The Chinese retail sector has confronted the impact of e-commerce and embraced the internet over the past decade. China has rapidly grown into one of the world’s most internet-enabled retail markets. However, how do traditional retail brands complete channel transformation while this process of change is ongoing? What role do e-commerce brand operator play? How should Alibaba’s concept of “new retail” be applied strategically? This case studies the developmental history of leading e-commerce brand operator Baozun (NASDAQ: BZUN), and analyzes how it fits in the developmental trend of the retail industry and its first encounters with the internet. In the new retail environment, how are business model upgrades carried out? This includes the development of digital marketing, the implementation of “big group” strategy and new retail’s omni-channel layout.