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1、 Engaging consumers with technology,purpose and trust2022 SurveyRetail RechargedIn association withContentsForewordAbout the studyExecutive SummaryChapter 1:Omnichannel experienceChapter 2:Meeting customer expectationsChapter 3:Identifying with customers valuesChapter 4:Technology to improve user ex
2、perienceChapter 5:Data and trustChapter 6:Logistics and service deliveryChapter 7:Payments and embedded financeKey takeaways About KPMG ChinaAbout GS1 Hong KongAbout HSBCAcknowledgements0203042406308495051 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisa
3、tion of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limite
4、d,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Damien Wu Di
5、rector of Business Transformation and Innovation at Chinachem GroupBetty Lam General Manager,E-commerce at Dah Chong Hong HoldingsAnne-Laure Descours Chief Sourcing Officer at PumaRyan Lai Managing Director of foodpanda Hong KongPallak Seth Founder,Vice Chairman at PDS LimitedDanny Shum President,TV
6、B E-commerce Business Group and Chief Executive Officer,ZtoreSean Song Chief Financial Officer at MobvistaWill Lam Managing Director at High Fashion GroupTaurus Cheung Cofounder of ShipAnyCrystal Pang Co-founder and Chief Executive Officer at PickuppKeith Wu Chief Executive Officer at Fulum GroupFra
7、nz Wu Founder of YohoViewpoints8293435404441Retail Recharged:Engaging consumers with technology,purpose and trust1ForewordAs consumers across Hong Kong(SAR)and Chinese Mainland cities within the Greater Bay Area(GBA)continue to adjust to life nearly three years since the onset of the COVI
8、D-19 pandemic,retailers and brands are discovering that many shopping habits that changed during the pandemic are enduring in the New Normal environment.Consumers continue to buy more online than ever before,using smartphones,laptops and desktop devices.Online marketplaces continue to evolve,while b
9、rand-owned stores,shopping apps and social media and chat applications are also rising to the challenge.For consumers,their familiarity and experience using online channels breeds confidence.Online shoppers expectations have grown to expect more services,more convenience and more payment options wit
10、hout a price premium to match.At the same time,consumers expect retailers to be more respectful of the environment and to adopt ESG values that align with their own.As the retail sector continues to evolve,our sixth annual report on omnichannel retail trends explores to what extent consumer and busi
11、ness practices that became popular during the pandemic are likely to endure moving forward.We also examine relevant corporate strategies for the coming two years and how those strategies align with consumers evolving preferences.In particular,this years report studies retailers embrace of sustainabi
12、lity and ESG initiatives.We also focused on consumer attitudes to digital shopping channels,alternative payment options,and customer expectations of retail companies in areas including omnichannel presence,social-media use,and the collection and protection of data.We hope you find this report insigh
13、tful and welcome the opportunity to further discuss our findings.Daniel HuiHead of Consumer&Retail,Hong KongKPMG ChinaAnna LinChief Executive OfficerGS1 Hong KongYvonne Yiu Managing Director,Regional Co-Head of Global Payments Solutions,Asia PacificHSBC 2022 KPMG,a Hong Kong(SAR)partnership and a me
14、mber firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of
15、GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust2About the studyTo better understand emerging trends and attitudes towards retailing in Hong Kong(SAR)and elsewhere in the Greater B
16、ay Area(GBA),we surveyed 2,065 consumers and 342 senior retail industry executives1 in Hong Kong and nine GBA cities in the Chinese Mainland2 during July and August 2022 in cooperation with YouGov.Consumers polled in our study included a significant sample of Generation Z respondents(those aged 18-2
17、4),through to those aged 55 and over.To ensure the sample was representative of the true population in the areas studied,weighting was applied on the basic demographic.In addition to age group,respondent data on marital status,employment status and income were also captured to ensure that the profil
18、es of those surveyed are representative of the overall populations in the respective cities included.The data percentages shown in our report are rounded to the nearest whole number.For the corporate survey,executives polled represented a wide range of retail areas,including household goods,apparel,
19、healthcare,beauty/personal care,consumer electronics and food and beverage.A broad cross-section of functional roles across the industry was captured,including brand owners,manufacturers,retailers,and distributors;as well as e-commerce providers,consultants,technology solutions providers,and logisti
20、cs providers that service retail companies.We also conducted in-depth interviews with market-leading brands,retailers,e-commerce marketplaces,industry consultants and technology service providers to provide a comprehensive analysis of key challenges and opportunities facing the industry.1“Senior exe
21、cutives”polled in the corporate survey generally include founders,C-suite(CEO,COO,CFO,CTO,CMO,etc.),or department head and above for their respective companies.2 The nine“Chinese mainland GBA cities”included in the consumer survey are Dongguan,Foshan,Guangzhou,Huizhou,Jiangmen,Shenzhen,Zhaoqing,Zhon
22、gshan and Zhuhai,all in Guangdong Province.2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local
23、 chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust3Executive summaryThis report,our sixth edi
24、tion study on omnichannel retail trends across the Greater Bay Area(GBA),explores how businesses and consumers in the GBA are embracing the trends and technologies in a retail ecosystem changed dramatically by the global COVID-19 pandemic.Based on the findings of surveys of consumers and senior reta
25、il executives across Hong Kong(SAR)and nine Chinese Mainland GBA cities3,as well as in-depth interviews with industry leaders,we have identified the following trends this year:Consumers continue to migrate from physical channels to online,but they expect a seamless omnichannel experienceDuring the p
26、andemic,consumers in Hong Kong and GBA cities in the Chinese Mainland migrated a significant share of their shopping from physical stores to online channels across multiple retail categories.As the impact of the pandemic on shopping and socialising behaviour has eased in some markets,many in the ind
27、ustry were wondering if consumers might move back to physical stores and become less reliant on digital channels.However our survey and interviews with leading retail executives confirmed that habits built during the pandemic have endured.Along with a greater reliance on online shopping,a significan
28、t majority of consumers on both sides of the border say they prefer contactless shopping.Consumers are also demanding a more seamless shopping experience,blending in-store experiences with online convenience,and being able to shop from the broader online product inventory in physical stores.Consumer
29、s are more confident shopping digitally,with Gen Z leading the adoption of immersive technologies An overwhelming majority of consumers surveyed feel comfortable and confident about using new technologies to search,compare and purchase goods.In addition,younger generations especially Gen Z4 expect b
30、rands to use artificial intelligence(AI)Augmented Reality(AR)and other new technologies to enhance the customer experience and enable greater connection with brands.In particular,Chinese Mainland GBA consumers are increasingly interested in the opportunities the metaverse may offer in terms of conne
31、cting with brands and ultimately shopping,with 45 percent of them saying they would use the medium to view or virtually try on products prior to purchase.Despite this,our study suggests that comparatively few retailers and manufacturers are actively planning a presence on the metaverse,with some tel
32、ling us the technology is not yet adequate to create the level of customer experience they require.Purpose-driven consumers are expecting greater commitment from brands on sustainability and social responsibilityOur study found that consumers expect retailers to share the same social values as they
33、do.They want to know how brands source their products,that workers are being paid fairly for their labour and that sustainable materials are being sourced rather than alternatives that may harm the environment.Approximately 80 percent of consumers we surveyed said they would boycott brands that they
34、 consider lack ethical standards.Smaller proportions said they wanted evidence that brands were acting to reduce their climate impact,while a quarter(24 percent)wanted to be given the option to offset the carbon impact of their purchases.3 The nine“Chinese mainland GBA cities”included in the consume
35、r survey are Dongguan,Foshan,Guangzhou,Huizhou,Jiangmen,Shenzhen,Zhaoqing,Zhongshan and Zhuhai,all in Guangdong Province.4 For this study,“Generation Z”(Gen Z)consumers are defined as those currently 18-24 years old at the time of the survey,while“Baby Boomers”refers to those aged 55 and over.2022 K
36、PMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organi
37、sation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust4However,across all consumer age groups studied,there is a reluctance to pay a premium price
38、 for goods made by companies that embrace such commitments,particularly among consumers in Hong Kong.In addition,consumers want to be incentivised to make more sustainable purchasing decisions through discounts and other rewards.81 percent of Chinese Mainland GBA respondents and 69 percent of Hong K
39、ong respondents said they would be interested in being rewarded for making a more sustainable purchase.Trust in KOLs is falling as consumers pay more attention to friends,family members and brands own websitesConsumers are becoming wary of product endorsements by Key Opinion Leaders(KOLs),live-strea
40、ming celebrities and bloggers and user-generated reviews and product ratings.Instead,they are turning to friends and family for advice and trusting information from brands websites or store staff for guidance.This is particularly evident among Hong Kong consumers surveyed,where trust in live streame
41、rs and bloggers is down from 34 percent in our 2021 survey to 28 percent in 2022,and is now the least relied-upon source of product information.This change is creating opportunities for brands and retailers to tailor their loyalty programs to encourage their customers to share purchasing decisions o
42、n social media and encourage referrals to family and friends.Consumers are less willing to pay a premium for added-value services but they expect greater convenience,especially for deliveryAs more consumers become more experienced with shopping online and gain more experience with multiple retailers
43、 and marketplaces their service expectations are growing.Consumers surveyed told us they want multiple delivery options including at home,at work,to lockers and to third-party collection points,such as convenience stores.At the same time,their willingness to pay for added services or convenience is
44、waning.The most-cited service that consumers said they are willing to pay a surcharge for is expedited delivery but only 48 percent of respondents in Chinese Mainland GBA cities and 43 percent of Hong Kong consumers say they are willing to do so.A minority of consumers roughly one in four are prepar
45、ed to pay a premium to be able to exchange or return products that are usually non-refundable.Trust in data security is a growing concern and challenge for retail businesses,who are ramping up their search for talent to help manage dataAs incidences of data hacking and ransomware become more prevale
46、nt across Asia-Pacific,consumers in most markets are becoming more concerned about the security of their data and consumers in Hong Kong and Mainland Chinese GBA cities are no exception.Consumers surveyed told us that while their trust in retailers promotional information is important in driving top
47、-line sales,they also care about how their data is being protected.Our corporate survey reflected that these concerns are mutual,with data security identified as the leading challenge retailes are currently facing.Roughly one in three respondents(31 percent)identified data security as the top challe
48、nge their organisation faces.Other top concerns include seamless data integration across channels(cited by 29 percent as the leading challenge)and recruiting and retaining relevant talent(28 percent).Confidence in digital payments continues to rise,with consumers reporting strong interest in embedde
49、d finance optionsOur research confirms that the use of digital payments continues to accelerate.76 percent of Chinese Mainland GBA respondents surveyed for our study felt more comfortable using digital payments along with 68 percent of Hong Kong respondents.The results also suggest growing consumer
50、interest in a number of different embedded finance options.embedded finance options.For example,In Chinese Mainland GBA cities,70 percent of respondents said theyd purchased goods using Buy Now Pay Later,including 57 percent within the past year and planning to continue.Hong Kong consumers polled ar
51、e also expressing interest,with 31 percent of respondents saying they had used BNPL during the past year and a further 20 percent said they were aware of it and intended to use it in the future.Key takeaways for retailers based on these findings are discussed on page 46.2022 KPMG,a Hong Kong(SAR)par
52、tnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registe
53、red trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust5Chapter 1:Omnichannel experienceWe reported in our 2021 study that consumers in Hong Kong(SAR)and GBA cities in th
54、e Chinese Mainland had shifted a higher share of their shopping to online channels across multiple categories.Our 2022 research suggests that the changes in consumer behaviour accelerated by the pandemic are enduring conditions continue to normalise.Perhaps the most significant finding is the propor
55、tion of consumers who prefer contactless shopping.Rather than reducing as the impact of the pandemic begins to fade,it has increased to 80 percent of those in the mainland GBA cities and 61 percent of those in Hong Kong.This sentiment is most popular in Chinese Mainland GBA cities among those aged 5
56、5 plus(85 percent)and in Hong Kong among Gen Z(73 percent).Consumers are continuing to migrate from physical channels to online but they are increasingly expecting an omnichannel experience80%61%Chinese Mainland GBA cities Hong Kong SAR(2%)(1%)I prefer contact-less shoppingSource:KPMG/GS1 Hong Kong/
57、HSBC survey analysisAs consumers increasingly place importance on physical retail alongside an accelerating demand for digital retail,brands must realise the value of in-person connections with customers and the touch-and-feel shopping experience.Daniel HuiHead of Consumer&Retail,Hong Kong,KPMG Chin
58、a Change on 2021 study 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a no
59、t-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust664%18%50%18%Chinese Mainland GBA cities Chinese Mainland GBA c
60、ities Hong Kong SARHong Kong SAR(5%)(5%)(0%)(6%)I am more comfortable and confident to shop online in the futureI can live without physical retail shopsIn Hong Kong,50 percent of respondents said they were more comfortable and confident shopping online in the future.Across the border that figure ros
61、e to 64 percent the same share as in 2021.Franz Wu,founder of omnichannel electronics retailer Yoho,which has three physical stores in Hong Kong,says the COVID-19 pandemic effectively forced some consumers to try online shopping.Converts will continue,he says,but offline will always maintain its pla
62、ce.More than 80 percent of Yohos sales are online,but Wu says offline stores can play a role in converting traditional customers to e-commerce.“We want offline shops to engage with new customers and verify that they can buy in an offline shop like they are used to,but when they have trust in our bra
63、nd,they can try online,”he says.“Likewise,if they encounter a problem with a product online,they can go to an offline shop to get it fixed.It also serves as a brand-building strategy.”While our study underlines the importance of retailers adopting an omnichannel approach to selling their goods,there
64、 has been a moderate decline in the proportion of consumers who now believe they can live without the need for physical retail stores.That figure has fallen from 24 percent in Hong Kong and 23 percent in Chinese Mainland GBA cities to just 18 percent across all cities surveyed.As we further discuss
65、in Chapter 5 of this report,a significant portion of Gen Z consumers in Chinese Mainland GBA cities are seeking information and opinions about purchases from salespeople at physical retail stores,further reflecting the perceived importance of physical outlets.Source:KPMG/GS1 Hong Kong/HSBC survey an
66、alysisSource:KPMG/GS1 Hong Kong/HSBC survey analysisChange on 2021 studyChange on 2021 studyChange on 2021 study 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company li
67、mited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with t
68、echnology,purpose and trust7Source:KPMG/GS1 Hong Kong/HSBC survey analysisCorporates actions to enhance e-commerce experienceIntegration between stores and onlineBeing more open to showcase your corporate culture for emotional connection with customersReal-time InterfacesCustomising the shown items
69、as per browsing/purchase historyCreating end-to-end supply chain transparencyEnabling automated communication functions across customer journeyLeveraging machine learning technology to improve customer journeyInvesting in technology to create a seamless purchasing and transactional process34%18%18%2
70、1%20%19%22%24%Consumers are more confident shopping digitallyRoughly three in four Chinese Mainland GBA consumers surveyed(76 percent)said they were comfortable using digital payments up from 67 percent in 2021 while 72 percent reported they had developed skills in searching online for the products
71、they needed.In Hong Kong,the trend was somewhat different:68 percent said they were more comfortable using digital payments(up from 65 percent)but only 56 percent(down five points)said they had a better understanding of how to find products online.72%76%56%68%Chinese Mainland GBA cities Chinese Main
72、land GBA cities Hong Kong SARHong Kong SAR(10%)(9%)(5%)(3%)I have a better understanding of how to search for the products I need via online platformsI am more comfortable using digital paymentsSome retailers do seem to be embracing consumer demand for an omnichannel presence,but,our corporate surve
73、y suggests,not enough:just 34 percent surveyed said they are making integration between physical and online stores a leading priority.Percentage of respondents who included each factor as one of their top three prioritiesSource:KPMG/GS1 Hong Kong/HSBC survey analysisSource:KPMG/GS1 Hong Kong/HSBC su
74、rvey analysisChange on 2021 studyChange on 2021 study 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong i
75、s the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust8Within that data,attitudes diff
76、ered markedly according to age group.In Chinese Mainland GBA cities,just 12 percent of consumers aged 18 to 24 agree that they feel they can live without physical retail stores,progressively rising to 32 percent of consumers aged 55 or over.In Hong Kong,the trend is almost reversed at 18 percent of
77、18 to 24-year-olds,peaking at 28 percent of 25 to 34-year-olds,then down to 12 percent of those aged 55 plus.Newer digital platforms growing in influenceAs COVID-related lockdowns and a desire to socially distance drove more consumers online and their internet savviness developed,newer digital platf
78、orms began eating into the market share of traditional online marketplace destinations.While Taobao remains the most popular e-commerce platform for apparel purchases in Hong Kong and HKTVmall maintained its lead in food&beverage and beauty&wellness categories,platforms like Ztore and iHerb jumped s
79、ignificantly,drawing customers,especially from the 45-54 year age group and the 35-44 age group respectively,our survey found.Among food and grocery shoppers,Ztore is now used by 17 percent of Hong Kong consumers up from 10 percent a year ago and health supplement and wellness marketplace iHerb by 1
80、5 percent(up from 10 percent).There was a three-point decline in consumers purchasing online from traditional supermarket retailers to 16 percent.In Chinese Mainland GBA cities consumers use multiple platforms,however Taobao dominates the apparel category with 73 percent of consumers shopping there.
81、The use of JD.com has grown from 48 percent to 56 percent,apparently at the expense of Tmall,which has dropped from 51 percent to 46 percent,and WeChat,from 18 percent to 13 percent.Pinduoduo and Douyin both recorded significant jumps.In food&beverage,Taobao and Tmall have seemingly fallen out of fa
82、vour with consumers.Just 48 percent now buy groceries from Taobao,compared with 60 percent in 2021,and 33 percent from Tmall,down from 50 percent,reflecting a splintering of the market.Pinduoduo and Freshippo posted gains but remain smaller players.In beauty&wellness,JD.com,Pinduoduo and Douyin have
83、 all posted significant gains as preferred online shopping destinations.Asia Pacific will soon be home to half a billion tech-savvy,socially aware Gen Z consumers.As retailers move to attract these shoppers,it is imperative that they focus on omnichannel strategy,recognising that the lifetime value
84、of omnichannel shoppers is many times higher than those on single channels.Anson BaileyHead of Consumer&Retail,ASPAC,KPMG China 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Eng
85、lish company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging c
86、onsumers with technology,purpose and trust9In the heart of Hong Kong Island,Chinachem Group has revitalised the traditional Central Market into a new-generation retail space embracing cutting-edge technologies,collaborations and“retailtainment”.Chinachem Group describes itself as a developer of Crea
87、ting Places with Heart,driven by a Triple Bottom Line approach that balances People,Prosperity and the Planet.“Central Market is quite an unconventional retail experiment for us,”explains Damien Wu,head of the Groups business transformation and innovation.Chinachem Group is an example of a new gener
88、ation of businesses that are pursuing business convergence.Traditionally a developer,the company is now expanding its operations into areas as diverse as co-working spaces,accommodation,elderly care,retail and cold storage and logistics facilities.It is currently evaluating a co-living space.At Cent
89、ral Market,Chinachem has created a destination interweaving dining,“retailtainment”,nature and cultural experience through planned spaces that provide what Wu describes as“a new type of Playground experience for all walks of life”.While located in a valuable,prime commercial location,the traditional
90、 Central wet market has historic importance to the local community and the territorys government was committed to its preservation.Chinachem Group won a tender to develop the property into a modern venue.“We consciously decided not to turn it into a replica of other high-end retail malls where you j
91、ust see a lot of luxurious brands and stuff.Its designed with locals in mind so that people from across all parts of society can come to enjoy it,and it is very human-centric.”Technology deployed to improve the user experienceWhile technology is a feature of the project,none of it is for technologys
92、 sake.“With everything we do there we put the user first,so we only deploy technologies that actually help the user enjoy the place.”Central Market is styled as a plug-to-operate concept offering tenants basic fixtures and fit-outs along with a comprehensive point-of-sale(POS)system.Chinachem Group
93、helps tenants with insurance,licensing,store designs and payments,effectively lowering set-up costs for tenants,and enabling them to start operating from the day they move in.While a shared POS system is common in shopping malls on the mainland,in Hong Kong,they are rare,explains Wu.“We have done th
94、is because many of the merchants are SMEs who want to be able to move into a space with minimal equipment and capital expenditure and start their own business.We also provide them with a common loyalty program,so that again,they dont have to invest in a system and they can start knowing their custom
95、ers from day one.”A video-based footfall analysis system aggregates data on how customers behave in the venue;the way they navigate through it and where they linger.Such data carefully moderated to ensure individual privacy is protected helps building management optimise the space for tenants and us
96、ers alike.Accelerator program supports tech start-upsA pilot accelerator program at Central Market provides a way for tech start-ups to test concepts in real-time,bridging the gap between innovation and commercialisation,and advancing smart property and retail operations in the city.The process allo
97、ws tech ventures to collect data and user feedback so they can improve their products and services in a working environment as a step towards proof of concept and raising further venture capital.One example is an innovative paint created by a university group that reflects heat energy,helping cool t
98、he building space.The trial at Central Market attracted the interest of a government organisation that is now looking to trial it on a larger scale.“We treat it as a playground for start-ups to test out technologies,”says Wu.“We invite Hong Kong start-ups to come to talk to us if they see an opportu
99、nity to pilot their products or services at Central Market.As long as its safe and it makes sense,we facilitate that.“I come from a start-up background I worked on three start-ups before joining Chinachem Group,so I know how hard it is for start-ups to knock on the door of enterprises.This time arou
100、nd,we open the door for them.We incubate quite a number of different technologies here and will continue to offer that opportunity.”Damien WuDirector of Business Transformation and Innovation at Chinachem Group 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation o
101、f independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shangh
102、ai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust10 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Eng
103、lish company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging c
104、onsumers with technology,purpose and trust11Chapter 2:Meeting customer expectationsAs was the case in our 2021 study,consumers in Chinese Mainland GBA cities and in Hong Kong(SAR)find online retailers wanting in terms of service delivery.But this year there has been a notable upswing in satisfaction
105、 on the mainland side of the border in almost every aspect of consumer expectation.Similar to our 2021 survey,the online check-out and payment process during the online purchase journey is considered the most satisfactory feature in both markets,satisfying 71 percent of Chinese Mainland GBA consumer
106、s(up from 60 percent in 2021)and 57 percent in Hong Kong,(down by 1 percent).Two-thirds of mainlanders surveyed and just 50 percent of Hong Kong consumers were satisfied with being able to track the delivery process.Meanwhile,Hong Kong consumers polled tended to be less satisfied with other e-commer
107、ce functions.Most were relatively unhappy with online retailers capabilities to allow them to provide convenient times and locations to pick up a delivery;on-time delivery performance;product quality meeting expectations;the ease of finding information about products,the amount of packaging used in
108、the delivery process,and with pre-and post-sales service(including returns).Ranking last was being able to customise their purchase just one in four were satisfied.There is still a gap between what consumers expect from online retailers and what retailers and brands deliver.Consumers across GBA citi
109、es have different profiles and preferences,as weve observed with the take-up of smaller online platforms as compared to the big marketplaces.Retailers need to know the customers well in each location and draw up specific strategies to serve them according to their needs.Raymond LamCountry Sector Hea
110、d,Consumer&Retail,KPMG China 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS
111、1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust12Across the border,expectations were being met to a grea
112、ter degree.Almost two-thirds of Chinese Mainland GBA consumers polled were satisfied with being able to track the delivery status of goods,and just over half with pre-sales service levels,being able to choose a time and place for delivery,and experiencing orders arriving on time.About half were sati
113、sfied with the amount of packaging being used,after-sales service,and being able to find adequate product information prior to buying,and 45 percent considered the product to be of the quality they expected.Inability to be able to customise a product they bought was the least satisfying experience.D
114、espite the relatively positive story on the Mainland side,this years results suggest that significant gaps still exist for retailers to meet customer expectations.At the same time,our corporate survey suggests that companies have been slow to invest in technologies that could improve their online re
115、tail experience.Only 22 percent of retailers surveyed said they were willing to invest in technology to create a seamless purchasing and transactional process down from 30 percent in our 2021 survey and just 21 percent in creating real-time interfaces with customers,down from 27 percent in 2021.Simi
116、larly,only one-fifth of corporate respondents said they would work towards enabling automated communication functions such as chatbots or voice recognition to improve the customer journey,while only 12 percent were considering technology to enable instant refunds.How retailers meet consumer expectat
117、ions Check out process and payment process are goodCheck out process and payment process are goodI am able to track the delivery statusI am able to track the delivery statusI am able to decide the convenient time and location for picking up the delivery I am able to decide the convenient time and lo
118、cation for picking up the delivery Delivery is on timeDelivery is on timePre-salescustomerserviceissatisfactoryProduct quality is as expectedI am able to customise the product I boughtI am able to customise the product I bought71%57%64%50%56%47%54%39%51%36%38%25%Chinese Mainland GBA citiesHong Kong
119、SARSource:KPMG/GS1 Hong Kong/HSBC survey analysisSuperior checkout and omnichannel experience is important to build long term relationships with consumers and is fundamental to having consistent data and efficiency for businesses to grow their eCommerce presence globally.Yvonne YiuManaging Director,
120、Regional Co Head,Global Payments Solutions,Asia-Pacific,HSBC 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong
121、 Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust13Among retailers we inte
122、rviewed for this study,one that is committed to reducing the gap between expectation and delivery is Dah Chong Hong Holdings,which operates in multiple business categories in Hong Kong and mainland China,including food stores,electronics,motor vehicle dealerships and even luxury yachts.While the com
123、pany has traditionally focused on brick-and-mortar stores,it has been increasing its online business(see our case study towards the end of this chapter).Getting to know its customers better across multiple sectors is a key focus for Betty Lam,who is the companys General Manager,E-commerce.“We are lu
124、cky that we have physical touchpoints,so we can talk to customers and learn from their buying behaviour,but that is obviously not enough in todays terms,”she says.“Thats why we are going to place more emphasis on looking at the digital footprint of customers to try to understand more of their online
125、 behaviour as well as their offline behaviour.”This underlines our view that the companies actively trying to achieve greater satisfaction on consumers digital journeys are focusing on collecting and analysing data on consumer behaviour both online and offline and looking at ways to deliver products
126、 and especially services that best match those expectations.Tsang Ng,Partner,Strategy&Operations,KPMG China,elaborates:Best-in-class customer experience happens not only during and immediately after purchases,but well afterwards.On-going product and service updates,informative and real-time delivery
127、 of targeted marketing promotions,and prompt customer service,are just a few ways to maintain high touch and create a sense of community and belonging that leads to loyalty and repeated purchases.With collaborative ecosystems,companies are now provided with innovative solutions that enable a more dy
128、namic and accurate forecasting on sales patterns and cash flow.Patrick ZhuManaging Director,Regional Head of Global Banking Corporates Sales,Global Payments Solutions Asia Pacific,HSBC 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms
129、 affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Lim
130、ited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust14As a high-profile Hong Kong company trading for 70 years,Dah Chong Hong Holdings(DCH)is well placed to recognise changing consumer behaviour across multiple retail sectors.The companys Hong Kong busi
131、ness spans multiple categories as diverse as healthcare,food,electronics,motor vehicles and luxury yachts.Traditionally a distributor connecting brands from around the world with retailers in Hong Kong,Macau and mainland China,in more recent years DCH has been developing an online version of its dir
132、ect-to-consumer business launched in 1992,with its food division which now operates 50-plus stores across the territory,and an electronics arm.A year ago,recognising that Hong Kong consumers were embracing multiple channels to seek out brand information and buy products,DCH created a new division to
133、 consolidate and spearhead e-commerce across the group and its business units,recruiting Betty Lam as General Manager,E-commerce.Lam talks of an“increasing sophistication”of consumers in Hong Kong,who are engaging with brands across multiple channels and expecting to be able to seamlessly shop both
134、online and offline.In response,DCH is transitioning further into the shape of an omnichannel retailer while still supplying products B2B,it is building a sophisticated multichannel approach in the direct-to-consumer space.“The online or digital space is very different to the traditional business spa
135、ce we have operated in,”Lam explains.“In terms of expertise,of processes,and of peoples mindsets,they are quite different.So,the group recognised it was time to transform the company.”She now heads up a team charged with centralising the groups e-commerce business,supporting and managing the company
136、s digital operations across multiple business units.“We really want to serve our brand partners better,so thats why we are expanding into B2C.Consumers are getting more sophisticated and they have a lot more channels they can shop not only traditional supermarkets or retailers,but they can go online
137、 or even onto Facebook or IG to shop there.The expectation of brands is different nowadays.“That,she explains,means as a brand partner,DCH must find ways to meet and engage with customers on those channels as well.”In the electronics sector,the brands DCH represents are traditionally sold in retail
138、stores.But nowadays many of those brands are seeking the companys help to gain representation across the many online electronics retailers and other online formats where they want to engage with potential customers including new e-commerce platforms DCH is developing itself.The crucial role of data
139、in digital transformationData is playing a key role in the transformation,acquired from its loyalty membership programs that work across multiple divisions of the business and from monitoring and measuring the online and offline behaviour of its customers.The DCH Foods division alone has more than 2
140、00,000 loyalty programme members,built on offering complete home cooking solutions for several decades.The companys electronic appliances division represents more than 50 international brands including Zanussi,AEG,Sharp,B&O,Philips,B&W and Smeg.It operates several stores,including the high-end DCHAV
141、 showroom at Admiralty,three Ahaa multi-brand stores,a SMEG flagship store in Causeway Bay and an Electrolux signature showroom in Wan Chai.The companys auto division represents six brands in Hong Kong including Honda,Bentley,Nissan and Isuzu and its new marine group,a joint venture with Chow Tai Fo
142、ok,represents luxury yacht brands throughout Greater China.“We are lucky that we have physical touchpoints,so we can talk to customers and we know their buying behaviour,but obviously that is not enough in present-day terms,”explains Lam.To address that,DCH is looking for ways to engage its customer
143、s digitally to understand more about their online behaviour and preferences both online and offline.With the restrictions of the COVID era now past,Lam is conscious that while consumers appear to have permanently embraced online shopping,she also knows they have a choice and that puts a degree of pr
144、essure on retailers.“COVID has pushed consumers to adopt the technology,but they still have a choice to go back to offline,which we have seen them enjoy during the past few months.So,now it is up to brands and retailers to demonstrate to consumers that they can provide something more experiential an
145、d attractive for them in the offline world,”says Lam.“Going forward,as a close partner of brands,it is equally critical for DCH to understand such omnichannel customer behaviour in order to serve todays distribution needs.”Betty LamGeneral Manager,E-commerce at Dah Chong Hong Holdings 2022 KPMG,a Ho
146、ng Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.G
147、S1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust1582%83%76%65%64%53%Chinese Mainland GBA cities Chinese Mainland GBA cities Chinese Mainland GBA cit
148、ies Hong Kong SARHong Kong SARHong Kong SAR(1%)(1%)(1%)(3%)(4%)(4%)I like to use brands who have the same social value as I doI will boycott brands without good ethical standardsI want to customise products according to my personality and characterChapter 3:Identifying with customers valuesIn todays
149、 retail environment,more attention is focused than ever before on what brands stand for and how products are sourced and manufactured.Our research shows while around half of businesses are making an effort to improve their ESG and sustainability practices,brands could be doing more to communicate th
150、at activity with consumers.In line with our 2021 survey,a majority of respondents agree that they like to use brands that share the same social values as they do,with roughly two-thirds(65 percent)of Hong Kong(SAR)consumers and four in five(82 percent)in Chinese Mainland GBA cities mentioning this i
151、n the survey.A similar proportion say they will boycott brands that they consider lack ethical standards.Consumers are prioritising brands that share the same social values they do and they expect product customisation that reflects their personalities and characterSource:KPMG/GS1 Hong Kong/HSBC sur
152、vey analysisSource:KPMG/GS1 Hong Kong/HSBC survey analysisSource:KPMG/GS1 Hong Kong/HSBC survey analysisChange on 2021 studyChange on 2021 studyChange on 2021 study 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPM
153、G International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS
154、 RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust16Transparency about suppliers and supply chains is commonly perceived as a crucial element of being socially responsible,particularly among respondents in Chinese Mainland GBA cities.Hong Kong consumers polled also see t
155、he importance of having fair trade certification,however,only 22 percent of executives surveyed said their company had achieved it.Leading socially responsibility actions consumers want to see from retailersPercentage of respondents who believe retailers should take the following actionsTransparency
156、 about suppliers/supply chainPart of proceeds donated to charitySupporting community initiatives/programmes in my areaAbility to buy or sell pre-owned products through the brands platformEducating consumers about socially responsible products57%37%41%23%43%45%29%33%21%47%Chinese Mainland GBA cities
157、Chinese Mainland GBA cities Chinese Mainland GBA cities Chinese Mainland GBA cities Chinese Mainland GBA cities Hong Kong SARHong Kong SARHong Kong SARHong Kong SARHong Kong SARFair trade certification49%45%Chinese Mainland GBA cities Hong Kong SARSource:KPMG/GS1 Hong Kong/HSBC survey analysisTo pro
158、vide transparency of sustainability and circularity to consumers,companies need to track and trace products in the whole life cycle from sourcing,recycling and waste management.This transformation requires a common language of how products,locations and entities are identified,and of how product dat
159、a is going to be tracked,measured,adapted and shared.Standard-based supply chain enables companies to more efficiently establish baseline of sustainability capabilities and to measure progress.Anna LinChief Executive,GS1 Hong Kong 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG g
160、lobal organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The
161、 Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust17Similarly,a majority of consumers expect brands to be adopting sustainability initiatives especially in the use of eco-friendly packaging and recyclable
162、or recycled materials in their products.This trend is apparent both in Hong Kong and Chinese Mainland GBA cities surveyed,but marginally higher in the latter.Gen Z and Baby Boomers in Chinese Mainland GBA cities,the study found,are particularly interested in knowing how they can make an environmenta
163、lly impactful purchase and prefer to purchase from more sustainable merchants.Around one-third of consumers want to see demonstrable actions by brands in reducing their climate impact,and roughly a quarter(24 percent)want to be given the option to offset the carbon impact of their purchase.While con
164、sumers regard for sustainability is positive overall,they expect to be rewarded for making more sustainable purchases.In the fashion sector,this might mean receiving purchase credits for returning old clothing no longer required,or in the food&beverage sector,a discount for using reusable cups.For m
165、arketplaces,it might mean being directed to more sustainable merchants on the platform.Among Chinese Mainland GBA respondents,81 percent said they would be interested in being rewarded for making a more sustainable purchasing decisions(as well as 69 percent in Hong Kong)while 80 percent wanted to be
166、 rewarded for having goods bought online delivered in a more environmentally friendly way,echoed by 69 percent of Hong Kong respondents.Implementing a climate action plan/net-zero strategy22%18%Chinese Mainland GBA cities Hong Kong SARAbility to buy or sell pre-owned products through the brands plat
167、form23%21%Chinese Mainland GBA cities Hong Kong SARUsing eco-friendly/recycled or recyclable materials62%55%Chinese Mainland GBA cities Hong Kong SARDemonstrable actions to reduce climate impact29%33%Chinese Mainland GBA cities Hong Kong SARUsing eco-friendly packaging57%56%Chinese Mainland GBA citi
168、es Hong Kong SARBeing given the option to offset the carbon impact of your purchases24%22%Chinese Mainland GBA cities Hong Kong SARIncorporating sustainability into their brand story23%15%Chinese Mainland GBA cities Hong Kong SARBeing informed on the carbon impact of your purchases20%17%Chinese Main
169、land GBA cities Hong Kong SARLeading environmental sustainability actions consumers want to see from retailersPercentage of respondents who believe retailers should take the following actionsSource:KPMG/GS1 Hong Kong/HSBC survey analysisTo help enable Hong Kong to achieve its carbon neutrality goals
170、,retailers can play a critical role by choosing suppliers and manufacturers that meet their own sustainability standards.Philippe ChanGeneral Manager,China and Hong Kong,YouGov 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affilia
171、ted with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 202
172、2,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust18However,attitudes differ on factoring sustainability into pricing.Chinese Mainland GBA consumers surveyed were more willing to pay more for a product to offset the carbon impact(59 percent)compared to Hong K
173、ong consumers(36 percent).Retailers we interviewed for this study said they were committed to introducing at least some sustainability and ESG policies.One example was foodpanda Hong Kong,which adjusted its app in 2018 so that the default setting for delivering cutlery with a food order was no rathe
174、r than asking customers to opt out.Since then,according to Managing Director Ryan Lai,the company has saved 65 million units.“On sustainability,we focus on three pillars:minimise plastic waste,cut our carbon footprint and reduce food waste,”Lai says.Leading incentives offered by retailers for consum
175、ers to make more sustainable purchase decisionsFair trade certificationMainland China GBA cities Hong Kong SARHong Kong SARChinese Mainland GBA cities81%69%59%36%77%60%Being rewarded for having goods bought online being delivered in a less environmentally harmful wayPaying more for your purchase in
176、order to fully offset the carbon impactKnowing the environmental impact of your purchase80%69%77%57%Being rewarded for making a more sustainable purchaseBeing directed to more sustainable merchantsSource:KPMG/GS1 Hong Kong/HSBC survey analysisCompanies that take responsibility for the social and env
177、ironmental impact of their operations are more resilient to cope with fast-evolving market and ever-changing customer needs.Patrick ZhuManaging Director,Regional Head of Global Banking Corporates Sales,Global Payments Solutions Asia Pacific,HSBC 2022 KPMG,a Hong Kong(SAR)partnership and a member fir
178、m of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISB
179、L.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust19Responses to our executive survey found 48 percent of retailers are using eco-friendly,recycled or recyclable materials and 47 percent eco
180、-friendly packaging while roughly one third recycle or reuse materials in commercial production.There also seem to gaps in retailers practices to share sustainability goals and commitments with consumers:only 43 percent said they incorporate sustainability into their brand story and just 15 percent
181、said they were informing customers of the carbon impact of their purchases.But there is evidence retailers may be being constrained in their ESG journey by a lack of expertise:about one in five executives surveyed are finding it hard to identify talent in the field of sustainability and corporate so
182、cial responsibility.The majority of the carbon footprint for retailers lies in the supply chain,which are considered Scope 3 emissions.However,only a limited number of retailers are systematically measuring and engaging their supply chain partners to obtain accurate information on their Scope 3 emis
183、sions.This will be essential going forward as regulators,customers and stakeholders increasingly require this information in the coming one to two years.Pat WooHead of Environment,Social and Governance,Hong KongGlobal Co-Chair,Sustainable FinanceKPMG China 2022 KPMG,a Hong Kong(SAR)partnership and a
184、 member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark
185、of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust20As the chief sourcing officer for Puma,and a member of the companys management board,Anne-Laure Descours looks after global sou
186、rcing for the brand and oversees its Forever Better sustainability strategy and implementation.In her role,she is witnessing what she describes an unprecedented change in the apparel and footwear industry,as governments and consumers require companies to decarbonise,reduce product and material waste
187、,use more sustainable fabrics and adopt transparency over the welfare and remuneration of workers in supplier factories,as well over the products environmental impact.“Everybody has to take steps to understand the business impact of sustainability,”Descours explains.“Management needs to understand w
188、hy sustainability is the backbone of what we do as a business and what regulators are putting into place right now.There is no other choice if you want to be in business in the future.”Descours says 70 percent of carbon emissions in apparel and footwear industries are being created at the supply cha
189、in and material level,so collaboration is essential in meeting sustainability objectives.It means working with supplier factories to reduce emissions and reduce waste and bring them on board.It also means working with industry peers.Collaboration is essential to satisfy consumers sustainability expe
190、ctations“Companies need to collaborate.Sustainability cannot be selfishly perceived as a competitive advantage for one single brand.Open-source collaboration and the sharing of ideas between suppliers and manufacturers,must be at the centre of what we do in order to overcome economic and natural dis
191、aster crisis.”She says that such collaboration will ensure transparency within the supply chain for both regulators and consumers,and drive change in what has traditionally been a transactional relationship between supplier factories and brands,which saw brands in the past switching suppliers to sav
192、e costs on a product.“There was no or little commitment or partnership.That transactionality looking at chasing the lowest cost has deeply shaped the sourcing landscape.Now with what is being demanded from brands and retailers in terms of transparency over the way we do business,unless suppliers and
193、 brands integrate their strategies and partner together,it is very,very hard to comply with new requirements of governments and expectations of end consumers.”Gen Z is the most engaged group at the consumer levelPuma has worked to engage with Generation Z consumers as it accelerates its sustainabili
194、ty agenda because they are the most demanding and critical consumers when it comes to the environmental impact of the goods they are purchasing.The company recently convened a summit for Gen Z consumers in London to gain a deeper insight into what they expected from the industry.“In Europe,particula
195、rly,there is a tremendous appetite among young generations for brands to do things right.But at the same time,part of this generation is not ready to pay a higher price for that which is critical because we should not put a price on doing things right.”Gen Z,she says,is passionate about sustainabili
196、ty and they understand the challenges in addressing it.They are also the most likely generational group to spot greenwashing where companies make untrue or overstated claims about their environmental practices or the sustainability of their products.And in many international markets,they have the we
197、ight of the law behind them on this point.“You cannot do greenwashing.Whenever you make a statement or a claim in sustainability reporting or about a product,you have to have the data that validates your claim.”Waste has become a new resource“Pressure is also being applied to brands and manufacturer
198、s over the volume of waste generated in the industry.This applies not only in terms of consumers discarding fast fashion but also at a brand level where requirements are being introduced in some European markets over reporting on what happens to leftovers.In the EU,for example,our industry,including
199、 PUMA,will soon have to declare what it does with its unsold products.“There are now companies collecting and transforming pre-consumer and post-consumer waste and as the technology becomes more refined generating higher quality fabric and becoming more commercially viable more and more repurposed f
200、abric will be used to make new clothing,says Descours.“Instead of using petrol to make a new polyester yarn,you can start working in a completely circular manner in certain categories.Polyester is the easiest one because its readily available.”PUMA is targeting that,by 2025,75 per cent of the polyes
201、ter it uses in new clothing will be recycled either through mechanical or chemical recycling and it is also working with suppliers to use cotton waste in new cotton yarn.“There is a lot of investment attention today to use waste as a resource and in certain categories waste will become a new source
202、of material for us in the future.”Anne-Laure DescoursChief Sourcing Officer at Puma 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights
203、 reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust21
204、In the highly-competitive Hong Kong food-delivery market,foodpanda has found a key business strategy to differentiate itself investing in technology solutions to boost its restaurant and other vendor partners sales and efficiency.Launched in Hong Kong in 2014,foodpanda has grown to become the larges
205、t food-delivery platform in Asia(outside the Chinese Mainland),covering 400 cities in 11 markets.It was bought by Germany-based Delivery Hero in 2016.Ryan Lai,managing director at foodpanda Hong Kong,says orders on its platform have doubled since the advent of COVID and high levels of demand are con
206、tinuing.He believes using technology wisely has been a core driver of this growth“The majority of our partners are small or medium businesses,so we are very committed to helping them with their digital transformation,”explains Lai.“This is the way to help them achieve better conversion rates and to
207、do more business on our platform.”While complex omnichannel POS systems might be a core asset of large-scale fast food chains and dine-in restaurants,many of foodpandas more than 14,000 restaurant and retail partners in Hong Kong are small operators,often family-owned,and without the capital or skil
208、ls to implement complicated technology solutions for ordering or payment processing.“For a small business,the most difficult part of selling online is to get customer conversion and handle the checkout and payment process.As a technology-based platform,foodpanda can provide the technology and the me
209、dium to help them transform their businesses.We are using technology to enable them to provide a frictionless and interconnected customer experience.”Businesses that use our delivery ordering platform(or app)do not have to run their own marketing online,explains Lai.“You can get eyeballs and visitor
210、s to your business easily.On the other side,we have tools that can help our retail and restaurant partners to convert information into orders easily.“Lastly,setting up payments credit cards and digital payments and integrating that into your system,can involve a bit of heavy lifting for most SMEs an
211、d many merchants are not that tech savvy.But our platform has already integrated most mainstream payments already.So its just plug-and-play,and our merchant partners can easily enjoy that seamless integration and frictionless payments.”foodpandas investment in technology is also helping the company
212、improve its overall engagement with its customers.Lai cites as an example the Review and Ratings program it launched this year that allows customers to rate the food they receive.The result is that consumers feel more confident ordering from a restaurant and using the app and have confidence the com
213、pany will listen to feedback on its performance.A successful pivot to groceries deliveryReflecting the broader international adoption of what has become known as the“quick-commerce gig economy”foodpanda expanded to rapid grocery-delivery services under the pandamart brand two years ago.“We feel that
214、 in Hong Kong,customer expectation is getting more demanding and delivering fresh produce in two or three days is no longer enough.People want something ultra-fast,and really fresh.”pandamart works with many suppliers,offering fresh vegetables,liquor,frozen foods,noodles,rice,water,household cleanin
215、g products and other groceries in as little as 10 minutes,while foodpanda mall onboards retail brands(including supermarket brands offering groceries),such as Japan Home Centre,Watsons,Yata,Muji,and Sasa.Demand expands from mealtimes to round-the-clock Lai says quick commerce has played a significan
216、t part in the broader consumer adoption of e-commerce in Hong Kong since the advent of COVID.“People spent more time at home and were more willing to explore online to get what they want.Post-pandemic,a lot of people found it convenient and their experience was good so that change of behaviour has c
217、ontinued even after the rules were relaxed.”Using big data to study consumer behaviour patterns has helped the company understand its customers better,adopt a hyperlocal approach,adapt its offer,and make its messaging more personalised,says Lai.For example,order volumes for food delivery on weekdays
218、 usually surpass those at the weekends and foodpanda has noticed significant shifts in perception towards food delivery.“It is now more like a daily lifestyle,so we are seeing spikes in breakfast and late-night delivery as well,which shows our customers are not just ordering foodpanda for lunch or d
219、inner,”says Lai.“Behavioural patterns can change quickly,and often unexpectedly,especially under the new normal.”Ryan Lai Managing Director of foodpanda Hong Kong 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
220、International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS R
221、ESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust22Founded in 1999 as an apparel sourcing company,PDS has grown to become a global fashion supply chain infrastructure partner providing design-led sourcing,manufacturing,sourcing as a service and branded offerings to some o
222、f the worlds largest brands and retailers,PDS Limited is today a multinational organisation turning over US$1.8 billion annually(including agency sales),with 50 offices and 150+designers spanning 22 countries.During the past 15 years,founder Pallak Seth has witnessed a monumental change in the way t
223、he apparel industry acknowledges environmental and social governance(ESG)issues.Two disasters in Dhaka,Bangladesh a fire in 2012 and the collapse of an overcrowded factory in 2013 focused consumer attention on the working conditions in apparel factories in developing countries.Coupled with the rapid
224、 growth of the fast-fashion industry,consumers are increasingly questioning the true cost of their cheap clothing.Today,says Seth,major multinational companies in the apparel industry both suppliers and retailers have no choice but to adopt robust ESG policies because“if your governance standards do
225、 not match those of your customers,they wont work with you”.“We are particularly seeing a greater focus on ESG aspects of the fashion supply chain among millennials and Gen Z consumers.They care about whether the workers producing their clothes are safe,healthy,and paid a good wage,whether the raw m
226、aterials used in their clothes are manufactured using sustainable,recycled,or recyclable materials,and if the manufacturing processes are clean and non-polluting.”Consumers are more conscious about consumptionHe adds that todays consumers are also more conscious about their consumption patterns and
227、whether the clothes they purchase can be passed down or recycled in eco-friendly ways.But,while consumers are looking for ESG transparency and authenticity,Seth says there is a catch.“We are finding that,yes,consumers say it is nice to have,but they do not want to pay extra for it.Consumers are sayi
228、ng it is the retailers responsibility to source products in an environmentally friendly way.”That said,the biggest pressure on retailers and companies is coming from the investment community,with many,like Blackrock for example,now committing to invest only in businesses that have a clear ESG roadma
229、p and footprint.“We are seeing that many businesses are losing their entire valuation and market capitalisation if they encounter any ESG issues.”He cites an example of a global online retailer whose value slumped by 90 percent after negative press surrounding its sourcing policies.“ESG is here to s
230、tay but it is coming more from investors,banks and the financial community rather than the consumers at this stage,especially on the environmental side.”Strategic investments in start-ups can benefit the whole industrySeth led the establishment of a venture capital subsidiary of PDS which has invest
231、ments in 60+start-ups pursuing innovation across the global fashion industry.“We are building a venture ecosystem within the PDS Group with a focus on innovation,sustainability,technology and direct-to-consumer brands/digital brands.A few examples of our investments include a circularity start-up th
232、at prevents clothing ending up in landfill or a company growing sustainable cotton using 80 percent less water and three to four times more yield,”says Seth.These tech start-ups dont just benefit PDS.With some 200+customers around the world and sourcing from more than 500+ESG-compliant factories pro
233、ducing 1.2 million+items of clothing daily,a lot of these investments can offer strategic value to clients and suppliers alike.“If a company in todays environment is to survive and flourish,we have to be a platform where you can onboard smaller businesses and help them grow and be part of an ecosyst
234、em that drives innovation.”Upcycle Labs,in which PDS has taken a 50 percent stake,converts unwanted inventory into high-quality non-clothing products,such as materials used in shop fittings.Based in Wales,Upcycle Labs was already working with Burberry and Montclair among other luxury brands before P
235、DS came on board.In one example,Upcycle Labs took clothing destined for a landfill and used it to replicate a best-selling item in the brands homewares department,a decorative item.“When Upcycle Labs became part of the PDS ecosystem we were able to put them in front of all the big retailers,quickly
236、bring in capital and management team,and suddenly they have the potential to do$100 million business during the next two to three years,compared with likely less than$2 million.”Other start-ups PDS has invested in include Yellow Octopus,focused on transforming the fashion industry from a linear to a
237、 circular economy model,Good On You,a brand rating system and“online discovery platform”for sustainable fashion,and Kavida AI,which creates“digital twins”of enterprise supply chains to help predict and monitor disruption threats using integrated data and artificial intelligence.Concludes Seth:“We ha
238、ve the ecosystem and the platform and when we invest in these companies,they have a strategic value,so its a win-win for all of us.”Pallak Seth Founder,Vice Chairman at PDS Limited 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms aff
239、iliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited
240、 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust23Chapter 4:Technology to improve user experienceThe COVID-19 pandemic saw consumers worldwide change their work,social,lifestyle and shopping habits,creating unprecedented adoption of digital channels for
241、 the purchase of goods and services as well as influencing what they bought.For example,formal office wear sales dropped as workers dressed casually to work from home,a significant share of grocery shopping moved from in-store to online,and dining out was replaced by home-delivered meals either dire
242、ctly from restaurants or via third-party apps such as foodpanda,Deliveroo,Ele.me or Meituan Waimai(美团外卖).These trends necessitated retailers and brands to accelerate their digital transformation to ensure their engagement with customers was not led by in-store experiences,but rather across multiple
243、platforms,including online,social media and third-party sales platforms in the form of apps and marketplaces.Our research for this report showed an overwhelming proportion of consumers are confident and comfortable using technology,especially in Chinese Mainland GBA cities,where 88 percent consider
244、themselves mobile-savvy and 81 percent tech-savvy,three and four percentage points more respectively than in our 2021 survey.Younger consumers expect better engagement with brands through artificial intelligence(AI),augmented reality(AR),and the metaverseDigital and seamless experience is essential
245、to Gen Z and millennial consumers who play huge influence on future trends.Thats why the application of APIs and other technologies which accelerate data exchanges is the way ahead for todays businesses to provide customers with superior shopping experience.Yvonne YiuManaging Director,Regional Co He
246、ad,Global Payments Solutions,Asia-Pacific,HSBC 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the l
247、ocal chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust24In Hong Kong(SAR),confidence was lowe
248、r,but still slightly ahead of 2021 levels,at 57 percent savvy in both mobile and tech.Gen Z showed the highest levels of confidence(73 percent tech savvy and 71 percent mobile savvy).Collectively,these figures reflect agreement among consumers that brands with a strong connection between their onlin
249、e channels,social media channels and physical stores can create a seamless customer journey.The findings also showed that consumers particularly Gen Z are looking to brands to use AI and other technology to improve the customer experience by enabling greater connection with brands.For example,they s
250、ee technology enabling a swift response to product enquiries via online chat,or helping them shortlist new products based on their purchase history and style preferences.They also expect brands to use augmented reality(AR)to help them make better purchasing decisions when shopping online.However,thi
251、s preference is considerably more prevalent in Chinese Mainland GBA cities than in Hong Kong.83%82%79%74%57%51%Chinese Mainland GBA cities Chinese Mainland GBA cities Chinese Mainland GBA cities Hong Kong SARHong Kong SARHong Kong SAR(2%)(1%)(2%)(3%)(6%)(10%)Brands should have better connection offl
252、ine-onlineI want to have more connection with brands I like through AI and techI expect brands to use more AR to help improve my purchase decision onlineMoving onto the metaverse As more brands explore opportunities in the metaverse and some tentatively establish a presence there,Chinese consumers a
253、ppear to be responding with growing interest.Asked to what extent they engage with retail brands in the metaverse,nearly half of Chinese Mainland GBA consumers said they would use it to virtually try on or view products before buying.Across the border in Hong Kong,that figure was comparably lower,at
254、 roughly a quarter of those surveyed.A similar portion of Hong Kong consumers said they have immersive in-store experiences with VR,Virtual Metaverse Gatherings,or events.Source:KPMG/GS1 Hong Kong/HSBC survey analysisSource:KPMG/GS1 Hong Kong/HSBC survey analysisSource:KPMG/GS1 Hong Kong/HSBC survey
255、 analysisWhilst Hong Kongs business adoption of the metaverse is still in an early stage,key sectors including financial services and real estate can lead the way by engaging GBA consumers and open the gateway for other businesses to follow.Philippe ChanGeneral Manager,China and Hong Kong,YouGovChan
256、ge on 2021 studyChange on 2021 studyChange on 2021 study 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kon
257、g is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust25While interest appears to b
258、e growing among consumers,retailers have mixed views on the role of the metaverse in the future perhaps due to current technological limitations.Danny Shum,president at TVB E-commerce Business Group and Chief Executive Officer of Ztore,says the space interests him and sees ways it can be integrated
259、with online retailing and other commercial activity in the future.“But I dont think all the critical technologies are right yet like the chips,the glasses,the motion sensing it is not yet“real”enough.“So at this moment we wont invest in the metaverse,we will wait while the tech giants invest and get
260、 the technologies right.”Level of engagement on immersive virtual experiencePercentage of consumers surveyed who have engaged with brands in the following areasTry onUse metaverse to“try on”or view products before buying45%25%Chinese Mainland GBA cities Hong Kong SARGamePlay online games that connec
261、t to online or physical store purchases40%23%Chinese Mainland GBA cities Hong Kong SARVRImmersive in-store experiences that utilise virtual reality39%23%Chinese Mainland GBA cities Hong Kong SAREventsAttend virtual metaverse gatherings or events hosted by retail brands37%16%Chinese Mainland GBA citi
262、es Hong Kong SARNFTsBuy NFTs or other digital artwork from brands29%11%Chinese Mainland GBA cities Hong Kong SARSource:KPMG/GS1 Hong Kong/HSBC survey analysisGen Z consumers are digital natives with extensive experience in gaming and the metaverse.Retailers can consider“retailtainment”and include el
263、ements of the metaverse to enhance the purchasing experience of consumers.Anson BaileyHead of Consumer&Retail,ASPAC,KPMG China 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Engl
264、ish company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging co
265、nsumers with technology,purpose and trust26 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Retail Recharged:Engaging cons
266、umers with technology,purpose and trust27To Danny Shum,president of TVB E-commerce Business Group and CEO of Ztore,the future of e-commerce in Hong Kong is brighter than ever as the territory slowly emerges from the impact of the COVID pandemic.Left with little choice but to go online to shop after
267、movement restrictions were introduced to curb the spread of coronavirus,many consumers initially found it challenging to use an app or website to shop,he explains.But once they found it easy to search,select,order and receive groceries,many are still using TVBs services even now they are free to sho
268、p in stores again.“After youve experienced online ordering,consumers will still go to traditional stores to buy interesting things like different kinds of snacks,but they wont enjoy purchasing 10 kg of rice,or cleaning stuff for their bathrooms,which is more of a natural replenishment purchase.”TVBs
269、 data shows that while there have been spikes in sales over the past two years or so,the baseline of sales is still growing.Shums e-commerce foray began in 2015 when he founded the neighbourhood e-commerce marketplace Ztore,followed several years later by Neigbuy,a flash-sale marketplace.TVB,Hong Ko
270、ngs oldest television broadcasting service,founded its own e-commerce platform Big Shop in 2018 and last year bought Ztore and Neigbuy,merging the three businesses into a new division,TVB E-commerce Business Group,appointing Shum as president.The acceleration of online shopping COVID accelerated the
271、 penetration of online retailing in Hong Kong.“Since COVID,more people have tried it.Our customer acquisition is better and our average basket size is growing as people buy more.The biggest challenge we are facing from COVID is the fluctuation in demand for products it is very hard to maintain good
272、decisions to meet all those fluctuations.”High order volumes require more pickers,delivery staff and inventory to fulfil.“But if we increase our operational capacity and then the orders suddenly go down,then we risk having excess labour.”Shum says that during the fifth wave of COVID in Hong Kong,onl
273、ine orders fluctuated by 200 to 300 percent from one day to the next.In some product categories,demand was so strong,that people were ordering even when delivery would be 28 days later,to be sure of securing the goods.Last-mile logistics remains challenging and expensive In tandem with the challenge
274、 of fluctuating order volumes,the high cost of logistics in Hong Kong is pressuring margins for e-commerce players,says Shum.Outsourcing delivery to third parties who might not invest as much in training risks damaging the brands reputation,he explains,because the drivers are usually the only in-per
275、son engagement the customer has with the online retailer.“If your driver is rude,they think your company is rude.”TVB has tried to address this by adopting a hybrid logistics model for its customer deliveries,that enables it to meet ever-fluctuating customer demands.It has its own fleet of vehicles
276、and drivers,some independently contracted drivers and it uses third-party logistics companies as well.“This hybrid model will create some buffer for us to maintain the service level,but its still not easy,because its very,very hard to maintain at optimised levels,especially during COVID.You can give
277、 up the chance to have more orders,but if you want to seize the opportunity,you have to accept a higher cost of logistics.”Outsourcing is not always an option because contracting companies will ask for a guaranteed minimum order as high as 500 or 1,000 orders per day because they have costs to contr
278、ol as well.Further complicating the business ability to deliver goods on time,staff absenteeism peaked during the fifth wave of COVID when so many frontline employees caught the virus or their families did meaning they could not work.Replacement hires deployed to deliveries often replaced better-tra
279、ined,longer-serving employees,“so our service level would keep dropping,”says Shum.“We were hiring every day,using the TVB television channels to advertise warehouse vacancies.”Danny ShumPresident,TVB E-commerce Business Group Chief Executive Officer,Ztore 2022 KPMG,a Hong Kong(SAR)partnership and a
280、 member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark
281、of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust28As CFO of a technology company focused on attracting and monetising customers of gaming apps and social media channels,Sean Son
282、g is ideally placed to assess the potential of the metaverse.Mobvista is a technology platform headquartered in Beijing with a 400-strong R&D team in Beijing.While it operates on the mainland,more than two-thirds of its customers are outside the country,and 96 percent of its users are outside the ma
283、inland.Mobvista helps clients monetise the ad space on platforms like Meta,Google,Snapchat,Twitter or in games,so expanding into the next frontier of online engagement the metaverse is a logical progression.“We share a vision that the metaverse is going to be part of the whole ecosystem,but we do no
284、t want to be very aggressive at this point,because it is going to change in the next three to five years.”Song predicts there are significant advances to come from both the devices consumers will use to participate in the metaverse and the software that will allow their experiences inside.He likens
285、the road ahead to the development of mobile phones from the flip phones which seemed advanced in their time to the iPhone which redefined the definition of mobile technology,taking handsets into the smartphone era.Mobvista,he says,is waiting for companies like Apple and Google to further develop har
286、dware like VR devices,believing that the more sophisticated they are,the better the user experience and the more impact brands can have on consumers dwelling in the metaverse.But Song does see the metaverse offering another stream of revenue for advertisers that can be monetised in the future.“Its l
287、ike moving from desktop to mobile,when people have the real metaverse around you,peoples exposure to the internet will be much more intensive than now.Every minute except when you are sleeping you will be exposed to the internet so this will have much better engaged time for users and this will caus
288、e a lot of growth in the advertising industry.”He believes the gaming industry will be the first to maximise the potential of the metaverse because of its power to attract consumers and a very important part of the content creation in the platform.But Song warns that brands and advertisers will have
289、 to grapple with how they optimise engagement with consumers in the metaverse,without turning them off by disrupting their metaverse experience in the same way,advertisers have faced similar challenges when they adopted advertising on television and other mediums.“We need to understand what the opti
290、mal way to do this is as the metaverse is a whole new environment.”Sean SongChief Financial Officer at Mobvista 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company lim
291、ited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with te
292、chnology,purpose and trust29Chapter 5:Data and trustAmong all consumers polled,comments from people they know followed by product details on a brands website remain the most trusted sources of information when searching for new products.While the consumption of content from influencers has increased
293、,our findings suggest that Hong Kong(SAR)consumers appear to be trusting live streamers and user-generated product reviews less as compared to family and friends.Among Hong Kong consumers,trust in live streamers and bloggers is down from 34 percent in 2021 to 28 percent this year and is now the leas
294、t relied-upon source.However,among mainland China GBA consumers,the influence of live streamers is holding steady at 58 percent,down by just one percentage point.Online user reviews are trusted by 53 percent of Hong Kong respondents,down from 60 percent in 2021,and by 66 percent among Chinese Mainla
295、nd GBA respondents,down from 76 percent in 2021.Besides social media platforms,significantly more Gen Z consumers in Chinese Mainland GBA cities are seeking trusted opinions from salespeople at physical retail stores.Trust in live streamers and user-generated reviews of products is falling,with frie
296、nds and families and brand websites taking their place To build consumers trust and loyalty,brands must be transparent about the product features and brand stories,and this can be done easily using a QR code that can link to diverse information.Leveraging transformative technologies like AI,IOT,bloc
297、kchain,etc.,brands will be able to enhance the accessibility of data,provide the necessary transparency across the supply chain,and demonstrate integrity and trustworthiness to consumers.Anna LinChief Executive,GS1 Hong Kong 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global
298、organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongk
299、ong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust30Mainland China GBA citiesConsumer level of trust in information sources when making purchasing decisionsComments from friends/family membersComments from frien
300、ds/family membersThe product detail on the brand websiteThe product detail on the brand websiteUsers review onlineUsers review onlineProduct related videos/posts on social mediaProduct related videos/posts on social mediaLive streaming/Live bloggingLive streaming/Live bloggingBrand advertisementBran
301、d advertisementWhat influencers/celebrities are saying about the productsWhat influencers/celebrities are saying about the productsSalesperson at the physical storeSalesperson at the physical storeMoreTrustworthyLess TrustworthyChinese Mainland GBA citiesHong Kong SARSource:KPMG/GS1 Hong Kong/HSBC s
302、urvey analysisThe data suggests there may be opportunities for retailers to expand their customer base and sales by developing promotions that encourage customers to share their purchases or purchasing experience on their social media channels,or that reward customers for inviting a friend to follow
303、 the brand.Corporates face challenges in building data analytics capabilities With data playing an increasingly important role in developing customer relationships and measuring the success of product development,ranging,and popularity,its collection has become more critical than ever before.This in
304、cludes data from advertisement click-throughs,responses to digital marketing and from loyalty program engagement.While consumers trust in retailers promotional information is important in driving top-line sales,customers also care about how the data they gave are being protected.Our corporate survey
305、 showed data security along with the challenge of seamlessly integrating data across multiple channels and platforms are leading concerns for retailers.Consumer wariness about data protection is on the rise,given ongoing reports of data breaches and the rising threat of increasingly sophisticated cy
306、berattacks.At the same time,regulators are sharpening their focus on data security and continuing to address regulatory obligations related to consumer data management and protection.These factors are creating unprecedented pressures for retailers to respond appropriately to ensure customer trust.Ch
307、ad OlsenHead of Forensic Services,Hong Kong,KPMG China 2022 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong
308、is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust31Key challenges retail organis
309、ations are facingSource:KPMG/GS1 Hong Kong/HSBC survey analysisDatasecuritySeamless data integration across multiple channels and platformsRecruiting talent with the right skill sets in digital and data analyticsRetaining the right talentInventory Management/Supply ChainDigital Capital ExpenditureTr
310、aining and upskilling existing staffDeveloping an omnichanneldigital retail strategy31%29%28%27%24%24%23%19%In addition to data security and data integration,retailers cited recruiting talent with the right skillsets in digital and data analytics to manage the collection and interpretation of custom
311、er information as key challenges.Corporates are developing analytics capabilities across multiple business areasFor the past two editions of this report,we noted that around one in three corporates had comprehensive data analytics capabilities in place.This year,we asked for a more detailed status u
312、pdate,looking into the types of analytics that businesses are implementing now or plan to.As the charts below show,descriptive and predictive analytics are the most popular areas(81 percent and 78 percent respectively).A further 76 percent are embracing diagnostic analytics to solve business challen
313、ges,or plan to.The lowest level of data analytics activity from retailers we surveyed relates to assessing the ESG or carbon footprint of their supply chain,with just 19 percent implementing it now,versus 45 percent planning to in the future(for a total of 64 percent).This suggests a gap between con
314、sumer demands for more transparency and current corporate responses to those demands,with actual progress lagging behind the intent.Percentage of respondents who listed these factors as a top-three priorityIt is encouraging to see a growing trend where more businesses are leveraging the GBAs favoura
315、ble policies,extensive talent pool along with latest infrastructure,technology and digital banking services to boost business growth and operational efficiency while meeting their customers evolving needs.Daniel ChanHead of Greater Bay Area,HSBC 2022 KPMG,a Hong Kong(SAR)partnership and a member fir
316、m of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered trademark of GS1 AISB
317、L.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust32Source:KPMG/GS1 Hong Kong/HSBC survey analysisData analytics capabilities Descriptive analytics to analyse past and present performanceDia
318、gnostic analytics to solve business problemsPredictive analytics to forecast future trendsPrescriptive analytics that can recommend actions to improve future performanceBusiness intelligence solution(s)30%26%48%52%Planning to implementImplementing39%42%29%47%30%46%Sales forecasting solution(s)Demand
319、 forecasting solution(s)Unified advanced retail analytics solution(s)Analytics on footprint of your supply chain36%45%30%48%26%52%19%45%Types of analytics solutions retailers are implementing or plan to implementRetailers use of data analytics by function One of the early promises of smart retail is
320、 data-driven decisions.Data analytics and machine learning are already proven to help companies make smarter use of data to become a strategic asset for their improvement of business efficiency and closing sales.Dr.Stephen LamChief Operating Officer,GS1 Hong Kong 2022 KPMG,a Hong Kong(SAR)partnershi
321、p and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 GS1 Hong Kong is the local chapter of GS1,a not-for-profit,standards organisation.GS1 is a registered tra
322、demark of GS1 AISBL.Copyright.The Hongkong and Shanghai Banking Corporation Limited 2022,ALL RIGHTS RESERVED.Retail Recharged:Engaging consumers with technology,purpose and trust33To Hong Kong apparel manufacturer and supplier High Fashion Group,digital innovation is a“very important”part of the gro
323、ups focus.Founded in 1978,the business has since evolved into developing vertical supply chains and most recently embracing sustainability.Its clients are in more than 40 countries across the Americas,Europe and Asia.High Fashion provides a one-stop supply chain solution including design,textile,pro
324、duct development,and garment production.The company has invested significantly in talent acquisition,retention and training of its staff to make the most of new-generation digital technology that can take away the barriers of distance,not just through digital communications but by allowing new ways
325、to collaborate on samples and product designs.Will Lam,Managing Director at High Fashion Group,says its teams around the world are using 3D technology to reduce the use of physical samples,simply by transferring a digital file.He says the digital transformation has significantly improved the speed t
326、o market of new design concepts there is no longer a need to wait for cross-border courier deliveries.“Digital technology has also improved the transparency of the supply chain so now suppliers and customers understand the situation throughout the supply chain from end to end.We can use digital tech
327、nology to manage our business in a more efficient way.”Lack of talent and mindset holding back innovationThe greatest challenge High Fashion is experiencing in adopting new technology is the lack of talent and also the change of mindset among existing talent.“I can see that younger people,in general
328、,are willing to learn digital products but as a company of a certain size,you have people that have not been always learning this type of new technology and it can take a lot of time for them to change their mindset,to adopt better ways than the old way.So we have been spending a lot of time on all
329、types of digital training for our existing staff.”Besides this,Lam and his team have been trying to recruit younger talent with the skills to help change the company.“This is quite important because digitalisation has become a big thing during the past few years and its not very easy to recruit tale
330、nt.”The focus on digital transformation is not restricted to reducing the time to market of new products.High Fashion is investing in artificial intelligence(AI)to help predict consumer trends and help its customers match supply with demand.“At the same time,we are adopting more automation in our su
331、pply chain.So,when theres a disruption,the idle cost will be less.”The company is using such technology to build new relationships in Southeast Asia and China,expanding its network of raw material suppliers,an approach that allowed agility and flexibility when traditional supply chains were disrupte
332、d by the COVID pandemic.Blurring the lines between supplier and retailerHigh Fashion is a classic example of a new generation of manufacturers that is playing a much wider role now than before,blurring the lines between supplier and retailer,embracing innovation and even investing in some of the ret
333、ail businesses that were previously its customers.There is a growing convergence in the apparel industry where manufacturers are looking to expand their reach across the whole supply chain,from sourcing right through to retailing,expanding both their footprint and their turnover.“Brands are approaching us for advice on getting into the Chinese market because we have a lot of resources.”Digitisatio