AN APAC PERSPECTIVE - Accenture
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AN APAC PERSPECTIVE
CONTENTS FOREWORD 3 INTRODUCTION 4 ECOMMERCE IS DEAD, LONG LIVE DIGITAL COMMERCE 6 INDUSTRY TRENDS 8 ACCENTURE DIGITAL COMMERCE CONTROL TOWER 17 CASE STUDIES 26 GEOGRAPHIC FINDINGS 34 PLOTTING THE ROUTE TO DIGITAL COMMERCE TRANSFORMATION 56 REFERENCES 58
FOREWORD
THRIVING IN THE NEW AGE OF
DIGITAL COMMERCE
The Consumer Packaged Goods (CPG) industry is on the cusp of a dramatic shift.
Advances in digital technology have removed the traditional entry barriers to
the CPG ecosystem. This has made access to final consumers easier and more
efficient compared with yesterday’s marketing and trade channels.
The nature of competition is changing: even in a Our Accenture Digital Commerce Control Tower
growth market, incumbent CPG companies in the offers CPG companies all of this and more. In the New
Asia-Pacific (APAC) region have lost an estimated consumer world, growth is just one click away. CPG
2 percent market share over the last five years.1 companies can now take control of their supply chain,
Smaller, nimbler and more digitized players have generate demand, manage customer experience,
been taking much of this share. carry out digital marketing and manage overall digital
commerce operations.
In this changing world order, our
The time has come to herald the new age of growth
clients are looking to reposition with digital commerce.
themselves and journey into the
New. Digital Commerce – Marketing
and Sales – offers an exciting new FABIO VACIRCA
growth opportunity. Senior Managing Director,
Asia-Pacific, Africa, Middle East &
The Digital Commerce market in APAC is set to Turkey
increase two-fold to reach more than USD 1.1 trillion Accenture
by 2022, meaning the region will account for almost
two-thirds of global digital commerce market.2 During
the same period, at least 40 percent of marketing
spend will be on digital channels.3
CPG companies face a choice: they can embrace the
digital commerce trend and grow with it, or ignore it
and risk business decline. CPG companies need to
take numerous steps to ensure that they have adequate
digital commerce capabilities. They need to build
partnerships with digital commerce platforms, or
even build their own. To ensure an optimal customer
experience, they need to enhance what they offer
across multiple channels. In addition, they need to
develop online-to-offline capabilities, consolidate
their supply chain and leverage data to improve
consumer experience across the purchase journey.
3
INTRODUCTION
THEN, NOW AND THE FUTURE
OF DIGITAL COMMERCE
The CPG industry is experiencing unprecedented shifts, as consumers take
control of the industry’s driver’s seat. In one sense, consumers remain the
same, keeping their traditional roles as end users. But now, thanks to advances
in digital technology, they are also integrated across all parts of the traditional
CPG value chain.
Consumers are now co-creators, co-marketers, all of which are driving new consumer expectations.
co-manufacturers and partners across all core CPG Amazon, Alibaba, JD.com and other organizations
functions (see Figure 1). What has led to this shift? like them have been better than CPG companies at
A key factor is changing expectations as consumers shaping and catering to these new expectations.
live their life differently. Consumers are increasingly These organizations recognized the shifts in consumer
looking to spend less time on retail chores and more demand early on and have successfully built and
time on what they value most. Soon, they’ll expect scaled business models that place consumers at the
to get what they want, before they even know they heart of everything. Consumers increasingly buy and
want it.4 repeat buy from these companies because they
deliver products and solutions as they want it, when
Competition is another major factor reshaping they want it and how they want it. These digital
consumer expectations. This includes direct disruptors are realigning the equilibrium back
competitors in CPG categories (i.e. products and between businesses and consumers, a gap left by
services that directly compete with CPG companies CPG (see Figure 2).
in home care, packaged food etc.), experiential
competitors (i.e. products and services that provide
experiences that compete with CPG companies
e.g. food delivery apps) and perceptual influencers,
FIGURE 1. CONSUMERS ARE NOW INTEGRATED INTO ALL PARTS OF THE VALUE CHAIN
Consumer intervention across the CPG value chain is unprecedented. The consumer is in command.
Coca-Cola Meetup Etsy Pinkpi Field Agent
CROWDSOURCING, CONTENT, SOCIAL CONSUMER INTIMACY,
CROWDFUNDING COMMUNITY COMMERCE CONSUMER AS EMPLOYEE
CONSUMER INSIGHTS
R&D and Marketing & Store
Financing Innovation Marketing Manufacturing Distribution
Sales Execution
Operations OPEN INNOVATION, MAKE @ HOME LAST MILE PARTNERS
in Singapore PERSONALIZATION
CREYATE thediysecrets UBER Rush
MyFit BrewSmith Flipcard
4
On the other hand, CPG companies are still focused The dollar value at stake is very high: At least one third
on supply led, traditional ways of doing business. They (or USD 700 billion) of global CPG growth by 2022 will
have been slow to recognize the shift from a supply- be from one region alone: Asia-Pacific.6 More
led model, to a consumer-led one in the present. importantly, the region is at a tipping point for digital
This is evidenced by CPG’s own admission: over 80% commerce. At more than USD 390 billion,7 APAC will
of C-level executives feel they now need to scale be the number one market for CPG digital commerce,
consumer relevant initiatives and be more proactive almost greater than twice the size of the next biggest
in disrupting their industry.5 region, North America.
CPG companies urgently need to rethink and choose
The time is ripe for CPG companies their new engagement field with consumers. If they
to make a change, by re-inventing don’t, they risk ceding control to other players who
how they reach the core of their are already making themselves indispensable, by
integrating into consumers’ lives with the right
business: the consumers. experiences.
CPG companies need to choose their engagement
field and provide the right set of products and NILS MICHAELIS
experiences that will cater to these new needs of Managing Director, Innovation and
their consumers. Growth & Strategy Lead, Products
Asia-Pacific, Africa, Middle East &
Turkey
Accenture
FIGURE 2. ACCORDING TO ACCENTURE ANALYSIS, DIGITAL WILL EMERGE AS THE BALANCING
FORCE TO SHIFTS IN BALANCE OF POWER TO CONSUMERS
1950-2000 2000-2020 >2020
Manufacturer & Retail Led Consumer-Led Digital-Led
‘PUSH’ CONSUMER ‘PULL’ RETURN OF EQUILIBRIUM
CUSTOMER
JOURNEY
MEDIA CONTENT
CONSUMER
GENOME
THE PATH TO EXPERIENCE
PURCHASE DESIGN
CHANNELS
Balance of power in favor of Balance of power in favor Balance of power in favor
Manufacturers and Retailers of Consumers of Digital Channels
5
ECOMMERCE IS DEAD,
LONG LIVE DIGITAL COMMERCE
The APAC region’s share of digital commerce is set to exceed USD 1 trillion by
2022.8 Consumer expectations are evolving ever faster, as they seek to shed
time-consuming retail chores and spend more time on what they value most.
Soon, they’ll expect to get what they want, before they even know they want it.
eCommerce, as we know it, is dying. It’s time to build new assets and tools that
meet the growing demands of the Asian consumer. It’s time to get ready for
digital commerce.
APAC DIGITAL COMMERCE IS BOOMING
Technology has changed the face of retail. Power That’s fueling huge growth in mobile and internet
has shifted from brands to consumers, who are use: 3.5 billion mobile connections11 and 2.5 billion
increasingly clued up about what they buy – and internet users are expected by 2022.12 And the region’s
have the purchasing options to match. increasing affluence, supported by rapid GDP growth
in excess of 4 percent,13 will create 388.2 million new
Markets are being shaken from top to bottom, allowing consumer households over the same period.
a new cohort of determined competitors to emerge
as leaders. Digital commerce in the APAC region is Digital investments are equally important.
booming, and this enormous online market will grow Organizations across APAC are projected to spend
exponentially to reach USD 1.2 trillion by 2022.9 USD 444 billion on digital transformation technology
this year.14 And in the region, organizations are
What’s behind this expansion? Demographics are a projected to invest USD 535.2 billion by 202215 (see
key factor. Half the region’s people are between the Figure 3).
ages of 18 to 3510 – and coming into their prime
spending years.
FIGURE 3. THE CHANGING LANDSCAPE
APAC APAC
DIGITAL COMMERCE KEY DRIVERS OF APAC DIGITAL COMMERCE GROWTH DIGITAL COMMERCE
GROWTH (USD) INVESTMENTS* (USD)
1+ Trillion
67% China
1% ASEAN
32% ROA 535.2 Billion
(Projected)
1.7X
669 Billion
69% China 2022 2022 2022 2022 2022 2017
1% ASEAN
30% ROA >50% 3.5 2.5 388.2 4%+ 444
Asian Billion Billion Million GDP Billion USD
Population Growth 395 Billion
Mobile Internet New Digital (To date)
Ages Connections Users Consuming Transformation
18 – 35 Households* Technology**
2017 2022 2017 2022
* based on Accenture Research estimates & Euromonitor International 2017 ** excluding Japan
6
GIVE THEM WHAT THEY WANT –
BEFORE THEY KNOW THEY WANT IT
But the true driving force for digital commerce online and offline. As technologies evolve, smart
growth is the constantly evolving Asian consumer. homes will become a reality. Refrigerators will
As life in the APAC region becomes ever more anticipate purchases and provide alerts when stocks
hectic, time becomes increasingly precious. run low. Voice-assisted devices will serve information
predictively and help complete purchases via
Today’s empowered consumers are using their seamless payment methods. Shopping will become
smartphones to shed time-consuming activities in fully integrated into day-to-day life, freeing consumers
favor of the things they value most – like spending from tedious chores. It’s shopper’s nirvana – where
quality time with the family. consumers get what they want before they even know
they want it (see Figure 4).
Almost one in four online purchases are already made
on smartphones.16 And by 2022, almost 75% of the
internet users would have made at least one purchase MOHAMMED SIRAJUDDEEN
online, equivalent to nearly 40% of the Asian Managing Director,
population.17 Savvy consumers want convenience and Digital Commerce Lead,
value, and seek the right level of choice and Asia-Pacific, Africa, Middle East &
information by using their smart devices to get it. Turkey
Accenture
They’re reading crowd-sourced reviews and
comparing prices across multiple apps and websites
when making a purchase decision. The Asian consumer
is coming to expect seamless consumer experiences
FIGURE 4. THE CONSUMER REVOLUTION
GIVE ME WHAT I WANT. . .
YESTERDAY...BEFORE 2017 TODAY...2017 TOMORROW... “NIRVANA”
...WHEN I WANT IT ...WHEN I NEED IT ...BEFORE I WANT IT
Shopping List Shopping List on Smart device Death of shopping list
Personalized Assistance Expert guidance Automated list
Shopping = Chore Shopping = Fun Shopping = Digital + Automatic
LIST
LIST
Basic Shopping + Experience Smart Enhanced Shopping Smart Lifestyle: Integration
Product + Convenience = Focused Shopping fully
Value integrated into life’s moments
7INDUSTRY TRENDS 8
CPG INDUSTRY TRENDS
THE LAND OF OPPORTUNITY:
DIGITAL COMMERCE IN APAC
APAC WILL SOON BE THE LARGEST REGION This is made clear, for example, in their enthusiasm for
CONTRIBUTING TO GROWTH IN CPG AND the automation of certain retail chores, such as regular
WILL BE THE LARGEST SINGLE MARKET. grocery shopping (see Figure 5).
With 60% of the world’s population living in the These changes in the behavior of APAC consumers
region, the market is expected to grow rapidly from have shaped and been shaped by new technological
USD 669 billion to USD 1.2 trillion within the next five developments. Whereas in the past, large companies
years.18 But for consumer goods companies to take with high numbers of physical stores have had the
advantage of market developments, they will need to greatest consumer reach, digital channels have allowed
understand the dramatic changes in consumer smaller companies to access consumers the world
behavior that have been ushered in by the digital age. over. Indeed, smaller, more flexible, niche businesses
have been much better at taking advantage of these
A survey of APAC consumers shows that in these parts new channels and disproportionately driving the
of the world, shoppers place greater value on their time growth of the Consumer Goods Industry. Larger
and convenience than ever before. brands, by contrast, have struggled to adapt.
FIGURE 5. THE ROLE OF CPG FIRMS HAS CHANGED WITH THE DIGITAL REVOLUTION
CPG firms need to sell experience and added value to consumers
DIGITAL CONSUMER
Consumption of Brands historically driven by needs and desires
Brands helped deliver COCA-COLA
Brands helped realize
UNMET NEEDS NIKE
SELF
PEPSI
ACTUALISATION
Digitization has transformed the consumer‘s experience of Brands
UNLIMITED ACCESS AMAZON FACEBOOK IMMEDIATE
to product and information ALIBABA TWITTER GRATIFICATION
UBER PINTEREST
GOOGLE
(via free tools & content)
YOUTUBE
Consumers are no longer comparing CPG brands to direct competitors
They are comparing them to the best they have experienced ... anywhere
WEBSITE MOBILE APP IN-STORE ADVERTIZING CONTENT COMMUNICATIONS LOYALTY SERVICE
PROGRAM
9BETTER TECH, BETTER LIFE CPG companies need to be sensitive to these
Digitization is transforming all aspects of people’s differences, so that they can most effectively provide
lives in the Asia-Pacific region. With increasing for the specialized needs and desires of consumers in
smartphone and internet penetration in APAC different regions.
countries, more and more users are adopting digital
platforms for purchasing goods and services (see Yet, while countries are at various stages of their
Figure 6).19 technological development and consumers have
widely diverging levels of digital literacy, the similarities
This, combined with the increasing reliability and of consumer expectations across the world remains
security of digital shopping platforms, means per more striking than the differences. Consumers,
capita digital purchase is expected to grow by 13% irrespective of their background, increasingly expect
in the next five years (see Figure 7).20 a seamless retail experience, which minimizes the
time they spend on retail chores and which ensures
APAC consumers are also adopting tech for a ‘better near instant gratification of their desires. What is also
life’. Apart from convenience and flexibility, digital striking is that they’re increasingly more willing to pay
platforms provide better assortment, information, for features they want and for customized solutions
reviews and prompt support.21 Digital commerce thus with regards to structure, pricing and promotions22
represents a significant opportunity to CPG companies, (see Figure 8).
particularly when we consider the marked preference
for tech among APAC consumers.
People the world over increasingly look to digital
channels to improve and streamline their retail
experience. Yet different regions and countries have
their own unique patterns of consumer behavior,
which are shaped by cultural factors, but also by
the digital capabilities of the area.
FIGURE 6. SMARTPHONE USER PENETRATION IN APAC BY COUNTRY (% OF POPULATION)
CPG firms need to sell experience and added value to consumers
2016 2017 2018 2019 2020 2021
TAIWAN 86.8% 89.3% 91.3% 92.5% 93.4% 94.3%
SINGAPORE 86.3% 87.2% 88.0% 88.9% 89.6% 90.1%
SOUTH KOREA 84.3% 86.0% 87.6% 88.4% 89.1% 89.7%
HONG KONG 84.0% 85.9% 87.2% 88.3% 89.0% 89.8%
MALAYSIA 77.9% 81.8% 84.9% 87.6% 89.5% 91.0%
AUSTRALIA 79.5% 81.5% 82.5% 83.2% 83.5% 83.6%
NEW ZEALAND 79.0% 81.5% 83.0% 83.9% 84.7% 85.3%
VIETNAM 61.7% 71.6% 78.7% 84.4% 88.6% 92.0%
THAILAND 62.5% 67.4% 70.9% 73.5% 75.1% 76.4%
CHINA* 60.1% 64.2% 68.7% 73.0% 77.0% 80.6%
JAPAN 52.4% 55.1% 56.9% 58.4% 60.0% 61.3%
PHILIPPINES 41.7% 44.9% 48.0% 50.4% 52.9% 55.2%
INDONESIA 35.8% 38.7% 41.0% 43.3% 45.9% 48.1%
INDIA 32.7% 36.6% 39.4% 42.7% 45.3% 47.4%
OTHER 29.0% 31.8% 34.6% 36.8% 39.4% 42.3%
ASIA-PACIFIC 47.5% 51.0% 54.2% 57.2% 59.9% 62.4%
Note: individuals of any age who own at least one smartphone and use the smartphone(s) at least once a month * excludes Hong Kong
Source: eMarketer, November 2017
10DIGITAL, PHYSICAL OR BOTH? For these organizations, consumers are no longer just
Older, larger CPG companies, have struggled to meet end-users: they have been integrated across all stages
these new consumer expectations. These companies of the value chain.24 In APAC, these developments
continue to rely on supply led, traditional ways of have considerably altered the market picture. Large
doing business. New competitors, such as Amazon CPG companies have seen a two percent reduction in
and Alibaba, recognized the shift in purchaser their market share in the past five years, with Amazon,
demands early on and have successfully oriented their Alibaba and similar organizations expanding their
business model to place the customer at the heart of share and reaching new consumers.25
everything. With new archetypes and channels in play,
some leading companies like Amazon and Alibaba are
building an entire ecosystem that closely follows the
omni-modal purchase journey of consumers when
they undertake a path to purchase.23
FIGURE 7. DRIVERS FOR ASIA’S DIGITAL COMMERCE GROWTH
POPULATION INTERNET DIGITAL BUYER PER CAPITA
PENETRATION PENETRATION DIGITAL
PURCHASE*
2017 4,100.4 41.8% 61.7% $985
million of population of internet users per buyer
2022 4,260.1 58.0% 69.0% $1,817.60
million of population of internet users per buyer
+159.7 mn +16.2% +7.3% +$832.60
CAGR
(2017-2022) 0.8% 7.6% 10.0% +13.0%
* based on Accenture Research estimates
FIGURE 8. ARCHETYPE-CENTRIC CHANNEL STRATEGY
ARCHETYPES
DEVELOPED DEVELOPING DEVELOPED MEGACITIES DEVELOPING DIGITALLY
US, UK, Japan, Brazil & US, UK, Japan, SE Asia, Latin Brazil & ADVANCED
Germany Turkey Germany America Turkey Tokyo, Beijing,
New York
CHANNELS
Modern Traditional Modern Online Distributor & 3P Social
B2B2C Concierge
Retail Retail Retail Retail Wholesale Commerce
Food Services Distributor & Traditional Online Consumer to Direct to Food Services
/ HORECA Wholesale Retail Marketplace Consumer Discounters Consumer / HORECA
11Yet while CPG companies may currently be behind in WHAT’S NEXT? THE FUTURE OF DIGITAL
digital commerce, there is potential for them to adapt COMMERCE IN APAC
their existing models to new channels. As customers CPG companies cannot afford to delay in adapting
become more digitally aware, there is the growing their current business models. Most pressingly, they
possibility of integrating pre-existing physical must rethink how they interact with the most important
infrastructure with new digital technology. This will be part of their business: the consumer.
essential if CPG companies want to meet changing
consumer expectations. The nature of this integration The time is now for consumer goods companies to
will, naturally, need to be tailored to the market reclaim control of their consumer touch-points. Failure
conditions of a given region, but might involve forging to act will see disruptors such as Amazon and Alibaba
a partnership with eCommerce websites or greater extend their control over the consumer and ensure
online to offline integration. that CPG companies’ market share continues to
decline (see Figure 9).
The Internet of Things offers an exciting possibility for
redefining the boundary between physical and digital
consumption. As it becomes cheaper and more AUTHOR
accessible, it will allow CPG companies to add digital
capabilities to physical shopping. Ultimately, digital EDWARD STARK
adoption will enable CPG companies to create tailored Managing Director,
offerings and experiences unique to every customer. Consumer Goods & Services Practice Lead,
Asia-Pacific, Africa, Middle East & Turkey
Accenture
FIGURE 9. DISRUPTORS HAVE EXTENSIVE CONTROL ON CONSUMER TOUCHPOINTS
In APAC context, Alibaba is much more than just eCommerce, it follows the consumers in their omnimodal
journeys
ECOMMERCE CENTRIC OFFERING MODEL
AMAZON ECOMMERCE EMAIL/SECURITY/
310M* TAOBAO PORTAL
TMALL ALIBABA CLOUD
VS. JUHUASUA ALIBABA SECURITY
JD.COM RESPONSE CENTER
155M ALI JU'ANQUAN
400M
PC MOBILE
PAYPAL INTERNET FINANCE BUSINESS/OFFICE GOOGLE
203M* ANT FINANCIAL TOOL CHROME
ALIPAY +1B
TMALL.COM DINGTALK
VS. YU'EBAO TAOBAO.COM UC BROWSER VS.
WECHAT ALI TELECOM FIREFOX
PAY 350M
1200M* 400M 400M
MEDIA / PARTNERS LIFE SERVICE BAIDU MAP
NETFLIX
98.5M ENTERTAINMENT 326M
AMAP
ALIFUN ALITRIP
VS. YOUKU CAINIAO
VS.
YOUTUBE XIAMI GOOGLE
1B MAPS
580M 500M 1B
CHINA‘S LARGEST ECOMMERCE PLATFORM AND MUCH MORE!
Source: Accenture Research and Press Searches * refers to active registered accounts/users
12RETAIL INDUSTRY TRENDS
SIMILAR BUT DIFFERENT:
UNDERSTANDING TODAY’S
APAC MARKETS
To successfully analyze the nature of APAC’s retail representative of the second group. In these markets,
growth (see Figure 10), we need to breakdown the online infrastructure is maturing and digital commerce
different sub-markets within APAC (see Figure 11). has been key to the expansion of the market. Indeed,
Broadly speaking, it is possible to divide APAC into digital channels and online supply chain infrastructure
three markets, each reflecting different stages of are growing at a far faster rate than their physical
development and with their own distinctive patterns equivalents. In China, for example, access to
of retail growth. Online business channels occupy consumers in lower tier cities has been greatly
different positions in each market type and the improved by online businesses.
importance and potential of digital commerce differs
significantly across the three groups. In the third group, “mom and pop” shops are still the
key retail distribution channels. Yet this may not remain
The first group contains mature markets such as the case for much longer. In larger markets such as
Japan, South Korea, Hong Kong, Taiwan and Australia. Indonesia and India, we might well see the repeat of
In these markets, modern trade dominates and digital the market evolution that China has undergone in the
commerce is already essential to retail activity. In past decade. For this to be the case, the internet
these regions, the major retail companies are at an infrastructure will need to be improved.
advanced stage in integrating their digital channels
with their pre-existing physical infrastructure.
Developing markets in China and Thailand are
FIGURE 10. RETAIL GROWTH IN APAC (IN USD BILLION)
8000.0
7000.0
7,139
6000.0 6,719
5,973 6,359
5000.0 5,610
5,272
4000.0 4,750 4,740 4,958
4,548 4,581
4,282
3000.0
2000.0
1000.0
0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FIGURE 11. DISTRIBUTION OF STORE BASED GROCERY RETAIL – 2017: MODERN VS TRADITIONAL
COUNTRY MODERN GROCERY RETAILER TRADITIONAL GROCERY RETAILER
MATURE JAPAN 80.9% 19.1%
MARKET
AUSTRALIA 76.3% 23.7%
SOUTH KOREA 76.6% 23.4%
EVOLVING CHINA 67.3% 32.7%
MARKETS THAILAND 47.2% 52.8%
TAIWAN 45.9% 54.1%
INDUSTRY AVERAGE APAC 49.4% 50.6%
TRADITIONAL INDIA 2.2% 97.8%
MARKETS VIETNAM 5.1% 94.9%
INDONESIA 17.7% 82.3%
13BETTER TECH MEANS BIGGER SPEND The business models of two Chinese eCommerce
Despite the obvious differences between these three giants, JD and Alibaba, testify to this fact: a large
groups and the diversity of markets in APAC, one thing portion of JD.com’s business is done via consumer
remains common to all of them: internet penetration electronics, while softline contributes a significant
is still low and as the markets progress, we will see proportion of Alibaba’s TMall revenue.
internet sales grow across the region (see Figure 12).
The extent to which a retail format has been integrated
However, the properties of internet sales continue into digital channels is, in large part, driven by product
to change. The distinction between physical and involvement. However, this is by no means the only
digital sales is increasingly blurred: channels such as condition for digital integration. As it stands, many
click and collect and the ability to place an order markets are incapable of delivering cost-efficient, last
online for items not stocked in physical stores, are mile delivery. Several organizations have been set-up
common resorts for the omnichannel consumer. To in APAC to tackle this problem. In Indonesia, major
continue growth, these channels will need to be further retailers such as Lazada and Matahari Malls are using
integrated. According to research conducted by Pop Box to resolve the issue of last mile delivery. The
Accenture, the basket size for omnichannel idea is simple: a network of automated parcel lockers
consumers is consistently higher than consumers which allow the retailer and consumer to send, receive
buying through single channels. In China, the average and return a parcel easily.28 Go Go Van, an app based
digital shopper spent RMB 12,198 (USD 1,800) in 2017,26 start-up in Hong Kong, is looking to resolve the same
while the average basket in retails outlets went down problem by connecting shoppers to their nearest
from 172.4 RMB in 2014 to 162.7 RMB in 2016.27 delivery agent. Upon entering the source and
destination for parcel delivery, the app shows details
of the nearest delivery driver who then collects the
DIGITAL, PHYSICAL OR BOTH? parcel and delivers it to the consumer.29
Individual markets are not uniform in their digital
maturity: different retail formats and categories also Other companies looking to address last mile related
vary in how far they have been integrated into online challenges include Ninja Van in Singapore, one of
channels. For example, consumer electronics, softlines APAC’s fastest growing startups30 and Go Jek, an
and general merchandise tend to be retailed online Indonesian delivery start-up.31
from an earlier stage and are subject to much more
intensive growth in digital channels.
FIGURE 12. RETAILING IN APAC & INTERNET RETAILING PENETRATION (USD BILLION, %)
Percent $ bn
20 8,000
7,135.4
18 7,000
18.2%
16
6,000
14 5,272.5
5,000
12 12.7%
4,282.3
10 4,000
8 3,000
6
2,000
4
3%
1,000
2
0 0
2011 2017 2022
Retailing Internet penetration
14These new organizations are just the beginning of • CUSTOMIZE – how do you understand the individual
what will eventually become a substantial network shoppers in context and across channels?
of services supporting digital commerce in APAC. • CONNECT – how do you integrate operations to
This network will evolve according to the specific sustain a single customer conversation?
requirements and associated costs of different retail • CONVERGE – how to build standardized IT
categories and over the next few years, will radically platforms that unify divergent data sources?
alter APAC’s retail landscape. This transformation • COLLABORATE – how to forge partnerships in the
poses a significant opportunity to many retail ecosystem to improve customer value proposition?
organizations, but also a threat to those existing
players who have not already developed a significant
online presence. AUTHOR
KOH YEW HONG
WHAT’S NEXT? Managing Director,
In the future, digital commerce will be centralized to Retail Lead,
retail operation in APAC. But it will not simply replace Asia-Pacific, Africa, Middle East & Turkey
the existing physical channels: customers will expect Accenture
an integrated, omnichannel experience. In the more
mature markets, we are already beginning to see the
future landscape of the digital retail market in APAC.
In the future, the focus will be on customization,
connectivity, collaboration and convergence:
1516
SCALE UP YOUR DIGITAL
COMMERCE GROWTH
TAKE FLIGHT WITH THE ACCENTURE
DIGITAL COMMERCE CONTROL TOWER
To keep pace with tomorrow’s consumers, And it lets them generate demand and manage their
companies need to build up their digital commerce digital commerce operations. It’s an approach that
and marketing playbooks. And they must leverages data analytics, product and web content
reevaluate their current technologies and online management systems, payments, order management
strategies. and logistics planning to deliver a best-in-class
consumer experience.
Accenture has developed a comprehensive approach
to meet all digital commerce needs. It lets companies eCommerce as we know it is dying. It’s time to evolve
take control of their supply chains. It lets them carry to meet the growing demands of the Asian consumer.
out digital marketing. It’s time to herald the new age of digital commerce.
DIGITAL COMMERCE
VALUE ASSESSMENT
DIGITAL COMMERCE
SUPPLY CHAIN
DIGITAL COMMERCE
DEMAND GENERATION
DIGITAL COMMERCE
OPERATIONS
DIGITAL COMMERCE
TECHNOLOGY ENABLERS
DIGITAL COMMERCE
CUSTOMER EXPERIENCE
DIGITAL COMMERCE
ANALYTICS
17DIGITAL CUSTOMERS, DIGITAL BUSINESSES
ACCENTURE DIGITAL COMMERCE
CONTROL TOWER
DIGITAL COMMERCE
VALUE ASSESSMENT (DIVA)
Digital Commerce Value Assessment (DiVA) offers a way Most studies only look at specific aspects of commerce
of quickly establishing the maturity of a business and or offer only outside-in perspectives on running a
preparing a plan for its transformation. The advent of digital commerce business. DiVA, in contrast, is
digital commerce means firms are having to transform designed to conduct a detailed analysis of every
all aspects of their business — from their technological aspect of running a digital commerce business.
capabilities, to their people, processes, operations
and marketing — to keep up with fast-changing times. The Accenture Digital Commerce Control Tower
To take advantage of the digital commerce boom, illustrates all the capabilities required to run a digital
organizations need to put certain standards and commerce business and DiVA stands right at top and
capabilities in place. But it is hard to know the nature is a method to analyze every aspect of the control
and extent of the transformations required. Tools like tower.
DiVA are helping businesses diagnose possible weak
points in their digital capabilities and ensuring that A typical DiVA exercise would take around 12 to 16
they reach their business value targets. weeks, depending on the nature and size of the
business being examined.
A typical DiVA exercise (see Figure 13) would offer
firms a transformational blueprint consisting of the
following: AUTHOR
1. A business case and plan
2. The capabilities that will need to be established RAJIV BABU
3. Possible gaps in consumer experience that need Senior Manager,
to be fixed and a definition of a future-state Accenture Digital
experience
4. Technology development roadmaps
5. Operating structure
6. KPIs and metrics that need to be tracked and
improved to achieve the business case
FIGURE 13. WHAT IS DIVA?
01 BUSINESS READINESS ASSESSMENT 03 TARGET OPERATING MODEL
• Understand existing brands or categories • Define target state organization structure
performance across the channels • Business prioritization for quick wins and
• Measure the available opportunity size across future needs
the business models and related channels • Lay timeline for Transformation
DIVA
02 DIGITAL MATURITY ASSESSMENT 04 BUSINESS PLAN & INVESTMENT
SUMMARY
• Maturity assessment across the eCommerce • Roadmap for initiatives along with high-level
value chain benefits case
• Capability assessment for people, process, • Detailed investment plan across people and
technology and governance skills, process and technology
• Identification of commerce levers (Business + • Business case with ROI based on the
Technology) to exploit potential and capability investments
benchmarked to a peer set
18DIGITAL COMMERCE
SUPPLY CHAIN
Businesses in Asia are facing several challenges: the For example, Amazon has patented “anticipatory
burgeoning middle class, rising consumer expectations, shipping”, which analyzes consumer preferences and
patchy transportation infrastructure and the shortage makes fulfilment decisions before the consumer has
of supply chain talent are all placing organizations clicked “Buy”. Returns costs are minimized through
under pressure. But opportunities are also arising: giving discounts, or allowing customers to convert
companies are starting to embrace digital commerce unwanted deliveries into gifts.33
as a way of doing business online. To deliver enhanced
consumer experience, companies need to take control
of their supply chain through real-time visibility, 3. WIN WITH EXECUTION
predictive planning and agile execution. TO WIN WITH DIGITAL COMMERCE, CONSUMERS
REQUIRE RAPID AND RESPONSIVE SUPPLY
High-performance supply chains that drive successful CHAIN EXECUTION.
digital commerce are built on three key principles:
Digital Supply Chain Control Tower ensures this
perfect execution by bringing together visibility and
1. SEEING AHEAD IS GETTING AHEAD analytical decision making.34
MATCHING SUPPLY TO DEMAND IS THE KEY TO
SUCCESS FOR ANY BUSINESS. Winning in today’s highly-competitive business
environment also means delivering a tailored customer
Using predictive demand data from digital marketing experience. This means offering a completely
activities, companies can compare their current customized fulfilment model, providing consumers
inventory levels with what consumers might need and the options to buy-anywhere, collect-anywhere, and
what is possible to supply. Data sourced from online return-anywhere.
buying patterns enables companies to plan ahead and
explore their options (for example, whether to increase Amazon’s acquisition of Whole Foods35 shows how the
inventory ahead of expected orders). world’s largest eCommerce company is transforming
itself into a digital commerce player, using a bricks-
The proliferation of the Internet of Things (IoT) has led and-mortar stores network to bring digital commerce
to an explosion of data and the need for sophisticated fulfilment closer to consumers.
digital and analytics tools.
In Singapore, the rapid proliferation of SP Commerce’s
The collaboration between Walmart and Google32 POP Stations parcel distribution points,36 similarly
showcases how traditional retailers are moving demonstrates the importance of agile fulfilment as the
towards digital channels to gain access to crucial cornerstone of successful digital commerce.
data, helping them to anticipate customer purchases
and prepare their supply chains accordingly. Deliver the optimal customer experience through
digital supply chain
Soon, consumers will expect to get what they want,
2. PREDICT, NOT REACT before they even know they want it. It’s time to herald
BUSINESSES MUST PREDICT CONSUMER the new age of digital commerce. Is your supply chain
DEMAND, NOT REACT TO IT. digital-ready?
By anticipating what consumers will need and what is
possible to supply, companies can ensure that they AUTHORS
are best placed to maximize consumer satisfaction
and their own profits. On-demand, advanced analytics SUNDI AIYER
would provide an array of consumer purchase Principal Director,
scenarios and actionable intelligence, allowing Supply Chain & Operations,
companies to make the best possible supply chain Accenture
decisions.
ZHEN LONG LIM
Analytical modeling can be automated through Management Consultant,
robotics and artificial intelligence. Using machine Supply Chain & Operations,
learning, real-time data can be continuously processed, Accenture
helping ensure that operational resources are kept to
a minimum, while management is given constant
updates to inform strategic and operational decisions.
19DIGITAL COMMERCE
DEMAND GENERATION
COMBINING TECHNOLOGY AND MARKETING However, in a digital context, there is a gap between
KNOW-HOW TO DRIVE DIGITAL DEMAND what brand agencies can offer and what operations
Digital Commerce Demand Generation is a specialized teams can do. Nowhere is this gap more obvious than
service, focused on driving demand to specific when it comes to technological expertise. Traditional
products online. Most organizations already have well- agencies are struggling to adapt to the technological
oiled marketing structures and long-established agency demands of eCommerce. To help them and the
relationships. It is natural, therefore, that they would organizations they serve, Accenture has built a demand
want to continue using their existing agencies to generation service that brings together people with
conduct their online marketing and their eCommerce backgrounds in both marketing and eCommerce,
operations. creating a team that specializes in driving online
demand.
Demand generation in eCommerce blends traditional
FIGURE 14. DEMAND GENERATION FUNNEL marketing techniques with new digital methods. As
well as employing well-established tools such as
pricing, promotions, and campaign management,
driving traffic in eCommerce also calls for digital-
specific methods, such as search engine marketing
Total Visitors to the site
and optimization. Several of these activities will
overlap with what brands are already doing across
other channels. Demand generation teams will
TRAFFIC therefore need to work with the current organization,
their brand teams and their agencies to maximise
traffic to eCommerce.
Total traffic to the
category To most effectively drive demand, organizations need
access to a suite of tools, tailored to every stage of the
demand process, from planning to execution, and
CONVERSION then assessing the outcome of these activities. Given
that many activities will depend on retailers and third
parties, an effective audit mechanism will need to be
introduced as part of an operations procedure. This
Purchase
consideration will ensure that all planned activities go live on time.
Accenture’s demand generation suite combines the
BASKET SIZE best people, tools and processes, enabling clients to
drive traffic on digital commerce and to plan and
report on their progress. While forces outside the
control of Accenture or the brand will always affect
demand, in normal circumstances, demand generation
services prove very effective in driving and growing
digital commerce at an exceptionally fast rate, helping
CONVERTED BASKETS
companies to overcome the challenges of a crowded
eCommerce market.
AUTHOR
RAJIV BABU
Senior Manager,
Accenture Digital
20DIGITAL COMMERCE
OPERATIONS
Unlike traditional ways of conducting trade, digital Digital commerce operations will typically need to
commerce offers firms the ability to gather real-time be localized. Yet similarities of abilities in key areas
feedback on their activities. While this presents such as catalog optimization, search, etc., open
brands with major opportunities, it also comes with the possibility that these tasks could be centralized,
significant pressures. Most obviously, companies must ensuring that they are done more efficiently and
set-up scalable operations capable of conducting allowing businesses to rapidly scale business in areas
business at an unprecedented speed. For a business in which brands lack capabilities. Several of these are
to benefit from digital channels, they must be able to operational, such as search and content, and have
operate efficiently. Possible operations could include typically been offered by brand agencies. Yet these
areas as wide as supply chain, to working with e-tailers capabilities differ significantly in an eCommerce
on campaigns. There is also an inherent ‘speed’ issue, context and brand agencies may not be best placed
as most existing staff are used to working in slower to handle them. Indeed, when it comes to driving
channels. In Asia, most CPG companies lack the sales in digital commerce, brand agencies may lack
infrastructure and ability to solve these problems the required capabilities.
internally.
Operations can be broadly divided into the areas of:
Compounding these issues is a lack of investment in supply management, demand management and
the region. At present, companies are less inclined to metrics management. The last of these three provides
invest in emerging markets, as they promise lower feedback and information to the other streams,
returns than Chinese and Western markets. However, allowing them to take corrective action when
that caution may be misplaced. Setting up a successful necessary. Unlike in traditional trade, digital commerce
digital commerce operation takes time, the right allows companies to monitor every performance
skills and the latest technology. Yet with the right metric. For firms that have established the basics of
infrastructure in place, there is significant potential commercial operations, the logical next step is to
for growth in Asia. restructure their operations into a more customer-
centric model. This crucial stage will likely make the
difference between a company’s success and possible
failure. Based on the maturity of the firm’s commerce
FIGURE 15. OPERATIONS MATURITY CURVE operations, they will need to choose an appropriate
setup or evolutionary approach (see Figure 15).
VALUE TO BUSINESS
AUTHOR
Customer Centric RAJIV BABU
Senior Manager,
Accenture Digital
Tech Enabled
Basic
TIME AND COST TO SETUP OPS
Efficient operations evolve with continuous
investment in technology and people skills.
This investment is imperative to make digital
commerce a valuable channel.
21DIGITAL COMMERCE
TECHNOLOGY ENABLERS
OMNICHANNEL EXPERIENCE IS THE ONLY Commerce software vendors have been quick to
EXPERIENCE FOR TODAY’S CONSUMERS acknowledge the significance of this trend. As figure
A fully integrated omnichannel experience enables 16 shows, companies such as IBM, eBay and Oracle
customers to begin their commerce journey on any have been acquiring businesses that will allow them to
channel and end it across any other. The omnichannel offer a holistic omnichannel solution, thereby
journey seamlessly integrates physical stores, contact plugging any existing solution gaps. Solution
centers and digital channels. As further integration of providers have also been making significant progress
social media platforms and mobile technologies by developing their ability to provide Software-as-a-
continues, omnichannel capabilities will doubtless Service (SaaS) models. These models allow businesses
continue to increase in importance. From a technology to take advantage of the emergence of Cloud
perspective, this requires tools and platforms that can technologies and provide a turn-key commerce
integrate a rich customer experience without solution that can be upgraded more frequently,
compromising core commerce capabilities. allowing companies to adapt to changing trends.
In this context, the strategic use of analytics is vital for Accenture’s analysis reveals that a few of the vendors
influencing customer purchase patterns and driving have a strong presence in both SaaS and on-premise
maximum consumer expenditure. models as shown in Figure 17.
This extends beyond B2C into the B2B space, where
Accenture research uncovered that 49% of B2B users AUTHOR
prefer to make their work-related purchases on B2C
websites. What’s more, 72% of B2B companies stated KEERTI CHIVUKULA
that omnichannel customers are worth substantially ASEAN Delivery Lead,
more to them than single channel customers. Accenture Interactive
FIGURE 16. STRENGTH OF COMMERCE SOLUTION PROVIDERS
DEMANDWARE MAINSTREET CQUOTIENT
EBAY GSI COMMERCE MAGENTO BRAINTREE
STERLING CORE
IBM COMMERCE METRICS UNICA SILVERPOP
ORACLE ATG FATWIRE ENDECA RIGHTNOW ELOQUA RESPONSYS MICROS
BIGMACHINES
RETAIL
NETSUITE ANYWHERE ORDERMOTION VENDA
SAP HYBRIS SEEWHY
2010 2011 2012 2013 2014 2015
This figure is meant to be representative of the commerce solutions acquisitions over the past years by those vendors in the Forrester Wave
evaluation. Acquisitions with no relevance to commerce are not shown. Vendors that have not made acquisitions are not shown.
Source: Forrester Wave, B2B Commerce Suites Q1 2015
FIGURE 17. STRENGTH OF COMMERCE SOLUTION PROVIDERS
B2C MULTI-TENANT SAAS B2B B2C ON_PREMISE/HOSTED B2B
HYBRIS
DEMANDWARE CLOUDCRAZE
IBM
CAPABILITY
ATG
INTERSHOP
SUITECOMMERCE
DIGITAL RIVER INSITE
MAGENTO
2223
DIGITAL COMMERCE
CUSTOMER EXPERIENCE
GET CLOSE TO YOUR CUSTOMERS AND Data is the foundation of any personalized experience.
DESIGN FOR HUMANS Increasingly, customers want to be treated as
individuals. They expect brands to remember them,
1. DO YOUR RESEARCH know what they like, what they don’t like and to
Understand who you are designing for and why. What reward them for their loyalty. Joining the dots between
tasks are you helping them to complete or problems a customers’ interactions across an array of touch
are you solving for them? points is key to delivering a holistically good customer
experience.
To begin, create personas to help you empathize with
your customers and better understand their context 4. INVOLVE CUSTOMERS IN THE DESIGN
and behaviors. Personas are a hypothesis about what PROCESS
we think our customers are like. Next, spend time Build prototypes and iteratively validate the experience
‘walking in customer’s shoes’, observe and talk with and design with customers before committing to
them in their natural environment to identify how, code. This will ensure that, come launch, you have
why and what they buy. An experience can only be designed something that customers actually want.
customer-centric if you involve them (customers) in
the design process. Focus on identifying your 5. THINK EXPERIENCE—NOT APPS AND
customers’ unmet needs or unresolved pain points, WEBSITES
this is the starting point for innovation. Every customer interaction is an opportunity to
improve or degrade the experience. Customers’ view
Customers follow a predictable buying pattern but brands across the entirety of their interactions with
across many touchpoints. When they visit your them. So just focusing on a single touchpoint or the
website, it doesn’t mean that they are ready to buy: ‘killer app’ is not a winning or sustainable strategy.
they may still be researching options. When they add Experiences should be integrated across all touch
items to the cart, you know they are interested and points. Though easier said than done, it is vital to
when they reach the checkout, it shows that they are identify how to provide a seamless transition between
serious about purchasing the item. Customers may online and offline customer interactions.
have already visited your store prior to purchasing
online. Understand how each step can work For example, how could the mobile experience
seamlessly to attract and convert your customers. complement or augment the in-store experience?
Well even today it is plausible and feasible for
2. ENVISION THE IDEAL EXPERIENCE customers to use apps to navigate the store, scan
Use the insights from your research to plot the ideal barcodes and add products to their cart, display
end-state journey for your customers. Be bold, augmented reality content, collect and redeem loyalty
futuristic and aspirational. Naturally, components of points and even pay using a mobile device at the
the journey will be prioritized according to feasibility, checkout.
financial viability and customer attractiveness.
Customer journeys provide direction and focus and Be mindful of how future technology could improve
ensure that customers’ goals become your goals. experiences, for example by automating or mitigating
Don’t obsess about what the competition is doing and manual or tedious tasks. But, remember that
copy them feature by feature. Their journeys are technology is just an enabler, shopping is still very
different. If you are wholly focused on your customers, much a human experience and the key metric that
you will know what they want and deliver the brands should continue to strive for is customer
experience best suited to them. delight.
3. MAKE IT HUMAN
When designing for digital channels, think about how AUTHOR
you can evoke the same emotions and excitement that
customers experience shopping in-store. It’s easy to NATHAN RAWARD
rely on ready-made templates, but it’s vital that you Customer Experience Lead,
always keep your customers in mind. Constantly ask Accenture Interactive
yourself, how would they react or respond to this
feature, or this experience? Customers buy from
people and brands, not websites or apps.
24DIGITAL COMMERCE
ANALYTICS
UNDERSTANDING THE NEW AGE CONSUMER Accenture has developed analytics solutions for
The behavior of today’s consumers is changing fast. clients across UX and web analytics by analyzing
One striking development in the pattern of consumer search patterns, web behavior and preferences of
behavior is the upsurge in digital commerce. This has their customers and visitors through their movement
created dynamic new marketplaces and, with that, across different touchpoints.
changing digital commerce platforms and solutions.
Whether they engage physically or digitally, consumers Accenture analytics is playing a key role in connected
expect a seamless experience. Analytics and advanced commerce, which is rapidly gaining pace in the IoT
computing techniques enable personalization, quick ecosystem. Accenture has pioneered the use of data
payment, fast delivery and omnichannel processes. and advanced analytics to improve commercial
They do this by capturing critical micro-moments in a productivity in several areas. These range from
consumer’s decision-making cycle, through harnessing automatic restocking, predictive maintenance,
the increasingly large amount of data we can gather optimizing product prices, marketing measurement
on a consumers’ behavior (e.g. search, social, geo- and supply chain management.
tagged sensors, payments, shopping carts, speech).
This is what creates the magic behind new, Accenture is also helping companies with fraud
hyperpersonalized experiences, offering consumers detection by using predictive analytics to detect
what they want, when they want it and now, even high-risk factors and patterns, allowing companies to
before they want it. identify, prevent and react faster and more effectively
to risk.
Accenture’s advanced digital data analytics, predictive
data analytics and artificial intelligence (AI) solutions Analytics is driving the next generation of smart
are transforming B2C and B2B organizations, allowing digital commerce. It brings together personalization,
them to keep pace with the accelerating evolution of easy and intuitive user interfaces, seamless
disruptive digital commerce platforms, helping omnichannel interaction and an integrated customer
businesses grow rapidly. experience. Analytics is enabling companies to carry
out more efficient and effective digital marketing, take
Analytics enable cross-functionally decision-making control of their supply chain, generate demand and
processes across the pillars of the Accenture Digital manage their digital commerce operations. Accenture’s
Commerce Tower. It enables companies to address expertise in new age digital commerce analytics is
digital consumers’ shift from brand loyalty to their helping organizations meet the growing demands of
seeking solutions at each ‘micro-moments’ along their the new age digital customer.
purchase journeys.
Accenture’s AI solution and Natural Language AUTHORS
Processing (NLP) technology, helps process written
and spoken text, and employs machine learning LEE JOON SEONG
algorithms to discover and predict potential future Managing Director,
behavior. ASEAN Analytics Lead,
Accenture Digital
Using analytics, Accenture can help companies to
further optimize their social media marketing, PRAVEEN KUMAR
ensuring the best possible investment in social media ASEAN Products Analytics Lead,
ads, location-based marketing and omnichannel Accenture Digital
analytics. Digital profiling allows for greater
personalization and marks a shift from demographic
based profiles to behavior-based clustering, creating
responsive web content informed by consumer
behavior and preferences. Companies are opening
avenues to the use of social commerce by posting and
selling their items directly through social networks
such as Facebook, Instagram and Twitter, where
content and text analytics are used to ensure a
curated shopping experiences.
25CASE STUDIES 26
CASE STUDY
THAI RETAIL COMPANY: PIONEERING AN
OMNICHANNEL CUSTOMER EXPERIENCE
One of the largest home retailing companies in Thailand operates several
stores across the country and is Thai consumers’ first-choice brand for
anything related to home furnishing.
HOW WE HELPED As part of our ongoing work, Accenture is also
Accenture has collaborated with the company to designing the user experience end of the website, by
transform its business model, helping to deliver a integrating a new Hybris-based eCommerce solution
flexible, omnichannel customer experience. To begin with systems that are already in place.
this process, we drew up a comprehensive commerce
strategy and a customer experience design blueprint. To achieve this, our team is working with the owners
Together, these form a complete digital commerce of the existing backend systems to help put into
roadmap. practice the improvements that they will need to
deliver our proposed end state experience goals.
To ensure this leading retailer gains maximum yield
from its new systems, Accenture is assisting with
several implementation measures to ensure a smooth
and profitable transition: our consultants will be on
hand to provide staff with training in how to use the new
systems and our team is also integrating the business’s
entire eCommerce program, using outcomes from
customer segmentation and analytics to increase their
customer acquisition rate. Furthermore, we are also
working on a redesign of the online store, to ensure
that customers receive the best possible service.
THE RESULT
The end goals have already been established, with clear
KPIs that will drive tangible outcomes in the near future.
From a conversion rate of 0.5% and a consumer base
Accenture’s digital roadmap provides the platform for numbering a few thousand, the plan has been set to
delivering the retailer’s omnichannel future: we grow at more than 100% year-on-year over the next few
created a plan for the customer experience they need years. We believe the changes that we are able to bring
to provide, the business processes they must change in this collaboration will go beyond creating
and the technological transformations required to shareholder value and serve as a benchmark in the
deliver this program. When enacted, the program will region for digital transformation and experience
ensure that the business’s customers are provided design.
with better access to product-related information,
real-time updates on product availability, information
concerning the status of their orders and increased AUTHORS
control over when their items are delivered. In
addition to providing a clear route for restructuring RAJIV BABU
online processes, we have also created a business Senior Manager,
case outlining the KPIs and revenue goals that the Accenture Digital
retailer’s teams will need to target and meet.
STALIN BHARATHI
Manager − Digital Commerce,
Accenture
27CASE STUDY
GLOBAL FOOD COMPANY: TAKING A
BIGGER BITE OF THE MARKET WITH
DIGITAL COMMERCE AS A SERVICE
How can a global food company boost sales of its snacks and meals in the digital
age? With highly effective and flexible supply chains. With a strategy focused on
the digital platforms that consumers are using in their millions. And with a data-
driven approach that targets the right customers with the right information.
For one such company operating in the Asia Pacific
region, this was proving a challenge. They were being
held back by a lack of digital commerce data. And
issues in their supply chain meant they could only
serve half of the products ordered online. All in all,
they needed a complete refresh of their digital
commerce strategy – and how it was executed.
HOW WE HELPED
We had just the answer – digital commerce managed
as a service. Using this kind of innovative, scalable
consumption-based model would free the company to
focus on its core business. So, we first helped them
identify the key platforms they needed to partner with –
such as Coles, Big Basket and Amazon. We worked
closely with the business to assess what data they
had and what they could share with their partners. We
reverse engineered what we could to plug the gaps.
And we used that data to adjust advertising budgets They can drive campaigns 24 hours a day. They’ve
and renegotiate trade terms in key marketplaces. improved their search results by up to 20 percent
Then, we helped them set up a dedicated managed across different categories. And they’ve finally got
services model with a strategic partner to take care access to the crucial analytics on impressions,
of content optimization and campaign management – click-through rates and basket sizes that can drive
and provide the crucial analytics that would drive better services for their customers. This is a food
ever more targeted marketing. And we helped them business that’s now ready to take a bigger bite of
re-examine their supply chain processing from end the global market.
to end.
AUTHOR
THE RESULT
By adopting an innovative digital-commerce-as-a- RAJIV BABU
service model, this business has seen remarkable Senior Manager,
results. Their supply chain issues have been Accenture Digital
minimized. They’ve expanded to three times the
number of platforms across three different countries.
In one market, they’ve seen an extraordinary 1,000
percent increase in sales, albeit from a low starting
point. They’ve boosted their marketing activity to 25
activations a month.
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