emerging trends workshop¤§会下载文档/001... · top trends – now and in to 5 years 4 top...

Copyright © 2013 Accenture. All rights reserved.

Emerging Trends Program

China Summary

June 5th 2013

Christian Requena, Accenture, Shanghai

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[email protected]


Agenda

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Topic Time

Emerging trends program introduction 2 min

Key survey finding 3 min

Implications of emerging trends 12 min

Next steps 5 min

Accenture point of view on emerging trends 8 min


Emerging trends program introduction

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• Identify emerging trends that will impact the Consumer

Goods and Retail industries

• Publish report outlining “Trends that will shape the Asian

CPG landscape”

• ECR to develop programs to prepare members to capitalize

on these trends

Objective

• Trend long listing • Survey

• Exploration workshops: Singapore / Shanghai / Mumbai

• Report

Approach


Key survey findings

Top Trends – Now and in to 5 years

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Top trends: awareness of health issues, increasing digital lifestyle, shift in

income levels, more informed consumers, environmental sustainability and an

aging and active emerging society that can not be ignored.

1

2

3

4

1

2

3

4

5

6

5

6

0 20 40 60 80

Increasingly Ageing Society

Scarcity of Talent

Increased Urbanization

Environmental Sustainability

The New Consumer

More Informed Consumers

The Shift in Income Levels

Increasing Digital Lifestyle

Awareness of Health Issues

Trends in 5Years

Trends Now


Shanghai workshop discussion outcomes

5

6 trends were discussed in Shanghai’s workshop

Trends Characteristics Implications Examples

Increasing Digital

Lifestyle

•Online stores

•Social Medial

•Online business

•Logistic cost

•Fake/inferior products

•Social media

•Taobao: Both an eCommerce and a BBS

•L'Oreal and Nestle build ecommerce

•New business model: B to B/C to C

Shift in Income

Levels

•Opportunity for premium products

•Shop less, but with bigger basket

•Traditional channel

•Different middle class

•Favor brand image products

•Higher shopper expectation

•Key shopper identification

•Silver economy

•Skin care product is popular

•Logistic network and effective supply chain

•Different portfolio for different stores in

colgate

Awareness of

Health Issues&

Increasingly

Aging Society

•Shifting of population structure

•More active life style for aging people

•Healthcare issue

•Smoking problem

•More market opportunities

•More nursing houses

•Mobile phone for aging people

•Special travel groups for aged consumers

•Nestle provides special milk products for

aged consumers

Changing Retail

Environment

•Modern trade grows fast

•Retail expansion slows

•Purchase way change

•Local players grow faster

•HQ manage local store

•Serve multi channel

•Low tier city penetration

•New product launching agility

•Visibility and effectiveness challenge

•Product differentiation

•Macdonald’s change based on geographic

•Unilever education campaign

•Wal-Mart E-commerce use offline store as

warehouse

•Coca’s online sale with “Number1 store”

Environmental

Sustainability

•Demand for environmental products, but

not willing to pay more

•Environment sustainability company

culture

•Long term sustainability growth

•Company margin risk

•Customer shopping behavior change

•Communicate environment

sustainability value to consumers

•Unilever create sustainability KPI’s

•Coca reuse recycle water

•Starbucks help clean communities

•Red apple

•GS1 Case code usage

Scarcity of Talent •High turnover of talent

•Eager to personal growth

•Cultural conflict

•High economical rewards attractiveness

•Local leaders go abroad for expertise

•Rise the labor cost

•More recruitment/training cost

•Promote automation in China

•Succession plan

•Preparing incentive plans

•Incentive plans

•Automation plans

Note: Health Issues and Aging Society are combined together for discussion because of similarities


Overall implication of Asia emerging trends

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Organizations are learning to act upon identified emerging trends levering the

power and speed of new technologies and getting support across the different

departments to respond appropriately with renovated strategies and Route to

market

Trends For Manufacture For Retailer

Increasing Digital

Lifestyle • Utilize online presence • Utilize online presence

Shift in Income

Levels

• Produce innovative products

• Target entry level consumer

• Keep wider product range

• Multiply retail formats

Awareness of

Health Issues

• Focus on healthier products

• Educate consumers

• Invest in traceability

• Focus on aged consumers’

products

Changing Retail

Environment

• Focus on product portfolio

• Focus on supply chain • Lead to increased competition

Environmental

Sustainability

• Build long term sustainable growth

• Maintain margins

• Carry more eco-friendly

products


Next steps

7

Based on the survey, ECR should develop programs and prepare members to

capitalize on top 4 trends:

1) Increasing Digital Lifestyle; 2) The New Consumer;

3) Environmental Sustainability; 4) Awareness of Health issues

…and add initiatives around the information society as this is missed

0 0.1 0.2 0.3 0.4 0.5 0.6

Increased Openness of Data

More Informed Consumers

Awareness of Health Issues

Environmental Sustainability

The New Consumer

Increasing Digital Lifestyle

Trends ECR should focus on


eCommerce and channel explosion

Rising middle class beyond developed urban areas

Increasing retail sophistication – likely concentration

Rising brand appeal – not so much recognition or loyalty

Accelerating shift from traditional marketing to digital

marketing and social media

Data explosion and analytics potential

Growing margin pressure/risk on lower tier/mass product

segments

Mobility becoming the norm – not the exception

Social media becoming a major driver of influence/opinion

‘War in store’

Multi-channel strategy and

enablement

Digital brand building and listening

Mobility

Technology at speed as key enabler

Trends Priorities

‘War in Store’

Gaining Visibility and Increasing Performance at Store Level

Pain Points Addressed How are these challenges being addressed?

Lost Sales Due to Out of Stocks

Poor Execution of Distribution Activities

Inefficient In-Field Activities

Inefficient Route Planning

Growth of Trade Spends

Lack of Visibility to Product Data & Supply Chain Spend

‘Perfect Store’ Capabilities & Improved Data Management

Strengthened Integration with Top Tier Distributors

End-to-End Sales Force Performance Management

Trade Promotion Management

Wholesaler Management

Point of Sale & Cost to Serve Analytics

Accenture point of view on emerging trends

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The art of winning the Chinese consumers penetrating the lower tier markets

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China consumers market background

Lower-tier cities and villages are the

new consumer battle grounds. They are

the frontier for high performance

• Fierce competition for consumers

• Growing demand for products and

services

• Faster disposable income growth rate

• Country’s fast pace of urbanization

Three types making the move to reach

Tier 3-5 markets: “Advanced Pioneers”,

“Explorers” And “Observers”

Six Capabilities to distinguish the

leaders from the rest

Invest in

supply chain

& distribution

infrastructure

Fuel growth

with high-

quality and

timely data

Find new

roads to

customers

Engage local

government

and social

communities

as partners

Build up

sales skills in

new

territories

Introduce

innovation to

the 4th “P”

(Product)

Favorable

opportunities

Geographica

l advantages

Harmonious

relationships


North America Europe APAC

Like to shop online (Apparel) 52% 54% 70%

Like to shop mobile (Apparel) 11% 13% 24%

Like to shop physical store (Apparel) 86% 82% 80%

Showroomed at least 1x in last 6 months 73% 74% 85%

Flexibility to pay anytime / anywhere, using

cash, credit, or other is Important / Very

Important

77% 70% 65%

Same day delivery – rated important or very

important

24% 35% 38%

% Who think “integrating stores / online /

mobile” is where retailers need to improve

shopping experience most

49% 49% 38%

The Seamless Consumer is a Global

Phenomenon

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Today’s non-stop customers expect to shop without barriers throughout a

multi-channel journey. At the geography level, there are many similarities and

some differentiation in consumer expectations of a Retailer’s seamless

capabilities

Copyright © 2013 Accenture. All rights reserved. Copyright © 2013 Accenture. All rights reserved.

Customer Experience

Must be seamless across brick and

mortar, online, mobile, social and other

emerging channels.

Must be seamless in terms of buying,

placement and promotion of merchandise,

having inventory visibility, developing pricing

strategies, and managing metrics and

incentives across channels.

Must be seamless as new disruptive

technologies such as mobile, social, cloud,

big data, etc. come into play.

Operations

Platforms

Retailers cannot deliver a seamless customer experience alone.

Technology, Data, Analytics and Process partners will become

equally as important as merchandise vendor partners.

Partners

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Becoming

Truly Seamless Requires Transforming

All Aspects of How a Retailer Operates

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Seamlessness - the ability to deliver a consistently personalized, on-brand

experience for each customer at every touch point, any time, anywhere - is

plainly a tall order for most traditional retailers


Thank you

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