Retail therapy - the digital transformation of shopping

December 2015

Retail therapy – the digitaltransformationof shoppingin China

2 Retail therapy – the digital transformation of shopping in China

China’s tech boom

China’s digital usage hasexploded tobecome the world’s largest tech market.


China’s tech boom

mobile phone subscribers as of March 2015 overtook the US as world’s largest global smartphone market

internet penetration in China forecast to exceed 90% confirmed mobile internet users as of February 2015


The evolution of retail in China

China is experiencing massive growth in e-commerce as thedigital revolution gathers pace.

of China’s retail moving to online channels


The evolution of retail in China

China set to eclipseUS and become world’slargest e-commercemarket by 2020

of China’s 1.2 billion mobile users bought goods or services using phones

B2C e-commerce sales forecast for 2020


Chinese shoppers – engaging in multiple ways

Consumers in China are using digital technology to engage withretailers inmultiple ways.

compare prices with competitors



researchproducts use coupons



receive offers inproximity to stores

get recommendationsbased on prior purchases

check in at storesvia social media apps

scan QR codes

E-commerce – the advantagesover bricks & mortar


Choice and range: online retailersable to offer much more stock

Opening hours: online stores open24 hours a day meaning shoppercan shop when they like

Store location: shoppers hasconvenience of buying fromliterally anywhere

Personal attention: online retailersfocus on user interface anduser experience without needto train staff

More choice, more convenience,better service – why Chineseconsumers areturning on toe-shopping.

E-commerce – the advantagesover bricks & mortar


In-store Wi-Fi

Paying via an app

QR codes for added content

Real-time personalised offers

Video walls

Paying via mobile phone

Chinese consumersare now demandingmore variety in theire-commerce experience. When surveyed theyrated all of the following more important thantheir peers aroundthe world.


Digital + traditional = more

Some exampleswhere retailershave leveragedthis thinkingto drive more sales.

Restaurants using digitalmenus to access detailsabout wine reported a20% rise in sales.


Digital + traditional = more

Virtual dressing roomshave resulted in a +50%rise in conversion ratesfor first-time buyers.

Interactive store windows that link to shoppers’ phones have brought 25% of those who try into stores afterward.

Our unique positioning

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Meetingbusiness needs

OvercomingIT challenges

At the heartof new digital uses

Innovationforesightwith ourOrange Labs

Secure networksand global infrastructure

Global/local capabilitiesalong with expert people

Orchestrate > Operate > Optimize

Retail therapy – the digital transformation of shopping in China

Digital transformation

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Orange Business Services is atrusted partner for our customers’digital transformation providing your

employees withsmart and

mobileways of working

offering thebest connectivity,

wherever youneed it

leveragingapplications

for your business

performance

bringing youthe flexibility

of cloud infrastructur

e

Retail therapy – the digital transformation of shopping in China


How Orange helpsretail companies

Accelerate time to market via scalable and agile network and hybrid cloud basede-commerce infrastructure

Securely connect stores, HQ sites and e-commerce infrastructure globally withhigh availability

Improve Omni-channel customer engagement

Improve efficiency with our global real time tracking and reporting solutions for supply chain management

Enhance productivity through greater collaboration between employee worldwide

Improve profitability by rationalizing and optimizing global ICT infrastructure


Orange retail industrysolutions overview

CRM Loyalty Customer profiling Insight Customer contact

POS Staff communication Inventory management Customer traffic

analysis Sales mobility Digital signage WIFI

APP, website PCI compliance Social media CDN Anti-DDOS, WAF Cloud

Order management Merchandise Warehouse &

fulfilment End to end visibility

Customer In-store E-commerce Supply chain

MPLSInternetDC/DRSecurity





Orange e-commerce sector solutions overview

Network enabled data center services(co-loc, Net-hosting)

Managed DR and Backup for customer DB and payment transaction records

Auto-scaling and cloud based content caching to ensure user experience

IaaS to enable on demand, Pay as you use based compute, storage to cater for peak seasons and seasonal promotion

Hybrid IT via single cloud brokerage enables automated workload provisioning across different cloud targets and alignment between cost of infrastructure and value of workload

Managed aPaaS hosts e-commerce apps and monitoring, reporting tools

Cloud contact center solutions, fleet tracking, inventory management, inventory tracking

DevOps for continuous improvement/maintenance of current apps and innovation of new applications

Security and cyber-defense


Case study: Darty

Orange digital solution improves in-store customer experience at Darty.

3.8 billion euros in 2013,242 stores and 10,500employees in France.

Leading distributor of electrical products in Europe.


Case study: Darty Orange solution

Issues and challenges

ADSL access, LAN Wi-Fi, security, installation of the equipment, wiring, supervision, deployment and management of smart tablets

The Digital Coach service for mobile terminals (assistance to rollout and to users)

The design of the service and the management of the terminals (technical and organisation)

The rollout of the 4,000 synchronised tablets in the shops

A help desk and the management of the device stock, using Mobile Iron’s Mobile Device Management platform, hosted in the Orange cloud

Assistance to users that can include the remote management of each tablet

Results and benefits extended web-store experience with synergy between the website and

physical stores

secured and managed broadband internet access and Wi-Fi for staff and customers

salespeople can access real-time sales applications and price comparison websites via tablets

tablets can be customized to salespeople’s needs, and come with

high-quality user support to enable faster training and adoption

Darty learnt that its customers journey combined online searches, product comparisons between e-shops and visits to brick and mortar shops

The chain needed to put the sales advisors in the shops back at the heart of these journeys, using digital tools

Darty wanted to introduce in-store digital experiences to increase sales and empower sales forces


Case study: Jingdong Mall

Jingdong Mall choose Orange Contact Center solution to enhance global customer service and lower costs

HQ in Beijing, 2011 revenue $3.3B

also called Jingdong Mall, oneof the biggest B2C online computer retailers worldwide, double the sizeof Amazon

51M registered users and 8,000 suppliers in China, sells +1M different products with more than 400,000 orders per day


Case study: Jingdong Mall Orange solution

Issues and challenges

Global Contact Center Solution (SIP) to support5000 agents in China

Nice Voice Recognition, Audiocodes voice gateway, Nuance ASR and Text to Speech (TTS)

IVR for customer self-service

manage customer and technical support calls, underpinned by SLAs

program & partner management – Genesys, Verint

Results and benefits improved CWT, reduced abandon rate, better first

call resolution rate via direct transfer to suppliers

lower operating costs using call distribution across multiple locations, better agent flexibility

1,000 agents on system in month 1

high availability ensures non-stop customer service

increasing volumes led to existing call center becoming bottleneck + unable to scale to 10,000 agents

customer’s need multi-media channels – voice, Web chat, email

reduce Call Waiting Time (CWT), increase first call resolution rate

lower operational costs, overall and per agent

call center critical to e-retailer


Case study: Omni-channel

Omni-channel IT enablement

HQ in Zhejiang, over 9000 employees

A leading kitchen appliance manufacture in China

Selling product to 40 countries and regions, more than 5 million families all over the world are enjoying its high quality products and service


Case study: Omni-channel Orange solution End-to-end solution from design, implementation to

operation

Leading technology and true multimedia(voice, email, chat, SMS, QQ, Wechat, Weibo)

Orange knowledge base and 360 customer profile solution

Integrated with MS CRM

Results and benefits Meet business growth need

Better customer satisfaction

Improve efficiency via new agent tool.Reduce abandon rate, reduce call waitingtime and better SLA

Issues and challenges Expect advanced contact center service

to support dynamic business growth

multi-channel interaction

customer engagement efficiency

Global expansion

HQ in Zhejiang, over 9000 employees

A leading kitchen appliance manufacturein China

Selling product to 40 countries and regions, more than 5 million families all over theworld are enjoying its high quality products and service

Orange group


244 million customers worldwide

Local presence in 160 countries

Major Service Centers in Brazil, Egypt, India, Mauritius helping business clients 24/7

Largest enterprise voice/data network forin the world, 220+ countries and territories

4G in 11 countries

3,000+ multinational clients worldwide

156,000 employees (20,000 serving enterprises)

732 million euros invested in research andinnovation in 2014

Cloud for Business customers 300 MNC, 8,000 SMEs

2014 revenue

strongest brand in 2014

€39bn

Thank you for your time!Data in this presentation referenced from a PwC study “Shop Till You Drop” commissioned by Orange Business Services. To find out more downloadthe report here - https://backoffice.www.orange-business.com/en/library/publication/shop-till-you-drop

https://backoffice.www.orange-business.com/en/library/publication/shop-till-you-drop

