Sunday, September 19, 2010

Shaping the competitive retail

The use of IT technology to improve competitiveness, has become the choice of many retailers.

According to the data, the rate of growth in China retail industry in Western countries is almost 3 to 5 times that of other Asian countries, 2 to 3 times. Some experts predict that China will ultimately become the world's largest retail market.

But behind the rapid growth of retail sales, profit margins were down, how fierce competition to maintain its competitive advantage? Recently held in Sanya, "2006 China International Retail Summit" in retail business owners from all conducted in-depth study on this, which, using IT technology to enhance their competitiveness Chengwei many retailers choice.

Accurate analysis of customer marketing

Renmin University of China has done a topic on the mall customer consumption data analysis found that spending of the top 20% of the consumers, by 1: 4:15 Categories, create 33,970 yuan per capita of 1%, 4% customers to create 7,905 yuan per capita, 15% of the customers and create 2,699 yuan per capita, the top 1% of the consumers and 15% of consumer spending after a difference of 10 times the amount. The remaining 80% of customers only 386.97 yuan per capita, which is basically 80% of customers buy no law, usually to buy the marketing.

"Customer-centered marketing is the core business." Cui Wei Ru's chairman, said Luan. Only analysis of the difference to customer targeted marketing, to achieve high efficiency. It is the attention to customer needs, Cuiwei in 2005 and long-beneficial technology to develop customer management marketing system. After nearly a year of operation, the two department store chains Cuiwei subordinates and four small supermarket chain in different systems to achieve real-time exchange of customer information and marketing resources to any integration. And MIS information management system was first launched in 2005, electronic surveys, making sales returns, accounting, billing to form a complete loop. In addition, Cuiwei according to the management of different levels, combined with system information, analyze information through the multi-dimensional database for different customers with personalized service. In the department store customers in high-end consumers, enhance consumer level training, insufficient cash to pursue quality of life of these consumers. How unified position, product portfolio, for detailed analysis of these customers, and targeted marketing, a system must be addressed.

Luan Ru said that a lot of attempts to do this Cuiwei work, such as the frequency of credit card, the inquiry list, the characteristics of shopping, consumption and purchase frequency, discover personalized customer requirements, consumer demand, the demand stage and money demand. After the master to carry out these laws targeted marketing plan, to take home for comment, networking, SMS telephone visit, send cards every day way of marriage, and the establishment of such a character Cuiwei club activities. Meanwhile, Cui Wei Hai Ba as a key consumer group of the lower targets, a separate customer research, analysis and tracking research. These initiatives make Cuiwei turnover in 2005 has been a lot of upgrading, reached 1.68 billion yuan.

How to attract more customers, expand the purchasing power? Which customers should be retained? What goods and customers can be bound? What customers like what products? Long Yi Qing Song, general manager of technology that they relate to customer life cycle management, customer loss control and customer preference management. Due to the richness and large volume customers, analysis of these data must rely on information systems, CRM systems in addition to a more comprehensive collection of customer information to assess customer value, improve customer emotional experience, but also deal with customer complaints information.

Retail trends

Currently, the retail industry's most concerned about RFID technology, many people believe the industry, RFID technology is the most anticipated retail technology. However, due to cost and other factors, the current application of RFID technology in retail is also inadequate. China Hewlett-Packard vice president, enterprise computing and professional services group marketing general manager of manufacturing cum-distribution industry Xieshao Yi said in an interview, the second half of this year, many RFID applications will be realized in China's retail industry, but that there are mainly used in some foreign high value-added products. "Most of the retail profit margin is low, but in some high-end retail formats in the not low, such as LV brand apparel, IT digital cameras and printers, these areas will be the first application of RFID technology areas."

In addition, due to cost pressures increase, the retail will be the first to accept one of the IT outsourcing industry. China Hewlett-Packard Co., Enterprise Computing and Professional Services Group Customer Service Director, Tao Qu Ming of the view that a retail enterprise, to protect the hundreds of PC server, the cost and labor are a heavy burden, but many professional IT company is a simple matter.

In addition, with the entry of foreign retail enterprises and increasing competition, making mergers and acquisitions are no longer rare among retail. China Hewlett-Packard Co., enterprise computing and professional services technical advisory group, said general manager Yu-Long Peng, M & A process, the original two companies to merge their system, in which a system may have to reinvent the wheel. Of course we all want to avoid this, is this desire can be achieved through the SOA, SOA-based modular components emphasized, such a system could be open to dismember, and then all the modules it inherited, the original technology is not will be wasted, can maximize the business processes to ensure income and expenditure arising.

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