Singapore – The emergence of seamless retail, with digital transformation propelling remarkable advancements in the sector, has put the customer squarely at the centre of attention, marking a new era.
With this, concepts such as multichannel and omnichannel, have lost their relevance, with a highly customer-centric approach taking the lead, according to a report by KPMG Asia Pacific and GS1 which examined how businesses and consumers in the Asia Pacific are embracing these seamless commerce strategies across diverse markets and geographies.
The report notes that once a differentiator, seamless retail – encompassing a brand’s ability to recognize and integrate the customer journey across multiple platforms and services – is now a baseline expectation in a majority of the markets surveyed, making it the new benchmark for tomorrow’s sellers.
The expectation is that social media, delivery innovations, apps, websites, automated messaging, and other digital interactions – all seamlessly integrate with traditional brick- and-mortar stores.
Highlights of the report include six key trends transforming retail, with retailers progressively expected to deliver on seamless retail, through integrated, connected capabilities to meet consumers on their terms.
Firstly, the report highlighted key priorities that consumers are looking for when choosing a platform, which are a wide variety of products and fast, reliable delivery amidst an e-commerce landscape in the region marked by a lack of a dominant platform. This comes alongside the prevalent application of AI in enhancing the relevance and accuracy of product recommendations, though there are concerns among consumers around privacy and lack of human interaction.
The report also highlighted trends such as social commerce gaining popularity among Gen Z, with fast-paced platforms such as TikTok, the consistent prominence of digital payment platforms as digital e-wallets gain traction in APAC, the recognition of loyalty programs for data collection, and sustainability placing itself forward as the baseline of marketing.
Notably, the report also stated that consumer expenditure is likely to start slowing down in APAC this year. With consumers feeling the impacts of rising costs, some markets are seeing muted growth while others are experiencing downtrends. Therefore there is a greater need for retailers to know how to better engage consumers in the current climate and beyond to gain market share, particularly as consumers recalibrate their spending.
Talking about the findings, Anson Bailey, head of consumer & retail, for KPMG in Asia Pacific, said, “PuttIng consumers first by adopting seamless, connected capabilities across the en4re organisation is no longer just a competitive edge, but a necessity for those who want to lead the market. ‘Navigating the Future of Seamless Commerce’ seeks to play a key role for the industry to identify opportunities, spurring innovation to better develop more successful customer experiences and journey maps.”
Meanwhile, Patrik Jonasson, senior director of global retail at GS1, commented, “Product sustainability, supply chain transparency, and circularity are becoming central to overall business operations. Soon, ESG reporting will be indistinguishable from the need for a seamless exchange of trusted product data. Companies will need to exchange information that is trusted and can be understood by all of the actors across today’s complex global supply chains, including the consumer.”
Tag: GS1
Hong Kong – Consumer bank DBS in Hong Kong and non-profit organisation GS1 Hong Kong have joined hands to further enhance their innovative SME trade financing solution with the Hong Kong Monetary Authority (HKMA) Commercial Data Interchange (CDI) platform.
The move is part of DBS Hong Kong’s commitment to providing enterprises with tailored, efficient financing services while also supporting the fintech ecosystem development led by the HKMA in Hong Kong.
DBS Hong Kong said that it plans to leverage CDI’s platform capabilities to further enhance its recently launched trade financing solution and accelerate its ecosystem strategy in Hong Kong.
Alex Cheung, managing director and head of Institutional Banking Group of DBS Hong Kong, said that the latest trade financing solution enhancement demonstrates the bank’s strong commitment to developing Hong Kong’s fintech ecosystem.
“As a leader in SME banking, DBS is proud to be a part of HKMA’s CDI platform. Since launching our innovative digital trade finance solution with GS1 Hong Kong earlier this year, we have successfully provided SMEs with enhanced and simplified access to working capital. DBS Hong Kong is proud to be an early adopter of CDI and we look forward to working on additional use cases that leverage the platform and find new ways to increase access to funding for SMEs,” added Cheung.
In June 2022, DBS Hong Kong and GS1 Hong Kong launched a digital post-shipment trade financing solution powered by alternative data. The solution enables SMEs on GS1 Hong Kong’s ezTRADE platform to utilise their trade data to access trade financing in a digital and straight-through manner.
With the new solution, SMEs can access much-needed working capital with just one click via the bank’s corporate banking platform, DBS IDEAL. This means that SMEs no longer need to manually submit hundreds of invoices and supporting documents, reducing time and effort through the adoption of a more digital and sustainable way of doing business and seeking financing.
Moreover, the solution redefines the trade financing journey for SMEs with DBS availing financing through a streamlined credit assessment process. Through DBS’ predictive analytics capabilities, invoice data is used to assess the financial health of SMEs, with the amount of financing available to SMEs updated on a dynamic and recurring basis.
Anna Lin, chief executive of GS1 Hong Kong, shared that the collaboration between GS1 Hong Kong and DBS Hong Kong on digital trade financing has borne fruit to many SMEs enjoying trade financing in a much simpler and digitised manner already.
“With the CDI, I look forward to unleashing the full potential of more alternative data, enhancing SMEs’ access to financial services and nurturing the trade financing ecosystem in Hong Kong,” said Lin.
Meanwhile, Sandy Tan, head of ecosystems for Institutional Banking Group at DBS Bank Hong Kong, noted that their digital solution has redefined the trade financing journey for SMEs on GS1 HK’s ezTRADE platform, and via their collaboration, they have enabled a digital ‘one click’ transaction experience and greatly reduced the time and effort needed to acquire working capital.
“DBS Hong Kong is committed to taking an active role in further developing and growing Hong Kong’s robust fintech ecosystem. Building on the launch of CDI’s capabilities, we expect to bring our solution to the next level in customer experience while providing more offerings to support the business growth of the SME community,” said Tan.
Hong Kong – As more and more consumers are embracing an online-to-offline (O2O) approach to the retail industry, a greater majority of retailers across Hong Kong and nine key cities in Mainland China, known as the ‘Greater Bay Area’ (GBA), are keeping in mind the importance of digital strategies to their business, specifically in the local setting, a new report from consulting firm KPMG, in partnership with the Hong Kong arm of business communication non-profit GS1, and financial institution HSBC shows.
In its latest report, they note that 73% of GBA retailers are implementing localized forms of their retail digital strategies, keeping in mind that they are increasing their use of both direct-to-consumer e-commerce and third-party e-commerce platforms.
The most common business functions for which 43% of surveyed retailers are implementing a GBA strategy are sales and marketing and communications, as companies look to attract customers in the mainland China market. Thirty percent of those retailers polled are developing a GBA programme for fulfilment, logistics, operations or supply chain management.
Consumer-wise, one in two (50%) of Hong Kong consumers said they felt more comfortable about shopping online since the start of the pandemic, not far behind the 59% of respondents from the nine mainland China GBA cities surveyed. Tellingly, 24% of Hong Kong consumers and 23% of those in the mainland GBA cities say they could live without physical retail stores.
The greater force that the report notes as game-changer for the modern retailer is the choice of Gen Z consumers towards online shopping, as 73% of Gen Z consumers in Hong Kong and 86% in mainland GBA cities expecting a swift response to product enquiries logged on online chat, and expecting brands to use tech including AI to help shortlist new products.
They also expect augmented reality (AR) functions to help them make better purchases online, with 61% in Hong Kong, and 82% in mainland GBA cities. The research also shows Gen Z consumers prefer contactless shopping (60% in Hong Kong and 77% in mainland GBA cities). Around 76% of retailers surveyed are adopting at least one type of Gen Z-specific strategy.
In the mid of the rising population of shoppers moving towards online, GBA retailers need to act fast to respond to the consumers’ O2O needs. The research shows a vast gap between customer expectations and what retailers are delivering, with 77% of Hong Kong and 85% of mainland respondents in the GBA indicating that retailers need to have a better connection between channels and create a seamless customer journey. Among retail executives that were surveyed on their actions to enhance customer experience, only 39% of businesses were currently focusing on the integration between physical stores and online, suggesting a significant gap in retailers’ O2O propositions.
Alice Yip, partner at head of consumer and industrial markets for Hong Kong at KPMG China, notes that these results cement the fact that more consumers are buying more online than ever before, and the retail brands who have best survived this rapid transition are those who have proven agile in their response to the growing demand for digital engagement.
“Hong Kong and mainland China GBA retailers are already implementing strategies for regional growth across the region while also looking to expand into Southeast Asia, with industry leaders emphasising the need for adequate localisation of products, services and marketing approaches to attract the growing pool of digital-savvy consumers,” Yip stated.
For Anna Lin, CEO at GS1, she explains that consumers expect a seamless transition from an in-store experience to an online experience. She added that consumers also want to engage with brands across social media and other digital media and they expect brands to use technology to improve customer service, ease of payments, flexible delivery options and convenient returns.
This is also agreed by Lewis Sun, head of product management for global liquidity and cash management for Asia Pacific at HSBC, who commented, “In order to deliver a seamless customer journey, more retailers in the Greater Bay Area are looking for a single platform that can take payments from multiple channels – from credit cards, bank transfers to e-wallets.”
As retailers and brands develop more complex digital channels and deploy new technologies, sourcing, upskilling and reskilling talent to build a future-ready workforce will be a key priority for retailers in navigating the new normal and capturing growth opportunities. With technical areas such as IT and systems support (38%), data analytics (35%), and research & development (31%) identified as top areas demanding more workforce, professional development programs as well as talent exchange within the GBA will provide opportunities to fill the gaps.