ECR AP - GS1 Hong Kong Supply Chain Management

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28 ECR Asia Pacific Award It is a recognized practice in ECR Asia Pacific to recognize the best cases around the region which shows exceptional level of collaboration and drives value for all of the parties. The beginning of 2012 we reached out our companies asking them to submit their case studies where they work collaboratively with their trading partners. We received 28 exceptional examples (see in table). Every of them met the criteria's which were: Contribution to the development of ECR. Degree of collaboration demonstrated. Value created for consumers. Benefits realized. Presentation style. The judges had a very tough job to reach the 3 finalist. The 3 cases what we have invited to be presented in the conference are the best of the best. All 3 cases in their own way demonstrated the spirit of ECR In line with our judges decision the ECR AP 2012 Award medalists are: GOLD medal: e-Commerce Innovation by Procter & Gamble China and Yihaodian.com– Page 29 SILVER medal: Consumer Value Creation through Joint Promotion & Event Forecasting by Tesco India and HUL India—Page 30 BRONZE medal: Logistic Distribution Integration Drives Supply Chain Optimization by Metro China, Procter & Gamble China, Unilever China– Page 31 We would like to say thanks for all of the submissions and for the judges.: for Chris Cave Jones, Wong Tack Wai, Apolonia Kersh. Anthony Rose, Chris Cave Jones, Wong Tack Wai, Apolonia Kersh, Alex von Behr Project Country Companies Loss Prevention Program Australia 17 companies End to End Consumer Driven Supply Chain Philippines P&G, Puregold Joint Business Planning Creating VALUE to Customer by Maximizing On-Shelf Availability Singapore NTUC Fairprice, Nestle Watson, Colgate Philippines Palmolive Customer Implant Project Thailand Tesco, Colgate Palmolive Distributors Engagement Initiative: Good Warehouse Practice Malaysia Colgate Palmolive Global data synchronization network (GDSN) Vietnam Metro , Colgate Palmolive End-to-End Supply Chain Promotion Management - Win-Win Solution for Retailer & Supplier Business Growth China Unilever, Vanguard Shelf Ready Pack China Unilever, Metro OSA China Unilever, Tesco Palletization Delivery China Unilever, Watson Logistics Distribution Integration METRO,P&G, Unilever, Vinda, UPM, Supor, Sinotrans Drives Supply Chain Optimization China Logisitics Retailer/Supplier Synergic Process Integration for Joint Value Maximization China Vanguard P&G Standardized Goods Receiving China P&G Wal Mart E commerce innovation China P&G, Yihaodian Distributor Supply Network Reinvention China P&G A master data reinvention journey in China retail Industry China GS1, P&G BJHL Supply Chain Visibility within Collaborative Framework China P&G , BJHL Business collaboration & customer availability Pakistan Shrinkage Control - Gillette Safer Case Project Metro, P&G and AbuDawood Singapore P&G, Watson Strategic Partnership - Joint Business Planning Singapore P&G , NTUC Fairprice Guardian Next shopper based Store Design Project Singapore P&G , Guardian Collaboration- Driving Joint Value creation for Retailers and Manufacturers Thailand Tesco, Diageo Consumer value creation through joint promotion and event forecasting India Tesco, Unilever Palletization Delivery China Unilever, Watson 1 Team India Unilever, Metro Homeplus world 1st virtual store Korea Homeplus Central Warehouse Project Vietnam Metro, P&G 28
ECR AP Award WINNER E-commerce Innovation Serve more shoppers, in more part of China, more completely By Procter & Gamble China and Yihaodan.com 29 Eddie Hu-Emerging Channel General Manager Procter & Gamble The General status of e Commerce in China: China is big and fast growing in e commerce. 1. Within next couple years e commerce will be 9% of total retail what is huge 2. The potential is very big. 1/3 of Chinese people is using internet. 1/3 of them are e shoppers. 3. However if you compare it with USA or Korea we still have a huge room to grow. The conclusion is: the absolute number is big but the potential is even bigger. China is #1 Internet/eShopper Market, with huge potential. Understanding our shopper is basic. Why people shop online 1. Convenience- To avoid going to the store costumer save time. To shop anytime :Our peak hours are 10-11 PM at night. 2. Value– To compare prices and save money 3. Selection- To buy things not available in your local area To buy things not available in China. For example in Tibet what is 5000 KM away- we sell Vidal Sassoon hair product on line what we can hardly see there in the shops. How P&G as a company works in the e-commerce Broader coverage- work with most of the e commerce retailers Model to fulfil the e-shoppers need: 4 C model Catch- Connect-Close-Continue 4C MODEL: It is like a wheel. Integrated brand building plus sales model on line It is to talk to online shoppers in each critical moment: •When they generate purchasing intention •When the make up their mind •When they decide which brand they buy •Recommend anything else what they can buy •Hook them back to make them a loyal shopper SALES = Traffic (PV) * Conversion * Basket Size * Repeat This formula explains how this cycle generate sales Catch is to help to drive traffic in your website Connect is to drive the connection with the shoppers Close is to offer 360 degree offers to make sure they buy something at least 1 item. Beyond this 1 item we want to expand their basket. Continue: We do expect to come back and shop again Liu Jun Ling CEO Yihaodan.com Alex von Behr, Liu Jun Ling, Eddie Hu, Anthony Rose Yihaodian is an online supermarket that provides its customers with a superior customer experience, a vast selection of products and low prices. Yihaodian offers its 20 million-plus users more than 250,000 SKUs over 13 product lines. Yihaodian enjoys a reputation as the fastest growing e-commerce company in China. We are only 4 years old but having a complex model. Yihaodian sources product , develops system and even deliver goods itself with 6000 employees. How do we use 4 C model to make business better CATCH: Drive high quality traffic together. Website union: P&G and us did co branded campaign. In 2 months we managed 10 million page view and doubled the sales We have EDM/SM/DM system. At the same time P&G had a huge campaign in a big show called China Got Talents. We integrated that campaign in our EDM system. As a result Head & Shoulders sales went up by 70 % and the whole haircare product category with 60 %. CONNECT: Provide Best e -Content to Shoppers Once you have traffic we have to make it attractive. First we focused to FMCG products. Initially we took pictures ourselves, put them to the website and started to sell them. But we had to do it better. It has to be more vivid with all information costumers might need. And now it comes the moment of true: CLOSE We have to close the deal. Trade in Trade Up and Trade Across During the Olympics where P&G was one of the major sponsor we had specific campaign and offered limited edition of product for a few weeks. The result was amazing. The sales was tripled. Customers can do DIY Virtual bundeling to save money and also Virtual Gift Packs We have to CONTINUE: the 2 team has to work together very closely share a lot of data together. 75% of orders coming from old customers, 25% from new. That shows loyalty. We have driven the traffic, We have converted, we have enhanced the content. we have closed the deal and continue to drive customer loyalty. But this is still the very beginning. A lot is still coming. 29
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