HONG KONG, Dec 7, 2017 - (ACN Newswire) - The
inaugural Asian E-tailing Summit, organised by the Hong Kong Trade
Development Council (HKTDC), concluded yesterday. The one-day event
offered a one-stop platform to explore the future development of
e-commerce and was attended by more than 1,000 e-tailers and
business professionals from other related sectors.
- Rapid Growth of E-tailing Reshaping the Economy
The rapid growth of e-tailing has transformed the retail landscape,
becoming a crucial engine driving global consumption. The Summit's
plenary session discussed the impact of rising digital consumption
on the global economy. Speakers included Kiril Popov, Senior
Analyst, Fung Global Retail & Technology; Dai Feng Jun, General
Manager, Hong Kong Suning Commerce Co, Ltd; Yang Tao, founder and
CEO, Kilimall International Ltd; Giulio Xiloyannis, Managing
Director, ZALORA; and William Ip, Director, Large Enterprise, Hong
Kong, Korea and Taiwan, PayPal.
Chairing the session, Mr Popov kicked off the discussion with the
latest US retail trends. He said that 6,885 retail stores closed in
2017, up by 22 per cent over a year earlier, due to growing online
retail traffic and declining sales at physical stores. Meanwhile,
merger and acquisition activities among big retailers and e-tailers
has grown more prevalent. For example, international luxury handbag
brand Coach acquired rival, Kate Spade New York, while pet supplies
store PetSmart Inc acquired pet supplies e-tailer Chewy.com.
Mr Popov also stated that Amazon.com is now the largest online
retailer in the United States accounting for 55 per cent of online
sales over the US Thanksgiving period last month. The company is
expanding to a variety of retail categories, including apparel. In
a bid to offset competition from Amazon, Walmart has acquired a
number of fashion and apparel brands, while leveraging its physical
retail space and introducing pick-up and delivery services with its
newly acquired New York subsidiary Jet.com.
On global trends, Mr Popov confirmed that the Chinese mainland is
an e-tail pioneer, bringing in such innovative concepts as the
experimental cashier-less and cash-less coffee shop Tao Cafe and
the state-of-the-art supermarket Hema, which combines online and
offline shopping allowing customers to shop, dine and order
groceries for delivery from their mobile phones and using Alipay to
settle payments.
Mr Popov added that big data, e-tailing allows enhanced and direct
customer connection for marketing and promotional purposes. He also
predicted that more and more global luxury brands will start
selling online, and the use of voice-controlled digital assistants
and artificial intelligence assistants will become more prevalent,
drastically transforming the shopping experience. "To adapt to the
new changing retail landscape, more collaborations between big
corporations and start-ups, with the former providing capital and
resources, and the latter offering the technology required," he
said.
- Right product, right timing, right customers
Dai Feng Jun, General Manager, Hong Kong Suning Commerce Co, Ltd,
said that smart retail will be among the global retail trends.
Defined as adopting smart solution to provide personalised and
tailor-made products to the right customers at the right time,
smart retail leverages data-driven solutions to offer the right
products to end users while giving them the best shopping
experience.
He stressed that smart solutions, using big data, allow retailers
to collect information on consumer shopping behaviour, which can be
shared with manufacturers and suppliers in order to tailor the
product to meet the needs of consumers. "With good use of big data,
retailers can also figure out the potential products and the best
pricing strategy. As a result, the entire production-to-retail
supply chain can be more efficient and sophisticated," he
added.
Mr Dai shared Suning's own experience, saying that the company was
also technology-oriented when it launched its online retail
platform in 2012. But when it comes to smart retailing, he believed
that only customer-oriented strategy can offer users the best
shopping experience.
- Exploring e-tailing potential of emerging markets
Mr Tao shared his experience in Africa, where he started working on
the Kilimall project in 2014. Unlike his initial image of a
poverty-stricken continent, consumers in African cities such as
Nigeria and Kenya enjoy lifestyles similar to those in developed
economies. He noted that there are currently 360 million Internet
users, out of the total 1.2 billion population in Africa, with the
number expected to double every 15 years.
Mr Tao added that Africa is one of the fastest growing economies,
posting a 4.5 per cent annual GDP growth, with GDP per capita
reaching US$3,000 in 10 African countries. The continent also has
the world's youngest population, with the median age of below 18.
He said growing retail demand and insufficient supply has led to
expensive offerings in various retail categories that opens new
e-commerce business opportunities in Africa. Many African consumers
are regular smartphone and computer users, a trend that global
suppliers can tap by offering the right products with reliable
logistic and delivery services and payment system.
- Privacy is key to digital payments
Mr Ip said that digital payment systems are reliable means of
demonetisation, providing secure money transfers. The evolution of
payment methods, from cash, credit cards to mobile and various
contactless payment systems has helped unlock opportunities in the
digital economy.
When it comes to concerns about digital payment, Mr Ip said that
while 89 per cent of interviewees surveyed opted for digital
payment methods, they are concerned about privacy and security
issue. He reiterated that traders should note the importance of
privacy and security, when tapping e-tailing opportunities.
- Brand Exclusivity and Extensiveness is Key to Success
Leading online fashion retail platform Zalora launched its
Southeast Asian operation five years ago. The company's Managing
Director Giulio Xiloyannis shared his e-tailing experience in fast
fashion. He highlighted the importance of exclusivity and
extensiveness in brand partners. "Zalora's offerings range from
international brands to home grown ones and small brands," he
added.
Mr Xiloyannis pointed out that different trade barriers exist for
different markets, as well as varying customer behaviour. In
response, Zalora adopted the localisation approach in the last five
years, in terms of payment methods and supply chain management,
including by introducing direct payments through local banks.
Zalora also offers in-house supply chain expertise to its brand
partners and suppliers to ensure an efficient and speedy delivery
solution to end-users of different markets.
He emphasised that Zalora will not own a physical store that would
compete with its brand partners, but the company has initiated a
wide variety of marketing activities, including crossovers with
fashion events to drive visitor traffic to its online platforms. He
concluded that Hong Kong plays a key role in e-tailing as it serves
as a hub for many fashion brands and is the gateway for Chinese
brands to enter Southeast Asia. Importantly, Hong Kong is the
biggest sourcing hub in the region, and possesses a deep talent
pool in the creative and distribution sectors, which contributes to
the development of the e-tailing business in the city.
Website:
Asian E-tailing Summit: http://www.asianetailingsummit.com
Photo Download: http://bit.ly/2k3yyRR
About HKTDC
Established in 1966, the Hong Kong Trade Development Council
(HKTDC) is a statutory body dedicated to creating opportunities for
Hong Kong's businesses. With more than 40 offices globally,
including 13 on the Chinese mainland, the HKTDC promotes Hong Kong
as a platform for doing business with China, Asia and the world.
With 50 years of experience, the HKTDC organises international
exhibitions, conferences and business missions to provide
companies, particularly SMEs, with business opportunities on the
mainland and in international markets, while providing information
via trade publications, research reports and digital channels
including the media room. For more information, please visit:
www.hktdc.com/aboutus. Follow us on Google+, Twitter @hktdc,
LinkedIn.
- Google+: https://plus.google.com/+hktdc
- Twitter: http://www.twitter.com/hktdc
- LinkedIn:
http://www.linkedin.com/company/hong-kong-trade-development-council
Source: HKTDC
Contact:
HKTDC
Communications & Public Affairs Department
Sam Ho
Tel: +852 2584 4569
Email: sam.sy.ho@hktdc.org
Copyright 2017 ACN Newswire . All rights reserved.
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