After the initial hype around shared bicycles has faded, the concept of unmanned retail has emerged as a new frontier. Unlike shared bikes, which saved companies like Feige and Phoenix, unmanned retail is creating an entirely new industrial ecosystem, connecting various sectors and players in innovative ways.
Recently, Banhu Box, a leading player in the unmanned convenience store space, held a press conference where founder Chen Zilin announced partnerships with major companies such as PepsiCo China, Agile, Kaisa, COSCO, and Ocean Group, along with local governments. The company plans to deploy thousands of unmanned retail boxes across the country. Since August last year, Banhu Box has already installed 158 units in 22 cities. However, Chen noted that the deployment speed is still slow due to production constraints.
In May this year, Banhu Box successfully closed its Series A funding round, raising over 100 million RMB led by Jiyuan Capital, with additional investments from Qiming Venture Capital and Source Code Capital.
As capital continues to fuel the growth of the industry, the shift toward unmanned retail is accelerating. While shared bike models had their moment in the spotlight for less than six months, they were quickly overshadowed by the rise of automated retail solutions. This year alone, numerous startups in the unmanned retail space have secured venture capital, focusing on both smart shelves and fully automated convenience stores. Alibaba, for instance, is also making a big push into unmanned retail, launching initiatives in both smart shelves and self-service supermarkets.
With the rapid development of IoT technology, the retail sector—once considered a "chicken rib" (a difficult or unprofitable part of the business)—is now becoming a "drumstick" (a valuable and growing segment). According to Chen Zilin, unmanned convenience stores offer a higher sales range compared to traditional vending machines and small shops. A single unmanned convenience store can achieve daily sales of 300 yuan to break even, and reach 2,000 yuan within five months to recoup costs.
Unmanned shelves are already in use, but unmanned convenience stores are still in their early stages. In this emerging supply chain, even companies like CIMC Group and Ocean Group—typically seen as unrelated to retail—are now key players. Banhu Box has entered mass production, working with top manufacturers including CIMC. By year-end, monthly production capacity is expected to reach 3,500 units.
In this new ecosystem, CIMC provides the hardware (the retail boxes), while real estate firms like Agile and Kaisa offer property services, and PepsiCo China supplies products. As one analyst noted, while sourcing is relatively straightforward, the true challenge lies in achieving full automation and scaling up operations efficiently.
Banhu Box is not just a platform—it's a technological enabler. At the conference, the company introduced its "Fanyi FANAI" solution, featuring image recognition technology that replaces traditional RFID tags, reducing labeling costs and simplifying the transition. The new checkout system uses image recognition, ultrasonic sensors, and other technologies to achieve over 99% accuracy.
Beyond the checkout, the shelves themselves are now smart data hubs. The newly launched "dynamic shelf" captures facial, visual, and motion data through cameras and allows remote updates to pricing and promotions. "This is much harder than it looks," Chen admitted, acknowledging the challenges and learning curve involved.
Another major hurdle is the actual deployment of unmanned convenience stores. Unlike shared bikes, which can be placed anywhere, these stores require careful planning and integration with local communities. Deployment within residential areas is more feasible, but broader rollout remains complex.
Shen Jianzhong, president of the China Property Management Association, emphasized the importance of embracing technology. He said, "Our industry is traditional, but we're realizing the need to integrate tech solutions. These service providers help us expand our offerings and improve efficiency. I believe companies like Agile will grow and thrive alongside this transformation, creating new value together."
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