Implementation Challenges of Omni-channel Retailing. Derek Ng Oct 2015

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1 Implementation Challenges of Omni-channel Retailing Derek Ng Oct 2015

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3 IMPORTANT This document (including any attachment) has been developed by PRICERITE GROUP LIMITED (PRICREITE) and is the confidential property of PRICERITE to be used only by authorized personnel. It is to be used for the sole purpose for which it was developed and shall not be reproduced in whole or in part without prior written consent from PRICERITE. The recipient agrees to keep confidential the information contained herein and requires the persons to whom such information is disclosed to keep it confidential. Disclosure of the information contained herein shall be made only to those persons who require such information for their work as it relates to the purpose for which the document was developed. This document is intended for the recipient only. If you are not the intended recipient, you should return this document to the developed person and delete the electronic version of the same (if any) permanently in your possession, and are hereby noticed that any disclosure, copying, or distribution of the information contained herein, or the taking of any action based on it, is strictly prohibited. PRICERITE reserves the right for indemnity of any loss or damage aroused thereof. 3

4 The Heritage Founded in 1986, Pricerite is the largest home furnishing specialist in Hong Kong. We are committed to offer unique smart home solutions for young families to improve their quality of living. We also strive to foster a caring culture for our customers, associates, vendors, communities and natural environment. 4

5 The Largest home furnishing retailer in HK 5

6 Serving HK Communities for 30 years 6

7 30 Stores 7

8 Over 6,000 items 8

9 1,000 Staff 9

10 Our Mission #1 locally based home furnishing retailer offering total smart home solutions for young couples & individuals to improve their quality of living / living space 10

11 Small Space. Big Universe 11

12 Same Philosophy Applied in reaching our customers Physical Retail Space is limited We want our customers to reach us anytime anywhere Pricerite eshop an essential component in our Omni-Channel Retailing 12

13 Omni-channel Retailing is a Customer Driven Trend 13

14 When customers think about all of their experience across time, touch points, devices and channels, and they don t distinguish channels. They want to buy Whatever they want Whenever they want Across Multiple Channels, online or offline 14

15 Omni-channel retailing to offer a seamless and integrated approach to serve customers across all channels so as to deliver a consistent shopping experience 15

16 Similar situation in Hong Kong, 61% shop in stores & buy online 60% search online & then buy in stores Nielsen Global Survey of e-commerce

17 Most of our online sales are generated from Furniture 17

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19 1 st Local Home Furnishing Retailer to Deliver Omni-Channel Retailing 19

20 Benefits of Omni-channel Retailing Seamlessly Integrated and Consistent Shopping Experience Channel & devices Customer Activities Benefits Shopping Buying Fulfillment Better experience a brand > Enhance Brand Equity Obtain a single View of Customer > Better Knowledge SALES 20 20

21 Core Value Proposition Shopping Buying Fulfillment Rich Product SELECTION & Content SMART features to get the right products easier and faster CONVENIENCE and flexibility 21

22 Shopping Buying Fulfillment Comprehensive Product Selection Seamless and Integrated Product Information across all channels Filtering tools to Search matching items faster and easier Drive demand from hits to niches 22

23 Comprehensive Product Selection Including those only available at Pricerite.com.hk 23

24 Responsive web design Single source of content fitting different devices Desktop Tablet Smartphone 24

25 Filtering tools to get the right products faster & easier Top keywords search by Big Data 25

26 Filtering tools Top Seller Recommendations 26

27 Filtering tools Related Product or Complementary Product Suggestions 27

28 Filtering tools to drive demand from hits to niches Product Sorting by Dimension 28

29 Filtering tools to drive demand from hits to niches Advanced Filtering Tools 29

30 People Filtering - Recommendation to stimulate demands 30

31 Shopping Buying Fulfillment Same Promotion applied to all channels Fast checkout Redeem & Earn member points online and offline Secured & Flexible Payment Checkout online basket at stores 31

32 Seamless Product Information & Promotion across all channels 32

33 Added Convenience in Checking out Fast & Simple Checkout, Guest Checkout 33

34 Added Convenience in Checking out Intelligent E-Address Module 34

35 Member points redemption when Checking out 35

36 Secured & Flexible Payment Flexible Payment Methods (Secured payment gateway, cash or cheque bank-in, e-banking transfer) 36

37 Shopping Buying Fulfillment Flexible delivery options for customers Standard Delivery Express Delivery Store Pickup For orders that take longer time to arrange delivery Set delivery schedule Checking order details Checking production status 37

38 Flexible Delivery Options Order Fulfillment Options (Home delivery, Self pick-up) 38

39 Flexible Delivery Options Express Delivery (Next-day delivery or pick-up) 39

40 Flexible Delivery Options Checking order details & production status 40

41 IMPLEMENTATION CHALLENGES

42 IMPLEMENTATION CHALLENGES I) Robust System to ensure flexibility, reliability, and security From In-house hosting to HKT s Enterprise Cloud 7 X 24 service Zero downtime Flexibility to scale up processing power for sales events 42

43 IMPLEMENTATION CHALLENGES II) Inventory visibility and accuracy to ensure we know exactly the current stock level and location of our inventory at all times New WMS system to support multiple warehouses and Warehouses/Stores In-Transit Transfers 43

44 IMPLEMENTATION CHALLENGES III) Consistent brand look & feel and product information across all different channels to ensure customers experience us as a brand regardless of different touch points Centralized Product Information System Matrix Organization Structure Branding & Marketing take charge 44

45 IMPLEMENTATION CHALLENGES IV) Flexible fulfillment options leveraging existing and new infrastructure to deliver orders faster to customers in the way they prefer E-Commerce Distribution Center Using other 3PLs with different logistic strength Track & Trace System to enhance order traceability 45

46 IMPLEMENTATION CHALLENGES V) Obtaining a single view of customers across all channels, and be able to do customer data analytics to gain deeper insight for effective target marketing Permission Marketing encourage registration / login to capture customer identity & collect first party activities Self-service report generation system to explore vast amounts of data and find meaningful insights 46

47 IMPLEMENTATION CHALLENGES VI. Remove functional silos and encourage crossfunctional integration Omni-channel Committee Reshaping the organization structure Tailor performance-linked incentives to foster cross-boundary collaboration Alter Corporate Culture to promote cross boundary cooperation 47

48 IMPLEMENTATION CHALLENGES 1.Robust System 2.Inventory visibility and accuracy 3.Consistent look & feel & product information 4.Flexible fulfillment options 5.Obtain a single view of customers & gain insight from data analytics 6.Remove functional silos 48

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