德勤数字零售专项方案

2013.10Monitor

Deloitte

POV

on

China’s

Digital

RetailDiscussion

with

Trinity

GroupDigital

retail

/

Big

Data

JourneyConventionalretailerOmni-channelretailerStrategyHow

to?SuccessfulOmni-channelretailerTax

/

customplanningopportunities?Why?What

ishappening

in

themarket

place?What

areChinesecustomerslookingfor?Whatsocialmediahastodowithit?Brandrecognition©2013

Deloitte

Touche

Tohmatsu

LimitedPowerfrom

dataBiggermarket

shareGavin

Pathross,

Head

of

Deloitte

Digital,

Partner

of

Deloitte

ConsultingGavin

PathrossPartner/PrincipalShanghaiExpertise

and

Consulting

focusChinaretailoutlet

rollout

strategyOffline-to-online

multi-channel

retailingEcommerce/

McommercePE

Post-investment

Portfolio

Company

StrategyChannelandMarket

ExpansionStrategySalesForceRe-designand

TrainingM&A

Advisory

/

JVNegotiationData

AnalyticsSocialMediaMobilitySolutionsEnterprise

ApplicationsProfessionalqualifications,affiliations,accomplishmentsMBA,

INSEADEMBA

Tsinghua

UniversityBSc

Computer

Science,PurdueUniversityMajor

clients

servedL’OrealMagicHoldingsElizabeth

ArdenCoachILi-ningAntePeak361MingleCarls

Jr.Wendy’sTMLewinColumbiaNikeProjectexperience©2013

Deloitte

Touche

Tohmatsu

LimitedMulti-channel

5-year

strategyroadmapfor

a

leadingfootwear

manufacturer;

takingtheir

Tmallflagship

storeandmovingit

intotheir

ownbrandeddomainAssisted

aleading

credit

card

companytoreview

itscurrent

onlineproduct

offeringandcapabilitiesand

development

of

an

eCommerce

strategy.RecommendedstrategicandfinancialtargetsforeCommerce,

developedacommon

eCommerce

agenda

acrossfunctionsandgeographies,

andagreed

onaportfolioof

opportunitiesto

bepursuedover

thenext

18monthsDesigned

aB2Be-Commerceportalstrategy

for

aleadingJapanesecomponent

manufacturerArchitected

detailedmetrics

tomeasuremarketing

performanceand

establishedreportingprocessesand

hierarchytogovernactionsbasedonmetricresults.

Createdaset

of

marketingandchannelmetricsfor

anew

Wi-Fiproduct

and

servicewhichdemandedrapid

growthusingminimal

marketingspend.

Client

wasabletodoa“bigbang”

product

releaseandrelatedcampaignswhilecloselymonitoring

spend

effectiveness–

both

direct

and

through

MDF

partnersNote:

Ben

Xu,

Associate

Director

of

Deloitte

ConsultingBen

XuAssociateDirector,ShanghaiProfessional

background15years

inconsumer

goodsandretailoperationNationalretaildevelopment

manager

at

NikeChinaRegionalretailmanager

at

BenettonChinaManaging

director

of

Nautilus(Shanghai)

FitnessCo.

LtdFounder

of

anonlineSNSandecommercestartup5

years

instrategyconsultingCase

Team

Leader

at

Bain

&

CompanySenior

consultant

at

A.T.

KearneyFreelanceconsultantProjectexperience5-year

retaildevelopment

strategyfor

globalsportinggoodsleaderBusiness

planfor

mergeamongmajor

sportinggoodretailers

inChinaE-commerce

strategyfor

major

sporting

goodsbrandinChinaChina

business(includinge-commerce)

strategyre-evaluationfor

amajor

Europeanconsumer

retailer5-year

strategy

project

for

amajor

local

men’swear

apparelcompany5-year

strategyproject

for

a

leadinglocalhometextilecompanyChina

entry

strategyfor

amajor

EuropeanhomeheatingsolutionproviderProcessre-engineeringfor

amajor

expressdelivery

companyDue

Diligence

projects

for

major

women’s

wear

company,autoaccessories

retailer,

and

grocery

retailerProfessionalqualifications,affiliations,accomplishmentsMBA,

LondonBusinessSchoolMBA

exchangestudy,CornellUniversityPrior

ExperiencesBain&CompanyA.T.

KearneyNikeMajor

clients

servedNikeLi-ningMediamarktJoeoneLa

ChapelleLuolaiYonghuiVaillantDHL©2013

Deloitte

Touche

Tohmatsu

LimitedExecutive

Summary

(1/2)Executive

SummaryImplications

to

TrinityOverall

digitalmarketPlayersDynamicsEcosystemChina

digitalretailmarket

has

grown

at70%+

overthelast3years,

isexceedingUSin

2013to

becomeglobal

#1Mainly

drivenbycontinuedincreasein

customerbase,

conversion

rateandspending

percustomerDigital

retail

scale

in

China

varies

across

regionsGo

digital

isstrategicimperativeforconventional

retailers,

the

earlierthebetter,

but

window

of

opportunities

isstill

wideopenOmni-channel

playerhasasetofkeysuccess

factors

that

Trinity

needs

tolearn

and

practiceto

beableto

know“how

to

win”

in

thegameChinadigital

retail

industryhasgrown

to

bearathermatureecosystem

that

Trinity

can

leveragewithout

having

to

“re-inventthewheel”Pure

players

and

omni

channel

players

are

in

very

differentgamesForpureplayers

it

isclosestothe

endof

“landgrabbing”

phase,

Taobao/TmalldominatestheC2C/B2CmarketSpecialized

in

vertical

industries,

leadingomni

channelplayersevolvedfromB&Mretailersandbrandownershaveaclearset

of

keysuccessfactorsGrowthof

digitalretailhasbeenenabledbytheemergenceof

amorerobustandsophisticated

ecosystem,

consistingof

large

numberof

third

partyserviceprovidersalongthevaluechainMaturingplatformssuchasTaobao,

3rd

partyserviceprovidersin

payment

(Alipay)and

logistics(SF

Express)wereunderlyingenablersforgrowthof

digitalretailConsumerBehaviorDigital

is

revolutionizingconsumerbehaviorsand

shopping

experience

,

amajorinfluencer

forpurchasedecisionmakingof

bothonlineandofflineChinese

digitalconsumers

areratherunique,theyare

repertoirebuyers,

shiftingfrompriceto

experiencedriven,

and

mobilefanaticsPrefer

Brick&

Mortarplayers’

e-storeon

platformsover

purevertical

players,as

theytend

totrust

online

productsthat

haveofflinepresenceChinesedigital

consumersarehavinga

uniquesetofcharacteristicsthatarefastevolving,

ofwhich

anydigitalplayerhasto

getholdSource:

Deloitteanalysis5©2013

Deloitte

Touche

Tohmatsu

LimitedExecutive

Summary

(2/2)Apparel

&LuxuryGoodsDeepDiveSocialMediaImpactBig

DataApparel

isthe#1category

fordigitalretailing,

willfast

growto

reach

1/4oftotaldigitalmarket

by2015;

luxurygoodsdigital

retail

isin

itsearlystageApparel

digitalmarket

isstill

fragmented

and

multiplebusinessmodelscoexistLuxury

digital

market

has

4

models,

brand

owner

retailer

LVMH,Ferragamo,

Armanietc.

andonlineretailer

YOOX

aremakingsubstantialprogressesApparel

isthe#1

categoryfordigitalretailing,

luxurygoodsdigital

retail

isininfancy,

opportunitiesaboundSocial

mediais

themostimportantbattle

field

forbranding

and

sales,both

foronline

and

offlinebusinessBig

dataisnotsimplyabuzzwordused

bytheindustryto

createconcern

and

havoc.

Itisnow

on

mostCEO's

agendaand

anecessarypart

of

strategicplanning.

Getting

big

dataright

will

giveyou

an

edgein

all

facetsofyourbusiness.Social

mediahasevolvedthough

3stages

inChina,

current

trends:

SNSisflat,Weibo

is

slowing

down,

Wechat

is

dominating;

Mobile

access

is

taking

overSocial

media

iscommercialized

and

becomethemost

importantbattlefield

forbranding

and

sales,

apparel/luxurycompaniesareactiveparticipantsWeibo

is

the

most

favorite

social

platform

for

brands,

Wechat

may

taking

oversoonMoving

from“Howdidwedo”to

“Whatshould

wedo”“Traditional”

Business

Intelligence

versus

AnalyticsIdentify

shopperpreferences

toenhancecrossandupsellstrategiesUsing

demand

modeling

to

optimize

price

levels

oversegmentsReach

revenueand

profit

objectives

by

optimizing

theassortmentOptimize

personnel

effectiveness

and

decrease

customer

waiting

timeExecutive

SummaryImplications

to

TrinitySource:

Deloitteanalysis6©2013

Deloitte

Touche

Tohmatsu

LimitedContentsUnderstanding

of

Trinity’s

challengeDeloitte

POV

on

digital

retail

in

ChinaMarket

overviewPlayers

DynamicsEcosystemConsumer

behaviorVertical

deep

dive

-

Apparel

and

luxury

goodsSocial

media

impactBig

DataImplications

toTrinityCritical

questions

Monitor

Deloitte

can

address

for

Trinity

on

digital

retailProposed

structure

for

digital

retail

utilizing

Shanghai

FTZ7©2013

Deloitte

Touche

Tohmatsu

Limited©2013

Deloitte

Touche

Tohmatsu

LimitedTrinity,

as

a

conventional

retailer

in

luxury

men’s

wear,

is

facing

tough

challenges,digital

retail

-

the

unconventional

–

might

be

the

solution8Source:

Trinity

annualreportPrincipallyengagedintheretailingof

high-end

to

luxurymenswearinGreater

ChinaandEuropeaswellaslicensingof

itsmajor

brandsglobally,

aFungRetailingCompanyManage

five

international

menswear

brands-

Kent

&

Curwen,

Cerruti

1881,

Gieves

&

Hawkes,

D'URBANand

IntermezzoTrinityBackgroundChallengesGDP

isslowingdown,

competitionismoreintense,

consumers

arefast

evolving,

market

andbusinessfutureappears

tobemore

uncertainRevenue

decreased

by6.2%

in

2012for

GreaterChinaIncreased

by20.6%

of

same-store

salesgrowth

in2011,while

thenumber

declined

by

5.5%and

6.5%inthe

2012

Q2

and

Q4,

furtherdeclined

by10.2%

asof

2013Q2

inmainlandChinaIncreased

expensesof

sellingand

marketingin

the2013

Q2,

which

representinga

3.2%increasecomparedwiththesameperiodin2012Slowed

downexpansionof

newstoreopeningInitialconsiderationsin

digital

retailReach

out

and

connect

with

newgeneration

of

digitalcustomers,

hopefullyin

amore

effectivewaywithlower

marketingandsalescostBetter

understand

current

and

potential

customersthroughsocialmedia

andbyleveragingBigDataOpen

new

digital

saleschannel

byleveragingcurrent

store

networks,

tomatchwithor

evenstayaheadofmaincompetitorsThe

challenge

and

question:

Trinity

sales

is

slowing

down

since

2012;

profitabilitydeclined

by

19%

in

2012;

What

should

we

do

about

digitalretailing?477588959678951081181150100200300400500-4%+3%+14%+22%201336984310720123861449110201137463199620103295917832009269641169Gieves&

Hawkes

IntermezzoD’URBANKent&CurwenCerruti1.4931.4641.1440.9370.4260.5280.3740.2800.00.51.01.5+34%+41%-19%2012201120102009Revenue

fromexternal

customerProfit

before

incometax

RevenueandprofitofTrinity’sstore

in

mainland

China

(2009

–2013)(BillionHKD)

Trinity’sstoreinmainland

China

(2009

–2013)(#

of

store)Source:

Trinity

annualreport“Who

moved

my

cheese?”,

is

it

online

shopping?What

should

we

do

about

it?9©2013

Deloitte

Touche

Tohmatsu

LimitedContents110©2013

Deloitte

Touche

Tohmatsu

LimitedUnderstanding

of

Trinity’s

challenge2Deloitte

POV

on

digital

retail

in

China3Market

overviewPlayers

DynamicsEcosystemConsumer

behaviorVertical

deep

dive

-

Apparel

and

luxury

goodsSocial

media

impactBig

DataImplications

to

Trinity4Critical

questions

Monitor

Deloitte

can

address

for

Trinity

on

digital

retail5Proposed

structure

for

digital

retail

utilizing

Shanghai

FTZ1998~20002001~20022003~20072008~20092010~1st

group

ofpioneersestablished

C2CandbookwebsitesPlayers

mostlyreplicatedbusinessmodelsinUSOnlinesalesdeclined

heavily;MarketingexpenseshrankVCfundtightenedupSome

earlymoversexitedBreakthrough

ofonline

paymentand

deliveryserviceEcommercepenetrationrampedup,

esp

inlargecitiesPure

onlineretailers

started

toemerge,

withmorevertically

integratedbusinessmodelTraditionalretailersincreasedpenetration

intoonlinemarketMobileecommerceemergedEbay

acquiredEachnetAmazonacquiredJoyoDangdang,

M18went

IPODigital

retail

has

gone

through

five

stages

in

China

and

is

becoming

a

viablebusinessmodelEmergingFrozenRecoveringProsperingUpgradingTheme11©2013

Deloitte

Touche

Tohmatsu

LimitedNew

entrantsKeytransactionsNote:

2010datarepresents

August

201012monthstodateSource:

Analyst

report;

Lit

research;

DeloitteanalysisChina

digital

retail

market

size

is

exceeding

US

in

2013

to

become

#1

thanks

toboosted

growth

of

B2C

businessChinaisexpected

toovertake

U.S.

tobe

no.

1

in

2013ChinaisbecomingtheNo.

1inglobaldigitalretailmarket

……and

isexpectedtoreachRMB3T

in2015,

drivenbyB2C051015202015E20122009(09-12)75%0.00.51.01.52.02.53.03.5C2C(TRMB)2015E3.020121.320090.3B2C

160%CAGR

CAGR

(09-12)

(12-15E)71%

32%53%56%21%1324352%

6%

9%ChinaRetailMarket

(T

RMB)

Onlineas%oftotal16%14%CAGR

(12-15E)34%ChinaUSIndexed

market

size

of

digitalretailingCAGRChina

digital

retailingmarket12©2013

Deloitte

Touche

Tohmatsu

LimitedNote:

ExchangerateRMB/USD:

6.8(2009),

6.3(2012),

6.1(2015F)Source:

iResearch;Euromonitor;

expert

interviews;

DeloitteanalysisEnlarging

customer

base

continually

supply

potential

customers

to

China

digitalretailmarket5719927243,0201,30426305001,0001,5002,0002,5003,0003,500(B

RMB)2015ESpendingpercustomerCustomer

Base2012Customer

Base

Spendingpercustomer45%

55%4702009CAGR

(09-12)CAGR

(12-15E)71%32%58%42%GrowthContributionChina

Digital

RetailingMarket13©2013

Deloitte

Touche

Tohmatsu

LimitedSource:

iResearch;

Analyst

interview;

DeloitteanalysisThanks

to

continued

development

of

internet

infrastructure

and

betterdigitalecosystem,

more

netizens

are

becoming

digital

consumersgrowinginternetpenetrationrateIncreasingconversionrate*Continueddevelopment

of

infrastructureWide-spread

internet

coverage,especiallywithexpansiontowesternregionsandruralareaPolicy&rateSupportive

policyon

internet

serviceCustomer-friendly

price

on

internetservicedigital

retailmarket

ecosystem

isbetterdevelopedPayment

and

logisticsservicesbecome

morereliableLegislation

to

standardizeE-commerceCustomers

getting

more

comfortablewithdigitalretailandincreasedmediacoverage289236190148109805571561555648138429821002004006008001,0001,200(Million)2012

2013E20112010200920082007no.of

netizenno.

of

digitalconsumer40383431282726%of

digitalconsumer

Digital

consumer

base

inChina

(2007–2013)Note:

Digitalconsumersarethosepeoplewhoat

least

haveshoppedonetimeevery6months;

Netizen

arethosepeoplewhoare6+yearsoldandat

least

usedinternet

onceinlast

6monthsConversionratereferstodigitalconsumeras%of

netizenSource:

iResearch;

CNNIC;

Deloitteanalysis14©2013

Deloitte

Touche

Tohmatsu

LimitedSpending

per

digital

consumer

keeps

growing

as

more

disposable

income

andfavorable

products

become

available

for

saleonlineMore

moneyavailableforpurchasingMore

moneyspent

ondigitalGDP

growthDisposableincomegrowthGrowthof

incomedrivesmorespendingonmajor

digitalretailverticalsCPI

growthInflationdrivesupunit

priceMore

product

offering

fordigital

retailMorecategorieswithhigher

ASPareavailableonline(i.e.

onlineluxury)More

precise

customertargeting

&cross-sellingProduct

offering

specifically

designedbased

oncustomer

purchasingbehaviordrivesmoreordersOnline

retailers

transformfromdiscount-oriented

to

quality&serviceoriented5.14.74.12.41.61012345672007

2008

2009

2010

2011

2012

2013E(K

RMB)+14%3.4+50%spendingper

digitalconsumerSource:

iResearch;

CNNIC;

Deloitteanalysis

Spendingperdigitalconsumerin

China15©2013

Deloitte

Touche

Tohmatsu

LimitedDigital

retail

scale

in

China

varies

across

regions,

which

mirrors

the

geographicdifferences

in

overall

economicdevelopmentThe

overall

consumption

capacity

of

lower

tiercities

tends

to

be

much

smallerthan

that

of

the

1st

tiercitiesLarge

netizen

base

driven

by

population

and

high

internet

penetration

rateConsumers

in

leading

cities

have

more

desire

to

participate

in

digitalretail121214151825363642471002030405060ZhejiangHubeiShanghaiFujian(billionRMB)JiangsuSichuanGuangdongShandongBeijingLiaoningTransaction

value

of

digital

retailTransaction

value

of

digital

retail

–Top

10Province%of

totalmarketNo.

ofnetizen

(M)16©2013

Deloitte

Touche

Tohmatsu

Limited10%9%8%8%6%4%3%3%3%3%49251228112816161615Key

drivers

to

stimulate

digital

retail

transactionSource:

Ministryof

Industry

andInformation;

CNNICContents117©2013

Deloitte

Touche

Tohmatsu

LimitedUnderstanding

of

Trinity’s

challenge23Deloitte

POV

on

digital

retail

in

ChinaMarket

overviewPlayers

DynamicsEcosystemConsumer

behaviorVertical

deep

dive

-

Apparel

and

luxury

goodsSocial

media

impactBig

DataImplications

to

Trinity4Critical

questions

Monitor

Deloitte

can

address

for

Trinity

on

digital

retail5Proposed

structure

for

digital

retail

utilizing

Shanghai

FTZTwo

types

of

players

in

the

market:

pure

players

and

omni

channel

playersPure

PlayersOmniChannelPlayersDigital

retail

is

close

to

end

ofan

early

developmentphase

forpure

plays,

focused

on“land

grabbing”

and

multiple

business

models

co

exist

(Open/Closed,

C2C/B2C/Hybrid)However

as

scale

seems

to

be

the

silver

bullet,

some

trendsemerge−

Multi-category

players

prevail

as

single

category

players

phased

out−

Scale

and

signsof

a

profitablebusiness

model

seem

to

be

key

successfactors,“winner

takes

all”

situation

comparable

to

Amazon

is

likely

to

play

out

for

Taobao

/

Tmall−

Niche

positioning

on

selected

categories

(infant

formula)

or

selectedcapabilities(logistics)

could

provide

a

path

todaylightGiven

the

magnitude

of

the

Digital

transformation,

a

thought

through

Digital

strategy

withdifferent

depth

is

an

absolute

must

for

B&M

retailers,

Hybrid

Brand-owners/Retailers

andclassical

Brand-owners−

Critical

to

develop

full

set

of

Digital

capabilities

down

to

e

commerce

for

B&Mretailers−

Brand

owners

need

to

build

basic

digital

capabilities

to

stay

relevant

and

influence

thedigital

ecosystemDesign

of

a

successful

digital

strategy

is

calibrated

across

a

set

of

critical

success

factors−Invest

in

Digital

ahead

of

the

curve

and

be

prepared

for

acceleration/change−

Build

dedicated

teams

and

capabilities

(aside

of

core

business/

different

skill

set)−Design

a

best

in

class

website(information,

traffic,

conversion,

click-through)−Manage

Assortment

and

Pricing

in

a

differentiated

way

(offline/Digital)−

Createa

seamlessOmni

channel

(O2O)

experience

(incl.socialMedia)18©2013

Deloitte

Touche

Tohmatsu

LimitedPure

players

have

different

businessmodelsPureplatformProductsownedbyvendorE-store

fullyoperatedbyvendorPlatform

chargesetupfeeandcommissionPlatform

hasnoin-houselogisticscapabilityandleverage3PLtodoitTry

tobuildintegrateddelivery

infoplatform

for

3PLlogisticspartnersOpenplatformStarted

with

B2Cmodel,

but

recentlyaddedopenplatformtoimproveprofitabilityProductsownedbyvendorE-store

partiallyoperatedbyvendorPlatform

canoperatee-storefor

thevendorwithaservicechargePlatform

hasin-houselogisticscapabilityE-store

couldchoosebtw.

Platform’sin-house

logisticsor

3PL

partner

withaservicefeeB2C

pureplayerThepureplayer

fullybuyoutproductsE-store

operatedbythepureplayerMainlycoveredbypureplayer’sin-houselogisticsLeverage3PLtocover

remoteregionsProductbuyoutE-storeoperationPay-mentWarehouseDeliveryReturnExamplesValue

chain

participation19©2013

Deloitte

Touche

Tohmatsu

LimitedOn

all

levels,

Taobao

is

theclearleader

inChina’sC2Cmarket−

Monthly

visitors

17

times

more

thanPaipai

and

2000

times

more

thanEachnetIn

term

of

user

base

growth,

Taobao

isstillamongthefastestgrowingcompany−

38%

of

new

digital

retail

users

go

toTaobaofor

their

first

purchase−

Eachnet

and

Paipai

are

among

the

topcompanies

that

losecustomersRegarding

shopping

conversion

rate,Taobao

is

also

a

market

leader−

Taobao’s

conversion

rate

has

beenbetween

5%-8%−

Paipai’s

conversion

rate

is

between2%-4%−

Eachnet’s

conversion©2i0s13nDeolotitteeTovuechne

To1hm%atsu

LimitedTaobao

dominates

the

C2C

(In

fact

it

is

more

of

“small

business

to

consumers”)digital

retail

market

place

inChina20

China

C2C

transactionValue

(

BRMB2012)Taobao2003Website2011FoundingyearOwnerAlibabaPaipai2005TencentEchnet1999EbayBaiduYoua2008Baidu02004006008001,000TaobaoPaipai

(Tencent)Eachnet918Source:

CNNICreport;

MonitorDeloitteanalysisHighlightsTmall

leads

B2C

digital

retail

market

with

relatively

better

profitabilityLeverage

huge

user

base

and

traffic

of

Taobaotoattract

brandtenantsLight

assetsmodelwithnorealinventorybuilding(similar

toshoppingmallmodel,

fixedsetup

fee+transactionbasedcommission)Better

profitabilitythanthecompetitors

duetotraffic

support

from

TaobaoTaobao

guides

huge

traffic

to

Tmall

for

freeOther

B2Cplatforms

arestrugglingtoacquire

newcustomers

at

lowcost“Tmall

isprobablytheonlyprofitableB2Ce-storesinChinacurrently.

Other

players

areburninginvestors’

money”–

Journalist,

CBN0%B2CMarket(Included

open

platform)20%40%60%80%100%China

B2C

digital

retail

market

share(%)Source:

iResearch;

Expert

interview;

Lit

searchGomeDangdangATencent

B2CSuningJDTmallOthersVanclYihaodianVipshopHighlights21©2013

Deloitte

Touche

Tohmatsu

LimitedOn

thecontrary,

lots

of

vertical

specialized

pure

players

were

phased

out

in

the

pastfew

years22©2013

Deloitte

Touche

Tohmatsu

LimitedOmni

channel

players

appear

to

be

fairly

specialized

by

vertical*

Someof

themarket

sharesusedbyvertical

areMonitorDeloitteestimatesbasedon2009market

shares**

Backendof

Uniqlo’s

online

websiteis

runby

TMallSource:

Macquarie;

Zero2IPO;

iResearch;

Lit

search;

Deloitteanalysis100%80%60%40%20%30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%Apparel

Books0%

5%

10%

15%

20%

25%Electronics100%0%Grocery

Cosmetics

Others5924104Total

=

RMB

63

Billion10China

B2C

digital

Market

by

vertical

(

B

RMB2010)360buyTmallTmallVancl139shopNeweggM18JDDangdangAmazon99redTmallYihaodianTmallVanclOthersOthersOthersOthersESTIMATES23©2013

Deloitte

Touche

Tohmatsu

LimitedOmni-channel

playershave

different

typesTypes

of

omnichannel

playersB&M

retailerBrand

OwnerModern/traditionaltradeDepartmentstores24©2013

Deloitte

Touche

Tohmatsu

LimitedManufacturers/

brandownerswhoowntheretailchannelManufacturer/

brandownerwhosellthroughdistributors

or

retailchannelpartnersRetailer

+Brand

ownerOmni-channel

players:

keysuccess

factorsInvest

earlyindigital

(ahead

ofthe

curve)Build

best-in-classwebsiteDevelop

seamlesscross-channelexperienceBuilddedicateddigital

teamManagemerchandising

&pricingTake

advantageofB&MstoresIntegrateonline,mobile,

socialmediapresenceDifferentiate

&reducepricecomparisonDealwithdistributorcomplexityDrive

traffic

&conversiononlineOutsourcingtoprofessional3rdpartyLikelyquiteseparateat

firstIncorporatedigitalcapabilitiesintodifferent

functionsBothorganicandthroughM&APrepareorg.

forrapidchangeKey

success

factors

for

digital

leadership25©2013

Deloitte

Touche

Tohmatsu

LimitedContents126©2013

Deloitte

Touche

Tohmatsu

LimitedUnderstanding

of

Trinity’s

challenge23Deloitte

POV

on

digital

retail

in

ChinaMarket

overviewPlayers

DynamicsEcosyste