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How the lockdown transformed consumer behaviour in the digital era
EVENT: RETAIL ASIA SUMMIT 2022 How the lockdown transformed consumer behaviour in the digital era
Speakers at the Retail Asia Summit discussed their forecasts for the retail industry in the next two to five years.
As a result of the accelerated digital transformation in the past two years, the next couple of years for retail will be about the “complementary meshing of digital and non-digital options,” Matthew Crabbe, Director of Trends for Asia-Pacific at Mintel said at the Retail Asia Summit day 2.
In the following five years, customers are expected to look at a “more purposeful kind of joy” and seek balance in their lives both physically and virtually. This will lead to a “greater appreciation” of spending time with people and brands both online and offline.
Citing data from Mintel reports in 2021, Crabbe said that 71% of Malaysian consumers agreed that most of their leisure activities involve using digital technology, whilst 48% of Indian consumers strongly agreed that they seek fun in all aspects of life.
Consumers want to be “in control” by demanding better access to information from retailers to prove their products or services’ value, especially at a time of inflation. Some customers may want more do-ityourself products, whilst others would like to make their own menu.
Other consumers are preparing for the worst by relying on technology to measure risks and monitor their own health using trackers or applications and seek solutions.
“There's this idea of consumers using their own information to get something tangible back. It's about this transactional use of data; I give you data, and you give me something that I need in return,” Crabbe said.
“People are starting to use tech to get better value. They're not only creating new avenues of income for themselves but also creating personalised solutions for their needs,” Mintel's director added.
Meaningful spaces
Around four in five Malaysian consumers who own a smartphone have used price comparison websites or applications, whilst three in five Thai consumers said that if they had an extra THB1m, they would prioritise using it to start their own business. At least one in two Vietnamese consumers said they have tried or would be interested to try personalised food or drink according to their needs, Crabbe said. Consumers are seeking “flexible spaces” both in and out of their homes. He said that brands can help consumers to maximise their compact spaces at home and other places for people who are travelling. He noted that there is an “unknown space” such as the metaverse, another opportunity retailers can consider to connect with consumers. “The real trick for the future will be for retailers to create really meaningful spaces in which people can feel they can obtain tangible advancement, fulfilment, and joy,” he said. Rajesh Kumar, CEO Overseas at Ferns N Petals, said omnichannel presence is important as some customers go to physical retail outlets for product identification and selection, but purchase online. Customers are becoming “more vocal for local,” he said, noting that this consumer behaviour is mostly seen in China and India as the
There's this idea governments pushed for local brands. of consumers “The learning and probably using their own action item for the global brands information to will be to present themselves as get something a local brand in all the countries tangible back wherever they operate,” he said, adding that having vernacular language support is also vital.
Data-driven operations
In attracting customers, hingeing on data is going to be an enormous trend in the retail industry that will fuel growth for many businesses to respond more effectively to consumer demands in a “more realtime manner,” said David Llamas, the Chief Digital Officer at Central Retail Corporation. “If we don’t know our customers, we cannot give them what they need or what they want he said, noting that some of the data they have collected include the customer’s preferred brand, and their delivery address, amongst others, but its use are within the perimeters of data protection laws,” David Lim, Senior Vice President of Marketing at HappyFresh said. Leonard Jayamohan, Director at Deloitte Consulting Southeast Asia,
urged businesses to keep an eye on data privacy laws that are coming up in Southeast Asia as some markets are still in the process of crafting one.
Businesses should also look for technologies that can help in the tokenisation of data, he said.
Data can help in finding specific products online, a key challenge that was observed during the pandemic, said Fairmart CEO Jan Gasparic. This has been the case for over four million retailers in Southeast Asia.
“They were losing over $4.5b a year in sales to their online competitors, simply because their inventory was not searchable online,” he said, adding that in Singapore, 95% of the transactions are still happening in physical stores despite the prevalence of e-commerce.
To help physical stores, Gasparic said they offer solutions to digitise their products so their products appear on online searches and they capture local consumers.
Fairmart installs a device in-store to connect a barcode scanner for products to provide them with a picture of the available items and then generate product listings containing all other items that are currently in the inventory.
“The goal is not necessarily for the retailer to sell online, the goal is for them to display their products online and get them into the stores. You can think of this as a modern digital equivalent of window shopping,” he said, noting that if customers do not see local options, they would just opt to buy online.
Gasparic added that they have seen a conversion rate that is six times higher in the last six to 12 months.
Meanwhile, Kumar said that customers have started comparing products and services, wherein they look at product assortment, pricing, and serviceability, and go for the brand that offers those three qualities the best, leading to loyalty slightly going down. To track these consumer behaviours, they rely on various tools such as Google.
But for Ferns N Petals, going with the “app first approach,” focused on developing their website will be their strategy. They have also launched an app via Apple and Android.
Kumar also said that they plan to understand user behaviour by segmenting data and “targetting them as their needs and demands.”
“That will further help us associate more with the customers and then get them back on their website. Priority on data analytics and then app first approach is going to be the focus for this year,” he said.
Going for secondhand
Whilst there was a boom in e-commerce in the region, there was also an increase in overconsumption and waste. This is what the e-commerce platform for secondhand items, Carousell, tries to address, said Penny Cox, Head of Recommerce.
“Previously in the region, buying secondhand was seen as something kind of undesirable and meant you couldn't afford brand new items. Now, we're really seeing the shift towards secondhand. Secondhand finds are actually becoming something to brag about on social media,” Cox said.
In its sustainability report, Carousell found that 72% of its users across its eight markets have made secondhand purchases before, of which three in 10 make secondhand purchases whenever possible.
The younger generations are also more passionate about reducing waste and consuming sustainably, which can be supported by buying unused or under-used products like secondhand goods that are still in good condition.
She cited a Carousell report that stated a vast majority of millennials in Southeast Asia and Hong Kong felt that purchasing pre-owned items is more sustainable and 50% felt strongly about it. Aside from this, consumers are choosing secondhand because of value for money.
Cox, however, said some do not choose secondhand because it is not trusted as e-commerce, and it is much harder to shop for secondhand items, making it less convenient.
To address these, she said they are trying to build solutions that will allow them to buy and have their orders shipped within the application, “as quick and secure” as shopping on e-commerce platforms. They have launched authentication services for luxury items to ensure product quality and that they are not ripped off.
To keep customers’ money safe, the platform offers a warranty for electronics. It also offers returns or at least has dispute resolution policies to sort out problems. Carousell also launched the InstantBuy feature where items can be delivered by just clicking the check-out option, removing the need to chat to buy an item. “Our priority remains to create this lifestyle where secondhand is the first choice because it's as easy as firsthand,” Cox said.
Logistics side
With the rise of omnichannel strategies and brands purchasing from other markets, Martin Tan, Head of Operations at J&T Express Singapore, said that online businesses can improve the delivery of their products by ensuring convenience and traceability.
Convenience can influence purchases and this could be handled by providing more delivery options to customers. “Service points and parcel lockers provide efficiency and convenience for both businesses and consumers,” he said.
Our priority remains to create this lifestyle where secondhand is the first choice
Outstanding retailers and retail initiatives recognised at the Retail Asia Awards 2022
The retail industry has continued to remain steadfast amidst uncertainties and challenges. Industry players have used these struggles to find avenues for growth and opportunities. In recent years, retailers’ digital transformation journeys have been one of the most recognisable breakthroughs that disrupted how business is done.
As more companies gear towards the ‘new normal,’ businesses have now regained their strengths and have learned to leverage the latest technologies and adapt to the business needs in a fast-paced, often shifting environment. At the same time, this venture has also compelled companies to adapt to new methods of monitoring and controlling the supply chain, as well as innovating ways to keep consumers engaged.
In recognition of the organisations that go beyond their capabilities in delivering quality experience to its customers, Retail Asia Awards 2022 honoured these companies in a prestigious awards programme held through digital award presentations on 27 June to 1 July and studio award presentations in Singapore on 4 July. Winners were able to share their thoughts on winning the awards and on the changing industry through a video interview.
This year’s entries were reviewed by an esteemed panel of judges, which includes EY Asean Consumer Leader Olivier Gergele, KPMG Head of Consumer & Retail, ASPAC & Head of Technology, Media & Telecoms, Hong Kong Anson Bailey, RSM Singapore Partner, F&B, Retail and Consumer Products David Eu, Euromonitor International Senior Consultant Hianyang Chan, and PwC Asia Pacific, Mainland China and Hong Kong Consumer Markets Leader Michael Cheng.
Congratulations to all the winners!
Retail Asia congratulates the following winners:
A.S. Watson Group
ESG Initiative of the Year - Asia Health & Beauty Retailer of the Year - Asia Omnichannel Strategy of the Year - Asia Sustainability Initiative of the Year - Asia
Abdullah AlOthaim Markets Company
Marketing Initiative of the Year - Saudi Arabia
Abu Issa Holding
International Retailer of the Year - Qatar
ACE HARDWARE PHILS. INC
Hardware Retailer of the Year - Philippines
adidas Malaysia
Brand Store of the Year - Malaysia
AEON CO. (M) BHD.
CEO of the Year, Shafie Shamsuddin Sustainability Initiative of the Year - Malaysia
BREADTALK GROUP PTE LTD
Food & Beverage Retailer of the Year - Singapore
Central Food Retail Company Limited
Supermarket of the Year - Thailand Omnichannel Strategy of the Year - Thailand
Central Retail Corporation Public Company Limited
Digital Initiative of the Year - Thailand O2O Customer Experience of the Year - Thailand Retail App of the Year - Thailand
iShopChangi, Changi Airport Group (S) Pte Ltd
Omnichannel Strategy of the Year - Singapore
Charles & Keith
Store Design of the Year (Small) - Hong Kong
Chip Mong Retail
Mall of the Year - Cambodia
CRC Sports Co., Ltd.
Sporting Goods Retailer of the Year - Thailand
Dmall Life (China) Digital Technology
Customer Service Initiative of the Year - China Digital Initiative of the Year - China
ELISE FASHION LIMITED COMPANY
Apparel Retailer of the Year - Vietnam
Etaily and Landmark
Digital Initiative of the Year - Philippines
FairPrice Group
Brand Transformation of the Year - Singapore O2O Customer Experience of the Year - Singapore Specialty Store of the Year - Singapore Supermarket of the Year - Singapore
Furniture Republic Pvt Ltd
Brand Store of the Year - Nepal
GUERLAIN
Cosmetics Retailer of the Year - Hong Kong
Jaykay Marketing Services (Pvt) Ltd.
Supermarket of the Year - Sri Lanka Store Design of the Year (Large) - Sri Lanka Sustainability Initiative of the Year - Sri Lanka
K11 Concepts Limited
Pop-up Retail Project of the Year - Hong Kong
Kmart Australia
International Retailer of the Year - Australia Store Design of the Year (Large) - Australia Sustainability Initiative of the Year - Australia
Koala Sleep Japan
Retail Product of the Year - Japan
Loship
Food & Beverage Retailer of the Year - Vietnam
Lotus’s Thailand
Brand Transformation of the Year - Thailand Marketing Initiative of the Year - Thailand Sustainability Initiative of the Year - Thailand
LUXASIA
Cosmetics Retailer of the Year - Singapore
Mall of Dilmunia
Marketing Initiative of the Year - Bahrain
Mannings Hong Kong
Retail Product of the Year - Hong Kong
Megaworld Lifestyle Malls
Brand Transformation of the Year - Philippines
Melandas Indonesia
Furniture Retailer of the Year - Indonesia
Metro (Private) Limited
Department Store of the Year - Singapore
OnTheList Limited
Apparel Retailer of the Year - Hong Kong
Petzone
Direct Retailer of the Year - Kuwait
PHARMACITY PHARMACY JOINT STOCK COMPANY
Drugstore of the Year - Vietnam Health & Beauty Retailer of the Year - Vietnam
Pinduoduo
ESG Initiative of the Year - China
PT Supra Boga Lestari, Tbk
Supermarket of the Year - Indonesia Store Design of the Year (Large) - Indonesia Sustainability Initiative of the Year - Indonesia
Sino Group
Marketing Initiative of the Year - Hong Kong
SM Supermalls
Mall of the Year - Philippines ESG Initiative of the Year - Philippines
Starling Labs Limited
Store Retail Initiative of the Year - Hong Kong
Swarovski
Marketing Initiative of the Year - Malaysia
TFP Retail Sdn Bhd
ESG Initiative of the Year - Malaysia
The Body Shop India
Health & Beauty Retailer of the Year - India ESG Initiative of the Year - India
The North Face APAC
Pop-up Retail Project of the Year - China
The North Face Hong Kong
Brand Store of the Year - Hong Kong
The Penshoppe Group (GOLDEN ABC, Inc.)
Domestic E-Tailer of the Year - Philippines
Toys"R"Us Japan
Toys & Games Retailer of the Year - Japan
Watsons Personal Care Stores (Philippines), Inc.
Health & Beauty Retailer of the Year - Philippines Omnichannel Strategy of the Year - Philippines Sustainability Initiative of the Year - Philippines
Watsons Singapore
Health & Beauty Retailer of the Year - Singapore
Wilcon Depot, Inc.
Domestic Retailer of the Year - Philippines
ZALORA
Marketing Initiative of the Year - Singapore
Zen Corporation Group Public Company Limited
Food & Beverage Retailer of the Year - Thailand ACE HARDWARE PHILS. INC
AEON CO. (M) BHD.
Abdullah AlOthaim Markets Company Central Food Retail Company Limited
Kmart Australia NTUC FairPrice Marketplace
Elise Fashion Limited Company Etaily and Landmark FairPrice Group
Kopitiam Investment Pte. Ltd. CRC Sports Co., Ltd. Koala Sleep Japan
Megaworld Lifestyle Malls Melandas Indonesia PT Supra Boga Lestari Tbk
Metro (Private) Limited NTUC Fairprice Co-operative Ltd
The Penshoppe Group (Golden ABC)
Toys"R"Us Japan
Watsons International Zalora
Watsons Personal Care Stores (Philippines), Inc.
Watsons Singapore
Mannings Hong Kong wins Retail Product of the Year
It was awarded for transforming cotton and paper from everyday basic commodities to making them extra special with brand reinvention.
Mannings Cotton and Paper (Store Front)
In the summer of 2020, DFI Retail Group embarked on a transformation journey to reinvent its own brand in health and beauty— Mannings. Now, the brand is considered to be the leading health and beauty products chain store in Hong Kong.
Mannings’ own brand transformation journey is focused on customer needs being front and centre for the company. Every category assortment definition and new product development starts by studying customer and team members’ feedback, looking at market trends, and collecting newness all over the world. In this case, it started with an innovation showcase meeting in which team members spoke about which product they liked and why, selected new options, and explored further. This evolved into the Mannings Cotton and Paper product strategy and brand reinvention.
The goal is to offer customers quality everyday products at a great value. According to Elisabeth Van Den Berkmortel, Commercial Director - Mannings Hong Kong & Macau and Group Commercial Director - Own Brand Health & Beauty Product Development and Marketing, “We are humbled and grateful that our customers trust us to be part of their daily lives. They trust us for their basic needs and for their more premium or unique needs. We sell a paper product every 2 seconds and we sell more cotton products than anyone else in Hong Kong and that comes with a responsibility to ensure we provide high-quality products at low prices. Value for money is important for everyday needs.”
Mannings' exciting innovations The cotton assortment was relaunched with a clear tiering system to cater to different customer needs at different moments. One of the exciting innovations launched by Mannings is the Face Towel.
Inspired by Japanese trends, the Face Towel is a combination of a beauty product and an everyday essential paper towel. The softness of cotton with the strength of paper makes it truly multi-functional. It can be used wet or dry on the face and body and is packaged in a convenient drawstring bag. From launch, it was well-received by customers and soon became an instant bestseller.
Mannings revamped the packaging to better reflect the softness and freshness of the product. Bunnies on the packaging and in key campaigns make it more loveable and appealing. The launch was big and bold, with advertisements on train station panels, train escalators, bus seats, and a front-page newspaper feature.
The Mannings stores in Hong Kong and Macau were fully dressed up with window stickers, gondola ends, and product stackings near the cashier area.
In addition to positive feedback from customers, the store team members also put their trust in the products and actively shared their experiences with customers.
In the digital space, it had social engagements involving 100 micro-influencers and live streaming with key opinion leaders. This was considered a cross-over initiative with its National Brands partners and e-commerce. Live streaming was also used to help customers discover the many usage options of the different products.
Recognising excellence For this relaunch, Mannings Hong Kong was awarded with the Retail Product of the Year - Hong Kong trophy at the 17th Retail Asia Awards, a prestigious annual event that gathers the region's best retailers and recognises the most outstanding retail initiatives.
“The award means a lot to us. It’s a recognition of everyone’s effort in Mannings. A launch and campaign of this size are only possible with everyone’s help and support. Although Product Development, Design, and Marketing are important, Store Team Members, Supply Chain, and Planogram teams are just as important. You need to have the right product at the right moment, at the right place for the right price, which came with some unexpected challenges during COVID-19. It was the whole team who took ownership and made this happen. This award is a team effort and a team win,” said Elisabeth Van Den Berkmortel in her closing remarks.
Everyone deserves to feel special - every day. Mannings Cotton and Paper make Everyday Commodities special. This is real Innovation!
Retailers’ key to digital success: the Gokongweifunded, Ayala-backed omnichannel architect
etaily CEO and co-founder Alexander Friedhoff shares how working with Landmark in creating a seamless offline-to-online integration leads to an omnichannel customer experience.
etaily team receives the Retail Asia Award for Digital Initiative of the year - Philippines
With accelerated eCommerce growth triggered by the COVID-19 pandemic, the world is welcoming the omnichannel revolution. Consumers experience the various advantages of omnichannel, perhaps even without realising it. They can engage seamlessly with their brands online and offline and stay updated with their purchases and preferences.
Brands increasingly emphasise integrating offline and online components whilst considering their customers' various digital platforms in a comprehensive buyers’ journey. This integration is vital for brands, especially legacy stores, to survive and transition into the competitive online landscape.
These changes have made it hard for retailers to keep up with this so-called retail apocalypse. They constantly seek an opportunity to have a unified network of touch points to interact consistently with customers. With the help of the omnichannel architect, Etaily, brands are transitioning into eCommerce . The fast-rising technology provides them with the technology needed to cope and thrive during this pivotal time in the industry.
“We want to empower brands to make that leap into the powerful engine of eCommerce,” said Alexander Friedhoff, etaily CEO and co-founder. The company helps retailers customise their solutions and leverage omnichannel for brands to better understand and serve their markets, resulting in more significant market share and sales. Its solution covers the entire digital transformation with a comprehensive eCommerce operating system that the modern retailer needs to succeed online. “etaily provides these services for brands regardless of their stage in their retail eCommerce journey,” added Friedhoff.
Powered by the Gokongwei and Ayala groups, etaily has been transforming the eCommerce landscape in the country, empowering retail icons to create and maintain their digital shopping beachheads. One of the biggest Philippine retailers, Landmark, embarked on an omnichannel transformation with etaily. This initiative earned global recognition at the Retail Asia Awards for the Digital Initiative of the Year category in the Philippines.
Friedhoff described their partnership experience with Landmark as “an incredible experience for us at etaily. We had the opportunity to modernise an iconic retail brand’s digital storefronts and retail strategies, which helped accelerate their
digital transformation. To be recognised for our work gives us an even greater motivation to evolve and scale up our business.”
Anthony Cheng, CFO of Landmark, shared how etaily’s solutions impacted the retailer’s eCommerce journey: “With etaily accelerating our digital transformation, they allow us to compete in the modern retail landscape and prepare us to lead the digital future.” etaily provided Landmark with a complete eCommerce solution, from the digital presence, scalability, to customer experience. The scope of the partnership also allows Landmark to focus on other essential business areas such as merchandise assortment, whilst maintaining the brand’s traditional sensibilities that customers know and value.
The future of digital retail is geared toward omnichannel services, and retailers should already begin taking steps toward refining structures for business operations and finding ways to catch up with the transition. Brands face the challenge of embracing this critical era, and etaily’s omnichannel capabilities are vital in shaping digital growth in their respective markets.
“All of us are in a pivotal moment, as eCommerce is growing with more and more retail companies and brands moving to the digital space. It is an exciting, powerful journey that helps us adopt new capabilities whilst extending to newer, perhaps larger markets,” said Friedhoff.
etaily team
etaily prepares businesses for omnichannel, SEA success
The retailer was recognised for its outstanding initiatives at the Retail Asia Awards 2022.
At the onset of the COVID-19 pandemic in 2020, retailers realised the importance of eCommerce and how it could accelerate the online aspect of their business. Customers also recognised its value in getting essential goods. However, companies shifting to the online environment needed help as this phase required a complete understanding of online and offline business systems to make the transition as seamless as possible.
Growth amidst adversity It was in March 2020, during the start of the lockdowns, that etaily began its operations in the Philippines. For any new business, the pandemic would have brought its end. For etaily, however, rather than being hindered by this crisis, the company flourished because it had the tools and expertise to respond to the calls of many companies, especially legacy ones, which needed to integrate eCommerce into their business processes.
Today, etaily serves significant clients in the Philippines and worldwide, such as Reckitt Benckiser, Century Pacific, Nivea, Levi's, Skechers, Terranova, and Landmark Corporation. Its omnichannel capabilities, end-to-end fulfilment services, and highly experienced team of committed experts enable these brands to succeed in the eCommerce space.
O2O integration “Our vision is to provide forward-thinking retailers with the technology, operations, brand, and data capabilities they need to scale up their business,” says etaily CEO and Cofounder, Alexander Friedhoff.
Its omnichannel approach integrates existing and emerging channels to give customers a seamless experience whilst simultaneously improving operational efficiency for back-end processes such as demand and supply planning, inventory management, and fulfilment (including enabling multi-warehousing capabilities) and logistics.
Friedhoff shares, “We have found that more and more retailers have been beginning to implement more omnichannel services to improve interaction with their customers. Our omnichannel capabilities are key for that development where customers and businesses can engage at any stage of their shared journeys.” etaily's O2O software integrates offline point-of-sales and online functions such as click-and-collect to allow rapid eCommerce and order fulfilment. It also resolves valuechain issues with its multi-warehousing capabilities, shortened delivery times, reduced shipping fees, and increased product availability.
Entering ASEAN These new efficiencies and solutions enable these businesses to scale up and open them up to new frontiers. Retailers who can integrate their online and offline stores and services, in particular, are drawn to expanding their reach into Southeast Asia.
“With businesses increasingly entering the ASEAN market, these brands will need the help of an eCommerce enabler, as well as a partner familiar with the region and how its various countries do business,” says Friedhoff. “The omnichannel and its features help bridge the region’s cultural and market differences. They also set up the logistical base, digital ecosystem, and technology necessary to make the brand known to their new customers, fulfil their deliveries, and keep them coming back because of a rewarding user experience,” he added.
Watsons’ O+O Synergy & Resilience has won Health & Beauty Retailer award for the 2nd consecutive year
Watsons stays ahead of competition with its O+O strategy, by embracing e-commerce and adopting store digital technologies.
The retail industry is more disrupted than ever. It was obvious to Watsons that they had to embrace the new future of retail or risk business decline. As such, they have stayed focused on their O+O strategy; an ecosystem that is powered by technology, big data, Watsons Singapore team at the Retail Asia Award powerful analytics, and
AI, both offline and online. Adopting e-commerce and emerging store digital technologies, Watsons is continuing their journey to providing customers with a seamless shopping experience through establishing an online presence while sustaining footfall in physical stores. It has been working hard at synergies that create an integrated experience to better serve customers’ needs, enabling them to shop across different channels whenever, whatever. sustainability movement, Watsons is also pushing ahead with green commitments and more sustainable business practices to reduce its carbon footprint. Their Bring Your Own Bag ‘BYOB’ initiative is gaining stronger traction, with an 80% reduction of bags used in the latest report. 100% of the proceeds from the plastic bag charge imposed on BYOB Day go towards supporting WWF-Singapore’s conservation initiatives. With the success of their first refillery station in JEM, more stations are in the pipeline where you can Watsons also had to rethink its long- refill their number one selling own brand, term strategies; improve supply-chain Naturals by Watsons, as well as the exclusive management, last-mile deliveries, top-selling soap brand Dr Bronner’s. As part technological capabilities, and marketing to of Watsons' Go Green efforts, customers are stay ahead of the game. Consumers today also able to drop recyclable plastic bottles at demand more from retailers, and you simply any one of the 25 selected Watsons stores. cannot do it alone. Watsons strengthened its Watsons continues to differentiate well collaboration with like-minded partners such against competition with their Own Brand as Amazon Singapore by driving new frontiers strategy to offer value, commitment and in product range, fulfilment, and speed to quality assurance. Products go through quality customers with a 2-hour scheduled delivery assessments throughout the production service. Next up, Watsons' newly launched
APP will also allow customers to have a same-day express delivery by ordering from a Watsons store closest to them. Watsons does this through technology and by tapping into their competitive advantage of a vast network of stores in Singapore.
Pushing through with sustainability As consumers become increasingly ecoconscious and want to be part of the
Watsons Refillery Station at JEM
As we continue to drive forward our strategic digitisation initiatives, it is humbling to be recognised for the relevance we are creating in the retail industry. With a relentless commitment to our customers, we will continue to better ourselves to put a smile on customers’ faces
journey, which lasts up to 18 months. Our R&D is very stringent with all formulated products and ensures all claims are substantiated. Cosmetic products also undergo strict third-party toxicology testing and adhere to the most stringent regulations in both Asia and Europe in formulation. With the demand for clean beauty growing, 24% of their Own Brand range falls under the Sustainable Choices of having refills, better ingredients, and better packaging.
Leveraging multiple strategies
The usage of Big Data is part and parcel of
Watson’s DNA, where it is applied across many different aspects of the business for better decision making. Coupled with more than 1 million membership base, robust data provides a better understanding of customers, allowing personalisation of offerings direct to customers as well as ranging and relevance. This has allowed
Watsons to continue to increase customer lifetime value by making the correct business decisions backed by customer data.
Summing up the critical success factors,
Watsons also recognises people as its greatest asset. They are committed to providing a safe, supportive and discrimination-free environment for all employees. By fostering a culture of people development, Watsons employees receive the right tools and training to optimise performance and growth within the company. While the pandemic might have disrupted how we work, Watsons is determined to overcome the odds and stay connected with its people via digital innovations. "As we continue to drive forward our strategic digitisation initiatives, it is humbling to be recognised for the relevance we are creating in the retail industry.
Watsons shares this honour with our employees, suppliers and customers alike, who have helped make this possible. With a relentless commitment to our customers, we will continue to better ourselves to put a smile on customers’ faces," said Irene Lau,
Managing Director of Watsons Singapore.
Beauty brand Guerlain bags the Cosmetics Retailer of the Year at the Retail Asia Awards
Their retail excellence is attributed to customer-centred marketing strategies and the creation of acquisition hubs.
Guerlain’s creative visual merchandising
Presented by Retail Asia, the Retail Asia Awards 2022 recognises retailers that are able to navigate their way through industry challenges, and Guerlain exceeded such standards amidst the COVID-19 crisis. With the lingering pandemic affecting industries here and there, the beauty company was able to surpass the new challenge of the adverse consumer behaviour shifts as it gained a 50% increase in the local customer base in 2021.
It is evident that Guerlain focused its strategies on providing customers with an accessible shopping experience, as its stores are available on diverse platforms both online and offline, offering customers many consumer benefits. The omnichannel approach is one of the strategies utilised by the company to boost customer acquisition. Guerlain also invested in building a Pop-up Store in Fashion Walk, Causeway Bay as one of its acquisition hubs.
Guerlain is meticulous in its customer journey design. It begins with promoting customer acquisition through its use of online recruitment. This, in turn, encourages customers to personally engage in the Pop- up store and enjoy the digital game journey and exclusive new member privileges that are offered. Creative visual merchandising themes are also applied throughout the year, such as a Bee Garden, Christmas, Orchidarium, etc., to appeal to the customers. Additionally, Guerlain expands its consumer demographic by focusing on product marketing and new launches for designated customer groups so as to cater to different customer needs and offer distinctive customer experiences.
The beauty company prioritised understanding the customers’ “needpoints” by improving the client manager role during the pandemic. The client manager attends to the customers’ ongoing needs in a more personalised way by proactively communicating with them about their need- points, namely skin care issues, product delivery, and other purchasing concerns. Guerlain highlights the importance of client managers’ essential role of being a friend to customers. The development of the client manager role is a key factor in expanding the local customer base. It holds a customer-centric approach that aligns with the dramatic shifts in consumer behaviour amidst the pandemic.
Enhancing customer journey The beauty company is dedicated to sustaining long-term loyalty by enhancing their clients’ customer journey. Guerlain has strengthened its all-year-long communication automation campaign and birthday privileges, as well as its provision of services and customer workshops and events for engagement. With the multiple privileges and services offered, Guerlain appeals to a wide range of customers that will stay in the long run.
As a result of all these initiatives, Guerlain has proven that in retail, creating acquisition hubs in an omnichannel approach is essential, especially today when customers have a variety of platforms to choose from in terms of their purchasing needs. Guerlain also brought light to the significance of proactively attending to customers’ need points, as this builds a relationship that is a key factor in customer base enlargement.
Guerlain prioritises understanding the customers’ “need-points”
Lotus’s Thailand enhances leader position with “New SMART Retail”
Ready to grow alongside an economic recovery in H2 2022 by strengthening omnichannel offerings through new store openings and a nationwide e-commerce roll-out.
Sompong Rungnirattisai, CEO of Ek-Chai Distribution System
Lotus’s Thailand (Ek-Chai Distribution System) is set to capitalise on the anticipated economic recovery in the second half of 2022 by leading the “New SMART Retail,” in which smart technology seamlessly connects offline stores with online platforms to offer customers a delightful, and frictionless shopping experience. The retailer will continue to open new stores and refurbish existing ones to become “Everyday SMART Community Centres” for customers. It also plans to enhance the reach of its e-commerce platform, which currently has the most extensive network of distribution points, with around 2,300 stores located nationwide.
Mr Sompong Rungnirattisai, Chief Executive Officer, Lotus’s Thailand, said: “We have started to see positive signs since Q2 of 2022, with higher consumer spending. The recovering economic situation along with the good progress of our strategic programmes have led to the achievement of our performance targets. Since the start of the year, we have laid a foundation that will help Lotus’s become a leader in New SMART Retail, with a powerful IT infrastructure that connects our 2,300 physical stores nationwide with our e-commerce platform. We are also using big data to offer intelligent personalisation to our customers through our reward programme My Lotus’s.”
Inspiring fresh and food destination During the first half of 2022, Lotus’s opened 39 new stores and introduced new and delightful concepts that cater to the lifestyles of customers in specific locations. These include SMART Urban Supermarket at Nuanchan, Open Air Mall at Khlong 2, and SMART F&B Heaven at Sutthisarn. Ultimately, all stores are geared to become inspiring fresh and food destinations as well as everyday SMART community centres for customers whenever and wherever they visit. For the second half of the year, Lotus’s will open another 70-80 new stores, including Lotus’s North Ratchapruek in Q4 2022.
A wide array of F&B options are also being added to Lotus’s shopping malls. For the first six months of 2022, Lotus’s enlisted 1,300 F&B tenants in its malls across the country, with the aim of reaching 5,800 F&B tenants by year-end.
In Lotus’s hypermarkets and supermarkets, the focus has been on fresh food, where end-to-end improvements have been made throughout the whole value chain, from sourcing the best quality products locally and internationally, upping
quality and safety standards, adding new delightful ranges, to upgrading in-store and online fresh food shopping experiences. A variety of products, including GI (geographical indications) fruits, premium and imported products, as well as locally-grown leafy vegetables, have been introduced in appropriate stores across Thailand. All offers continue at affordable prices.
SMART life solutions In March 2022, Lotus’s unveiled its powerful Lotus’s SMART App, the first application from a retailer that combines e-commerce with a highly personalised reward programme. Since its launch, the application has been downloaded by more than 5 million customers, and online sales have grown more than 400% since March 2022.
SMART technology seamlessly connects the e-commerce platform with Lotus’s network of around 2,300 stores nationwide, enabling customers across Thailand to place online orders and receive their products from a Lotus’s store near them. Lotus’s Go Fresh stores offer ondemand services with deliveries made within one hour of an order being placed, whilst Lotus’s hypermarkets offer a more comprehensive choice of products with next-day delivery services. Real-time inventory updates ensure that customers receive available products from the store closest to them.
Thanks to Lotus’s SMART App, Lotus’s is now the supermarket retailer with the most extensive network of fulfilment centres in Thailand, with an ability to deliver products to consumers quickly and efficiently.
Lotus’s Go Fresh stores
Personalised value that goes beyond price The rewards programme, My Lotus’s, is a crucial tool in ensuring highly personalised offers and value to each specific customer with the use of artificial intelligence and big data. Through the programme, customers collect coins with every purchase made both offline and online. The coins can be redeemed for instant discounts or several other privileges, offline as well as online.
My Lotus’s Member Price, a programme that was introduced in July this year, has taken personalised value to the next level. Thanks to the collaboration with more than 50 leading brands, Lotus’s is able to offer the best prices on more than 500 products to My Lotus’s members. The programme will continue throughout the second half of 2022 to help customers through inflation.
Everyday sustainability Lotus’s is committed to being a platform of opportunities for SME operators and local farmers. In addition to being a distribution channel, Lotus’s has developed SMEs and farmers’ capabilities through a wide range of incubation programmes, from which more than 2,500 SME operators have benefited during the first six months of the year.
For the second half of 2022, Lotus’s will continue to enlist more SME suppliers and expand its direct sourcing efforts to provide sustainable income to farmers and quality products to customers. In collaboration with CP Origin, Lotus’s is also introducing a convenient online platform to help SMEs find effective sales channels through Lotus’s malls.
“We see positive external factors to the economy. Lotus’s is well poised to capitalise on the growth and cater to rising demands, thanks to the strong foundation that we have laid.” Sompong concluded.
As of 31 July 2022, Lotus’s currently has a total of 2,279 stores comprised of 224 hypermarkets, 203 supermarkets, and 1,852 mini-supermarkets. The retailer is exp ecting to open 70 new stores by the second half of 2022, bringing the total number to around 2,350 by year-end.
Lotus’s provides opportunities for SME operators and local farmers Lotus’s hypermarkets and supermarkets
RETAIL PRODUCT OF THE YEAR - JAPAN
Into the dreamland with Koala Sleep Japan
The company wins at the Retail Asia Awards 2022.
Introducing a new product into markets involves a lot of risks, especially if the target market has a cultural background that does without the product. In August 2021, Koala Sleep Japan introduced their newest product, the new Koala Mattress, offering never-before-seen comfort to their Japanese customers and winning the Retail Product of the Year - Japan Award at the Retail Asia Awards 2022.
Despite the fact that the previous Koala mattresses supported an ideal sleeping position and were comfortable to sleep on, there were some comments that they were too soft.
New Koala Mattress was developed, featuring two sides with differing softness that allow users to choose between a softer and firmer side by flipping the upper layer over. Despite this feature, the support function for the ideal sleeping posture is maintained, highlighting one of the strengths of the Koala Mattress.
Bringing this feature into their mattress made the Koala Mattress the first of its kind in Japan, and such a feature not only acts as a novelty to set the product apart from its competitors but allows users to choose the appropriate firmness that suits
their condition and body shape for a comfortable night’s sleep. Another feature incorporated into the mattress is the TENCEL™ lyocell fibre, which increases air permeability in the mattress, releasing heat and solving that pain point during sleeping, along with being soft to the touch. The mattress also has such high vibration absorption that the company boasts that a glass of wine put on one side of the mattress will not fall over if someone jumps next to it. New Koala Mattress Due to the cultural background and prevalence of using futons for sleeping, the Japanese are not accustomed to sleeping on mattresses, much less on soft ones. As a way of introducing the widespread use of mattresses, the Koala Mattress was developed to address the problem of having soft mattresses for those who are accustomed to sleeping on a hard surface by providing that firmness that a futon can provide.
