Special interview
Written by: Lin Leqian
2020-10-05 07:00
Last update date: 2020-10-05 07:00
A pandemic of the century has changed the face of the retail industry. The flow of people on the street has plummeted, and citizens cannot go out for travel. Many people have switched to online shopping to "quench their thirst."
Local veteran jeweller Chow Tai Fook (1929) also took the opportunity to "make new ideas", such as selling diamond jewelry through live broadcast platforms, setting up vending machines in shopping malls, etc., to enhance the customer's consumption experience.
Liao Zhenwei, executive director of Chow Tai Fook, said in an interview with "Hong Kong 01", "Many people think that the jewelry and gold industry is traditional and old-fashioned, and the business model has been similar in the past ten years. Buying diamond jewelry worth thousands of dollars, the company must accelerate to adapt to the new normal.” He analyzed how Chow Tai Fook used the latest technology to reshuffle the traditional retail industry's “people, goods, and markets”.
Liao Zhenwei pointed out that it is now necessary to invest in more new technologies to satisfy young people’s reliance on smart devices, and to find out their preferences through data analysis.
(Photo by Huang Baoying)
"Fragmentation" of consumption habits, new technology captures needs
The veteran jeweller's "new meaning" is not only because of the epidemic, but also to cater to the advent of the "new retail" era.
Liao Zhenwei, executive director of Chow Tai Fook, has noticed that over the years, customer consumption patterns have continued to change. From the first stage of "people have, I have", they are chasing the same trend together; they have evolved into "people without me," showing themselves with limited-release products. The personality and status of the new generation; now the new generation is "dispensable", with more fragmented consumption habits, it is difficult to grasp their preferences and shopping habits.
"In the past it was enough to find big stars to shoot ads. Now we need to invest in more new technologies to satisfy young people's dependence on smart devices, and at the same time find out their preferences through data analysis." Chow Tai Fook launched a new strategy "Smart+" two years ago. 2020", increase the online sales channel "Yunshang 365" in China, and set up the "My Smart" platform in Hong Kong in February this year, to promote sales to customers through instant messaging software, and install "cloud counters" in physical stores for customers to help themselves Shopping to enhance the customer's consumption experience.
Chow Tai Fook launched a limited-time discount live broadcast on social platforms, and launched several events on Facebook from April to July, with a click-through rate of 370,000.
(Photo by Huang Baoying)
The conversion rate of selling diamond jewelry on social platforms is as high as 10%
After the outbreak of the epidemic, the flow of physical stores dropped sharply. Chow Tai Fook’s online sales channels "Cloud Business 365" and "My Intelligence" Chia Tai were put to use. Its employees contacted customers through instant messaging software to introduce new products and event promotions to them. Launched a limited-time discount live broadcast on social platforms. Since February this year, it has connected nearly 2 million customers.
Liao Zhenwei said, “Most people think that jewelry brands will not be willing to broadcast live on social platforms, but as the shopping experience changes, the group needs to continue to increase interaction with customers and use different tools to deepen the relationship.”
He described that several events were launched on Facebook from April to July, with a hit rate of 370,000. For example, one of the live broadcasts held in August, guests can place an order at a discounted price on the spot, and the link has more than 12,000 clicks. The final forwarding rate reached 10%, that is, one in ten people purchased the product, and the effect was better than expected. In the future, we will consider setting up our own live broadcast platform to facilitate customers' shopping.
As technology continues to innovate, merchants must continue to apply to business. Liao Zhenwei said that the group will develop 5G Internet of Things, 3D printing and electronic payment in the future. The picture shows Chow Tai Fook’s "D-ONE" customized service.
(Photo by Huang Baoying)
Touch-screen push ``no sense'' experience accounted for about 3 to 5% of store sales
Online shopping is convenient and fast. However, he pointed out that there is a limit on the public's acceptance of online shopping prices. "Online shopping cannot replace physical stores. The two should complement each other. Customers shopping for wedding supplies or high-priced accessories must watch them on the spot. Friends go shopping. It may be done online." Chow Tai Fook installed a "cloud counter" in a physical store more than a year ago, targeting customers aged 21 to 35 who prefer a "sensory-free" experience, allowing them to freely purchase products through the touch screen, which can be instantly in the store Pick-up or door-to-door delivery now accounts for about 3 to 5% of offline store sales.
Liao said that currently about 800 stores in the mainland have installed "cloud counters". For the time being, only the K11 Musea store in Tsim Sha Tsui in Hong Kong has this service. In the next two years, it plans to install it in 40-50 stores in China and Hong Kong.
"Cloud counters can meet the needs of different scenarios. Many people thought that jewelry and gold shops were traditional and old-fashioned, but nowadays young people are accustomed to using smart devices, such as buying gold jewelry for elders, and simply pressing two keys will buy thousands of yuan. This is something that may not happen in traditional retail.” The group also sets up vending machines in shopping malls to allow customers to shop for accessories at will.
With the continuous innovation of technology, merchants must continue to apply to business. Liao Zhenwei said that the group will develop 5G Internet of Things, 3D printing and electronic payment in the future. He explained that 5G will increase the speed of the Internet and use the experience of AR and VR. The group is also testing metal printing technology. Since metal polishing is not easy to control, it will turn black if there is a slight deviation. This technology will help improve product quality; Hong Kong Electronics Payment is not perfect and still needs more time and infrastructure Cooperate.
[Retail Winter] Chow Tai Fook's same-store sales in Hong Kong plunged 72.5% in the second quarter, net closed 3 Hong Kong stores
Chow Tai Fook lost 36.6% last year's unexpired interest rate cut to 12 sen. Retail sales in Hong Kong and Macau fell 80% year-on-year from April to May
Chow Tai Fook: The long-term prospects for the recovery of the Hong Kong market are expected to see Hong Kong's turnover drop 25-30%
Chow Tai Fook Retail Market
