Author: Vanessa Carvalho

Retail Retale: The E-commerce Growth of JD.com

JD.com is one of the top ten companies in the world that dominates the global e-commerce market. The company is an e-commerce giant based in China that offers a myriad of products such as electronics, consumer goods, books, and multimedia content. It also provides a number of vendors a selling platform to its website and mobile apps.

Boasting Immense E-commerce Growth

The company serves 260 million users and employs 140,000 people. One of the key turnarounds for JD.com is when it joined forces with Tencent Holdings Limited. This propelled the e-commerce platform to reach more than 900 million potential customers, and it’s growing even more. JD.com became so successful due to its distribution network and method of direct sales. The great magnitude of the company is seen through its 335 warehouses all over China and staff serving 50,000 towns.

In 2016, JD.com sales rose to 15.8 trillion yen. What’s more impressive is that the company leaped to a 94% claim to the title of fastest grower over the last year. It raised its value from $10.7 billion in 2017 to $20.9 billion in 2018. Furthermore, its 6.18 shopping festival gained record breaking sales of $17.6 billion – a 50% increase in transaction volumes.

Redefining Retail

One of JD.com’s major initiatives is to offer sales promotion proposals which are based on integrated data. They make the most out of employing big data coming from the e-commerce market and social networking services. The company is also forging partnerships with Walmart and supermarket chain Yonghui to obtain large amounts of consumer data. These efforts also further establish its physical retail expansion.

JD is pushing the redefinition of retail by allowing customers to purchase online and pick up the products in nearby stores. Take for example their average delivery time of 11 minutes when iPhone 7 launched in the market. Their inventory turnover period can be as short as 17 days. Thus, it is able to keep costs low due to a shorter inventory cycle compared to offline stores. What’s more, the company contributes to the elimination of counterfeit products by developing positive cooperation with manufacturers.

We Have a Retail Giant Winner

And what makes JD.com create an edge in the industry over other e-commerce giants? It is in the focus on quality of products and providing the best experience for their customers. The market in China is still plagued with counterfeit products. JD.com’s initiatives in delivering quality and value that people can count on makes it a winner that keeps on winning over the years.

“JD.com’s business model is competitive due to a combination of brand recognition and reputation, product quality and selection, pricing, fulfilment capabilities, and customer service.”

Jason Lee, Senior Analyst, CMR

The company also continually innovates the retail landscape by incorporating technologies to push the industry forward. It opened several high-tech stores over the past year. It’s also pushing plans forward on building a network of drones to reduce the cost of making deliveries. The drone network initiative is targeted for a more convenient and efficient delivery in rural areas.

 

Here’s a glimpse on the efficient innovation happening in this e-commerce giant’s warehouse.

Retail Analytics is Crucial in the Age of New Retail

Retail Analytics helps businesses streamline their operations and understand customer behavior. It focuses on providing insights to sales, inventory, customers and other significant aspects in business. It can also help a retailer decide what’s best for business. Retail analytics helps business owners make better choices, run a business more efficiently, and improve customer service.

Take for example the goal to understand your market. If you want to determine customer behavior in your target demographics, you can use retail analytics to identify ideal customers according to certain factors. These include age, location, preferences, buying patterns and many more.

As a result, retail analysis goes beyond superficial data analysis. It uses data mining and discovery to create strategies that can be applied in the short-term. It’s about going beyond what the numbers are saying. It defines what information you need, how to gather it, and how you’ll be able to use it.

The Benefits of Retail Analytics

According to an IDC infographic by SAP, 40% of digital transformation initiatives will be supported by AI capabilities. It will provide critical on-time insights for new operating and monetisation models. In the next 2 years, 30% of major retailers will adopt a retail omnichannel platform. This will integrate data analytics to orchestrate omnichannel capabilities. Innovations in Artificial Intelligence will be the name of the game when it comes to bringing your business to the next level in the following years.

 

retailanalytics_sap_retaillearningchannel

How You Can Incorporate Retail Analytics to Your Business

The best way you can take advantage of Retail Analytics is to know which one is highly applicable for your needs. There are retail analytics tools which are relevant to a specific to type of company. Take for example a software that helps companies optimise their inventory and procurement. Predictive tools can also help businesses use data to determine which products they should order more or which strategies to implement. Many other tools can help streamline operations and create maximum ROI. It can also revolutionise the retail experience, as seen on how they use data collected from virtual fitting rooms.

Equip Your Business with Retail Analytics

Large and small businesses are already using retail analytics to improve customer analysis and create new revenue-generating services. Successful examples of companies using analytics include Adidas, Burra Foods, Costco and Zalando when they incorporated SAP tech innovations in their operations.

Analytics are a foundation for retail profits as it can help you refine your fulfilment models, implement omnichannel strategies, and drive improvements in the supply chain. To sum up, using retail analytics will put you a step further in making your business thrive in this digital age.

Post show release: 5th Retail Fulfilment Summit

During the three days of the 5th Retail Fulfilment Summit which kicked of Australia’s inaugural Retail Week, more than 700 retailers from across Australia and New Zealand came together to be inspired. More than 60 pioneering speakers shared their stories on how to transform 360° fulfilment in the on demand era.

Highlights of the Program

Opened by The Hon. Ben Carroll, MP Minister for Industry and Employment, Day 1 was focused on c-suite leadership. It covered critical strategic issues facing retailers today such as cross boarder expansion, the Asian opportunity, and leading the workforce of the future. On Day 2, opening international speaker, Sterling Hawkins (Retail Visionary & Co- Founder, Centre for Advancing Retail & Technology, USA) wowed the audience with dancing robots. The activity included insights into the new realm of tech-powered retail fulfilment. What followed across 4 streams of content was a series of engaging presentations and interactive discussions from the likes of Rick Woods (General Manager, Costco), Belinda Hay (Trade Start & Project Lead Ecommerce, AUSTRADE) and Renee Gamble (Industry Lead Retail Technology, Google). Lastly, a candid and insightful discussion from Brittain Ladd (Former Global Head of Expansion, Amazon USA) on Amazon and the future of retail, closed what was a content rich day.

Retail Fulfilment Awards Night

Following day 2 of the fulfilment summit, Akolade hosted a first of its kind Retail Fulfilment Awards night for the sector. The awards recognised excellence across all areas of fulfilment and was judged by Andy Powel (Managing Director, Agile Commerce Consulting), Paul Greenberg (Chief Operating Officer, NORA), Luke Jecks (Chief Executive Officer, Naked Wines), Rick Woods (General Manager, Costco), Anna Forster (General Manager Operations, Lux Group), Jane Lu (Chief Executive Officer, Showpo), Sterling Hawkins (Founder, Centre for Advancing Retail and Technology USA), Erica Berchtold (Managing Director Rebel & Amart Sport GX Cycles) and Michael Donnath (Country Head IKEA).

With so many incredible submissions, the judging panel had a tough role. However, the winners were agreed upon by all. The following were the winning brands:

Coles Liquor (Excellence in Best Store Based Fulfilment)

BWS (Best Online Fulfilment Initiative)

Showpo (Excellence in International Fulfilment)

OzSale with Seko Omni Channel Logistics (Best 3PL Retailer Collaboration)

Shippit (Best Fulfilment Technology)

The Nile (Best Smaller Retailer)

Sendle (Best Disrupter)

Williams Fashion Logistics (Best Fulfilment 3PL of the Year)

Winning Group / Winning Services (Retail Fulfilment Retailer of the Year).

Final Day Highlights

The final day of the event was kicked off by international speaker Bruce Harryman (Head of Network Planning, John Lewis, UK) who inspired and amazed the audience with the scale of John Lewis’ supply chain operations. This was followed by engaging presentations from Margaret Bosworth (Head of Marketing, Sealed Air Corporation) and John O’Loghlen (Director, Australia & New Zealand, Alibaba Group). Lastly, Martin Smith (Managing Director, Endeavour Drinks Group) wrapped up with his insights on the evolving expectations of consumers.

The summit provided an unparalleled opportunity for networking and benchmarking. It inspired action which left the delegates with a sense of empowerment. Next year, the Retail Fulfilment Show and Awards will be returning bigger and better than ever at a new location – the Melbourne Convention and Exhibition Centre. Furthermore, due to our genuine commitment to diversity, we will be working closely with industry leaders to continue to boost female participation. We highly encourage women in fulfilment with stories to tell to please reach out to us. We’d love to hear from you now!

It’s been a fantastic week in Melbourne. We very much look forward to welcoming everyone back to next year.

Still interested? Stay tuned for information on upcoming conferences and summits by following us on Akolade Retail Learning.

Akolade expands event scope from online retail to retail fulfilment summit

Leading event organiser Akolade expands its online retail event to accurately reflect changes in the retail industry and to continue its commitment to provide an end-to-end omni-channel fulfilment platform

The Online Retail Summit brings together Retail Leaders from globally-renowned brands. The most innovative start-ups and disrupters from national and international markets also come together under one roof. Since its launch in 2014, the Summit has been unrivalled in providing insights to shape the future of retail. The event delivers powerful networking connections across retailers. It also facilitates business opportunities for thousands of executives.

What’s To Come in 2018

2018 will see a transformation as the online retail event broadens in scope to be the “RETAIL FULFILMENT SUMMIT”. The Summit will see the now Online Retail event be part of a bigger platform which will delve into omni-channel fulfilment, customer experience and technology. This change reinforces Akolade’s commitment to its clients by being at the forefront and tailoring the platform to help organisations remain at the cutting-edge of new trends and customer expectations.

The Retail Fulfilment Summit will continue to be is the largest and most influential event of its kind in the Australasia region where businesses are made and deals are secured.

 

About Akolade

Akolade is the region’s leading B2B conference and Summit organiser, dedicated to providing well-researched content to help clients improve business bottom line. With portfolios across Government, Healthcare, Aged Care, Not-For-Profit, Human Resources, Supply Chain and Retail, Akolade’s platforms connect all stakeholders to learn and forge long-term valued partnerships. Akolade’s firm belief in the vibrancy and energy of the Australian business environment is the foundation of its commitment to providing the best knowledge and engagement events in the Australian marketplace. For more information, log on to www.akolade.com.au

For more information and to request an invite, please visit: www.retailfulfilmentsummit.com


Media contact:
Vanessa Carvalho
Marketing Manager
Tel: +61 2 9247 6000
Email: vanessa.carvalho@akolade.com.au
Source: Akolade Pty. Ltd.

Related Links: www.akolade.com.au

NEW RESEARCH: Consumers are forcing changes in retail fulfilment

The growth in last mile has been rapid, competitive and complex. The consequence has been a laundry list of challenges for retailers and logistic companies. It was time to take a snapshot of the state of last mile. Localz worked with Eye for Transport to pursue a new piece of research around last mile, addressing the phenomenal pace of change.

The Consumer is Driving the Change:

One of the main drivers for the focus and change is the consumer themselves. Consumers demanding deliveries, where and when they want them. We are seeing the growth of the Individual Economy – Iconomy.

48% of consumers are demanding next day delivery

Not only next day but consumers expect:

  • Full visibility of the delivery – an uber like experience
  • Delivery hour notification
  • Delivery slot confirmation
  • Re-routing options
  • Same day delivery demand is on the increase

This report addresses the known market challenge: Time-bound deliveries around the needs of the customer.

‘The list of services consumers demand from last mile services is extensive and growing. Consumers are individuals who expect their delivery and collection experiences to seamlessly fit into their personal schedules. We are seeing a growth in ‘Iconomy Fulfilment’ which is reflected in this report.’ Tim Andrew CEO Localz

The right last mile solution is an important factor, as customers want collections and deliveries when and where is convenient for them.

Find out what the customers are expecting. Learn what movers and shakers in retail logistics. How will logistics keep pace with the growing Individual Economy?

The Iconomy – giving consumers what they want, where they want, first time when they want it.

Tim Andrew CEO Localz is presenting in the Last Mile Fulfilment Stream 2;30pm on Tuesday 27th February.

Download the research here: https://localz.com/last-mile-logistics-research/

A second piece of research focusing on the Retail will be published shortly after the ‘Summit’ register to receive this.

Commentary from:
Johan Erlandsson, CEO, VeLove,John Boulter, Managing Director of Retail & Consumer, DHL Supply Chain, Dwain McDonald, CEO, DPD UK, Paul Hamblin, Editor in Chief, Logistics Business Magazine

 

Localz

Localz is the leading provider of software services that help enterprises in the logistics and retail sectors rapidly transform their businesses to thrive in, not just survive, the Iconomy.

Our multi-channel communications allow customers to track deliveries and update their delivery preferences in real-time. Localz Delivery uses the latest in location technology to check whether a customer is at their provided address and then enables them to reschedule. The driver is informed and can reschedule the delivery in real-time.

Find out more: localz.com

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