This year, the Double 11 Shopping Festival is more than a war on line, the flames of war already spread to offline shops. The Double 11 Shopping Festival offers a good opportunity for the integration of online and offline shopping. New retailing is a war with Omni-channel and Double 11 Shopping Festival is the very catalyst for the war.
No doubt, Tmall has already realized that. That is why during the Double 11 Shopping Festival, about 100,000 smart shops, 600,000 retailing stores, 50,000 gold medal stores, 4,000 Tmall stores, 30,000 village-based Taobao sites (Cuntaodian) and brand Pop-up shops has joined the war of the Double 11 Shopping Festival.
During the Double 11 Shopping Festival last year, Baozun helped two famous brands, Esprit and GUESS to open up the model of Omni-Channel, breaking new battlefields for offline shops. And this year more brands will enter the Omni-channel war and the brands that are already in it become more enthusiastically involved.
On June, 18th, this year, NIKE also experimented with the pattern of Omni-Channel. That became another big success to Baozun Omni-channel operation teams. As a partner, Baozun has provided NIKE with the Omni-channel solution, connecting the inventory and order systems between offline shops and e-commerce channels. As a result, after the consumer orders in any NIKE flagship store online, maybe an assistant in the nearest shop to the consumer will pack up the goods and deliver it to his door via express. During the coming Double 11 Shopping Festival, 50 direct-sale stores will provide the order-online-delivery-offline service to the consumers, who will be able to enjoy the service of order-online-pick-up-offline in the very near future.
Baozun’s Omni-channel solution can help the brand to get connected to various kinds of marketing platforms such as Tmall, JD, official websites and Wechat, and also to integrate all the data about its goods, inventory, transaction and membership gathered from the above e-commerce platforms with the data from POS, ERP and CRM of the related brand. In this way, frontend platforms and backend data systems are thoroughly connected, enabling the brand to conduct a unified management of all the information about its products, orders, inventory and membership.
The “shop-dog” independently invented by Baozun is a vital part of Omni-channel solution. This smart O2O managing tool can help the brand to get offline shops and online scenes connected. The brand’s shops with “shop-dogs” installed can make all come true: pickup, delivery and purchase exchange or rejection in offline shops as well as offline-order-online-delivery. Shop-dogs enhance the consumer’s experience and also help channelize the customers to offline shops; meanwhile, shop-dogs make it all the more convenient for the brand to accumulate more comprehensive information about their members, paving the way for membership marketing, enhancing the brand’s service of their customers.
The flexibility of the shop-dog is also exhibited in the smart handling of the order routing by the system. It helps the brand to prioritize “whole list plus nearby delivery” by analyzing the order routing. It determines the best way of delivery, online or offline. If it decides on offline delivery, the system will calculate the shortest distance between the shop and the consumer so as to ensure that the purchase will be most efficiently delivered to the consumer at the lowest delivery fee but at the highest speed.
During the Double 11 Shopping Festival, due to sales promotion, in the brand’s flagship stores, goods may sell out or may be in short supply. Baozun Omni-channel solution will instantly activate the inventory of the offline stores and maximize sales in case a certain product is unsalable in one channel while in the e-commerce channel, the demand for it exceeds the supply. That would be a great loss to the brand.
A fashion brand GUESS for example. During the Double 11 Shopping Festival this year, over 15% of the orders are delivered directly from its offline shops. The order, inventory and online sale are all connected. During the Double 11 Shopping Festival, the net entrepreneurs have no products in their storehouses, the purchases are directly delivered to the consumers and thus enhanced is the flexibility of stock turnover.
For the FMCG, “Fast” is one of the key remedies for success. During the Double 11 Shopping Festival, I.T Group not only gets connected to Tmall, but also transfers the all-channel consumption experience to its official website. Across China, over 90% of offline shops join the Omni-channel marketing war. I.T official malls in China and CHOCOOLATE official malls deliver all the goods ordered online from the offline shops. The shop-dog is easy to operate. After proper training, the shop assistant can process an order with 3 minutes. According related statistics by Baozun, in each shop, one or two assistants are enough to process over 200 orders each day. As far as the Double 11 Shopping Festival is concerned, the Omni-channel enables the users to flexibly make the best use of the resources in offline shops and make immediate response to quick delivery as expected by the consumers; besides, it can also help the brand to ensure a fast turnover of stock.
Another feature of the Omni-channel marketing solution is that it goes overseas this year. The Omni-channel integration is going globally. It is proven by the fact that Tmall's new retail experience shops and cloud shelves will land in Hong Kong. It is reported that Baozun will set sail with its shop-dogs, intending not only to connect the physical space and the virtual space for the brand, but also to expand geographical space for the new retailing of the brand.
As disclosed by a certain insider, after the Double 11 Shopping Festival, the shop-dog will be installed in the Hong Kong shops of I.T Group. Hong Kong consumers will be able to enjoy the convenience brought by Baozun’s Omni-channel solution.
Compared with the prosperity of e-commerce in mainland China, e-commerce in Hong Kong is lagging behind. There are various reasons. In Hong Kong, the limited space means the rocketing warehouse cost as a result of the increasing rent. The high labor cost means the high cost of distribution and delivery. Besides, the advancement of offline retailing in shops and malls everywhere becomes a drawback for the development of e-commerce in Hong Kong. However, Baozun Omni-channel solution will be able to make fullest use of the resources in shops, bringing a new climate from the perspective of new retailing.
Omni-channel solution will not only become a new engine for the Double 11 Shopping Festival, but also will bring a new climate for new retailing as a new normal. Under this circumstance, Baozun will speed up the exploration of Omni-channel, helping the brand with its digital processing transformation, providing the brand with end-to-end service in terms of brand positioning, business strategy consultation, innovative support to middle and frontend systems. Baozun will also help the brand to put the integration of online and offline operating into efficient and effect practice. All is meant to benefit the brand from new retailing in Omni-channel.