Yanxuan, an e-commerce site under Chinese internet company NetEase Inc, has set up its first flagship hotel, with which it hopes to woo the country's growing population of middle-class millennials by providing an immersive experience.

It's the first hotel in China with a philosophy of "what you use is what you can buy," said Janet Chan, general manager of marketing for Yanxuan. Rather than providing a luxurious experience, the hotel will focus on "offering an aesthetic sense of simplicity".

Foreign lifestyle retailers such as Japan's Muji and Sweden's Ikea have similar plans to venture into hospitality.