suning's 苏宁 omnichannel business practices
TRANSCRIPT
Suning 苏宁Omnichannel Business Practices
Michael Ling
2015
The omnichannel customer
• Customers can engage a company through multiple channels.
• Omnichannel is an integrated approach that offers customers a seamless experience.
• Customer experience should be consistent, relevant and personalized.
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Company background
• China’s largest consumer electronics retailer: 1,600 stores, 180,000 employees, and USD40 billion revenue.
• Ranked #1 in China’s Top 500 Private Enterprises.
• Suning.com ranked #4 in China’s B2C market.
• Household appliances, consumer electronics, books, clothing and fashion accessories.
• R&D facility in the Silicon Valley; Suning bank; international courier license.
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China’s e-tail market
• The world’s second largest e-tail market with 120 percent CAGR.
• In 2011, China’s e-tail market reached US120 billion and had overtaken those of Japan, the UK and Germany.
• Over 90 percent of China’s e-tail market are transacted over marketplaces.
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Chinese online consumers
• Incredibly large, diverse and heterogeneous.
• Consumers prefer a retailer that has an online presence and a physical store.
• Consumers prefer speed and convenience in online shopping.
• 550m mobile internet subscribers.
• Smartphones are popular.
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Suning’s omnichannel business practices
• Integrate the online/offline channels.
• Transform the retail stores.
• Integrate the information systems.
• Gather/analyze data across channels.
• Open up the supply chain & IT platform.
• Change and align the organization.
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Integrate the online/offline channels
• Customers can shop online or at physical stores.
• Online and store prices are consistent.
• Multimedia kiosks in-store.
• Online customers are provided with options offered to store customers.
• Customers can download mobile app to smartphones.
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Transform the retail stores
• Continue to build new types of retail stores.
• Expo Superstores to improve shopping experience.
• Future retail is a combination of online and offline channels.
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Integrate the information systems
• Online and physical stores are supported by an integrated information system.
• Requires substantial investment.
• Strategic partnership with IBM.
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Gather & analyze data across channels
• Collect, monitor and respond to customer interaction data in real-time.
• Use technologies to keep track of customer traffic flow in-store.
• Use data to build customer insights.
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Open up the supply chain & IT system
• Open up supply chain, distribution and logistics networks to suppliers.
• Allow suppliers to access ERP, CRM and B2B e-commerce platform.
• Centralize procurement at group level.
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Change & align the organization
• Change organization structure and culture.
• China’s “Wal-Mart and Amazon”.
• Online and offline channel business units should not be “silos”.
• Online and physical store teams are collocated.
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What are the lessons learned?
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