ECR AP - GS1 Hong Kong Supply Chain Management
ECR AP - GS1 Hong Kong Supply Chain Management
ECR AP - GS1 Hong Kong Supply Chain Management
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<strong>ECR</strong> <strong>AP</strong> Award WINNER<br />
E-commerce Innovation<br />
Serve more shoppers, in more part of China, more completely<br />
By Procter & Gamble China and Yihaodan.com<br />
29<br />
Eddie Hu-Emerging Channel General Manager Procter & Gamble<br />
The General status of e Commerce in China:<br />
China is big and fast growing in e commerce.<br />
1. Within next couple years e commerce will be 9% of total<br />
retail what is huge<br />
2. The potential is very big. 1/3 of Chinese people is using internet.<br />
1/3 of them are e shoppers.<br />
3. However if you compare it with USA or Korea we still have<br />
a huge room to grow.<br />
The conclusion is: the absolute number is big but the potential is<br />
even bigger. China is #1 Internet/eShopper Market, with huge<br />
potential.<br />
Understanding our shopper is basic. Why people shop online<br />
1. Convenience- To avoid going to the store costumer save<br />
time. To shop anytime :Our peak hours are 10-11 PM at<br />
night.<br />
2. Value– To compare prices and save money<br />
3. Selection- To buy things not available in your local area To<br />
buy things not available in China. For example in Tibet<br />
what is 5000 KM away- we sell Vidal Sassoon hair product<br />
on line what we can hardly see there in the shops.<br />
How P&G as a company works in the e-commerce<br />
Broader coverage- work with most of the e commerce retailers<br />
Model to fulfil the e-shoppers need: 4 C model Catch-<br />
Connect-Close-Continue<br />
4C MODEL:<br />
It is like a wheel. Integrated brand<br />
building plus sales model on line<br />
It is to talk to online shoppers in each<br />
critical moment:<br />
•When they generate purchasing intention<br />
•When the make up their mind<br />
•When they decide which brand they<br />
buy<br />
•Recommend anything else what they<br />
can buy<br />
•Hook them back to make them a loyal shopper<br />
SALES = Traffic (PV) * Conversion * Basket Size * Repeat<br />
This formula explains how this cycle generate sales<br />
Catch is to help to drive traffic in your website<br />
Connect is to drive the connection with the shoppers<br />
Close is to offer 360 degree offers to make sure they buy something<br />
at least 1 item. Beyond this 1 item we want to expand their<br />
basket.<br />
Continue: We do expect to come back and shop again<br />
Liu Jun<br />
Ling CEO<br />
Yihaodan.com<br />
Alex von Behr, Liu Jun Ling, Eddie Hu, Anthony Rose<br />
Yihaodian is an online supermarket that provides its customers<br />
with a superior customer experience, a vast selection of products<br />
and low prices. Yihaodian offers its 20 million-plus users more<br />
than 250,000 SKUs over 13 product lines.<br />
Yihaodian enjoys a reputation as the fastest growing e-commerce<br />
company in China.<br />
We are only 4 years old but having a complex model. Yihaodian<br />
sources product , develops system and even deliver goods itself<br />
with 6000 employees.<br />
How do we use 4 C model to make business better<br />
CATCH: Drive high quality traffic together. Website union:<br />
P&G and us did co branded campaign. In 2 months we managed<br />
10 million page view and doubled the sales<br />
We have EDM/SM/DM system. At the same time P&G had a<br />
huge campaign in a big show called China Got Talents. We integrated<br />
that campaign in our EDM system. As a result Head &<br />
Shoulders sales went up by 70 % and the whole haircare product<br />
category with 60 %.<br />
CONNECT: Provide Best e -Content to Shoppers<br />
Once you have traffic we have to make it attractive. First we<br />
focused to FMCG products. Initially we took pictures ourselves,<br />
put them to the website and started to sell them.<br />
But we had to do it better. It has to be more vivid with all information<br />
costumers might need.<br />
And now it comes the moment of true: CLOSE<br />
We have to close the deal. Trade in Trade Up and Trade Across<br />
During the Olympics where P&G was one of the major sponsor<br />
we had specific campaign and offered limited edition of product<br />
for a few weeks. The result was amazing. The sales was tripled.<br />
Customers can do DIY Virtual bundeling to save money and also<br />
Virtual Gift Packs<br />
We have to CONTINUE: the 2 team has to work together very<br />
closely share a lot of data together.<br />
75% of orders coming from old customers, 25% from new. That<br />
shows loyalty. We have driven the traffic, We have converted,<br />
we have enhanced the content. we have closed the deal and continue<br />
to drive customer loyalty. But this is still the very beginning.<br />
A lot is still coming.<br />
29
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