Winning the Retail War Through Seamless, Personalized, and Interactive Digital Innovation
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1 Winning the Retail War Through Seamless, Personalized, and Interactive Digital Innovation Copyright 2014 PCCW Solutions Ltd. All rights reserved 1
2 Introduction 2
3 Retail Trend Drop in sales amount in retail industry Drop in sales volume in retail industry -14.6% -13.9% Luxury Goods (watch, jewelry) Apparel (clothes, bag) -21.4% -13.8% Source: Census and Statistics Department,
4 Retail Trend Source: Apple Daily,
5 Retail Trend In this situation of retail in crisis, how s our business performance? Source: Apple Daily,
6 Our performance We keep expanding our business What make our huge success in this retail war? 6
7 Company Background 7
8 Company Background Established for more than 45 years Resell over 40 international brands Own strong networks in HK and Macau 8
9 Targeted Segment Targeted customers: Chinese High purchasing power Pursuing luxury lifestyle Customers characteristics: High digital adoption Digital channel is the most effective way to engage with Chinese Source: pwchk,
10 Targeted Segment Various use of digital: Source: pwchk,
11 Facing Challenges 11
12 Core Challenges in Retail Customer High requirement on CS Marketing Hard to differentiate from competitors (by product/ price) Hard to acquire/ retain Chinese customers Operation High rental cost Lack of experienced staff High demand on manual work 12
13 Business Strategies 13
14 Business Strategies Customer-centric strategy Understand customer behavior Personalization O2O2O strategy Draw customers from online to offline Offer 24*7 shopping platform Maintain relationship with customers online 14
15 Business Strategy Chinese Customers Characteristics High digital adoption Geographical constraint The only way to succeed - Digitalize and Revolute Business Model Seek a reliable IT partner for end-to-end strategy 15
16 Digital Retail Solutions Digital Marketing Customer Engagement Social WiFi WeChat Membership RFID ir-furniture ecommerce Shopping Window Interactive Design Online Offline In-store Experience Mobile POS Big Data/ Business Discovery ERP/ HRM/ WMS IoT EAS 16
17 Digital Retail Solutions (Online) WeChat Member -ship Digital Marketing Customer Engagement RFID Social WiFi ir-furniture WeCha t - Maintain relationship with customers - Arouse brand awareness - Draw customers from online to offline ecommerce Shopping Window Interactive Design Online Offline In-store Experience Mobile POS ecommerce (deploying) Big Data/ Business Discovery ERP/ HRM/ WMS IoT EAS - Act as 24*7 shopping platform - Capture customers data - Offer personalization online 17
18 Digital Retail Solutions (Offline) Social WiFi - Increase traffic online and offline - Capture valuable data Digital Marketing Customer Engagement Social WiFi WeChat Member -ship RFID ir-furniture ecommerce Shopping Window Interactive Design Online Offline In-store Experience Mobile POS ir-furniture Big Data/ Business Discovery ERP/ HRM/ WMS IoT EAS - Facilitate stock take - Enable item tracking - Ease real-time monitoring - Record item movement - Allow real-time management 18
19 Digital Retail Solutions (Offline) Mobile POS WeChat Member -ship Digital Marketing Customer Engagement RFID Social WiFi ir-furniture - Reduce cost more than 40% - Facilitate business expansion - Ease operational management ecommerce Shopping Window Interactive Design Online Offline In-store Experience Mobile POS IoT EAS Big Data/ Business Discovery ERP/ HRM/ WMS IoT EAS - Prevent shop lifting - Enhance customer service - Record the stolen item 19
20 Digital Retail Solutions (Offline) Shopping Window (in renovation) Digital Marketing Customer Engagement Social WiFi WeChat Member -ship RFID ir-furniture ecommerce Shopping Window Interactive Design Online Offline In-store Experience Mobile POS Big Data/ Business Discovery ERP/ HRM/ WMS IoT EAS - Arouse customer awareness - Fully utilize shop location by 7X24 shopping platform in China HK City, with 24-hr non-stop traffic - Acquire valuable customer information from the interaction with shopping window 20
21 How Digitalization helps Us 21
22 How Digitalization can Help Us Marketing (Differentiation) - Product: Personalized recommendation - Price: Better targeting based on customer behavior - Promotion: Personalized special offers - Place: O2O channel Customer (Vital element) - Better understanding on customers - Better customer experience - Personalization Operation (Value added) - Increase revenue via full utilization of store location - Better management business decision - Boosting Operation efficiency and saving cost 22
23 Overall Result of Digitalization Increase Traffic Increase coupon redemption Enhance customer satisfaction 23
24 Takeaway 24
25 Takeaway Think about: Who is your target segment What is your customer behavior What is your business strategy Who can be your strategic partner How to implement your business plan 25
26 THANK YOU! 26
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