Jane Wang, PwC China's retail and consumer industry partner, said the ability of retailers to offer and process mobile payments has become arguably the most important consideration for online shoppers.

Brands and retailers are having "to close the loop" between their online marketing and in-store transactions, she said.

The rapid growth of China's e-commerce industry and mobile payments have been supported by the State Council's ambition to create a unified, reliable and relaxed environment, said Wang.

"Over the short term, a reduction in customs duty and reforms in consumption tax will provide greater opportunities for retailers. In the longer-term, China's Belt and Road Initiative will open up new markets and eventually increase trade with ASEAN, Russia and India.

"Retailers have had to revisit their business plans to embrace these new opportunities, on both online and offline channels."

Elsewhere in the report, 68 percent of shoppers globally said they had browsed products in store but then decided to buy the items online, with 70 percent going about a purchase, vice-versa, by browsing first then buying online. The two are called "reverse show-rooming" or "Web-rooming", according to the report.

It said this indicates that while showrooms may be used to experience touch and feel for later online purchases, online stores are also being used by shoppers to research and compare prices with the intent of buying later.

The report predicts that the most successful retailers will be those that "connect the dots to create seamless shopping experiences" involving both brick-and-mortar shops and online services.

Retailers worldwide have experimented with technology, but it said so far Chinese consumers have shown the strongest preference for digital engagement.

Jean Sun, PwC North China's retail and consumer assurance leader, said that with the lines between digital and physical becoming "increasingly irrelevant to consumers", retailers need to offer more of what she terms "brand-defining engagement", such as real-time personalized offers.