The new online shopping record set on Monday points to China's transformation of the traditional retail model. The e-shopping frenzy is upending traditional retail companies and forcing them to modernize or miss out.

Ma Yun, Board Chairman of Alibaba Group

This year's Nov. 11, also nicknamed "Single's Day" turned out to be China's busiest online shopping extravaganza, with retailers offering hefty discounts to lure buyers. 35 billion yuan in sales was racked up in the 24-hour shopping frenzy,a new record high. And a clear new direction for Chinese consumerism.

"We need to see whether the sales figures could help promote the transformation and upgrading for Chinese companies. There's no doubt over the sales reaching 30 billion yuan, or, if we are determined to, making the figure to 100 billion is without question in the coming few years. But I think, what is really urgent is that we should concentrate our efforts to help the companies and factories to get transformed and upgraded," Ma Yun, Board Chairman of Alibaba Group, said.

Booming internet commerce also alerts traditional retailers to guard their territory but on the other side, the fierce competition could turn out lucrative opportunities.

"I believe in the coming years factories and shopping malls will divert their investments from physical commercial districts to the internet commerce, which will indirectly help to alleviate the residential housing costs and more importantly, it will help to make the economy a market-directed economy," Ma said.

E-commerce has become a driver in the domestic economy and has created many jobs. But more importantly, due to the fierce competition, it has also spurred a change in traditional thinking, management and business models.

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