Through his think tank ChinaBriefs.io, he helps western businesses understand how to learn from digital innovation in China and drive successful digital transformation.
