WEBVTT

1
00:00:00.000 --> 00:00:01.410
(exciting music)

2
00:00:01.410 --> 00:00:03.260
<v Linda>This is retail today.</v>

3
00:00:03.260 --> 00:00:07.020
Omni-channel, multi-purpose, personalized.

4
00:00:07.020 --> 00:00:09.770
Amplify these and a core story emerges.

5
00:00:09.770 --> 00:00:12.033
It's the future of retail right now.

6
00:00:17.970 --> 00:00:20.120
I'm Linda Zou, a partner at BCG.

7
00:00:20.120 --> 00:00:22.040
Today, we are taking you to China

8
00:00:22.040 --> 00:00:24.740
to hear from one of our leading subject matter experts,

9
00:00:24.740 --> 00:00:26.180
Joseph Sun.

10
00:00:26.180 --> 00:00:29.430
Joseph is speaking to us from BCG's Digital Immersion Center

11
00:00:29.430 --> 00:00:30.520
in Shenzhen.

12
00:00:30.520 --> 00:00:33.660
<v Joseph>Today, we're focusing on innovations in grocery</v>

13
00:00:33.660 --> 00:00:36.243
with examples from Alibaba's Hema stores,

14
00:00:36.243 --> 00:00:38.630
and Tao Heung Superstore.

15
00:00:38.630 --> 00:00:40.720
Stay with us as we will be jumping

16
00:00:40.720 --> 00:00:43.883
between both stores in order to unlock the whole story.

17
00:00:44.950 --> 00:00:47.480
We're all familiar with the traditional customer channels

18
00:00:47.480 --> 00:00:49.650
of online and offline in the store.

19
00:00:49.650 --> 00:00:51.250
What we're starting to see now

20
00:00:51.250 --> 00:00:53.320
is a new customer journey blending,

21
00:00:53.320 --> 00:00:55.237
which does not distinguish between

22
00:00:55.237 --> 00:00:56.794
online and offline shopping.

23
00:00:56.794 --> 00:00:58.160
<v Linda>We've been talking about omni-channel</v>

24
00:00:58.160 --> 00:00:59.380
for a while now.

25
00:00:59.380 --> 00:01:01.320
What's new or different here?

26
00:01:01.320 --> 00:01:02.750
<v Joseph>Let us take a look.</v>

27
00:01:02.750 --> 00:01:05.750 line:15% 
Inside Hema, customers can use the mobile app

28
00:01:05.750 --> 00:01:07.310 line:15% 
to scan a product in store

29
00:01:07.310 --> 00:01:09.500 line:15% 
and unlock more information about it.

30
00:01:09.500 --> 00:01:10.983
There will be auxiliaries

31
00:01:10.983 --> 00:01:12.790
like information about the product,

32
00:01:12.790 --> 00:01:15.710
the company that makes it, cooking instructions,

33
00:01:15.710 --> 00:01:17.423
nutrition facts, and pricing.

34
00:01:18.500 --> 00:01:21.770 line:15% 
<v Linda>Has this led to any changes to the physical store?</v>

35
00:01:21.770 --> 00:01:22.820
<v Joseph>Absolutely.</v>

36
00:01:22.820 --> 00:01:25.570
At Tao Heung, there are in-store digital displays

37
00:01:25.570 --> 00:01:28.490
that function much like the product scanning at Hema.

38
00:01:28.490 --> 00:01:31.660
Using a mobile app, customers scan barcodes.

39
00:01:31.660 --> 00:01:33.792
This takes them to a page on their mobile app

40
00:01:33.792 --> 00:01:36.410
where they can access the discounts.

41
00:01:36.410 --> 00:01:39.090
<v Linda>Do these apps also connect with online ordering?</v>

42
00:01:39.090 --> 00:01:39.923
<v Joseph>They do.</v>

43
00:01:39.923 --> 00:01:42.400
At Hema, customers use the product barcodes

44
00:01:42.400 --> 00:01:45.372
to add that exact product to online ordering

45
00:01:45.372 --> 00:01:46.829
with employees packaging their order

46
00:01:46.829 --> 00:01:48.350
and delivering straight

47
00:01:48.350 --> 00:01:51.270
from the store to their doorstep within 30 minutes.

48
00:01:52.150 --> 00:01:53.200
<v Linda>I think what we see here</v>

49
00:01:53.200 --> 00:01:56.340
in omni-channel has evolved into a retail experience

50
00:01:56.340 --> 00:01:59.270
which offers infinite pathways for shoppers.

51
00:01:59.270 --> 00:02:01.640
The shopper is empowered to complete their journey

52
00:02:01.640 --> 00:02:03.152
without thinking about which channel

53
00:02:03.152 --> 00:02:06.070
or format they want to shop in.

54
00:02:06.070 --> 00:02:07.535
Looking at multi-purpose retail,

55
00:02:07.535 --> 00:02:09.530
what's the pathway for customers

56
00:02:09.530 --> 00:02:11.970
who want to spend more time in store?

57
00:02:11.970 --> 00:02:13.670
<v Joseph>There is a great example at Hema</v>

58
00:02:13.670 --> 00:02:15.600
where we can find in-store restaurants.

59
00:02:15.600 --> 00:02:17.634
Customers can have a full meal prepared

60
00:02:17.634 --> 00:02:20.780
as well as getting their own groceries cooked for them.

61
00:02:20.780 --> 00:02:23.479
Customers choose whether they want fresh ingredients,

62
00:02:23.479 --> 00:02:26.620
semi-cooked food, or even a full meal.

63
00:02:26.620 --> 00:02:29.020
And it's all happening in one place.

64
00:02:29.020 --> 00:02:30.690
It is about meeting the different needs

65
00:02:30.690 --> 00:02:33.720
of the customer within the same store and customer journey.

66
00:02:33.720 --> 00:02:36.600
<v Linda>And that's a great segue to our next topic.</v>

67
00:02:36.600 --> 00:02:39.130
What truly enables these infinite pathways

68
00:02:39.130 --> 00:02:42.147 line:15% 
is data which creates loyalty with shoppers.

69
00:02:42.147 --> 00:02:46.230 line:15% 
<v Joseph>At Hema, customers are asked to download an app.</v>

70
00:02:46.230 --> 00:02:49.140 line:15% 
This enables Hema to collect the customer data.

71
00:02:49.140 --> 00:02:50.050
<v Linda>And it's important to note</v>

72
00:02:50.050 --> 00:02:52.720
that there must be a two-way trust here.

73
00:02:52.720 --> 00:02:55.410
<v Joseph>With this trust customers give their loyalty</v>

74
00:02:55.410 --> 00:02:58.720 line:15% 
and share their information and preferences because

75
00:02:58.720 --> 00:03:01.640 line:15% 
they know they will receive helpful interactions

76
00:03:01.640 --> 00:03:02.850 line:15% 
in response.

77
00:03:02.850 --> 00:03:05.460
Personalized product offers are key

78
00:03:05.460 --> 00:03:09.010
as well as tailored assortments and personal promotions.

79
00:03:09.010 --> 00:03:10.770
It is all about offering a high level

80
00:03:10.770 --> 00:03:15.590
of convenience, and data helps to simplify this experience.

81
00:03:15.590 --> 00:03:17.920 line:15% 
<v Linda>Joseph, this has been very insightful.</v>

82
00:03:17.920 --> 00:03:20.670 line:15% 
A great look into what the future of retail looks like.

83
00:03:21.620 --> 00:03:24.890
Shenzhen is just one look into the future of retail.

84
00:03:24.890 --> 00:03:27.130
And this is not just about retail in China

85
00:03:27.130 --> 00:03:28.370
or for grocery formats

86
00:03:28.370 --> 00:03:31.170
and those who already have these capabilities.

87
00:03:31.170 --> 00:03:33.570
This is a future that can inspire every retailer

88
00:03:33.570 --> 00:03:35.260
to think about their own future

89
00:03:35.260 --> 00:03:37.060
and how they want to get there.

90
00:03:37.060 --> 00:03:39.050
Our BCG team works with retailers

91
00:03:39.050 --> 00:03:41.090
around the globe to take inspiration

92
00:03:41.090 --> 00:03:42.590
such as what we saw today,

93
00:03:42.590 --> 00:03:45.360
and apply it to their own unique businesses,

94
00:03:45.360 --> 00:03:48.420
geographic markets, and their customers.

95
00:03:48.420 --> 00:03:50.756
Join us next time as we travel to a new region

96
00:03:50.756 --> 00:03:52.823
in the global future of retail.