Leading Chinese retailers are defining a new ‘era of belonging’ by forging stronger ties with consumers through an innovative buying experience. They are also reinventing their own business models by introducing innovative new revenue streams leveraging “retail-as-a-service” offerings. CEOs at Western retailers can learn from Chinese business practices how to combine seamless omnichannel experiences with predictive analytics, to develop
customer loyalty and to innovate creatively to introduce new revenue growth.
Our 2017 Retail Report has found that traditional retail operating models are slowly disappearing. Where the power once lay firmly in the hands of the retailer, the consumer is now the driving force in the relationship. This shift of power, combined with an ever-changing social, demographic, economic and technological landscape, is forcing retailers to get closer to their customers than ever before.
The supply chain challenges manufacturers face in the short term are often very different from those they expect to face in the longer term. The key is to balance these immediate challenges against the longer term strategies of the business, and then prioritise both.
As revenue growth for manufacturers continues to be challenging, some businesses are giving direct-to-consumer (DTC) initiatives an increased focus. Organisations on this path are innovating their customer proposition and their business operating model. This means introducing risk and cost. How should businesses considering this challenge approach it?