Winning the Retail War - PCCW Solutions

Copyright 2015 ISA Boutique. All rights reserved Copyright 2014 PCCW Solutions Ltd. All rights reserved 1

Winning the

Retail War Through Seamless, Personalized, and Interactive Digital Innovation

Copyright 2015 ISA Boutique. All rights reserved 2

Introduction

Copyright 2015 ISA Boutique. All rights reserved

• Drop in sales amount in retail industry

-14.6%

• Drop in sales volume in retail industry

-13.9%

• Luxury Goods (watch, jewelry)

-21.4%

• Apparel (clothes, bag)

-13.8%

Retail Trend

3

Source: Census and Statistics Department, 2015


Retail Trend

Source: Apple Daily, 2015

4


Retail Trend

Source: Apple Daily, 2015

5

In this situation of retail in crisis,

how’s our business performance?


We keep expanding our business

What make our huge success in this retail war?

Our performance

6


Company

Background


• Established for more than 45 years

• Resell over 40 international brands

• Own strong networks in HK and Macau

Company Background

8


Chinese High purchasing

power

Pursuing luxury

lifestyle

Targeted Segment

Targeted customers:

Customers’ characteristics: • High digital adoption • Digital channel is the most effective way to

engage with Chinese

9

Source: pwchk, 2015


Targeted Segment

Various use of digital:

10

Source: pwchk, 2015


Facing

Challenges


• 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

Core Challenges in Retail

12


Business

Strategies


Customer-centric strategy • Understand customer behavior

• Personalization

Business Strategies

O2O2O strategy • Draw customers from online to offline

• Offer 24*7 shopping platform

• Maintain relationship with customers online

14


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

Business Strategy

15


Digital Retail Solutions

Mobile POS Offline Online

Customer

Engagement

In-store

Experience

ERP/

HRM/ WMS

Social WiFi

iR-Furniture

IoT EAS

WeChat

eCommerce

Shopping Window

RFID

Big Data/

Business

Discovery

Interactive

Design

Member-

ship

Digital

Marketing


WeCha

t - Maintain relationship

with customers

- Arouse brand awareness

- Draw customers from

online to offline

eCommerce (deploying)

- Act as 24*7 shopping

platform

- Capture customers’ data

- Offer personalization online

Digital Retail Solutions (Online)


Customer Engagement

In-store Experience

ERP/ HRM/ WMS

Social WiFi

iR-Furniture

IoT EAS

WeChat

eCommerce

Shopping Window

RFID

Big Data/ Business

Discovery

Interactive Design

Member-ship

Digital Marketing


Social WiFi

- Increase traffic online

and offline

- Capture valuable data

iR-Furniture

- Facilitate stock take

- Enable item tracking

- Ease real-time monitoring

- Record item movement

- Allow real-time management

Digital Retail Solutions (Offline)


Customer Engagement

In-store Experience

ERP/ HRM/ WMS

Social WiFi

iR-Furniture

IoT EAS

WeChat

eCommerce

Shopping Window

RFID

Big Data/ Business

Discovery

Interactive Design

Member-ship

Digital Marketing


Mobile POS

- Reduce cost more

than 40%

- Facilitate business

expansion

- Ease operational

management

IoT EAS

- Prevent shop lifting

- Enhance customer service

- Record the stolen item



Customer Engagement

In-store Experience

ERP/ HRM/ WMS

Social WiFi

iR-Furniture

IoT EAS

WeChat

eCommerce

Shopping Window

RFID

Big Data/ Business

Discovery

Interactive Design

Member-ship

Digital Marketing


Shopping Window (in renovation)

- 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



Customer Engagement

In-store Experience

ERP/ HRM/ WMS

Social WiFi

iR-Furniture

IoT EAS

WeChat

eCommerce

Shopping Window

RFID

Big Data/ Business

Discovery

Interactive Design

Member-ship

Digital Marketing


How

Digitalization

helps Us


Customer (Vital element)

- Better understanding on

customers

- Better customer experience

- Personalization

Marketing (Differentiation)

- Product: Personalized

recommendation

- Price: Better targeting based

on customer behavior

- Promotion: Personalized

special offers

- Place: O2O channel

Operation

(Value added)

- Increase revenue via full

utilization of store location

- Better management

business decision

- Boosting Operation

efficiency and saving cost

How Digitalization can Help Us

22


Overall Result of Digitalization

Increase Traffic Increase coupon redemption

Enhance customer satisfaction

23


Takeaway


Takeaway

• Think about:

Who can be

your strategic

partner

Who is your

target segment

How to

implement

your business

plan

What is your

customer

behavior

What is your

business

strategy

25


THANK YOU!

Documents

Winning the Retail War - PCCW Solutions