This document discusses the digital transformation of retail in China. It notes that China has become the world's largest tech market, with over 90% internet penetration and the largest number of mobile phone and smartphone users. E-commerce is growing massively in China, and is set to surpass the US to become the largest e-commerce market by 2020. Chinese consumers now engage with retailers through multiple digital channels like mobile apps, social media, and QR codes. E-commerce provides more choice, convenience and better service than bricks-and-mortar stores. Retailers are leveraging both digital and traditional channels to drive more sales. Orange Business Services helps retailers with digital transformation, e-commerce infrastructure, and omni-channel solutions

1. December 2015
Retail therapy
– the digital
transformation
of shopping
in China

2. 2 Retail therapy – the digital transformation of shopping in China
China’s tech boom
China’s digital
usage has
exploded to
become the
world’s largest tech
market.

3. 3 Retail therapy – the digital transformation of shopping in China
China’s tech boom
mobile phone subscribers as of March 2015 overtook the US as world’s largest global smartphone market
internet penetration in China forecast to exceed 90% confirmed mobile internet users as of February 2015

4. 4 Retail therapy – the digital transformation of shopping in China
The evolution of retail in China
China is experiencing massive
growth in e-commerce as the
digital revolution gathers pace.
of China’s retail moving to online channels

5. 5 Retail therapy – the digital transformation of shopping in China
The evolution of retail in China
China set to eclipse
US and become world’s
largest e-commerce
market by 2020 of China’s 1.2 billion mobile users bought goods
or services using phones
B2C e-commerce sales forecast for 2020

6. 6 Retail therapy – the digital transformation of shopping in China
Chinese shoppers
– engaging in multiple ways
Consumers in China
are using digital
technology to
engage with
retailers in
multiple ways.
compare prices with competitors

7. 7 Retail therapy – the digital transformation of shopping in China
Chinese shoppers
– engaging in multiple ways
research
products use coupons

8. 8 Retail therapy – the digital transformation of shopping in China
Chinese shoppers
– engaging in multiple ways
receive offers in
proximity to stores
get recommendations
based on prior purchases
check in at stores
via social media apps
scan QR codes

9. E-commerce – the advantages
over bricks & mortar
9 Retail therapy – the digital transformation of shopping in China
Choice and range: online retailers
able to offer much more stock
Opening hours: online stores open
24 hours a day meaning shopper
can shop when they like
Store location: shoppers has
convenience of buying from
literally anywhere
Personal attention: online retailers
focus on user interface and
user experience without need
to train staff
More choice,
more convenience,
better service
– why Chinese
consumers are
turning on to
e-shopping.

10. E-commerce – the advantages
over bricks & mortar
10 Retail therapy – the digital transformation of shopping in China
In-store Wi-Fi
Paying via an app
QR codes for added content
Real-time personalised offers
Video walls
Paying via mobile phone
Chinese consumers
are now demanding
more variety in their
e-commerce experience.
When surveyed they
rated all of the following
more important than
their peers around
the world.

11. 11 Retail therapy – the digital transformation of shopping in China
Digital + traditional = more
Some examples
where retailers
have leveraged
this thinking
to drive more
sales.
Restaurants using digital
menus to access details
about wine reported a
20% rise in sales.

12. 12 Retail therapy – the digital transformation of shopping in China
Digital + traditional = more
Virtual dressing rooms
have resulted in a +50%
rise in conversion rates
for first-time buyers.
Interactive store windows
that link to shoppers’ phones
have brought 25% of those
who try into stores afterward.

13. Our unique positioning
13
Meeting
business needs
Overcoming
IT challenges
At the heart
of new
digital uses
Innovation
foresight
with our
Orange Labs
Secure networks
and global infrastructure
Global/local
capabilities
along with
expert people
Orchestrate > Operate > Optimize
Retail therapy – the digital transformation of shopping in China

14. Digital transformation
14
Orange Business Services is a
trusted partner for our customers’
digital transformation
providing your
employees with
smart and mobile
ways of working
offering the
best connectivity,
wherever you
need it
leveraging
applications
for your
business
performance
bringing you
the flexibility
of cloud
infrastructure
Retail therapy – the digital transformation of shopping in China

15. 15 Retail therapy – the digital transformation of shopping in China
How Orange helps
retail companies
Accelerate time to market via scalable
and agile network and hybrid cloud based
e-commerce infrastructure
Securely connect stores, HQ sites and
e-commerce infrastructure globally with
high availability
Improve Omni-channel customer engagement
Improve efficiency with our global real time
tracking and reporting solutions for supply chain
management
Enhance productivity through greater
collaboration between employee worldwide
Improve profitability by rationalizing and
optimizing global ICT infrastructure

16. 16 Retail therapy – the digital transformation of shopping in China
Orange retail industry
solutions overview
 CRM
 Loyalty
 Customer profiling
 Insight
 Customer contact
 POS
 Staff communication
 Inventory management
 Customer traffic analysis
 Sales mobility
 Digital signage
 WIFI
 APP, website
 PCI compliance
 Social media
 CDN
 Anti-DDOS, WAF
 Cloud
 Order management
 Merchandise
 Warehouse & fulfilment
 End to end visibility
Customer In-store E-commerce Supply chain
MPLS
Internet
DC/DR
Security
MPLS
Internet
DC/DR
Security
MPLS
Internet
DC/DR
Security
MPLS
Internet
DC/DR
Security

17. 17 Retail therapy – the digital transformation of shopping in China
Orange e-commerce sector
solutions overview
 Network enabled data center services
(co-loc, Net-hosting)
 Managed DR and Backup for customer DB and
payment transaction records
 Auto-scaling and cloud based content caching to
ensure user experience
 IaaS to enable on demand, Pay as you use
based compute, storage to cater for peak
seasons and seasonal promotion
 Hybrid IT via single cloud brokerage enables
automated workload provisioning across different
cloud targets and alignment between cost of
infrastructure and value of workload
 Managed aPaaS hosts e-commerce apps and
monitoring, reporting tools
 Cloud contact center solutions, fleet tracking,
inventory management, inventory tracking
 DevOps for continuous
improvement/maintenance of current apps and
innovation of new applications
 Security and cyber-defense

18. 18 Retail therapy – the digital transformation of shopping in China
Case study: Darty
Orange digital
solution improves
in-store customer
experience at
Darty.
3.8 billion euros in 2013,
242 stores and 10,500
employees in France.
Leading distributor of
electrical products in
Europe.

19. 19 Retail therapy – the digital transformation of shopping in China
Case study: Darty Orange solution
Issues and challenges
 ADSL access, LAN Wi-Fi, security, installation of the equipment, wiring,
supervision, deployment and management of smart tablets
 The Digital Coach service for mobile terminals (assistance to rollout and
to users)
 The design of the service and the management of the terminals (technical and
organisation)
 The rollout of the 4,000 synchronised tablets in the shops
 A help desk and the management of the device stock, using Mobile Iron’s Mobile
Device Management platform, hosted in the Orange cloud
 Assistance to users that can include the remote management of each tablet
Results and benefits
 extended web-store experience with synergy between the website and
physical stores
 secured and managed broadband internet access and Wi-Fi for staff
and customers
 salespeople can access real-time sales applications and price
comparison websites via tablets
 tablets can be customized to salespeople’s needs, and come with
 high-quality user support to enable faster training and adoption
 Darty learnt that its customers journey
combined online searches, product
comparisons between
e-shops and visits to brick and mortar
shops
 The chain needed to put the sales
advisors in the shops back at the heart
of these journeys, using digital tools
 Darty wanted to introduce in-store
digital experiences to increase sales
and empower sales forces

20. 20 Retail therapy – the digital transformation of shopping in China
Case study: Jingdong Mall
Jingdong Mall choose
Orange Contact
Center solution to
enhance global
customer service and
lower costs
 HQ in Beijing, 2011 revenue $3.3B
 also called Jingdong Mall, one
of the biggest B2C online computer
retailers worldwide, double the size
of Amazon
 51M registered users and 8,000 suppliers
in China, sells +1M different products
with more than 400,000 orders per day

21. 21 Retail therapy – the digital transformation of shopping in China
Case study: Jingdong Mall Orange solution
Issues and challenges
 Global Contact Center Solution (SIP) to support
5000 agents in China
 Nice Voice Recognition, Audiocodes voice gateway, Nuance
ASR and Text to Speech (TTS)
 IVR for customer self-service
 manage customer and technical support calls, underpinned by
SLAs
 program & partner management – Genesys, Verint
Results and benefits
 improved CWT, reduced abandon rate, better first
call resolution rate via direct transfer to suppliers
 lower operating costs using call distribution across multiple
locations, better agent flexibility
 1,000 agents on system in month 1
 high availability ensures non-stop customer service
 increasing volumes led to existing
call center becoming bottleneck +
unable to scale to 10,000 agents
 customer’s need multi-media
channels – voice, Web chat, email
 reduce Call Waiting Time (CWT),
increase first call resolution rate
 lower operational costs, overall and
per agent
 call center critical to e-retailer

22. 22 Retail therapy – the digital transformation of shopping in China
Case study: Omni-channel
Omni-channel
IT enablement
 HQ in Zhejiang, over 9000 employees
 A leading kitchen appliance manufacture
in China
 Selling product to 40 countries and
regions, more than 5 million families all
over the world are enjoying its high
quality products and service

23. 23 Retail therapy – the digital transformation of shopping in China
Case study: Omni-channel Orange solution
 End-to-end solution from design, implementation to
operation
 Leading technology and true multimedia
(voice, email, chat, SMS, QQ, Wechat, Weibo)
 Orange knowledge base and 360 customer
profile solution
 Integrated with MS CRM
Results and benefits
 Meet business growth need
 Better customer satisfaction
 Improve efficiency via new agent tool.
Reduce abandon rate, reduce call waiting
time and better SLA
Issues and challenges
 Expect advanced contact center service
to support dynamic business growth
 multi-channel interaction
 customer engagement efficiency
 Global expansion
 HQ in Zhejiang, over 9000 employees
 A leading kitchen appliance manufacture
in China
 Selling product to 40 countries and regions, more
than 5 million families all over the
world are enjoying its high quality products and
service

24. Orange group
24 Retail therapy – the digital transformation of shopping in China
244 million customers worldwide
Local presence in 160 countries
Major Service Centers in Brazil, Egypt,
India, Mauritius helping business clients 24/7
Largest enterprise voice/data network for
in the world, 220+ countries and territories
4G in 11 countries
3,000+ multinational clients worldwide
156,000 employees (20,000 serving enterprises)
732 million euros invested in research and
innovation in 2014
Cloud for Business customers
300 MNC, 8,000 SMEs
2014 revenue
strongest brand in 2014
€39bn

25. Thank you
for your time!
Data in this presentation referenced from a PwC study
“Shop Till You Drop” commissioned by Orange Business Services.
To find out more download
the report here - https://backoffice.www.orange-
business.com/en/library/publication/shop-till-you-drop