Retail in China is transforming fast. China’s customer expectations have changed beyond recognition. To win the China retail game, companies need to focus on three core areas. More about Orange Business Services: Official website: http://www.orange-business.com/en Facebook: https://www.facebook.com/orangebusiness/ Twitter: https://twitter.com/orangebusiness Linkedin: https://www.linkedin.com/company/orange-business-services/ Slideshare: http://www.slideshare.net/orangebusiness Pinterest: https://fr.pinterest.com/orangebusiness

1. Selling the idea
How to win the
retail game in China

2. 2
Retail in China is transforming fast
 Outstripping western counterparts in
innovation and growing more rapidly
 Undergoing dramatic transformation
with new digital processes, changing
customer habits
 Regulatory changes promoting consumer
spending
 Retail sales grew 10.2 percent year-on-year
to reach 36.63 trillion yuan in 2017
 Retail playing major part in China’s economic
growth as country shifts from export-driven
economy to a consumer society.
Retail in China
– where are we today?

3. 3
China’s customer
expectations have
changed beyond
recognition.
A new generation of consumers
Customer experience
is the new retail
imperative – no longer
“just” shopping.
50% of Chinese
consumers bought
goods online 2 or 3
times a month in the
past year – vs global
average of 27.9%.
Customers expect
retailers to be
adaptable and flexible.
50%

4. 4
The rise of the rural consumer
Shoppers in rural China have started spending more.
 Spending has increased 11.9 percent
year-on-year
 Spending growth in rural China is expected
set to exceed coastal regions
 Government investing US $22 billion
to connect 98 percent of rural areas
to the internet by 2020
 Poorer rural communities targets of
government’s anti-poverty drive to
eradicate it by 2020
4

5. 5
Companies that want to succeed in retail in China need to focus on three core areas.
Succeeding in Chinese retail
Transforming
customer service
Embracing the
omni-business model
Building partnerships

6. 6
Chinese retailers need to focus on
creating differentiated experiences
across all touchpoints – Customer
experience management (CEM) can
help with this.
Transforming customer service
Embrace new digital technologies
to transform traditional operations
Digitize the contact center – reduce
customer waiting times, give 24/7,
first call resolution and more
Chatbots and Predictive Voice
Analytics are powerful tools.
4

7. 7
Predictive analytics are essential for Chinese
retailers to enhance their customers’ experience.
 Develop more accurate forecasts of
customer demands
 Offer more personalized products,
promotions and prices to customers
 Better engagement and understanding
of customers
 Development of human-centric user
design on digital platforms
Predictive analytics are powerful
4

8. 8
 China’s spend on cloud services will match
global average in the next 1-3 years
 Chinese retailers much more likely to move to
cloud services to reduce CAPEX than global
average, more likely to adopt cloud to enable
mobile workforces
 Move to cloud gives increased ability to move
information across multiple platforms at
faster rates
 Cloud, XaaS and shift from CAPEX to OPEX
model to drive flexibility for Chinese retailers
The Omnibusiness Imperative

9. 9
Digital driving customer-centric thinking
Chinese companies cloud
services spend will match
global average over next
1-3 years
Chinese retailers are much
more likely than global
average to move to cloud
services to reduce CAPEX
Also more likely to adopt
cloud services to better
enable mobile workforces

10. 10
Chinese retailers have also recognized the
importance of working with the right partners
to take operations in the right direction.
 Chinese retailers face growing demand to
offer “one-stop” retail experience
 As such need to use partnerships to develop
joint business models
 Digital consumer expectation means an end
to the silos era
 Collaboration vital for retail success
The right partners remain vital
4

11. 11
Revolutionizing retail in China
To stay ahead:
 Leverage digital to pre-empt customer
needs across all channels at all stages of
their shopping journey
 Use collaboration to enhance customer
experience through new services and
processes
 Implement digital strategies to engage
with new generation of customers
 Focus on omnichannel business model
that drives integrated, seamless data
movement
 Take advantage of partnerships to
innovate and grow into new markets
Digital has
disrupted the
Chinese retail
industry
forever

12. 12
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13. 13 Orange Restricted
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14. Thank you
Learn more on Winning the China Retail game:
https://www.orange-
business.com/en/library/white-paper/winning-
china-retail-game