30-Page PPT: PwC Interprets the Latest Trends in Global Retail Omnichannel Sales (Pure Dry Goods)

JDA, together with consulting firm PwC, released the "CEO Perspective on Omnichannel Retail Trends Report" (hereinafter referred to as the "Report"), interpreting the latest trends in global retail omnichannel sales. The survey targeted 305 CEOs from the global top 1000 retail enterprises, with regions concentrated in globally representative markets such as China, Germany, Mexico, the UK, and the US, among which 55 CEOs from Chinese retail enterprises participated.

The Report shows that although Chinese retailers face multiple challenges in the omnichannel sales era, the surveyed Chinese retail CEOs are generally confident about revenue and profit growth from omnichannel, and their investment in all aspects of omnichannel is particularly prominent, accounting for 45% of their total annual investment. The Report also reveals the future investment directions of Chinese retailers in the omnichannel field.

The core of omnichannel is that retailers can provide a seamless shopping experience across all sales platforms while maximizing profits. Specifically, omnichannel retail is an enterprise's integration of physical store channels, e-commerce channels, and mobile application channels to sell goods or services to meet consumers' needs to purchase anytime, anywhere, and in any way, providing customers with a seamless shopping experience across all sales channels. These sales methods include not only traditional physical self-operated stores and franchise stores, but also official B2C malls and third-party e-commerce platforms.

1. Chinese Retailers Face Multiple Challenges

It is worth emphasizing that these challenges are driving up retailers' order fulfillment costs in omnichannel sales. Facing increased costs, they are controlling costs by raising prices, increasing delivery fees, or raising the minimum order amount for free delivery.

Currently, e-commerce and online retail are opening unprecedented opportunities for China's retail industry. The latest data from the Ministry of Commerce shows that in 2015, China's total e-commerce transaction volume grew by over 35%, five times the GDP growth rate; in addition, the growth rate of online retail in 2015 was 20.9 percentage points faster than that of total retail sales of consumer goods. At the recently concluded National People's Congress and Chinese People's Political Consultative Conference, the central government further proposed to "expand cross-border e-commerce pilot programs," "promote e-commerce in rural areas," and "encourage online-offline interaction to promote innovation and transformation of physical businesses."

"In such an environment, Chinese retailers must strive to achieve omnichannel transformation and seize the dividends brought by the Internet era to achieve sustainable business development," said Wayne Usie, Senior Vice President of Global Industry and Value Delivery at JDA.

2. Eliminating Operational Silos is Key

In fact, Chinese retailers are also increasing their investment in omnichannel. 98% of surveyed Chinese CEOs said they increased investment in omnichannel in 2015, an increase of 18% compared to 2014. In addition, Chinese CEOs' investment in omnichannel accounted for 45% of their total annual investment, 23% higher than other countries.

The Report further points out that Chinese CEOs' future investment directions in omnichannel retail mainly focus on providing consumers with more order delivery methods, providing seamless consumer experiences, expanding supply chain capabilities, and enhancing consumers' in-store experiences.

In response to the survey results, Wayne Usie pointed out, "Investment in omnichannel is undoubtedly crucial. But before investing, Chinese retailers must first consider eliminating operational silos, achieving internal information sharing, and enabling seamless collaboration across departments. Only then can they build an efficient omnichannel operating system." Wayne Usie added, "Fortunately, Chinese retail enterprises have a much smaller historical burden than their Western counterparts, which helps them build omnichannel infrastructure more easily."

The Report shows that currently 75% of surveyed Chinese CEOs say their enterprises have operational silos. Operational silos refer to situations where due to insufficient internal information sharing, various business departments operate independently according to their own rules, leading to poor communication, information asymmetry in operations and decision-making, and slow response to market demand changes.

Excerpted from: PwC

In response to the requests of many distributor friends, the third phase of the B-end e-commerce inspection class of this public platform will visit Wanshang Yizhan, Yunbao Shangmeng, and Weicheng Distribution from July 9-12. Distributor friends with transformation intentions can join us for on-site inspections:

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Participating distributor friends only need to pay a registration fee of 200 yuan. Time: July 9-12, 2016. Location: Changsha, Xiamen.

Interested distributor friends can register by scanning the QR code below.

When adding friends, please reply "Phase 3 Registration".

Previous Inspection Enterprise Cases:

Yishang Logistics Model Inspection (Second Phase B-end E-commerce Inspection Group Yishang Logistics)

Caiba Model Inspection

Jinhuobao Model Inspection

Beiquan Model On-site Inspection

Piduoduo Model On-site Inspection

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