Currently Internet is playing a key role in developing of new business strategies in several industries. In China, huge changes have been made in retailing industry with the help of Internet and the introduction of e- shopping. With a great success of pure on-line shops, such as TAOBAO, traditional supermarkets will also at- tempt to take their market share back. This paper addresses this challenge of those traditional click-and- mortar (CAM) supermarkets to figure out the important aspects for developing e-supermarkets, especially in the context of logistics and cultural specifics of China. The data for analysis of a challenge has been collected through survey of local residents, and interviews with two senior managers of strategic planning department from the leading supermarkets in China. Problems of e-commerce in China are discussed and resolutions are suggested using TRIZ. This work was presented as master thesis on Innovation and Technology Management (ITM) program at the University of Bath. 

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