Capturing shoppers’ demandThink small to win by segmenting the shoppers and identify their unique “shopper personalities”Identify the most valuable mission by a retail customer to develop a stronger shopper‐focused value proposition, to win more shoppersConnect shoppers’ instore navigation with the layout planning and let them govern the in‐store location of various point‐of‐salesChange design & merchandising principles according to shoppers’ interaction before shelfTake consumer demands on product specifications (function, flavor, etc) into careful consideration when driving on‐shelf assortment.Leverage consumer differences by geographies in order to capture highest available sales with product assortment.
InnovationThe amount of “in China for China” innovation is growing. To succeed, it requires ongoing investment and commitment.What it takes to win in China is similar to other markets, but the degree of difficulty is, in some ways, higher.Being “first to market” has advantages, but followers can win if they move fast or differentiate themselves.Multi‐nationals and local companies generally follow different paths, each leveraging its own strengths, but each can learn from the other.Local companies are increasingly pursuing and succeeding in the higher‐priced, premium segment, often by leveraging distinct “Chinese” elements.Local market knowledge and continuous investment are essential foundations to success, but talent and a rigorous process are the key differentiators for companies that win through innovation.
Retailer Don’t rely on just experience for potential city selection… You need to use more comprehensive and systematic ways – in order to reduce the risk & increase ROI. Understanding your shopper is even more crucial in lower city tiers. Shoppers from different city tiers have varied behavior & needs. Low prices & promotions on their own won’t win.. You must first understand your consumer… Be flexible in store formats when entering to lower tier cities. Understanding 2 local shoppers & competition is crucial. Building brand awareness & gaining customer loyalty are the most important strategies for retailers to achieve long term success, especially when entering lower 2 tier cities Be a pioneer and introduce new concepts & trends from higher tier cities. However don’t forget the importance of local culture and favorites…
In AutomotiveForm emotional connections with lower tier consumers ‐ friendly, warm,inviting and caringIn your marketing communication ‐ build a trustworthy brand image thatoffers a higher value of serviceMake good use of the internet, social media and physical displays ‐ to reach out totarget consumers in a more approachable mannerDealer network expansion and training of sales and service staff will further improvbrand visibility in lower tier cities ‐ as well as playing a more important role ininfluencing consumer decisionUtilize the Internet and Physical Displays to Enhance Brand Awareness
Retail BankingHuge opportunity exists in all tiers of cities in China. In tier 1 and tier 2 cities product penetration is relatively high; gain market share via differentiation.Tier 3 and 4 city opportunities exist in increasing product penetrationChannel usage is skewed towards branches. online, ATM and telephone bankingcan be utilized for basic banking services thereby easing pressure on branchesGood service is the most important factor affecting customers’ choice ‐ apart from branch (channel) coverage. Nielsen research shows that customers perceive no difference in service among big banks. Customer experience is delivered through every touch point. It is important todeliver high quality service via every touch point!Financial institutions with strong customer experience enjoy strong brand equity, higher acquisition rate and greater loyalty from its customers
How to Win Digital ConsumersUnderstand the key issues driving online sentiment… it starts with listeningCreate an “authentic” online interaction with consumers; be relevant, speak their language, leverage their celebritiesLook for ways to let consumers tell your story for you… rather than advertising products, engage audience in your community efforts & feature developments, etc.Understand online buying for your product category and have an online sales strategyDon’t forget mobile is an increasingly important part of the internet