Page 30 - RLI June 2019

MARK FAITHFULL

FOLLOWING

THE MONEY

MARK FAITHFULL RepoRTs bAcK FRoM AMsTeRdAM, wHeRe
ReTAILeRs AT woRLd ReTAIL congRess oUTLIned THeIR FUTURe vIsIon

KrOGEr aNd OCadO TarGET NuMbEr CHINa Is rEsHapING OMNI-CHaNNEL
ONE pOsITION IN ECOMMErCE he world’s second largest economy is changing
S supermarket group Kroger is aiming to the way consumers at home and abroad
become the number one player in the US Tshop online, Chenkai Ling, Vice President of
Uecommerce grocery market following its Corporate Strategy & Investment at JD.com, told
partnership with Ocado. World Retail Congress delegates.
Kroger is targeting fast-track entry into the grocery “There is lots of innovation happening in China,
e-commerce market after agreeing a partnership consumer behaviour is changing massively. Market
deal with UK-based Ocado, according to Rodney penetration through e-commerce is very high in
McMullen, Chairman and CEO, Kroger, speaking at the China compared to other continents, about 15 per
penultimate session of World Retail Congress. cent according to research. What we want to do is
The companies have announced the locations bring the retailer to the consumer,” said Ling.
of three distribution centres out of an initial phase “China is a highly dynamic market. At JD, we
of 20, as the companies ramp up with the eventual are more looking more from a consumer point of
aim of national coverage. The three markets view, instead of a competitor angle,” Ling explained.
chosen represent a strong, medium and new “You need to understand your consumer first. The
market area for the supermarket group, so they relationship will have to become more personal to
can compare performance. be able to understand their behaviour. We need to
McMullen said that while he had considered connect with our consumers, but without making
launching the company’s own e-commerce platform, them feel like we are invading their personal space.”
he reasoned “why take five years to get to where “The future of retail is that the consumer can get saying that brands have to work out: “How do you
Ocado is now, not where they will be in five years?” whatever they want, whenever they want. However, connect online and offline?”
He said: “Everything starts with the customer. the shopping moments will be very diversified,” Tian pointed to “massive adoption of technology”
The customer increasingly wants to engage with according to Ling. “The value of product will decrease, in China as a platform for new ways of retailing.
you in multiple ways. We decided we couldn’t do it but the value of content and experience will increase. “Scan and pay is becoming very common in China,
all alone, which is why we partnered with Ocado And whatever the consumer chooses, as a retailer, we which requires building trust and removing the fear
and why we now look at collaborations.” will follow that choice.” of technology,” she said. “That is very valuable. If
While he said the company is still evaluating how Leveraging technology to create a seamless online you look at the results almost 40 per cent of the
the online business could be as profitable as the and offline experience to build sales from stores is consumers in the shop are using scan and pay, which
stores business, he said that as a business you have creating new ways of shopping, Cecilia Tian, General is driving a very unique experience.”
to take such steps: “You partner with your board and Manager, Tencent Smart Retail, told World Retail She also said that the online experience should
your shareholders. Historically every 12-14 years you Congress delegates in a separate session. start with real relationships. “Fundamentally it is
have to reinvent your business anyway but I can see She said that the high adoption of tools such as about who sent what, we want the relationship to
that changing, or perhaps that we will be in constant WeChat and of QR codes in China makes connections start with face-to-face, offline, where people feel
evolution. Transitions will be non-stop.” with consumers in physical environments easier, comfortable in building the relationship,” she said.

GET sErIOus abOuT WOMEN saYs WaLMarT INTErNaTIONaL bOss
almart’s International President and CEO In particular you have to look at the value people are
has called for commitment from the giving to their time. So we need to understand and
Windustry to create a platform for women adapt to the best way of serving our customers.”
to take senior roles. McKenna is known as a keen advocate of the role
Global retail businesses need to look at the of technology and innovation in the retail sector but
models they are working with and adapt to the new also said that attracting and keeping the right people
values their consumers have, Walmart International is becoming increasingly important. “We need enough
president Judith McKenna told delegates at the World talent to do these reimagined jobs,” she said. “We
Retail Congress in Amsterdam. need the right people to take retailers forward who
She also called on “each and every one” to do more can adapt to a digital world. Leadership is also a very
to create pathways for women to rise to senior positions important element of that.”
within retail organisations and said that helping to position Turning to the lack of senior women in the retail
women at the helm of some of the international divisions industry, she said: We have an obligation to find people and
of Walmart remains one of her top goals. bring them through; everyone has an obligation, starting
Walmart currently operates in 27 countries with diverse candidate lists that are broad enough and
and McKenna said: “Businesses like ours are finding creating the right pipelines. It’s a commitment for each of
different models in the markets we are working in. us, to create a platform for more women in the business.”
50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018