WEBVTT 1 00:00:02.230 --> 00:00:05.430 Amway is widely considered a direct-selling giant 2 00:00:05.430 --> 00:00:08.550 using the traditional offline, one-to-one, 3 00:00:08.550 --> 00:00:10.670 and face-to-face marketing model, 4 00:00:10.670 --> 00:00:14.620 and even has become synonymous with direct selling. 5 00:00:14.620 --> 00:00:16.040 There are two factors 6 00:00:16.040 --> 00:00:18.380 driving Amway's digital transformation. 7 00:00:18.380 --> 00:00:22.460 On the one hand, Amway is facing huge competition. 8 00:00:22.460 --> 00:00:25.480 Over the last decade, the consumer market in China 9 00:00:25.480 --> 00:00:27.770 has experienced great changes, 10 00:00:27.770 --> 00:00:30.330 and the huge consumption potential in the market 11 00:00:30.330 --> 00:00:32.290 has been released. 12 00:00:32.290 --> 00:00:35.780 On the other hand, for entrepreneurials, 13 00:00:35.780 --> 00:00:40.210 our ABOs, we need to empower Amway's business model 14 00:00:40.210 --> 00:00:43.270 while minimizing transformation costs, 15 00:00:43.270 --> 00:00:47.760 including empowering our ABOs with the ability to acquire 16 00:00:47.760 --> 00:00:49.440 and deal with customers. 17 00:00:49.440 --> 00:00:53.900 What we wanted in the end was for digital transformation to 18 00:00:53.900 --> 00:00:57.400 reshape the overall business processes. 19 00:00:57.400 --> 00:01:01.260 If so, digital tools will be truly integrated 20 00:01:01.260 --> 00:01:03.410 into the Amway business process, 21 00:01:03.410 --> 00:01:06.960 and will even change existing ABOs' behaviors 22 00:01:06.960 --> 00:01:09.900 and enhance the acquisition, conversion, 23 00:01:09.900 --> 00:01:12.580 and retention of our new ABOs. 24 00:01:12.580 --> 00:01:15.730 We existed on the principle 25 00:01:15.730 --> 00:01:18.940 of precise empowerment to our ABOs, 26 00:01:18.940 --> 00:01:21.450 respected market differences, 27 00:01:21.450 --> 00:01:24.830 and avoided using one-size-fits-all 28 00:01:24.830 --> 00:01:27.270 or campaign-style promotion. 29 00:01:27.270 --> 00:01:30.640 And instead, we've worked out digital solutions 30 00:01:30.640 --> 00:01:33.950 suitable for our users and markets 31 00:01:33.950 --> 00:01:36.250 at a different stage of development, 32 00:01:36.250 --> 00:01:39.990 and focused on promoting the applications 33 00:01:39.990 --> 00:01:43.730 most relevant to the business in each market 34 00:01:43.730 --> 00:01:47.170 to ensure overall acceptance. 35 00:01:47.170 --> 00:01:51.250 The outbreak of COVID-19 at the beginning of 2020 36 00:01:51.250 --> 00:01:54.690 surprised most people and most enterprises. 37 00:01:54.690 --> 00:01:58.240 Relying on Amway's long-established advantages 38 00:01:58.240 --> 00:02:00.300 in digital transformation, 39 00:02:00.300 --> 00:02:03.870 as well as our ABOs' basic digital capabilities, 40 00:02:03.870 --> 00:02:08.400 we quickly built online livestreaming marketing platforms 41 00:02:08.400 --> 00:02:11.400 and online meeting and training platforms 42 00:02:11.400 --> 00:02:13.180 in a very short time. 43 00:02:13.180 --> 00:02:17.330 And the core indicators, such as digital utilization rate 44 00:02:17.330 --> 00:02:21.790 and online purchase rate, have seen a remarkable increase. 45 00:02:21.790 --> 00:02:23.620 In face of the epidemic, 46 00:02:23.620 --> 00:02:27.600 we were fully prepared in digitalization 47 00:02:27.600 --> 00:02:32.595 and also managed to minimize the impact of the epidemic 48 00:02:32.595 --> 00:02:35.300 on our business. 49 00:02:35.300 --> 00:02:40.020 From 2012 till now, the proportion of Amway's online sales 50 00:02:40.020 --> 00:02:43.650 have jumped to 97%. 51 00:02:43.650 --> 00:02:46.010 And emerging e-commerce infrastructure 52 00:02:46.010 --> 00:02:49.620 and social e-commerce technology have been included 53 00:02:49.620 --> 00:02:53.273 in Amway's huge and complex business system. 54 00:02:54.130 --> 00:02:56.100 BCG has provided us 55 00:02:56.100 --> 00:02:59.790 with more than 100 customer engagement-management 56 00:02:59.790 --> 00:03:02.525 use cases, which have strengthened 57 00:03:02.525 --> 00:03:05.600 ABOs' customer management capabilities, 58 00:03:05.600 --> 00:03:08.810 improved ABOs' service efficiency 59 00:03:08.810 --> 00:03:11.910 based on the data available, 60 00:03:11.910 --> 00:03:14.870 enhanced our reputation among customers, 61 00:03:14.870 --> 00:03:19.130 and also enhanced customer loyalty. 62 00:03:19.130 --> 00:03:21.570 Those use cases are expected 63 00:03:21.570 --> 00:03:24.220 to create tens of millions 64 00:03:24.220 --> 00:03:28.963 of dollars in value for Amway every year.