Nongfu Spring founder Zhong Shanshan criticized the country's e-commerce platforms for reshaping the retail landscape through algorithm-driven pricing and traffic allocation, arguing that their growing influence has disrupted traditional distribution networks and intensified price competition.
Speaking on State broadcaster CCTV Finance's Dialogue program on Saturday, Zhong said digital platforms have evolved into a new class of intermediaries, replacing conventional wholesalers and distributors while exerting greater control over merchants through algorithms.
"Traditional distributors operated under relatively transparent and predictable fee structures," Zhong said. "Today, platforms determine transaction commissions through algorithms and decide which merchants receive traffic."
He said the shift has fundamentally altered the country's retail ecosystem, placing mounting pressure on brick-and-mortar businesses and contributing to the decline of many city-based distributors.
Zhong also argued that the rise of online shopping has changed consumer behavior by reducing spontaneous purchases typically associated with physical retail.
