How do retail companies in Asia adapt to digital transformation (DX)?

How do retail companies in Asia adapt to digital transformation (DX)?

In this edition of Across Asia, we explore 3 innovative forms of digital transformation (DX) that retail companies have embraced, along with the outcomes of these implementations.


In the world of continuous technological advancement, the retail industry must adapt to evolving demands for both B2B and B2C sectors. Let's look into how companies in the industry have adapted DX into physical and online retail environments with the following 3 methods:

  1. AI-based ordering systems
  2. RFID Technology to enhance supply chain efficiency
  3. Transforming business models through the implementation of existing technologies

1. AI-based ordering systems

Artificial Intelligence is an ever-changing technology that shapes the operations and customers' experience in the retail landscape. AI enables retailers to analyse previous sales and predict customer behaviour, thus identifying trends and predicting future demands.

How AEON utilises AI-based ordering systems

About AEON: AEON Retail, one of Japan's largest retailers, is renowned for its malls. As of the end of February 2023, AEON Retail operated 352 stores with sales reaching 1.7515 trillion Japanese yen. In 2022, AEON Retail ranked No. 1 in sales within the general merchandise store industry.

  • AEON uses "AI Order": Provides optimal order quantities based on forecasts of customer numbers and product demand
  • This is achieved through machine learning, incorporating factors such as day of the week, price, temperature, promotions, and past sales results

AI tool being used in AEON stores

PHOTO BY: AEON (posted through The Mainichi)

Results

  • Reduction of order placement time by 50%: from an average of 90 minutes to 45 minutes
  • Enhances forecasting accuracy by up to 40% as compared to existing systems
  • Prevent instances of stockouts / overstock
  • Ensures that products (especially favoured ones) are always available

2. RFID technology to enhance supply chain efficiency

RFID technology, also known is Radio Frequency Identification, is used to tag objects. This process enables tagged objects to be identified and monitored throughout the entire supply chain

How Uniqlo utilises RFID technology

About Uniqlo: An international apparel chain from Japan, maintains a global retail presence with 2,434 stores. Uniqlo's casual, cost-effective, and high-quality products appeal to consumers across various countries, each with distinct cultural and fashion preferences.

  • Uniqlo partnered with Avery Dennison, a leading RFID tag manufacturer

  • Since 2017, all Uniqlo brands under Fast Retailing have integrated RFID chips into their price tags
  • Implementation of RFID at self-checkout counters, where the items are automatically scanned

Uniqlo RFID self-checkout system
RFID tag on a Uniqlo price tag

Photos By: Belle Lin (The Wall Street Journal), ryutsuu.biz

Results

  • Despite Uniqlo not having a strong technological background, their partnership with Avery Dennison enabled successful implementation of an innovative checkout system
  • Increased customer participation

  • Improves in-store inventory accuracy
  • Enhancing overall supply chain visibility

3. Transforming business models through the implementation of existing technologies

How Momoshop transforms business models through the implementation of existing technologies

About MomoShop: A premier e-commerce platform in Taiwan, has undertaken a comprehensive digital transformation to enhance its retail capabilities and maintain competitiveness in a rapidly evolving digital landscape.

  • Initially a TV shopping channel (Fubon Momo Channel), broadcasting shopping programs around the clock, they introduced their online retail model in 2014, an online shopping app
  • Identified the trend of digitalisation when smartphone usage surged in the early 2010s
  • The app facilitated mobile shopping while also allowing customers to watch real time programs via live broadcast

Screenshot of MomoShop’s Web UI

Source: MomoShop Website

Results

  • While online shopping via mobile applications is not a novel concept, MomoShop revolutionised itself from a TV shopping channel into a modern e-commerce platform by introducing an online retail model

  • Through investment in adapting to new technologies, MomoShop quickly evolved to a prominent online market place in Taiwan

Note: This edition is an excerpt and has been condensed from our full report "Retail DX in Asia". To view the full report, contact us today.


Further reading on the Asian Market



Sources

AEON Official website, Viewed on 3/11/2024

AEON Bank, “イオン経済圏をフル活用して、ポイントでおトクに生活する方法”, 1/12/2024

AEON Official website, Viewed on 3/11/2024

Yahoo! News, “クレジットカード所有率は9割弱 過半数が「3枚以上」保有 カード選びのポイントは、「年会費が安い」「ポイントサービスが充実」など”, 14/02/2024

テレ朝News, "イオン「AIオーダー」導入 時間が半減 在庫削減も”, 13/05/2023

Fast Retailing, ”About FAST RETAILING”, 29/02/2024

Fast Retailing, “Group Outlets”, 18/01/2024

Fast Retailing, “サプライチェーン改革について”, 11/10/2024

BUSINESS INSIDER, “?ユニクロ?のファストリが目指す“情報製造小売業”とは何か…自動レジの先にあるもの”, 31/03/2023

THE WALL STREET JOURNAL, “Uniqlo’s Parent Company Bets Big on Tiny RFID Chips”, 07/04/2023

Nikkei, “ユニクロ、全世界でセルフレジ”, 08/04/2023

momo - Business Units

momo - Company Profile

Sea | News

momo, “Company Profile

momo_operating_report_2Q17.pdf

Wealth Magazine, “MOMO relies on big data to improve efficiency! "Delivered within 1 hour for online purchases" Changing retail competitiveness”

Microsoft Word - momo operating report 4Q19 20200206

Jiunn-Woei Lian, “The dimensions of trust:An investigation of mobile payment services in Taiwan - ScienceDirect”, 24/09/2021


About GLOBAL ANGLE

GLOBAL ANGLE is a global market research and business consultancy start-up offering invaluable insights to help businesses thrive in an interconnected world. With its local researcher network of over 200 individuals in over 90 countries, GLOBAL ANGLE can carry out localised market research in any location in the world. With its experienced team of consultants, and thorough analysis of research insights, the firm is well positioned to elevate businesses and set them up for future success.

Website | LinkedIn

要查看或添加评论,请登录

GLOBAL ANGLE Pte. Ltd.的更多文章

社区洞察

其他会员也浏览了