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      How to reshape retail rules by cutting into Tencent Smart Retail in the apparel industry?
      Release time:2018-10-29    Publisher:

      The best-selling book "Black Swan" tells us that events with very low probability and unpredictable "black swan" events happen in almost every thing in the world. Taleb, the author of The Black Swan, has another book called Anti-Fatness, which tells us about the rules of survival in an uncertain world in Anti-Fraud.

      He found and defined "anti-fragile" things: every thing will benefit or suffer losses from fluctuations, vulnerability means loss due to volatility and uncertainty, and anti-fragility means letting yourself avoid these losses, Even profit from confusion and uncertainty.

      Fluctuations and uncertainties are used to describe the current state of the real economy. At the end of August this year, Sohu Finance's "Comprehensive Reading of the Company" column analyzed the semi-annual report of 24 listed banks and found that the average non-performing rate of the manufacturing and retail industries exceeded 5%, setting a new high.

      What is striking is that the retail industry has passively or actively entered an era of transformation. On the line of traditional retail giants, Internet giants have entered the retail industry. Tencent's smart retail, Ali's new retail, and Jingdong's unbounded retail, all want to reshape retail rules through a combination of vertical and horizontal.

      Take the clothing industry, the offline clothing industry, the profits are greatly reduced, the loss of customers, the rising cost of housing and other issues plagued major businesses. It’s not just China, but the store in overseas physical stores is also the norm.

      Deloitte mentioned in a report d "Global Retail Power 2018: Transforming Change, Rejuvenation" (hereinafter referred to as the report) that as of December 1, 2017, 6,885 stores in the United States had closed down. Major US retail companies Macy’s, J.C. Penney, Sears/Kmart and a number of apparel stores have announced large-scale closures. Most of the global stores face the same fate, retailers will gradually close unprofitable stores, focusing on high-profit and promising sales lots.

      Therefore, Deloitte proposed that global retailers are rapidly forming a consensus that for consumers, the game between shopping-independent stores and online stores is not a competition between different channels. For retailers, creating a seamless shopping experience is not a icing on the cake, but it is imperative. For this reason, retailers around the world have increased their efforts to invest in the network and digital.


      One good thing is that the Internet giants have provided a wealth of tools to support, as long as retailers have the preparation and execution of change, everything is not too difficult. We have already seen that as far as Yonghui Supermarket, Zhonghong-like tea-like chain stores, as small as a grocery store, have digital experience, for example, they all support WeChat payment or Alipay, and there are also common cases, Users will pay attention to the retail brand's public number or small program, online purchase, online queuing, and even service personnel will communicate with you on WeChat one-on-one, each retail brand is personalized.

      On the one hand, the traditional retail industry actively embraces Internet tools, and on the other hand, Smart Retail combines benchmarking companies in various fields to continuously optimize solutions. It is precisely this kind of innovation and collaboration that has made the already fragile and uncertain retail environment increasingly clear, and both parties to collaboration can find digital survival rules from uncertainty and gain commercial benefits.

      The so-called clothing, food, housing and transportation, clothing ranked in the forefront of our daily life priority, the development of the clothing industry is also a historical epitome of the overall retail industry. Lin Wei, vice president of Tencent Group, mentioned at this year's China Fashion Conference that the apparel industry has achieved a leap from 'sewing machine' to 'small program' in the past two decades. After experiencing the era of “search” and “platform e-commerce”, the apparel industry has also entered the “mobile social” era with the development of retail digitalization: users and retail brands have increased online and offline contacts, and full-time interaction between people and goods has become important. Characteristics, consumption, and operation are no longer limited by time and space constraints.

      How can the apparel industry gain more accurate data, more stable traffic, and a better service experience in a changing era? Tencent Smart Retail has proposed a path called "Building the Second Floor of Wisdom."

      In the “line downstairs”, that is, physical stores, merchants can use Tencent Smart Retail Smart Tools to upgrade consumers' shopping experience and make more effective access to offline customers. After the consumer leaves the store, the merchant can connect with the consumers who leave the store through the public number, small program, membership, etc., so that the online and offline multi-contact connection and real-time interaction.
      How do you understand the kernel on the first and second floors?

      Tian Jiangxue, deputy general manager of Tencent's Smart Retail Strategy Cooperation Department, spoke of a statement called "self-powered activation." In other words, Smart Retail provides digital transformation infrastructure, including WeChat public platform, WeChat payment, small program, Tencent social advertising, Tencent cloud, pan-entertainment IP and enterprise WeChat.

      On this basis, the merchants establish self-employment positions, the user data assets are their own, the traffic is their own, and the initiative is entirely in their own hands. The long-term precipitation can get deep consumption data insights, and guide the clothing production and sales. , while feeding back the dataization of the supply chain.

      In the words of Tian Jiangxue, Tencent Smart Retail plays the role of water, electricity and coal in this role, and also the role of seven tools to connect and dialogue in specific industries. Different merchants have their own different "language". The airport fast food restaurant is not the same as the clothing chain. The underwear chain, sports and fast fashion are different. What Tencent Smart Retail does is to help businesses build more effective interactions between brands and consumers.


      What is the effect of wisdom on the first floor + second floor? From the cooperation between Tencent and benchmarking apparel companies, we can see one or two.

      First, the membership system reconstruction

      In the case of the Metropolitan Beauty, its members will be recommended to pay attention to the corporate WeChat public account after using WeChat payment. Metropolitan Beauty will integrate members to WeChat platform, digitally reconstruct the membership system, add 1.3 million WeChat members in one month, increase the number of fans in the public number by 10 times, and increase the sales of additional stores in August by nearly 10 million.

      Previously mobile, uncertain users have become sticky consumer members that are deeply ed to retailers.

      Second, personalized shopping experience

      Through scanning code and fitting room scanning code, Tencent Excellent Mall system can collect, screen, analyze and research the store consumer data, help the merchant to better understand the business situation, user portrait, collect offline behavior data, etc. Products and services are more precise and personalized. In addition, there are VR fitting clothes, smart interactive big screen and other gameplay to enhance consumer stickiness.

      Changes in the internal settings of retail stores have reinforced the emotional connection between brands and consumers.

      Third, social interaction brings efficient conversion

      Taking the Zhizhi Group as an example, it built a customer marketing small program WeMall, built a marketing tool such as activities and recommendation matching on the small program, and cooperated with the shopping guide performance inquiry function to enable the shopping guide to operate the user online, achieving a maximum of 15%. The increase, 85% of which comes from the circle of friends.

      In addition, the company WeChat and WeChat intercom are in the test experience, which will make the "WeChat + small program + shopping guide" mode more convenient to implement. Store guides can use the company WeChat to add consumers, and directly push the one-to-one service for exclusive customers to the customers through WeChat.

      The above cases have certain reference and reference, but they are just the tip of the iceberg of smart retail.

      I believe that in the future, more retailers will join the digital scale management solution, enhance the social strength of brands and consumers, and form a closed loop of integrated communication. After all, digitization, socialization and institutionalization are the rules of the retail industry to deal with black swan events and anti-fragility.

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