Challenge

Modern customers want to smoothly traverse online and offline worlds as they contemplate purchases.

A leading China-based home furnishings chain group faced several obstacles as it strived to meet the expectations of modern customers: Its existing siloed systems that were hard to iterate and couldn’t match the needs of fast-paced flexible retail.

Its traditional enterprise system needed to adapt to the changing consumer preference for navigating purchases across both offline and online shopping environments. This was necessary since its physical store set-up features demonstration items only; customers then order these items online via their mobile devices.

Further, having expanded into non-conventional areas like food service, digital product sales, financing, entertainment and fitness, the company now needed to develop a business ecosystem in the home/life space—a new market for the retailer. It also needed a strong versatile operating platform to win in each of these markets.

What Accenture did

Using our new retail mid-end omni-channel solution, we enabled the company to improve and execute more comprehensive marketing plans and campaigns – and also help seamlessly plan to spin-off one of their companies to get listed on the stock market, while the other part would retain its existing ownership.

We also built a finance capability that covered order to payment and a customer loyalty system that included membership registration and the accruing and redeeming of loyalty points. The marketing system implemented also supports member recruitment from multiple channels such as other online and offline stores and social media channels.

And the order system integrates different business orders for unified management and tracking. These systems allow for even more comprehensive customer profiles with data that can be mined and analyzed.

Each of these systems complements the others, forming a mature closed-loop arrangement that helps the company improve efficiencies and grow sales.

The resulting consolidated information helps improve more comprehensive marketing plans and execute marketing campaigns.

New retail mid-end omni-channel solution

We provided our new retail mid-end omni-channel solution—a system developed using Alibaba’s Cloud platform that featured open architecture and strong expansibility to allow for easy sharing of data and services.

Flexible loyalty system framework

By deconstructing customer business scenarios, we built a flexible loyalty system framework to support different promotional campaigns. Also, now employees can process all requests between departments, including human resources and finance, via a popular office chat tool.

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People and culture

We infused a culture of digital agility and learning through continuous communication and cooperation and were able to train the client’s employees and partners about the new technologies and systems.

As we bring continuous digital transformation to the company, we’re also introducing them to best practices in business and in technology systems. In fact, the most significant change we have brought to the client is that it now sees the importance of open-minded thinking.

The teams also promoted the transformation as a way to adapt to the new market environment, which encouraged employee buy-in and participation.

The most significant change we have brought to the client is that it now sees the importance of open-minded thinking.

Value delivered

During China’s ‘Singles Day’ promotion on November 11th each year (11.11), the new retail omni-channel platform helped the company generate several hundreds of thousands of orders (approximately one order every two seconds), acquire an equal grand of new digital loyalty memberships, implement internet marketing campaigns at new physical stores, and support marketing, promotions and sales across existing physical stores.

The new retail omni-channel is a milestone project that demonstrates the power of Accenture’s new retail middle platform and supports the company’s comprehensive digital upgrade of people, products and places.

350+

The chain rapidly expanded from 200+ stores to 350+ stores.

13.3%

The year-on-year growth merchandise volume (GMV) grew 13.3% in 2019.

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